BASF Joins Forestal on Advanced E-Methanol Production Using OASE

BASF SE BASFY and Forestal de Atlantico S.A. recently signed an early disclosure agreement (EDA) to advance the manufacture of e-methanol (eMeOH) using carbon capture solutions. Under this strategic relationship, BASF has been chosen to share its OASE blue technology, which is designed to efficiently remove CO2 from flue gases, for use in Forestal's groundbreaking Triskelion project in Galicia, Spain. The Triskelion project is expected to be a game changer, with a design capacity of 156 metric tons per day of e-methanol production. The CO2 gathered from the exhaust gases of electricity-generating turbines will be converted into e-methanol by reacting it with renewable hydrogen, demonstrating an innovative way to generate more sustainable fuel.

The EDA allows BASF's critical contribution to the Front End Engineering Design (FEED), which will be created by a third-party contractor hired by Forestal. This procedure will allow Forestal to evaluate the project's clarity, vision, technical feasibility and economic sustainability before sharing the design with other contractors for competitive construction bids.

BASF, which is a prominent player in the chemical space along with Dow Inc. DOW, DuPont de Nemours, Inc. DD and Eastman Chemical Company EMN, is a leader in gas treatment technology, with the OASE portfolio being utilized in more than 500 reference plants globally. It is committed to assisting in the FEED preparation process. Forestal has chosen OASE blue technology to efficiently remove CO2 from the exhaust gases of electricity-generating turbines for use in e-methanol production. BASF is laying the groundwork for one of the first plants to create e-methanol using its OASE technology, entering a unique sustainable application area for its OASE blue technology.

BASF delivered strong 2024 earnings and provided an upbeat outlook. The company’s EBITDA before special items climbed 18% year over year in 2024 to €7.9 billion, driven by the solid performance of its core businesses on higher volumes amid pricing pressure. It also saw a significant year-over-year increase in net income to €1.3 billion in 2024. BASF expects EBITDA before special items to increase to between €8 billion and €8.4 billion in 2025.

Another prominent player in the chemical industry, DOW, expects to benefit from near-term projects and increased operational focus in 2025, with increasing demand in packaging, energy and electronics. Its solid balance sheet and portfolio will support capital allocation priorities. To boost margins, the company is taking actions to cut costs by $1 billion, including $500-$700 million in direct costs and workforce reductions of 1,500 roles globally. Additionally, Dow is reducing 2025 capital spending by $300-$500 million to address macroeconomic challenges and support long-term growth.

For 2025, another industry leader, DuPont, projects consolidated net sales between $12.8 billion and $12.9 billion, with operating EBITDA expected to be in the range of $3.325-$3.375 billion. Adjusted earnings per share (EPS) are forecasted to be between $4.30 and $4.40. For the first quarter of 2025, DD forecasts net sales of around $3,025 million, operating EBITDA of roughly $760 million and adjusted EPS of around 95 cents.

Eastman Chemical expects modest volume growth in its specialty businesses in 2025, leveraging an innovation-driven growth model. The company's circular platform will drive innovation, with commitments of $75-$100 million in EBITDA growth in 2025. 

 

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