BASF has officially signed a strategic cooperation agreement with Sinopec Tianranqi Company to secure a stable biomethane supply for its operations in China.
The trilateral agreement, which also includes BASF-YPC Company Limited (a 50-50 joint venture between the two giants), aims to drive the large-scale application of this renewable feedstock at the Nanjing Verbund site. This move marks a significant step toward lowering the carbon footprint of chemical production in the region.
Details of the Biomethane Supply Deal
Under the terms of the newly signed agreement, Sinopec Tianranqi Company will act as the primary supplier. They are tasked with providing biomethane that meets strict national standards.
Crucially, the supply will be certified by ISCC PLUS (International Sustainability and Carbon Certification). Sinopec will also provide the relevant carbon footprint data to ensure transparency and traceability.
BASF-YPC will utilize this biomethane supply directly in its production processes. By replacing fossil-based feedstocks with this sustainable alternative at the Nanjing Verbund site, the joint venture aims to significantly reduce the carbon intensity of its products. This, in turn, supports downstream customers in achieving their own green transformation goals.
Executive Perspectives on Low-Carbonization
The leadership from both organizations highlighted the strategic importance of this collaboration for meeting long-term climate targets.
Bram Jansen, Senior Vice President, Global Direct & Logistics Procurement of BASF, emphasized the collaborative nature of the transition.
“BASF continues to join hands with partners to promote the use of biomethane as a chemical feedstock and facilitate the low-carbonization of our integrated value chains,” said Jansen.
He added, “I am proud that we embark on this transformation journey with our seasoned partner Sinopec Tianranqi Company. This cooperation demonstrates our commitment to our 2050 net zero target and injects momentum into the green transformation of our customers in China and across the Asia-Pacific region.”
Shan Jianhua, Vice President of BASF-YPC, described the agreement as a defining moment for the joint venture.
“Today is a milestone for BASF-YPC. We are proud to join forces with our parent companies to pioneer a new business in bio-based feedstocks. We look forward to delivering products with a lower carbon footprint to our customers soon,” Jianhua stated.
Future Outlook for Green Feedstocks
The collaboration extends beyond the current agreement. BASF and Sinopec Tianranqi Company are actively exploring opportunities to expand biomethane usage to other BASF production sites. The ultimate goal is to drive the widespread application of sustainable energy and feedstocks for large-scale low-carbon production.
Dong Xianyong, Chairman of Sinopec Gas Company, noted that the shift toward bio-based gas is inevitable for the industry.
“Biomethane represents a key development direction for clean energy and reflects the industry’s future green trend,” said Xianyong. “This collaboration is not only an active fulfillment of our global sustainability commitments but also marks the beginning of expanding our cooperation from traditional areas into new green and low-carbon fields.”
