Wedoany.com Report-Nov. 18, BASF SE (Ludwigshafen, Germany) has signed a multi-year cooperation agreement with Air Liquide Group’s subsidiary, Shanghai Chemical Industry Park Industrial Gases Co., Ltd. (SCIPIG), and Shenergy Group’s subsidiary, Shanghai Shenji Energy & Environment Technology Co., Ltd. (Shenji), to promote the production of low-carbon footprint methylene diphenyl diisocyanate (MDI) using biomethane.

Under the agreement, Shenji will employ its bio-circular waste treatment technology to produce biomethane that meets national standards and supply it into the urban natural gas grid operated by Shanghai Gas. SCIPIG will convert this biomethane into bio-hydrogen and bio-CO. BASF will then use these bio-based industrial gases to manufacture MDI and its derivatives with reduced product carbon footprint (rPCF), including monomeric MDI. Monomeric MDIs are applied either as pure isocyanate, mixed with polymeric MDI (pMDI), or in prepolymers for flexible foams, CASE applications, shoe soles, and thermoplastic polyurethane.

“I am thrilled to see BASF and Shenergy launching this project with Air Liquide, just one year after we signed a Memorandum of Understanding for biomethane cooperation,” said Dr. Jeffrey Lou, President and Chairman of BASF Greater China. “By applying bio-based feedstock, BASF will further reduce the carbon footprint of our products, demonstrating our commitment to expanding our sustainable product portfolio and driving circular economy. It also marks a pivotal step to enable our local customers’ green transformation and jointly build a low-carbon future.”

Dinan Huang, Chairman of Shenergy Group, added: “Shenergy Group is committed to driving the circular economy by converting bio-based waste into valuable bioenergy. Today’s agreement marks a major milestone following last year’s partnership with BASF and a breakthrough in building a low-carbon value chain of ‘bio-based feedstock – green chemicals.’ Through this collaboration, we aim to accelerate green development and contribute to industry transformation and sustainable urban growth.”

“This is the first time that bio-hydrogen and bio-CO have been locally produced in Shanghai from biomass, which will be fully compliant with ISCC* PLUS standards, following the respective site and product certifications,” said Rui Coelho, Air Liquide China Chief Executive Officer. “This contract kicks off the production of bio-products in SCIP, providing momentum to support the decarbonization goals and circular economy targets of the industrial players in the industrial park. Air Liquide China is committed to the development of reliable and competitive solutions that help our customers reduce their carbon footprint.”

The collaboration aims to establish a sustainable local value chain from biomass-derived feedstock to green chemicals, supporting industrial decarbonization and promoting circular economy initiatives. The project will also strengthen Shanghai’s position as a hub for low-carbon industrial innovation, enabling local companies to access bio-based materials and technologies that contribute to reduced emissions and environmental impact.

By integrating bio-based feedstock into chemical production, the partnership demonstrates how industrial cooperation can accelerate the adoption of sustainable technologies while providing scalable solutions to meet China’s environmental and energy transition objectives.