Basf Se · XETR:BAS
Basf — Investor Day (March 2021)
44 slides from Basf's investor day presentation, Mar 26, 2021
Slide 1: Our journey to net zero 2050
Our journey to net zero 2050 Dr. Martin Brudermüller Chairman of the Board of Executive Directors BASF Capital Markets Day, March 26, 2021 0 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the fu
Slide 3: Our commitments to reaching the Paris Climate Agreement
Our commitments to reaching the Paris Climate Agreement 25% 2030 CO2 emissions reduction (compared with 2018)1 net zero 2050 CO2 emissions1 2 BASF Capital Markets Day, March 26, 2021 I Keynote 1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO reduction 2
Slide 4: Our journey to net zero 2050: levers for our transformation
Our journey to net zero 2050 The levers for our transformation 1 The transformation is underway 2 on our sites 3 Capex plan and prerequisites Business opportunities through 4 low-carbon products 3 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 5: Leading the journey to transform the chemical industry
Leading the journey to transform the chemical industry BASF Verbund BASF data BASF expertise BASF technologies We create chemistry for a sustainable future 4 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 6: Our path to reduce BASF emissions from 2018 to 2030
Our path to reduce BASF emissions from 2018 to 2030 BASF greenhouse gas emissions (Scope 1 and Scope 2) 2018–2030 CO2 reduction in business as is 2018 CO2 increase from growth Grey-to- green Power- to-steam New technologies Bio-based 25% feedstocks Opex Temporary 50% measures Verbund site Growth Sou
Slide 7: Our path to reduce BASF emissions from 1990 to 2050
Our path to reduce BASF emissions from 1990 to 2050 BASF greenhouse gas emissions (Scope 1 and Scope 2) 1990–2050 CO2 reduction in business as is 2018 CO2 increase from growth >45% ~75% ~60% 100% Grey-to- green Power- to-steam New technologies Bio-based feedstocks Opex Temporary measures Verbund sit
Slide 8: No downstream decarbonization without upstream decarbonization
No downstream decarbonization without upstream decarbonization 22 BASF greenhouse gas emissions 2018 Global GHG emissions million metric tons per year Scope 1+2 11 11 Energy production Chemical production1 5 6 9 2 Electric power Steam Upstream Downstream 7 BASF Capital Markets Day, March 26, 2021 I
Slide 9: No downstream decarbonization without upstream decarbonization
No downstream decarbonization without upstream decarbonization 22 BASF greenhouse gas emissions 2018 Global GHG emissions million metric tons per year Scope 1+2 11 11 Energy production Chemical production1 5 6 9 2 Electric power Steam Upstream Downstream Grey-to-green Power-to-steam New technologies
Slide 10: Our levers to reduce BASF's CO2 emissions
Our levers to reduce BASF’s CO2 emissions Our journey to net zero 2050 Temporary measures Grey-to-green Power-to-steam New technologies Bio-based feedstocks Global GHG Continuous emissions opex Scope 1+2 Offsetting 9 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 11: The ultimate lever for CO2 reduction is electrification with renewable energy
The ultimate lever for CO2 reduction is electrification with renewable energy 10 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 12: Build-up of renewable energy production must be accelerated to meet demand
Build-up of renewable energy production must be accelerated to meet demand Example: Germany Total primary Electricity Electricity energy consumption1 consumption2 demand TWh TWh scenario TWh Fossil 2527 Other sectors 963 Heating4 196 224 Electric vehicles4 Nuclear Fossil 231 Renewable 549 Nuclear 64
Slide 13: Offshore wind energy is a cost-competitive technology today
Offshore wind energy is a cost-competitive technology today and will be even more attractive in the future Expected electricity cost development (LCOE1) € per megawatt hour 140 Non-subsidized offshore wind parks are already 120 competitive today Gas-based electricity2 100 Offshore wind parks wil
Slide 14: To meet our high demand for renewable energy, we will focus on two pillars
To meet our high demand for renewable energy, we will focus on two pillars ensuring additionality BASF’s additional green power demand for large European sites Ludwigshafen, Antwerp and Schwarzheide, terawatt hour per year 25 Make: Invest in Buy: Purchase green 20 own assets power from third parties
Slide 15: Capturing the energetic potential of waste heat for steam production
Capturing the energetic potential of waste heat for steam production 14 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 16: CO2-free steam production in the BASF Verbund with heat pump technology
