BASF’s Biomass Strategy 2025: From European Pledges to Global Execution

Industry Adoption: How BASF’s Biomass Balance Approach is Reshaping Global Supply Chains

BASF has strategically evolved its biomass feedstock approach from establishing foundational European partnerships to executing a diversified, global rollout of tangible, low-carbon products. Between 2021 and 2024, the company’s focus was on validating its Biomass Balance (BMB) methodology through large-scale supply agreements, most notably a landmark partnership with Henkel to replace 110,000 tons of fossil ingredients annually and collaborations with companies like Trinseo and BRITA. This period established the commercial and logistical viability of the “drop-in” solution, underpinned by an ambitious circular economy sales target of €17 billion by 2030. In contrast, the period from January 1, 2025, to today marks a significant acceleration in both product diversification and geographic expansion, demonstrating the strategy’s maturation. This recent phase has seen the launch of specific BMB product lines in North America and Asia—including ISCC PLUS certified plasticizers, flexible polyurethane systems, and the world’s first biomass-balanced polyethersulfone—supported by major investments like the new Zhanjiang Verbund site. The revision of the circular economy sales target to a still-substantial €10 billion reflects a pragmatic adjustment to scaling complexities rather than a strategic retreat, underscoring a shift from ambitious targets to proven, scalable execution. This transition from supplying B2B ingredients to co-creating sustainable value chains with customers like AkzoNobel and Galaxy Surfactants proves that the BMB approach is no longer a niche concept but a core pillar of BASF’s global commercial strategy.

Table: BASF’s Strategic Investments in Biomass and Circular Economy

Table: BASF’s Global Biomass and Circular Feedstock Partnerships

Geography: BASF’s Shift from a European Hub to a Global Biomass Network

BASF’s biomass strategy has decisively shifted from a Europe-centric model to a globally executed network, with Asia and North America emerging as critical hubs for growth and implementation. Between 2021 and 2024, activities were heavily concentrated in Europe, where foundational partnerships with Germany-based Henkel and Europe-wide agreements with ENGIE established the commercial framework for the BMB approach. During this time, the focus was on securing European site certifications like REDcert² and proving the model’s viability within a familiar regulatory environment. The period from 2025 onward marks a significant geographic pivot. The most prominent signal is the massive investment in Asia, led by the commencement of production at the new Zhanjiang Verbund site in China, which will operate on 100% renewable power. This is complemented by a biomethane supply partnership with Sinopec for the Nanjing site and an expansion of bio-based surfactant production in Chonburi, Thailand, solidifying a sustainable production footprint in the region. Simultaneously, North America has transitioned from a planning stage to a commercial reality, with the 2025 launch of ISCC PLUS certified plasticizers from sites in Texas and Ontario and new bio-based polyurethane foams. This expansion mitigates the risk of regional dependency and positions BASF to capture growing demand for sustainable chemicals in the world’s largest markets, moving far beyond its initial European base.

Technology Maturity: BASF’s BMB Platform Moves from Certified Concept to Scaled Commercial Reality

BASF’s Biomass Balance (BMB) approach has matured from a novel, certified methodology into a commercially scaled, globally deployed platform, while next-generation conversion technologies are now advancing from R&D to successful pilot demonstrations. In the 2021-2024 period, the primary focus was on establishing the credibility and viability of the BMB mass balance system itself. This involved securing third-party certifications like REDcert² and ISCC PLUS for European sites and executing large-scale supply agreements, such as with Henkel, to prove the concept could work at an industrial scale. Product launches during this time, like Ultraform® BMB, served as important proofs-of-concept. Concurrently, investments in future technologies, like the venture funding for seaweed-based feedstock developer Sea6 Energy, represented early-stage bets on next-generation biomass sources. Since the start of 2025, the technology has entered a new phase of commercial maturity and diversification. The BMB approach is no longer just a concept but a standard commercial offering, with a rapid succession of product launches across polyurethanes, plasticizers, and surfactants in both North America and Asia. More importantly, advanced technologies are showing tangible progress. The collaboration with ETH Zurich and Porsche on the co-gasification of biomass and plastic waste successfully completed its pilot project in September 2025, demonstrating a quantifiable GHG reduction of over 3 kg of CO2-equivalent per kg of recycled material. This signals that while BMB is the commercially dominant technology today, BASF is successfully advancing a pipeline of next-generation conversion technologies from the lab to validated pilot scale.

