Business development for renewable chemicals 1,4-Butanediol (BDO) based on renewable raw materials

Transcription

1 Business development for renewable chemicals 1,4-Butanediol (BDO) based on renewable raw materials May 2014, World Congress on Industrial Biotechnology Andrej Brejc, Director, Renewable Diols

2 BDO and BASF 1942 Acetylene based BDO 2013 BASF has taken a technology license for renewable BDO from Genomatica and started production of first commercial volumes

3 BDO regional market situation CN; 39% Strong growth oversupplied 1.8 Mt BDO-e US; 14% Exporter EU; 22% Balanced Source: BASF estimation Asia ex CN; 25% Partially balanced Strong growth (> 4-6 % p.a.) dominated by China/Asia Heavy investment in China leading to long supply/demand

4 BDO value chain BDO PBAT/PBS PBT THF GBL PolyTHF NMP Pyrrolidone NVP PVP Polyurethanes Biodegradable plastics Engineering plastics Pharma Solvent Spandex fibers TPU Melt elastomers TPEE Phytosanitary Pharma Solvent Coating Process chemicals Electronic chemicals Pharma UV protection Viscosity improvement Cosmetics Pharma Many diverse industries with different needs Large segments textile, automotive, E&E, packaging, sport/leisure, solvents

5 BASF position in BDO value chain Product Capacity Metric tons/year Global Position 1,4-BDO-e 535,000 1 THF 330,000 1 PolyTHF 290,000 1 GBL 100,000 1 NMP 70,000 1 Market leading position in PBT/PBAT resin, NVP/PVP Renewable BDO USA Germany China West Korea Japan China East Malaysia BASF is the market leader with ~ 30% MS

6 Petrochemical routes to BDO 2 Butadiene THF Methane Acetylene Butandiole MSA Butane Carbide GBL Benzene 4 Propylene 1990 Four basic BDO technologies using nine different precursors Various technologies freely available; Three to four biobased BDO technologies

7 Saving fossil resources Carbon footprint** Feedstock Fossil feedstock replaced by renewable feedstock 100 % biobased according to the 14C method* Sustainability-related benefits of renewable BDO CO 2 profile to be better than industry average Large-scale production concept allows for further CO 2 improvements Future advancement in second generation feedstock will make renewable BDO independent from resources used in feed/ food chain Technology will continuously improve sustainability standards. *Carbon-14 ( 14C) method has a +/-2-3% tolerance; ** study results available within 2013

8 Renewable BDO strategy Create value added product offers in the BDO value chain around sustainability together with our customers Features of BDO based on renewable raw materials from BASF: Drop in no interruption of your process Commercial cost allowing acceptable pricing Attractive sustainability profile Reliable and global supply, various BDO value chain products Marketing support with brand owners Sustainability creates value and is a differentiating point

9 Market: opportunity/challenge End consumer seek more sustainable solutions Still limited support by regulatory Brand owner support to create market pull o Product line vs. corporate story o Long-lead time for customer approval o Brand owners want reliability of supply Many industrial applications lack attractiveness for sustainability Very limited potential in China (margin, low cost coal, oversupply) Global customer access to achieve critical mass Sustainability has value, but not for the total BDO market.

10 Concept: opportunity/challenge Different understandings of Sustainability Educational efforts: Drop-in renewable BDO vs. new features LCA analysis has to be performed diligently o High complexity and different level o Accuracy of assumptions and dynamics o Not all factors related to technology BDO is not enough: Play the value chain o Combination of BDO derivatives for meaningful value proposition o Derivative plant access Sustainability concept needs time and more BDO based products.

11 Conclusions We see customer/consumer interest in more sustainable products BASF view: Opportunity to deliver a more sustainable BDO value chain A clear sustainability concept needs to be established on various levels of the BDO value chain to be credible and to complete the product offer Sustainability is a communication challenge. Our industry needs to o Make sustainability meaningful o Overcome length of the value chain and connection to brand owners o Develop standards on sustainability to avoid confusion BDO based on renewable raw material needs to win on sustainability.

12 Disclaimer The data contained in this publication is based on our current knowledge and experience. In view of the many factors that may affect processing and application of our product, the data does not relieve processors from carrying out their own investigations and tests; neither does the data imply any guarantee of certain properties, nor the suitability of the product for a specifi c purpose. Any descriptions, drawings, photographs, data, proportions, weights etc. given herein may change without prior information and do not constitute the agreed contractual quality of the product. It is the responsibility of the recipient of our products to ensure that any proprietary rights and existing laws and legislation are observed. The safety data given in this publication is for information purposes only and does not constitute a legally binding Material Safety Data Sheet (MSDS).