Energy and climate protection

As a company in an energy-intensive industry, we are committed to energy efficiency and global climate protection. An important contribution to this is made by our efforts to continue reducing emissions along the value chain, and by our climate protection products. We utilize energy-efficient production processes and efficient technologies to generate steam and electricity. We have implemented a comprehensive energy management program.

The graphic depicts the different stations along the value chain. The topics in this chapter address the station shown in dark green. (here: Suppliers, Transportation, Production, Transportation, Customers) (graphic)

Strategy

  • We are committed to energy efficiency and global climate protection along the value chain
  • We aim to certify our energy management system worldwide

We want to reduce greenhouse gas emissions in our production and along the entire value chain. We have thoroughly analyzed the greenhouse gas emissions from our production in the past few years and implemented comprehensive reduction measures. This is how, for example, we have been able to reduce nitrous oxide emissions by 95% since 1997.

To supply our production sites with energy, we rely on highly efficient combined heat and power plants with gas and steam turbines and the use of heat released by production processes. Comparisons with European emissions trading benchmarks show that our greenhouse gas-intensive chemical plants also operate at above-average efficiency. Around 50% of BASF Group emissions in 2014 resulted from steam and electricity generation in our power plants as well as in our energy suppliers’ power plants.

Our success also depends on the long-term security and competitiveness of our energy supplies. Furthermore, we are committed to energy management that helps us analyze and continue to improve the energy efficiency of our plants. In 2014, we were able to finalize the DIN EN ISO 50001 certification of our energy management systems at BASF SE as well as the great majority of German production sites. Moreover, our site in Tarragona, Spain, and our four sites in South Korea also received this certification.

We offer our customers solutions that help prevent greenhouse gas emissions and improve energy efficiency. About a third of our total annual research spending goes toward the development of these products and the optimization of our processes.

Our climate protection activities are based on comprehensive emissions controlling. We report on greenhouse gas emissions in accordance with the Greenhouse Gas Protocol Standard, as well as the sector-specific standard for the chemical industry. According to CDP, an international organization that analyzes companies’ climate protection data, BASF is among the top companies in the world in terms of transparency and completeness in climate protection reporting. In reporting to CDP, our experts perform an annual analysis of the opportunities and risks that climate change poses for BASF.

Reduction of greenhouse gas emissions per metric ton of sales product in BASF operations excluding Oil & Gas1,2 (in %)
Reduction of greenhouse gas emissions per metric ton of sales product in BASF operations excluding Oil & Gas (bar chart)

1 The figures for the 2011 business year and earlier were not adjusted to the new accounting and reporting standards IFRS 10 and 11. For more information on our data collection methods, see Data.
2 The figures for the 2012 business year and earlier were not adjusted to the newly applied factors for global warming potential. For more information on our data collection methods, see Table "BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol".

BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol1
(1,000 metric tons of CO2 equivalents)

BASF operations including Oil & Gas

 

GWP factor (2002)2

GWP factor (2013, 2014)2

2002

2013

2014

1

BASF reports separately on direct and indirect emissions from the purchase of energy. Scope 1 emissions encompass both direct emissions from production and generation of steam and electricity, as well as direct emissions from the generation of steam and electricity for sale. Scope 2 emissions comprise indirect emissions from the purchase of energy for BASF use.

2

GWP factor: global warming potential of the individual gases expressed as a factor of CO2 emissions. The GWP factor is based on the Intergovernmental Panel on Climate Change (IPCC) 1995 (2002 emissions) and IPCC 2007, errata table 2012 (2013 and 2014 emissions). HFC (hydrofluorocarbons) are calculated using the GWP factors of the individual components.

3

Also includes sale to BASF Group companies; as a result, emissions reported under Scope 2 can be reported again in some cases.

