Slide 1: Carbon Management at BASF – R&D strategies to reduce CO2
R&D Webcast on January 10, 2019 R&D Webcast for Investors and Analysts on January 10, 2019 Carbon Management at BASF – R&D strategies to reduce CO2 Dr. Martin Brudermüller Chairman of the Board of Executive Directors and Chief Technology Officer of BASF SE
Slide 2: Cautionary note regarding forward-looking statements
R&D Webcast on January 10, 2019 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 stateme
Slide 3: BASF as a pioneer in developing tools for sustainability performance measurement
R&D Webcast on January 10, 2019 BASF as a pioneer in developing tools for sustainability performance measurement Systematic application of sustainability measurement since 1996 Investment Advanced Carbon Management evaluation IT solutions Value-to-Society for customers Corporate Biomass Balance Carb
Slide 4: The Carbon Dioxide Challenge – BASF's Carbon Management – Outlook
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Outlook 4
Slide 5: The Carbon Dioxide Challenge
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Outlook 5
Slide 6: Global greenhouse gas (GHG) emission scenarios
R&D Webcast on January 10, 2019 Global greenhouse gas (GHG) emission scenarios GHG emissions in % 225 (Reference 1990) Reference 200 risk of 3.8 – 4.7°C 175 Currently 150 Global GHG around 3°C emissions intended 125 policy* 100 75 Policy 50 for 2°C 2°C Global GHG emissions 1990: 25 scenario 36.4 met
Slide 7: BASF's successful greenhouse gas reduction
R&D Webcast on January 10, 2019 BASF’s successful greenhouse gas reduction BASF’s output in 1990 BASF’s output in 2018 2.2 tons 0.6 tons 40 mt per ton 22 mt per ton CO2 CO2 Since 1990, BASF has halved its emissions and doubled its sales volume 7 “mt” = million metric tons, “tons per ton” = metric to
Slide 8: BASF's carbon footprint 2017 and established measures
R&D Webcast on January 10, 2019 BASF’s carbon footprint 2017 and established measures 59 mt 43* mt CO2 23 mt 20 mt CO2 CO2 CO2 source make use end-of-life Established Biomass balance Verbund concept and CO2-saving BASF Biodegradable BASF process optimization products and solutions products and mater
Slide 9: Carbon Management aims to decouple growth from CO2 emissions
R&D Webcast on January 10, 2019 BASF’s Carbon Management aims to decouple growth from CO2 emissions source make use end-of-life Established Biomass balance Verbund concept and CO2-saving BASF Biodegradable BASF process optimization products and solutions products and materials measures Bio-based pro
Slide 10: BASF's Carbon Management: Avoid CO2 on site
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Avoid CO2 on site Use CO2 as a feedstock Help customers avoid CO2 (Accelerator products) Outlook 10
Slide 11: Carbon sales products in a nutshell
R&D Webcast on January 10, 2019 BASF’s sales products in a nutshell Chemical formula: (C H3.1O0.3N0.2 X )n Composition: Carbon Hydrogen Oxygen Nitrogen Others Raw materials: Naphtha, natural gas, Air renewables, recycled waste, CO2 Others Chemistry is based on carbon and cannot be “decarbonized.” 11
Slide 12: Carbon Management targets fugitive carbon
R&D Webcast on January 10, 2019 BASF’s Carbon Management targets fugitive carbon 25% CO2 = fugitive carbon Carbon 75% Chemicals = structural carbon A Verbund is the ideal setup for Carbon Management. 12 12
Slide 13: Verbund avoids CO2 – The full picture for ethylene
R&D Webcast on January 10, 2019 BASF’s Verbund avoids CO2 The full picture – for ethylene 13 13
Slide 14: Verbund avoids CO2 – Synergies among selected value chains
R&D Webcast on January 10, 2019 BASF’s Verbund avoids CO2 Synergies among selected value chains Ammonia Urea Resins Value Chain Verbund Energy Verbund Sulfur dioxide/ Sulfur Hydrosulfite Sulfuric acid Propylene Acrylic acid Dispersions Cyclohexanol Adipic acid Polyamide 66 A Verbund optimizes the us
Slide 15: Verbund avoids CO2 – Examples
R&D Webcast on January 10, 2019 BASF’s Verbund avoids CO2 Examples Adipic acid Ammonia 450 kt 440 kt steam p.a. CO2 p.a. Acrylic acid Urea In total, BASF’s Verbund in Ludwigshafen avoids around 6 mt of CO2 emissions. 15 “kt” = thousand metric tons, “mt” = million metric tons 15
Slide 16: Carbon Management – Measures at a glance
R&D Webcast on January 10, 2019 BASF’s Carbon Management Measures at a glance CO2 emitters: Measures: Process optimization, Others energy management, N2O decomposition N2O Ammonia/hydrogen Clean hydrogen research, Steam cracker E-Furnace research, clean olefins research Power Purchase of renewable e
