Both customers are applying TfS guideline and BASF’s methodology to calculate PCF

  BASF prepared to support customers’ carbon reduction goals and compliance with market and regulatory requirements

Zhejiang Guanghua Technology Co., Ltd. (KHUA), a global manufacturer specializing in polyester resins for powder coatings, and Chongqing Hehui Pharmaceutical Co., Ltd. (Hehui), a polyurethane catalysts company, are adopting BASF’s methodology to calculate product carbon footprints (PCF).

Both customers are applying “The Product Carbon Footprint Guideline for the Chemical Industry” developed by the “Together for Sustainability” (TfS[1]) and supported by BASF. They are also adopting BASF’s methodology to calculate their PCF, which is in line with the Greenhouse Gas Accounting Systems, ISO 14067, and GB/T 24067 standards.

Michael Becker (right), Senior Vice President, Intermediates Asia Pacific at BASF, presents the PCF statement to Jeffrey Sun (left), Chairman of KHUA.

Jeffrey Sun, Chairman of KHUA, said, “In the context of global climate governance and green transformation, carbon footprint management is crucial for corporate sustainable development. KHUA’s polyester resin products serve as the main raw material for producing powder coatings. Unlike solvent-based and water-based coatings, powder coatings are environmentally friendly and recognized for their ‘4 Es’ – efficiency, economy, excellence, and ecology, playing a vital role in promoting the green transformation of various industries, such as building materials, general industry, home appliances, furniture, automobiles, and 3C products[2]. Since its establishment, KHUA has always regarded sustainable development as its goal. As a benchmark for sustainability in the global chemical industry, BASF’s climate neutrality roadmap and circular economy practices provide valuable references. We will jointly explore more efficient paths for carbon emission reduction.”

Chen Liu (fourth from left), General Manager of Hehui, and Karen Chao (center), Director of BASF Intermediates China, attend the signing ceremony.

Chen Liu, General Manager of Hehui, said, “Faced with the possibility of an EU carbon tax, we hope to refine each product, and BASF’s well-established system can help Hehui calculate our PCF more accurately, thereby achieving our carbon reduction goals. By collaborating with BASF, Hehui can gain a deeper understanding of TfS standards, while visualizing and digitizing its carbon emissions. Our target for 2025 is to reduce total carbon emissions by 10% compared to 2024, and to achieve a 30% reduction in Scope 1 and Scope 2 emissions compared to 2023. Raw materials are a top priority in the entire carbon reduction supply chain. Therefore, the increasing proportion of our procurement from BASF provides strong support for Hehui’s carbon reduction initiatives.”

“Building on a long-standing business relationship and steady business growth with KHUA and Hehui for more than a decade, we are excited to deepen our cooperation in sustainable development and strengthen our competitiveness. We are happy to support more customers in adopting our PCF calculation, enabling their green transformation and creating value for them, which will in turn make us their preferred partner for sustainable intermediates,” added Michael Becker, Senior Vice President, Intermediates Asia Pacific at BASF.

BASF supplies neopentyl glycol (NPG) for KHUA’s production of powder coating resins. Meanwhile, Hehui is sourcing diethylenetriamine (DETA) from BASF for its polyurethane catalyst, pentamethyldiethylenetriamine (PMDETA).

NPG is an intermediate mainly used in the production of powder coating resins, which are particularly successful for the coating of household appliances and in the construction industry. Due to their low volatile organic compounds (VOC), powder coatings enable their users to comply with VOC emission standards by reducing the release of VOCs by up to 50% compared to liquid coatings. Other applications for NPG include the manufacture of lubricants, plasticizers and pharmaceuticals. BASF is one of the world’s leading NPG manufacturers, with production plants in Nanjing and Jilin, China; Ludwigshafen, Germany; and Freeport, Texas, the United States. BASF is also building a new NPG plant at the Zhanjiang Verbund site in China, which is expected to be operational from Q4 2025.

DETA is used in a broad array of applications, mainly as wet-strength agents for paper, polyurethane catalysts, and curing agents. It can be used to produce PMDETA, which promotes the reaction of isocyanates with water and polyols, generating CO2 foam and forming foam-like structures that enhance thermal insulation and elasticity. PMDETA can also be combined with amine-based curing agents in epoxy resin systems to regulate curing speed and improve thermal stability. In pulp and paper applications, DETA serves as a building block for wet strength resins, which are created by converting DETA with a dicarboxylic acid into polyaminoamide, subsequently cross-linked with epichlorohydrin. Other applications include asphalt-additives, corrosion inhibitors, lubricant oil and fuel additives, chelates, textiles, mineral processing aids, and more. BASF is one of the world’s leading DETA manufacturers, with production plants in Nanjing, China; and Antwerp, Belgium.

[1] TfS is a global, procurement-driven initiative created by chemical companies with the goal of assessing, auditing and improving the sustainability practices within their global supply chains. The program is based on the UN Global Compact and Responsible Care® principles and has grown into a global organization with regional representation in Asia, North and South America.

[2] 3C products refer to Computer, Communication, and Consumer electronics.