Engie to supply BASF with biomethane in Germany, Belgium

French electric utility Engie SA (EPA:ENGI) has landed a deal to supply BASF SE (ETR:BAS) with biomethane for the German chemicals giant’s production sites in Germany and Belgium.

The biomethane purchase agreement (BPA) will see BASF receive between 2.7 TWh and 3 TWh of biomethane for seven years, the partners said on Thursday. The agreed renewable gas volumes will be used to replace fossil raw materials in chemical production at BASF’s factories in Ludwigshafen, Germany, and Antwerp, Belgium.

The contract is aligned with BASF’s efforts to reduce the carbon footprint of its operations and offer products with lower or zero Product Carbon Footprints (PCF) across the automotive, packaging and detergents industries.

“With a biomethane portfolio steadily growing, this new deal sets us on the right path to achieve our ambition to sell 30 TWh of biomethane per year by 2030,” said Edouard Neviaski, CEO of Engie’s Business Entity Global Energy Management & Sales.

At end-2021, BASF signed a 25-year power purchase agreement (PPA) with Engie to procure 20.7 TWh of electricity from renewable sources for several of its locations across Europe.

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