Nova Scotia-based Sustane Technologies has signed a long-term offtake agreement with global chemical giant BASF to supply premium recycled plastic feedstock from its Chester facility, a move that significantly advances Canada’s role in the global circular economy for plastics.
The agreement builds on an ongoing collaboration between the two companies, and will see BASF purchase pyrolysis oil derived from hard-to-recycle plastics processed by Sustane. The deal covers both Sustane’s current production and output from a forthcoming facility expansion that will triple the Chester site’s capacity.
“This partnership with BASF affirms the value of our Canadian-made innovation on the global stage,” said Peter Vinall, CEO of Sustane Technologies. “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’s proprietary technology transforms plastics destined for landfills or incineration into virgin-quality feedstock suitable for use in chemical production. The resulting pyrolysis oil will be integrated into BASF’s global production network (Verbund) as a recycled feedstock, supporting the company’s growing portfolio of Ccycled® products. These mass-balanced offerings include several hundred materials used in applications ranging from food packaging to automotive components and textiles.
Notably, Sustane’s product boasts a much lower carbon intensity than traditional fossil-derived inputs and does not require additional upgrading—offering an immediate, scalable alternative to virgin plastic production. The company’s operations are ISCC+ certified, ensuring sustainability and traceability throughout the value chain.
“At BASF, we are committed to driving circular economy, and partnerships like this are essential to that mission,” said Paul Houston, Manager of Business Development Americas at BASF. “Sustane’s advanced recycling technology enables us to integrate high-quality, circular feedstock into our value chains and reduce reliance on fossil inputs while supporting our customers’ green transformation goals.”
The companies are now exploring opportunities to replicate Sustane’s model across new facilities in Canada and abroad, reinforcing the country’s growing leadership in clean technology and circular materials innovation.