November 14, 2025

BASF partners with Air Liquide and Shenergy, to advance a sustainable MDI value chain

Produce MDI products with reduced product carbon footprint, covering MDI and its derivatives
First local production of bio-hydrogen and bio-CO in Shanghai

Shanghai, China – November 14, 2025 – BASF signed a multi-year cooperation agreement with Air Liquide Group’s (Air Liquide) subsidiary, Shanghai Chemical Industry Park Industrial Gases Co., Ltd. (SCIPIG), and Shenergy Group’s subsidiary, Shanghai Shenji Energy & Environment Technology Co., Ltd. (Shenji). The collaboration aims to utilize biomethane to jointly promote the production of low-carbon footprint methylene diphenyl diisocyanate (MDI).

According to the agreement, Shenji will leverage its advanced bio-circular waste treatment technology to produce biomethane that meets national standards and deliver it into urban natural gas grid operated by Shanghai Gas. SCIPIG will use this biomethane to produce bio-hydrogen and bio-CO. BASF will then utilize these bio-based industrial gases to manufacture MDI and its derivatives with reduced product carbon footprint (rPCF), including but not limited to monomeric MDI. Monomeric MDIs are either used as pure isocynate, in mixtures with polymeric MDI (pMDI) or in prepolymers for flexible foams, CASE applications, shoe soles or 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, stated “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,” Rui Coelho, Air Liquide China Chief Executive Officer, said, “This contract kicks off the production of bio-products in SCIP, providing a momentum to support the decarbonization goals and the 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 to reduce their carbon footprint.”

About BASF

At BASF, we create chemistry for a sustainable future. Our ambition: We want to be the preferred chemical company to enable our customers’ green transformation. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises, as core businesses, the segments Chemicals, Materials, Industrial Solutions, and Nutrition & Care; our standalone businesses are bundled in the segments Surface Technologies and Agricultural Solutions. BASF generated sales of €65.3 billion in 2024. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

About Shenji Energy

Shanghai Shenji Energy Environmental Technology Co., Ltd., established in December 2021, is a comprehensive environmental service enterprise under Shenergy Environment. It specializes in the resource utilization of solid waste, along with supporting research on low-carbon and environmental policies. The company has a registered capital of 170 million yuan and employs 35 staff members, with 57.1% holding master's degrees or higher. In recent years, as a company that Shenergy Group has placed significant emphasis on for the comprehensive resource utilization of biomass waste, Shenji Energy has focused on the fields of biomass energy and green fuels, gradually establishing its industrial advantages.

Air Liquide in China

Entering China in 1916 and supplying air separation units to the local market since the 1970s, Air Liquide today operates around 140 sites in over 40 cities. After many years of steady growth, we now employ over 5,600 people nationwide. Our main businesses include: industrial and medical gas operations, Engineering & Construction, advanced technologies, as well as R&D activities by Innovation Campus Shanghai. With a strong presence in China’s key coastal industrial areas, Air Liquide is now further expanding into the nation’s central, southern and western regions.