BASF and Encina partner to develop circular chemicals manufacturing facility

The agreement sets out terms for BASF to provide advisory support during key project development phases leading up to Encina's Final Investment Decision, including input on procurement strategy and project execution planning.

It also gives BASF rights to participate alongside Encina in future project development opportunities, including potential equity participation.

This builds on the two companies' previously announced long-term supply agreement for chemically recycled circular benzene derived from waste streams. According to the companies, BASF intends to use these circular feedstocks within its Ccycled® product portfolio, supporting customers in these industries that are seeking sustainable and circular material solutions.

"Advancing circular economy solutions requires strong collaboration across the value chain," said Thomas Ohlinger, senior vice president Traded Products at BASF. "Through this additional agreement with Encina, BASF continues to support the development of innovative approaches that increase the availability of circular feedstocks for the chemical industry and expand the use of circular raw materials in our production processes and Ccycled® product portfolio. This demonstrates our strength as a partner with distinctive capabilities to support and shape early-stage projects beyond what pure off-takers can offer."

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"BASF's decision to deepen its relationship with Encina reflects the increasing importance of scalable circular feedstock solutions within the chemical industry," said David Schwedel, founder of Encina. "Together, we are helping advance a new generation of circular chemical manufacturing capable of reducing waste while supporting global demand for sustainable products." Schwedel added: "This collaboration further validates Encina's technology, commercial platform, and long-term global development strategy."

Encina describes its proprietary catalytic conversion technology as transforming waste streams otherwise destined for landfills or incineration into circular products designed as drop-in feedstocks for existing manufacturing supply chains, supporting decarbonization and circular economy objectives across multiple industries.

Beyond the Gulf Coast project, the agreement also sets out terms for the two companies to evaluate future collaboration opportunities on additional projects in international markets.