BASF and Aspen Aerogels say they have expanded their strategic partnership with the signing of an exclusive supply agreement and a joint development agreement.
The new agreements are designed to increase market penetration, enhance product profitability, and facilitate the development of next-generation materials, according to the companies.
Supply Agreement
As part of the supply agreement, Aspen will commit to the exclusive supply of its Spaceloft A2 product for incorporation within BASF’s aerogel enhanced Slentex wall system for the building materials market.
In turn, BASF says it will make a multi-million-dollar investment in the construction of a new Aspen manufacturing plant, adding that BASF will become a base load customer for Aspen’s capacity expansion. In addition, BASF will provide technical support to Aspen targeting manufacturing productivity, product cost, and profit margins.
Initially, the supply agreement will support BASF’s efforts to drive growth in the global building materials market of its Slente wall system incorporating Aspen’s patented technology. BASF may also directly sell or incorporate Spaceloft A2 into other systems for applications in certain building, transportation, consumer, and industrial markets worldwide.
The agreement will run through 2027.
“We chose to partner with Aspen because of their superior aerogel technology platform, which we can enhance as partners in various ways,” says Raimar Jahn, president of BASF’s Performance Materials division. “The new agreements will accelerate adoption of aerogel technology as an eco-efficient insulation material globally.”
Joint Development Agreement
Meanwhile, the joint development agreement establishes a framework to develop new aerogel products and technologies. It will give BASF targeted access to Aspen’s world leading technology platform, while Aspen will gain access to BASF’s technical expertise, sales channels, and financial resources.
The partnership will further Aspen’s market diversification and growth strategy while supporting BASF’s objective to provide innovative solutions to meet current and future customer needs.
“BASF has played an important role in our development as a company, and this next phase of our relationship will support us technically, commercially, ,financially, and will accelerate our diversification into the building materials market,” says Don Young, president and CEO of Aspen.
“As our track record in the energy infrastructure and subsea markets has demonstrated, our preferred model is to partner with industry leaders to benefit from their technical, commercial, and financial resources,” Young adds. “BASF is a world-class company dedicated to promoting energy efficiency by delivering next-generation products to the global marketplace. For these reasons, BASF is a perfect partner for Aspen Aerogels.”
The origin of the partnership dates to 2010, when BASF Venture Capital made an equity investment in Aspen and the two companies began to explore technology development and commercialization opportunities within the building materials market.
This work led to the development of Aspen's Spaceloft A2 insulation product.
For more information, contact: BASF, www.basf.com; Aspen Aerogels, www.aerogel.com