4

Voluntary Carbon Units (VCU) certificates from measures to reduce emissions, which were sold to third parties

Scope 1

 

 

 

 

 

 

CO2 (carbon dioxide)

 

1

1

14,634

16,976

16,774

N2O (nitrous oxide)

 

310

298

6,407

759

669

CH4 (methane)

 

21

25

244

87

70

HFC (hydrofluoro­carbons)2

 

140–11,700

12–14,800

61

81

99

SF6 (sulfur hexafluoride)

 

23,900

22,800

0

1

0

Scope 2

 

 

 

 

 

 

CO2

 

1

1

5,243

3,987

3,911

Total

 

 

 

26,589

21,890

21,523

 

 

 

 

 

 

 

Sale of energy to third parties (Scope 1)3

 

 

 

 

 

 

CO2

 

1

1

347

927

838

Total

 

 

 

26,936

22,817

22,361

 

 

 

 

 

 

 

Offsets (certificates sold)4

 

 

 

0

142

0

 

 

 

 

 

 

 

Total including offsets

 

 

 

26,936

22,959

22,361

Global goals

  • Reduction of 33.9% in specific greenhouse gas emissions in 2014 compared with baseline 2002
  • Energy efficiency increases by 19.0% in 2014 compared with baseline 2002

By 2020, we aim to reduce our greenhouse gas emissions per metric ton of sales product by 40% compared with baseline 2002. We achieved a reduction of 33.9% in 2014 (2013: reduction of 34.1%). Since 1990, we have been able to lower our overall greenhouse gas emissions from BASF operations (excluding Oil & Gas) by 48.8% and even reduce specific emissions by 74.1%.

By 2020, we want to improve the energy efficiency of our production processes by 35% compared with 2002. We were able to achieve an increase of 19.0% in 2014 (2013: 19.8%). This slight reduction compared with the previous year was attributable in part to the lower capacity utilization of our combined heat and power plants.

2020 Goal

–40%

Reduce greenhouse gas emissions per metric ton of sales product
Baseline 2002
BASF operations excluding Oil & Gas

2020 Goal

+35%

Increase energy efficiency
Baseline 2002
BASF operations excluding Oil & Gas

In 2014, we already nearly achieved our 2020 goal of reducing carbon emissions per amount and distance of transported natural gas by 10% compared with 2010 in the natural gas transportation business. GASCADE is no longer fully consolidated in the Group financial statements; since January 1, 2014, it has been considered an associated company and accounted for using the equity method. For this reason, we are no longer reporting on our goal to reduce greenhouse gas emissions in the natural gas transport business.

Energy supply of the BASF Group 2014

Energy supply of the BASF Group 2014 (pie chart)

Energy supply and efficiency

  • Verbund system as important component of our energy efficiency strategy
  • Research projects initiated on use of renewable energy sources

Gas and steam turbines in our combined heat and power plants enable us to fulfill around 70% of the electricity demand of the BASF Group. Compared with separate methods of generating steam and electricity, we saved 11.8 million MWh of fossil fuels and prevented 2.4 million metric tons of carbon emissions in 2014. The Verbund system is an important component of our energy efficiency strategy: Waste heat from one plant’s production process is used as energy in other plants. In this way, we saved around 17.9 million MWh in 2014, which corresponds to a savings of 3.6 million metric tons’ worth of carbon emissions. With combined power and steam generation as well as our continuously enhanced Energy Verbund, we were thus able to prevent 6 million metric tons of carbon emissions in 2014.

We were able to further optimize the resource and energy consumption of our production in numerous projects around the world in 2014. Various process improvements led to steam and electricity savings. We further intensified heat integration so that usable heat from production processes is not released into the environment, but instead provides energy to the plants. For example, we increased energy efficiency for our butadiene and ethylene oxide facilities in Ludwigshafen by optimizing the plant control systems.

We also rely on locally available energy sources for the supply of energy at our sites. Especially in the growing Asian market, we and our energy suppliers must make use of coal as an energy source to a certain extent, since the more climate-friendly natural gas is not available in sufficient quantities at competitive prices.

