Encina & BASF: Global Circular Chemicals Expansion

BASF, the largest chemical producer in the world, has entered a strategic collaboration agreement with Encina Development Group, a producer of circular chemicals derived from waste streams. 

Encina’s agreement with BASF supports the development of its planned circular chemicals manufacturing facility on the Gulf Coast in the US. 

The agreement sets the framework for BASF to provide strategic advisory support services during the key project development phases, leading to a final investment decision. 

BASF’s agreement with Encina

The agreement between the two companies will see BASF offering advice on procurement strategy and project execution planning. 

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

Thomas Ohlinger, Senior Vice President Traded Products at BASF, says: “Advancing circular economy solutions requires strong collaboration across the value chain.

“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.”

What is Encina’s technology? 

Encina’s proprietary catalytic conversion technology transforms waste streams otherwise destined for landfills or incineration into circular products used within existing manufacturing supply chains. 

The company’s products are designed as drop-in circular feedstocks that support decarbonisation and circular economy objectives across numerous industries.

McKinsey says that plastic recycling represents a between US$50 and US$75 billion economic opportunity by 2035. 

The consulting firm adds that the buoyant opportunity in chemicals circularity may be comparable to the previous investment boom in petrochemicals.

Building on previous collaboration

The agreement builds upon the two companies previously announced long-term supply agreement for chemically recycled circular benzene derived from waste streams announced in 2024. 

David Schwedel, Founder and Executive Director of Encina, says: “BASF’s decision to deepen its relationship with Encina reflects the increasing importance of scalable circular feedstock solutions within the chemical industry.

“Together, we are helping advance a new generation of circular chemical manufacturing capable of reducing waste while supporting global demand for sustainable products.

“This collaboration further validates Encina’s technology, commercial platform and long-term global development strategy.”

In a press release issued by Encina, the company says the agreement establishes a framework for evaluating future collaboration opportunities between the parties for additional projects across international markets.