CO2-free steam production in the BASF Verbund with heat pump technology at unprecedented scale Products Energy flow at Ludwigshafen site Verbund Ludwigshafen 14 TWh cooling water 20 TWh Fossil energy 8 TWh air cooling (natural gas) 8 TWh from chemistry 6 TWh diffusive loss Recovery with heat Renewab
Slide 17: Competitive green energy in Tarragona enabled replacement of steam turbine with an eDrive
Competitive green energy in Tarragona enabled value-adding replacement of steam turbine with an eDrive Before The propane dehydrogenation plant operates an eDrive, which replaced a steam turbine in 2018 Compressor Gearbox Steam Investment recovered in less than Not needed for eDrive turbine two
Slide 18: We focus on scaling up low-emission technologies to industrial levels
We focus on scaling up low-emission technologies to industrial levels 17 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 19: Ten base chemical production technologies cause the majority of BASF's CO2 emissions
Ten base chemical production technologies cause the majority of BASF’s CO2 emissions Greenhouse gas emission profile of BASF technologies Energy and chemistry emissions, million metric tons per year1 4 3 2 1 0 Steam Ammonia Acrylic Caprolactam Nitric Syngas TDI Hydrogen Ethylene MDI cracker acid aci
Slide 20: BASF, SABIC and Linde join forces on electrically heated steam cracker furnace
BASF, SABIC and Linde join forces to realize the world’s first electrically heated steam cracker furnace Conventional furnace Goal is to drive concepts and faster implementation CO2 through combined strengths Raw Naphtha olefins BASF and SABIC: extensive know-how and intellectual property in dev
Slide 21: The use of hydrogen as a raw material is a key lever for CO2 reduction
The use of hydrogen as a raw material is a key lever for CO2 emissions reduction across several technologies Greenhouse gas emission profile of BASF technologies Energy and chemistry emissions, million metric tons per year1 4 1 million metric tons per year 3 BASF of which ~0.5 million metric tons pr
Slide 22: Water electrolysis plant will integrate green hydrogen into our Verbund
Water electrolysis plant will integrate internally produced green hydrogen into our Verbund Seamless integration into BASF Verbund Schematic Application for funding through IPCEI Hydrogen Technologies and Systems (Important Project of Steam Common European Interest) has been submitted reforming Hy
Slide 23: Methane pyrolysis combines low emissions with low energy demand
Methane pyrolysis combines low emissions with low energy demand Methane pyrolysis requires around 80% Hydrogen less electricity than water electrolysis (CO2-free) Funding for pilot reactor was granted by German Federal Ministry of Education Renewable energy and Research Pilot reactor at the Lu
Slide 24: Carbon capture storage technology being evaluated at our Antwerp Verbund site
Carbon capture storage technology being evaluated at our Antwerp Verbund site Antwerp@C – CCS value chain in Port of Antwerp Local International Offshore BASF is supporting a feasibility study evaluating CO2 capture transport transport CO2 storage carbon capture storage (CCS) installation through
Slide 25: Decarbonization requires a broad technology portfolio
Decarbonization requires a broad technology portfolio Low-CO2 Carbon Circular Management Bio-based Economy Ccycled CO2 avoidance potential per megawatt hour Target: We aim at doubling our circular of electrical energy used (metric tons of CO2/MWh) sales to reach €17 billion by 2030 Methane pyrolys
Slide 26: Bio-based raw materials can be used as feedstocks
Bio-based raw materials can be used as feedstocks, partially replacing fossil feedstocks 25 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 27: Entry points for bio-based feedstocks in BASF value chains
Entry points for bio-based feedstocks in BASF value chains BASF Verbund Bio-based feedstocks BASF Upstream entry points products (e.g., steam cracker) Upstream Downstream Bio-based feedstocks Product-specific entry points (e.g., bio-BDO) In the BASF Verbund, bio-based feedstocks can be used as a dro
Slide 28: Continuous improvements that make a difference today
Continuous improvements that make a difference today 27 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 29: Our upstream integration allows large improvements with single measures
Our upstream integration allows large improvements with single measures 145kt CO2eq Avoiding 145,000 tons of CO2 equivalents per year through optimized process control Nitrous oxide (N2O) decomposition in nitric acid cluster was further improved from 99% to 99.9%, De-N2O catalyst residual N2O wa
Slide 30: Our journey to net zero 2050: levers for our transformation
