Creating Chemistry For A Sustainable Future. Wayne T. Smith, Member of the Board of Executive Directors, BASF SE
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1 Creating Chemistry For A Sustainable Future Wayne T. Smith, Member of the Board of Executive Directors, BASF SE
2 Sample title slide with background image Creating Chemistry for a Sustainable Future Wayne T. Smith Member of the Board of Executive Directors
3 Key trends in the chemical industry Global growth Raw material change Sustainability
4 Key trends in the chemical industry Global growth Raw material change Sustainability
5 Global growth: Chemical production continues to outpace GDP, especially in emerging markets Real chemical production excluding pharma (World)* in trillion US$ 9% 25% 9% trillion 20% 45% CAGR World: 4.1% (GDP: 2.9%) Emerging Markets: 6.5% (GDP: 4.8%) 18% 16% trillion 57% Asia Pacific Europe North America Rest of World Source: BASF
6 Key trends in the chemical industry Global growth Raw material change Sustainability INTERNAL 6
7 Raw materials landscape is diversifying based on regional differences North America Shale Gas Low priced natural gas Europe Naphtha China Coal Natural gas price reform by NDRC. Middle East Natural Gas, Ethane, Mixed feed INTERNAL 7
8 Key trends in the chemical industry Global growth Raw material change Sustainability
9 Sustainability: Becoming even more important Consumption of Earth s resources We now demand more from the Earth than can be regenerated
10 Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment & Climate Food & Nutrition Quality of Life Chemistry as enabler
11 Sustainability provides opportunities for chemical industry growth Wind Advanced battery materials Insulation Solar Panels Crop Science Emission Control Sustainable growth solutions are downstream in the value chain. Innovation is key
12 What about upstream in the value chain? Regulations Societal expectations Raw Material Suppliers Chemicals Customer Industries Consumers Needs Resources Production Products/Processes Solution Upstream Focus Downstream Focus How can upstream contribute to sustainability?
13 Sustainable chemicals production balances ecology, economy and society Economy Environment Society
14 Key aspects for upstream chemicals Health and safety Emission reduction Climate protection Energy consumption Resource efficiency
15 The underlying principle of sustainability for upstream chemicals Products Integration Minimizing Resources and Maximizing Output Process Improvement New Process Development
16 Products as sustainability accelerators Gas Treatment Wide range of customized gas treatment technologies applied in numerous plants worldwide Removal of acid gases such as CO 2 and H 2 S Sustainability contribution: Climate protection Catalysts for N 2 O abatement Major source of N 2 O emissions: nitric acid production Catalyst provides highly effective decomposition of N 2 O Sustainability contribution: Emission reduction
17 Incremental process improvement in ammonia Process improvement in % Ammonia plant in Ludwigshafen Plant designed to be highly energy efficient inherently low CO 2 emisions Further process automation to increase speed of process adaptions to changing conditions increased production rate reduced energy consumption Production Rate Energy Consumption Process CO 2 is used as resource for other processes Sustainability contribution: Energy consumption Climate protection
18 New process development: HPPO process H 2 O Methanol Hydrogen Peroxide Propylene Propylene Oxide Water TS-1 O H 2 O Compared to conventional PO technology: 70 80% less waste water 30 % lower energy consumption No byproduct Reduced physical footprint Simple raw material integration HPPO Antwerp: 300 kt/a PO Sustainability contribution: Energy consumption Water
19 Value chain integration: The BASF Verbund Ludwigshafen Air Natural gas Naphtha Phosphate Potassium chloride Vacuum residue Ethylhexanol Oxygen Acetylene Ethylene Propylene C4-cut Ammonia Methanol Hydrogen Carbon oxide Propionic aldehyde Vinylethers Polystyrene Styrene Ethyl benzene Ethylene oxide Oxo alcohols Nitric acid Fertilizers Nitrogen oxide Formaldehyde Butanediol Methyl amines Hydroxylamine Hydrogen cyanide Acrylic acid Oxo C4 Formic acid Ethanol amine Diethanol amine C13-C15-alcohols SB-copolymer Polyisobutene Tetrahydrofuran Acrylic acid ester Butyraldehydes Acetic acid Carbon dioxide Carbon dioxide liqu. Carbon dioxide solid Urea Urea-formaldehydecondensation Melamine products Salt Chlorine Dichlorethan Caustic soda Propylene oxid Propyleneglycoles Separoles Na-nitrite, -nitrate Rongalites Na-sulfites Rongales Sulfur Sulfur dioxide Na-salts of sulfuric acid Na-bisulfites Blankites Raw Benzene Sulfuric acid Textil chemicals AH-salts Hydrosulfites Lutinol E materials Cyclohexane Adipic acid Polyamides Caprolactam Chemicals o-xylene PSA Toluene TDI Lupranat brands Segment Propanole Glycole ethers Butyrolactone Butanoles Propionic acid Ethylenimin Polymin Glyoxal Lutensol-brands Plasticizers Keropur Plurafac-brands Pyrrolidone N-Methylpyrrolidone PolyTHF POM Ethylenediamine Trilon-brands PBT Neopentylglykol Hexanediol Dispersions Butylacetate
20 Value chain integration: The BASF Verbund Global reduction in carbon emissions of 6.1 million metric tons/a and reduction of waste Example Ludwigshafen: avoidance of 7 million metric tons of freight/a = 280,000 fewer truckloads Shared use of on-site facilities: fire department, security, waste water treatment and analytics 20
21 Sustainability is the core of BASF s strategy Our purpose: We create chemistry for a sustainable future
22
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