Slide 17: Use CO2 as a feedstock
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Avoid CO2 on site Use CO2 as a feedstock Help customers avoid CO2 (Accelerator products) Outlook 17
Slide 18: Chemistry is energy
R&D Webcast on January 10, 2019 Chemistry is energy Thermodynamics of water electrolysis Thermodynamics of CO2 formation H2(g) + 0.5 O2(g) CH4(g) + 2 O2(g) o kJ ∆Hr =+286 mol H kJ 2 o ∆Hr =−803 mol CH H2O(l) 4 CO2(g) + 2 H2O(g) Water and carbon dioxide are very stable molecules. Using them as chemic
Slide 19: Using CO2 as a feedstock is energy-intensive
R&D Webcast on January 10, 2019 Using CO2 as a feedstock is energy-intensive Viable options are therefore limited Energy Hydrocarbons Synfuels Industrial E.g., acrylic acid chemicals BASF invests in R&D Carbohydrates Photosynthesis BASF produces wood binders Urea Global CO2 consumption: 115 mt p
Slide 20: Limited potential to use CO2 as a feedstock in the chemical industry
R&D Webcast on January 10, 2019 Limited potential to use CO2 as a feedstock in the chemical industry CO2 emissions in Germany 2017 Chemical production in Germany 2017 905 mt CO2 48 mt CO2eq We need new breakthrough technologies to significantly reduce the CO2 footprint. 20 “mt” = million metric tons
Slide 21: Help customers avoid CO2 (Accelerator products)
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Avoid CO2 on site Use CO2 as a feedstock Help customers avoid CO2 (Accelerator products) Outlook 21
Slide 22: CO2-saving innovative solutions
R&D Webcast on January 10, 2019 CO2-saving innovative solutions Mineral-based in-situ foam: Cavipor® Enabling e-mobility: Cathode active materials cathode 22
Slide 23: Outlook
R&D Webcast on January 10, 2019 The Carbon Dioxide Challenge BASF’s Carbon Management Avoid CO2 on-site Use CO2 as a feedstock Help customers avoid CO2 (Accelerator products) Outlook 23
Slide 24: BASF's new CO2 emission target
R&D Webcast on January 10, 2019 BASF’s new CO2 emission target +50% Our target 2030: sales products Baseline 2018 CO2-neutral -33% growth specific emissions 24 24
Slide 25: BASF's new CO2 emission target
R&D Webcast on January 10, 2019 BASF’s new CO2 emission target 1990 2018* 2030 22 mt 22 mt 40 mt CO2 CO2 0.4 tons per ton CO2 0.6 tons per ton 2.2 tons per ton Until 2030, BASF aims to grow its output by 50% without increasing its CO2 emissions. 25 “mt” = million metric tons, “tons per ton” = metric
Slide 26: BASF's Carbon Management – our focus today
R&D Webcast on January 10, 2019 BASF’s Carbon Management – our focus today Potential CO2 reduction powered by BASF’s unique catalyst platform Develop CO2-reduced breakthrough technologies Shift power supply towards renewable energies Further improve process and energy efficiency Costs and risks 26
Slide 27: E-Furnace: New technology for clean high-temperature reactions
R&D Webcast on January 10, 2019 E-Furnace: New technology for clean high-temperature reactions Approach: CO2 Raw Switch cracker coil heating from natural gas Naphtha olefins to electrical resistance heating, combining high current with low voltage 850°C Integrate an E-Furnace – to be newly engin
Slide 28: Methane pyrolysis: New process for clean hydrogen
R&D Webcast on January 10, 2019 Methane pyrolysis: New process for clean hydrogen H2 (CO2-free) Approach: Decompose methane (CH4) into hydrogen and solid carbon via thermal pyrolysis avoiding CO2 as byproduct Energy Design a moving carbon bed reactor that combines chemical reaction and heat inte
Slide 29: Dry reforming of methane and direct conversion of syngas to DME
R&D Webcast on January 10, 2019 Dry reforming of methane and direct conversion of syngas to DME: New catalysts for clean olefins Approach: CH4 + CO2 2 H2 + 2 CO Syngas Switch feedstock for olefins from naphtha to methane Produce CO-rich syngas via dry reforming of Dimethyl methane and convert th
Slide 30: CO2 as feedstock for superabsorbents: New chemistry for using CO2
R&D Webcast on January 10, 2019 CO2 as feedstock for superabsorbents: New chemistry for using CO2 O Sodium acrylate ONa CO CO 2 2 Approach: LnPd0 Evaluate the thermodynamically favored reaction of CO2 with ethylene to sodium acrylate, which is the ONa main raw material for superabsorbents Ethylene
Slide 31: BASF – We create chemistry
O- BASF We create chemistry