Our journey to net zero 2050 The levers for our transformation 1 The transformation is underway 2 on our sites 3 Capex plan and prerequisites Business opportunities through 4 low-carbon products 29 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 31: New Verbund site in South China with lowest projected CO2 emissions
New Verbund site in South China – the integrated chemical complex with the lowest projected CO2 emissions in the world Projected BASF CO2 emissions of Verbund site in South China million metric tons Guangdong Verbund site will emit 6–9 50% less CO2 than gas-powered petrochemical sites Targeted u
Slide 32: Integrating renewable energy and stabilizing supply at the Schwarzheide site
Integrating renewable energy and stabilizing supply at the Schwarzheide site Proof of concept for energy transformation at mid-sized chemical sites Modernization of BASF cogeneration plant on site ► Investment of €73 million enables start-up within minutes to buffer fluctuations in electricity s
Slide 33: Our journey to net zero 2050: levers for our transformation
Our journey to net zero 2050 The levers for our transformation 1 The transformation is underway 2 on our sites 3 Capex plan and prerequisites Business opportunities through 4 low-carbon products 32 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 34: Major capex for further transformation only expected beyond 2030
Major capex for further transformation only expected beyond 2030 energy Renewable Projected capex billion € Te s t p l a n t s pr ocesses 2021–2025 <1 Pilot plants p ha s e 2026–2030 2–3 L ab Heat pumps Ne w 2030+ >10 33 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 35: The transformation requires a supportive legislative and regulatory framework
The transformation requires a supportive legislative and regulatory framework Focus E.U./Germany: Cooperation: Ensure close interaction between policy makers and business to support the implementation of the European Green Deal Competitiveness: Design an E.U. Industry Policy that strengthens ind
Slide 36: Our journey to net zero 2050: levers for our transformation
Our journey to net zero 2050 The levers for our transformation 1 The transformation is underway 2 on our sites 3 Capex plan and prerequisites Business opportunities through 4 low-carbon products 35 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 37: We are a key enabler to help our customers decarbonize their value chains
We are a key enabler to help our customers decarbonize their value chains Low-carbon products Grey-to-green Power-to-steam New technologies Bio-based feedstocks Continuous opex 36 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 38: Turning Carbon Management into business opportunities
Turning Carbon Management into business opportunities 20,000 Raw materials CO2 Scope 3 1011101 0101000 1011101 0101010 0101010 0101010 1011110 Product Carbon Footprints of 1010111 700 1010101 1010101 1010010 0110100 1010010 ~45,000 1010100 1011101010 0101010 1000010101 Production plants 001010 10100
Slide 39: Offering our customers choices to reduce their CO2 footprint
Offering our customers choices to reduce their CO2 footprint 38 BASF Capital Markets Day, March 26, 2021 I Keynote
Slide 40: Product Carbon Footprint allows targeted discussions with customers
Product Carbon Footprint allows targeted discussions with customers on desired sustainability properties of products Aroma ingredient example Cumulative reduction of CO2 emissions, % Product Carbon Footprint ensures unprecedented transparency Reduction potential: along the value chain –15% to –25%
Slide 41: What we expect from our suppliers: Transparency on CO2 emissions
What we expect from our suppliers: Transparency on and reduction of CO2 emissions CO2 Raw materials BASF is establishing certified, full CO2 tracing (Product Carbon Footprint) and needs transparency from its suppliers for this To support its suppliers and the industry, BASF will share its knowle
Slide 42: Economics of decarbonization
Economics of decarbonization Impact on sales and profitability ► Above-average volume growth of products with low carbon footprint due to rising demand ► Customers’ willingness to pay higher prices for low-emission products ► Higher margins expected for products with low carbon footprint produced in
Slide 43: BASF's journey to net zero 2050: Key takeaways
BASF’s journey to net zero 2050: Key takeaways ► We are a key enabler in the net zero transformation of base chemicals and downstream value chains ► Globally, we want to reduce our absolute CO2 emissions by 25% by 2030 compared with 2018 ► This means that, compared with 1990, we aim to reduce our gl
Slide 44: We create chemistry
O- BASF We create chemistry