Exclusive Interview: BASF’s Vasilios Galanos on Sustainable Intermediates and the Future of Low-Carbon Coatings

ChemAnalyst Talks with Senior Vice President of BASF’s Intermediates Division

BASF, a global chemical leader, is accelerating the transition to sustainable intermediates in Europe through innovative solutions like its NPG ZeroPCF, developed using renewable energy and the company’s Biomass Balance Approach. ChemAnalyst spoke with Vasilios Galanos, Senior Vice President, Intermediates Europe, about BASF’s strategy to provide bio-attributed neopentyl glycol, its collaboration with partners like Arkema and AkzoNobel to reduce carbon footprints in coatings, and the company’s broader plan to expand sustainable chemical offerings across key industries while supporting customers’ green transformation goals.

Complete Interview with Vasilios Galanos

1.           Please provide an overview of your professional journey and experience with BASF, and how it has shaped your approach to sustainability in the coatings industry.

I've been with BASF for over 35 years, holding different roles in sales, marketing, and business management in Europe and Asia. Since April 2024, I serve as Senior Vice President of BASF’s Intermediates Division in Europe.

 Sustainability has become an ever more important part of my role, be it by leading the transition of our European amines portfolio to renewable electricity or by driving collaborations like the one with Arkema and AkzoNobel that help our customers reduce their carbon footprint. I believe sustainability must be embedded in every step of our value chain, and I’m proud that with all our ongoing sustainability initiatives, my team and I can contribute to reaching our vision to be the preferred partner for sustainable intermediates for our customers.

2.           BASF is supplying neopentyl glycol (NPG) with a product carbon footprint of zero to Arkema, enabling AkzoNobel’s lower-carbon Interpon coatings. Can you explain how NPG ZeroPCF was developed and what it represents in terms of BASF’s strategy for sustainable intermediates?

We were able to achieve a cradle-to-gate product carbon footprint of zero for our NPG ZeroPCF using renewable energy and BASF’s Biomass Balance Approach. With that process, BASF feeds renewable raw materials into its Verbund in the very first steps of chemical production and attributes a corresponding share of renewable raw materials to specific products by means of a certified mass balance method. NPG ZeroPCF is a “drop-in” solution, identical in quality and properties to the standard products. NPG ZeroPCF also represents an attractive, more sustainable offering to targeted industries and contributes to BASF´s strategy to be the preferred chemical company enabling our customers´ green transformation. Specifically, NPG ZeroPCF was created to offer a relevant upstream Product Carbon Footprint (PCF) saving potential for i.e. powder paint applications.  The value proposition clearly aligns with the corporate targets of many companies in this value chain while also meeting current and expected future regulatory requirements in the construction industry.

3.           How does BASF’s provision of bio-attributed NPG and supplier-specific product carbon footprint (PCF) data give downstream partners like Arkema and AkzoNobel a competitive advantage in the architectural coatings market?

BASF’s commitment to providing transparency and supplier-specific data enables partners to communicate clear sustainability credentials to their customers, strengthening trust and reinforcing their market positions. The first level of competitive advantage for our downstream partners is achieved by addressing supplier-specific sourcing strategies. Already the fossil version of neopentyl glycol (NPG LowPCF) offers low-PCF benefits as its PCF is significantly below the global market average.

This is achieved by high process efficiencies and advanced technologies in BASF`s Verbund. With its cradle-to-gate PCF of zero, NPG ZeroPCF provides further measurable impact for PCF reduction. Its function as a key building block for powder coatings thus offers powder paint producers a tangible option to establish low-PCF properties in their powder paint without compromising on performance.

4.           From a market perspective, how do you see demand for sustainable NPG evolving, and what opportunities or challenges does BASF anticipate in meeting this demand globally?

The momentum around more sustainable NPG is being built swiftly, driven by tightening regulations, customer expectations for transparency, and the growing influence of green buildings standards worldwide. Demand for more sustainable NPG shows steep growth rates in Europe, but also Asia started to purchase the first volumes of this more sustainable product. In the US, we see great potential for our offering in office furniture applications as well as in the construction and building industry. In line with the growing demand for more sustainable NPG solutions, BASF needs to diversify and scale its biomass-balanced product portfolio by accessing appropriate renewable raw materials at competitive conditions. Affordability for more sustainable NPG solutions will remain a key prerequisite to achieving mass adoption in our target markets.

5.           How does BASF see the paints and coatings market evolving in response to sustainability trends, and what role will your products play in shaping this change?