Table: SWOT Analysis of BASF’s Biomass Feedstock Strategy

Forward-Looking Insights: The 2025 Litmus Test for BASF’s Global Biomass Ambition

The critical strategic action for BASF in the year ahead is to flawlessly execute its global expansion while rigorously defending the integrity of its mass balance accounting system, as this dual challenge will determine the long-term success of its entire biomass strategy. The most recent data from 2025 signals a clear and aggressive push to transform the Biomass Balance approach from a European success story into a global commercial engine. This is evidenced by the simultaneous execution of massive, long-term feedstock deals like the 7-year agreement with ENGIE and the partnership with Sinopec, alongside a rapid-fire rollout of BMB products into the North American and Asian markets.

Looking ahead, the market should closely monitor two key indicators. First, the commercial success of the BMB coatings line expansion into North America will be a crucial test of the value proposition’s resonance in a market with different regulatory and consumer pressures than Europe. Second, the operational ramp-up and delivery of low-carbon products from the new Zhanjiang Verbund site will be the ultimate validation of BASF’s ability to replicate its sustainable production model at scale in Asia. Finally, tracking progress toward the revised €10 billion circular economy sales target will provide the clearest metric of whether the market is willing to adopt and pay for these mass-balanced products, solidifying BASF‘s position as a pivotal enabler of industrial decarbonization.

Frequently Asked Questions

What is BASF’s Biomass Balance (BMB) approach and how does it work?
The Biomass Balance (BMB) approach is a certified method where BASF feeds renewable raw materials (like bio-naphtha or biomethane from organic waste) into the beginning of its large-scale, existing chemical production network (the Verbund). The renewable portion is then mathematically allocated to specific end products using a certified mass balance methodology. This allows customers to purchase a product with a reduced carbon footprint, equivalent to the amount of fossil fuel replaced, without changing the product’s formulation or quality—making it a ‘drop-in’ solution.

Why did BASF lower its circular economy sales target from €17 billion to €10 billion?
According to the provided analysis, the revision of the sales target from €17 billion to €10 billion by 2030 is not a strategic retreat but a pragmatic adjustment. It reflects a more realistic assessment of the complexities involved in scaling a global circular economy portfolio, suggesting a strategic shift from setting highly ambitious goals to focusing on proven, scalable execution and tangible results.

How has BASF’s biomass strategy expanded beyond Europe?
Initially focused on Europe with foundational partnerships (e.g., Henkel), BASF’s strategy has decisively pivoted to a global model since 2025. Key expansions include major investments in Asia, such as the new Zhanjiang Verbund site in China designed for 100% renewable power, a biomethane partnership with Sinopec, and increased bio-surfactant capacity in Thailand. Simultaneously, BASF has launched commercial BMB products in North America, including certified plasticizers and polyurethane systems, transforming its strategy from a regional success story into a global operational network.

What kinds of renewable feedstocks is BASF securing for its strategy?
BASF is diversifying its feedstock supply globally. Key examples include signing a 7-year Biomethane Purchase Agreement with ENGIE for up to 3.0 TWh to supply its European sites. In China, it has partnered with Sinopec to use biomethane at its Nanjing site. The company has also made venture capital investments in next-generation sources, such as Sea6 Energy, which cultivates red seaweed as a novel, non-food biomass source for chemicals.

What are some concrete examples of companies and products using BASF’s BMB materials?
BASF is co-creating sustainable value chains with numerous partners. Notable examples include: Henkel, which is converting its European portfolio to use BMB ingredients equivalent to 110,000 tons of fossil feedstock annually; Galaxy Surfactants, which received the first Asia-Pacific batch of biomass-balanced intermediates for the personal care industry; and Siemens, which collaborated with BASF to use BMB plastics in its SIRIUS 3RV2 electrical safety products.