Sustane enters pyrolysis oil offtake agreement with BASF

Sustane Technologies Inc., a Halifax, Nova Scotia-based company that uses advanced recycling and resource recovery from end-of-life material streams including municipal solid waste, and Germany-based BASF have signed a long-term offtake agreement in which BASF will purchase pyrolysis oil from Sustane’s Chester, Nova Scotia, facility, including output both from Sustane’s existing production line and another line planned for an upcoming facility expansion.

The agreement builds on a collaboration between the companies that they say has enabled Sustane to deliver high-quality feedstock from end-of-life plastics to BASF operations in Europe and the United States.

Under the agreement, BASF will take pyrolysis oil from Sustane’s Chester plant for use as recycled feedstock in BASF’s production of recycled-content products, supporting the expansion of the company’s portfolio of mass-balanced Ccycled products. The Ccycled portfolio now comprises several hundred products, which BASF’s customers use for a wide range of applications such as food packaging, automotive and functional textiles.

“This partnership with BASF affirms the value of our Canadian-made innovation on the global stage,” Sustane CEO Peter Vinall says. “Sustane’s unique product has greatly reduced carbon intensity compared to fossil feedstocks for plastics and is notable for not requiring additional upgrading. Together, we’re closing the loop on hard-to-recycle plastics and proving that circular solutions can scale and deliver real economic and environmental impact.”

Sustane says it has developed a process that can turn end-of-life plastics into virgin-quality feedstock that can be used in chemical production. The company says its operations are ISCC Plus certified, providing chain-of-custody assurance that the feedstock meets stringent sustainability standards.

“At BASF, we are committed to driving [the] circular economy, and partnerships like this are essential to that mission,” says Paul Houston, manager, Business Development Americas at BASF. “Sustane’s advanced recycling technology enables us to integrate high-quality, circular feedstock into our value chains and reducing reliance on fossil inputs while supporting our customers’ green transformation goals. This agreement represents a powerful example of innovation and collaboration driving real impact.”

The companies are exploring opportunities to expand Sustane’s capacity both in Canada and internationally.