BASF & Encina: Circular Chemicals & Waste Reduction Projects

BASF has agreed to work with Encina Development Group on a project to produce chemicals from waste material. Encina operates technology that converts waste streams into circular chemical products.

The collaboration could support construction of a manufacturing facility on the Gulf Coast in the US. BASF will provide advisory services during project development stages before a final investment decision.

Advisory services and equity rights

BASF will offer guidance on procurement strategy and project execution planning under the terms of the agreement. The deal also gives BASF rights to participate in future project development opportunities.

This includes potential equity participation alongside Encina. The two companies have structured the agreement to allow for evaluation of additional projects across international markets.

Thomas Ohlinger is Senior Vice President Traded Products at BASF. Thomas says the agreement demonstrates capabilities beyond what off-take partners typically provide.

"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 Cycled product portfolio," Thomas says.

Technology for waste conversion

Encina's catalytic conversion technology transforms waste streams into circular products used in existing manufacturing supply chains. The materials would otherwise go to landfills or incineration facilities.

The company designs its products as drop-in circular feedstocks. These materials could support decarbonisation objectives across multiple industries.

According to McKinsey, plastic recycling represents a between US$50bn and US$75bn economic opportunity by 2035. The consulting firm says the opportunity in chemicals circularity may be comparable to previous investment activity in petrochemicals.

The technology addresses supply chain demand for materials that reduce waste volumes. Circular feedstocks offer manufacturers alternatives to virgin chemical inputs.

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Building on benzene supply deal

The agreement extends a long-term supply arrangement announced in 2024. That deal covered chemically recycled circular benzene derived from waste streams.

David Schwedel is Founder and Executive Director of Encina. David says BASF's decision to deepen the relationship shows the chemical industry's need for scalable circular feedstock solutions.

"Together, we are helping advance a new generation of circular chemical manufacturing capable of reducing waste while supporting global demand for sustainable products," David says. "This collaboration further validates Encina's technology, commercial platform and long-term global development strategy."

BASF is the largest chemical producer globally. The company has committed to expanding circular raw materials in its production processes and product portfolio.