BASF, Encina Expand Collaboration on Gulf Coast Circular Chemicals Project

Encina Development Group, an ISCC PLUS certified producer of circular chemicals, and BASF signed a strategic collaboration agreement tied to the development of Encina’s planned commercial-scale circular chemicals facility on the U.S. Gulf Coast.

Under the agreement, BASF will provide strategic advisory support during project development activities leading up to a final investment decision, including procurement strategy and project execution planning. The agreement also establishes a framework for BASF to participate in future project opportunities, including potential equity investment.

The collaboration expands on a previously announced long-term supply agreement between the companies for chemically recycled circular benzene derived from waste streams. BASF said the feedstocks are intended for use within its Ccycled product portfolio, which supplies materials to markets including packaging, automotive, textiles and consumer products.

Encina uses catalytic conversion technology designed to process waste streams that would otherwise be landfilled or incinerated into chemical feedstocks compatible with existing manufacturing infrastructure. According to the company, the products are intended to function as drop-in raw materials for chemical production and support circular economy and decarbonization initiatives.

The planned Gulf Coast project represents Encina’s first commercial-scale facility and is part of the company’s broader strategy to expand circular chemicals production capacity globally.

Thomas Ohlinger, senior vice president of traded products at BASF, said the collaboration is intended to increase the availability of circular feedstocks for chemical manufacturing operations and support use of recycled raw materials in BASF production processes.

David Schwedel, founder of Encina, said the agreement advances the company’s commercial development strategy and supports expansion of circular chemical manufacturing infrastructure.

The agreement also includes provisions for the companies to evaluate future international project opportunities.