We are exploring the use of renewable energies. These can only become a permanent part of our energy mix if they are competitive in terms of supply security and cost. With numerous research projects, we contribute to increasing the efficiency of technologies for the use of renewable energy sources. For example, Deutsche Nanoschicht GmbH – a 100% subsidiary of BASF – has developed an innovative method for producing high-temperature superconductors in a more efficient and environmentally friendly manner. In cooperation with the Karlsruhe Institute of Technology, high-temperature superconductors are to be optimized for various applications in energy technology.

Increase in energy efficiency of production processes in BASF operations excluding Oil & Gas1 (in %)
Increase in energy efficiency of production processes in BASF operations excluding Oil & Gas (bar chart)

1 The figures for the 2011 business year and earlier were not adjusted to the new accounting and reporting standards IFRS 10 and 11. For more information on our data collection methods, see Data.

Key indicators for energy and climate protection in BASF operations excluding Oil & Gas

 

 

Baseline 20021

2013

2014

1

The values for baseline 2002 were not adjusted to reflect the newly applied global warming potential factors.

2

Scope 1 and Scope 2 according to the Greenhouse Gas Protocol Standard, excluding emissions from the generation of steam and electricity for sale to third parties

3

Primary energy used in BASF’s plants as well as in the plants of our energy suppliers to cover energy demand for production processes

Greenhouse gas emissions2 (million metric tons of CO2 equivalents)

 

24.713

20.708

20.550

Specific greenhouse gas emissions (metric tons of CO2 equivalents per metric ton of sales product)

 

0.897

0.591

0.593

Primary energy demand3 (million MWh)

 

55.759

59.164

58.962

Energy efficiency (metric tons of sales product per MWh)

 

0.494

0.592

0.588

Corporate carbon footprint and climate protection products

  • Reporting on greenhouse gas emissions along the entire value chain
  • Customers’ use of climate protection products sold in 2014 avoids 520 million metric tons of carbon equivalents

BASF has been publishing a comprehensive corporate carbon footprint since as early as 2008. This reports on all emissions along the value chain and shows the volume of emissions prevented through the use of our climate protection products. We plan our climate protection activities along the value chain based on our corporate carbon footprint. In 2014, for example, we implemented a technical improvement in our steel drums together with one of our packaging material suppliers. This reduced the amount of raw materials needed for production and decreased the emission of greenhouse gases.

Through various measures to reduce our raw material requirements, the emission of greenhouse gases associated with producing these raw materials was decreased by a total of around 100,000 metric tons in 2014.

We reevaluated our product portfolio in terms of sustainability considerations in 2014. This included identifying solutions whose application makes a positive contribution in terms of climate protection and energy. Dubbed “Accelerator” products, these are what we focus on when referring to climate protection products. One example is synthetic sodium nitrate, used as a heat transfer medium in solar thermal power plants. This product is used instead of thermal oils. It increases the operating temperature, and with that, electricity yield.

Greenhouse gas emissions along the BASF value chain in 20141
(in million metric tons of CO2 equivalents)
Greenhouse gas emissions along the BASF value chain in 2014 (graphic)

1 According to Greenhouse Gas Protocol, Scope 1, 2 and 3 (categories within Scope 3 shown in parentheses)

An analysis of 24 climate protection product groups revealed that customers’ use of products sold in 2014 avoids 520 million metric tons of CO2 equivalents. The calculation of avoided greenhouse gas emissions was based on the new chemical industry standard of the ICCA and the World Business Council for Sustainable Development (WBCSD). Every product makes an individual contribution in the value chain. Value chains are assessed in terms of BASF’s economic share of the respective climate protection product. On average, 11% of the emissions avoided were attributable to BASF in 2014.

Prevention of greenhouse gas emissions through the use of BASF products
(in million metric tons of CO2 equivalents)
Prevention of greenhouse gas emissions through the use of BASF products (graphic)