Taking the example of construction and buildings, we realize that operational carbon emissions can be minimized with energy-efficient practices and renewable energy. Embodied carbon, however, is permanently locked in the structures once construction is complete. Furthermore, their relevance will increase to nearly 50% of new construction´s carbon footprint by 2050. This challenge can only be addressed by lowering the carbon footprint of materials used. As we see that the impact on lowering emissions in a value chain can be largest at its beginning, supplier engagement strategies become paramount to address those global challenges. Our role will be to engage with key stakeholders in those relevant value chains and create more sustainable win-win solutions across the value chain comprising the selection of impactful and affordable chemical building blocks and standardizing PCF calculation methodologies.

6.           The collaboration spans the value chain from raw materials to finished coatings. How does BASF work with partners to ensure that the sustainability benefits of your intermediates are fully realized in the final products? 

The key to leveraging sustainability benefits along a value chain is a common understanding of the methodologies to be applied, reaching from product carbon footprint calculation to acceptance of renewable feedstock attribution via mass-balance. Here, the guidelines issued by Together for Sustainability (TfS, Home - TFS Initiative) give a very suitable framework for companies along the entire chemical value chain. As BASF’s Intermediates division, we encourage our suppliers and customers to adopt the TfS guidance. This being given as a framework, the partners can quickly focus on leveraging the different product-specific sustainability contributions into a meaningful sustainability benefit of the final product.

7.           In an industry where sustainability is increasingly a differentiator, how do you see BASF’s role as a raw material supplier influencing broader adoption of lower-carbon coatings?

We have illustrated in the Industry Case Study, that the carbon footprint of superdurable architectural powder coatings supplied by AkzoNobel´s Interpon  brand can be reduced by up to 40%. The improvement has been made possible through a combination of supplier-specific product carbon footprint (PCF) data and bio-attributed raw materials. The use of advanced CO2 emission reduction levers like renewable feedstocks mostly happens at the very beginning of the chemical production chain - this is where we see our strong contribution. As our raw materials can be processed by and are available for most powder resin and powder paint producers, the sustainability benefits can be leveraged by the entire industry and lead to broad adoption and thus a meaningful transformation towards lower-carbon coatings.

8.           While competitors to BASF also offering neopentyl glycol and potentially sustainable product versions, how does BASF view its role in differentiating its bio-attributed raw materials, and what strategies are being considered to maintain a competitive edge in reducing the carbon footprint of architectural coatings?

BASF started some years ago to offer biomass balancing where fossil raw materials are replaced with renewable feedstocks using a certified mass-balance methodology. In the meantime, we have established a diversified biomass-balanced product portfolio across the entire company’s range of chemicals and have set up reliable sourcing processes to access the respective renewable raw materials at competitive conditions. With this in place, we can leverage an economy of scale and are at the same time able to grow with our customer industries’ green transformation needs – including architectural coatings.

9.           Looking ahead, are there plans for BASF to expand similar collaborations with other partners in the paints and coatings sector, and what areas of innovation are you focusing on next?

The presented industry case study is a blueprint for how chemical companies can partner up and address CO2 emission reductions along a value chain in a collaborative manner. This is neither exclusive to the partners involved, nor is it exclusive to the powder coatings value chain. As outlined in the industry use case, one of the first steps of proactive CO2 Management is the identification of emission hotspots. Wherever a BASF product plays a crucial role in the CO2 emission profile of a paint or coating, there can be an opportunity to optimize the paint or coating’s carbon footprint by employing a respective PCF-reduced BASF product version. This use case features supplier-specific PCF data, renewable electricity and attribution of renewable raw materials. The option of using low-emission steam and procurement of key raw materials with a reduced PCF are constantly being evaluated. In this way, the Intermediates division offers a roadmap to support its customers’ sustainability targets. This ambition will be supported by BASF’s ongoing investment in new processes and technologies such as heat pumps as well as by its procurement departments, which drive PCF transparency and optimize renewable feedstock sourcing.

ChemAnalyst Insights on Neopentyl Glycol (NPG)

In Europe, Neopentyl Glycol (NPG) prices saw a moderate increase in the second quarter of 2025, reflecting a generally bullish market sentiment. In Germany, the price index remained largely stable to slightly declining, shaped by a balance between supply and demand. Feedstock formaldehyde costs stayed steady, supporting production and limiting volatility. The construction sector showed minor signs of recovery early in the quarter, but overall demand remained weak amid high interest rates and inflationary pressures. Domestic consumption fell below expectations, while international demand was moderate, constraining price growth. ChemAnalyst noted that supply remained steady, supported by sufficient inventories and healthy feedstock availability, though port congestion and adverse weather disrupted outbound logistics.

Later in the quarter, modest declines were observed as subdued downstream activity persisted and inventories accumulated. In July, prices began to fall due to ongoing logistical delays at major ports, stable feedstock costs, and weak demand from construction and coatings sectors. ChemAnalyst highlighted that these factors combined to create localized oversupply and limited upward momentum in the European NPG market.