Requirements for Synthesisgas-Supply to a Chemical Verbund

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Requirements for Synthesisgas-Supply to a Chemical Verbund 6 th International Freiberg Conference Martin Gall, Dr. Heinrich Laib, Dr. Peter Saling BASF SE, Ludwigshafen, Germany

Requirements for Synthesisgas-Supply to a Chemical Verbund Contents BASF - The Chemical Company General Supply Aspects Sustainability Evaluation Renewable Feedstock 2

BASF The Chemical Company We create chemistry for a sustainable future Sales 2013: 73,973 million EBIT 2013: 7,273 million Employees: 112,200 (as of December 31, 2013): 6 Verbund sites and 376 other production sites Our chemistry is used in almost all industries We combine economic success, social responsibility and environmental protection 3

BASF The Chemical Company production vs. emissions Development since 1990 Index 1990 = 100%, BASF Group excl. oil and gas business 250 200 +100% volume of sales product 150 100 50 0 1990 1994 1998 2002 2006 2010 2013-48% -74% absolute greenhouse gas emissions specific green house gas emissions 4

Requirements for Synthesisgas-Supply BASF Ludwigshafen Verbund Aerial view Synthesisgases: Hydrogen Carbonmonoxide Mixtures of Hydrogen and Carbonmonoxide 5

Requirements for Synthesisgas-Supply Demand quantities Plant capacities Typical Chemical Plant (Formic Acid, BDO,Iso-Cyanates,.) Demand quantities Mega Plants (Methanol, XtL,.) Verbund 50 knm3/h 250 knm3/h 500 knm3/h SMR Coal-POx ATR Plant capacities typical demand significantly smaller than world-scale plant capacity Dedicated plants @ max. design or multi-train set-up, integrated 6 Verbund sites with cummulated demand can gain economy of scale Additionally supply to typical chemical plants possible

Requirements for Synthesisgas-Supply Adjustment of H2 / CO Ratio (simplified) CO Hydrogen concentration (vol %) 0 50 100 H2 Clients demand Demand Operational window Technologies Feedstock Coal POx Oil POx NG-Pox ATR SMR Increase H2 portion via shift reaction CO + H 2 O CO 2 + H 2 Increase CO portion via CO2 recycle, import 7

Requirements for Synthesisgas-Supply Syngas Verbund Ludwigshafen Overview Hydrogen co-producers ASU Ammonia plants Chlorine plants Steamcrackers Synthesis gas plant 1 + 2 + 3 90 clients H2 clients CO clients Oxo clients Cyclohexane plant Aromatics plant Butanediol plant SteamCracker Hydramin plant Neopentylglycol Budimate plant Special Amines Pentyl plant Ultramid plant Phthalodinitril Amidoacid plant Methanol plant Butyl plant Hydroxylamine Chloridazone Poly-THF plant Lysmeral plant 8

Requirements for Synthesisgas-Supply Relevance within the Verbund Syngas - Downstreams (Ludwigshafen extract) 1 CO MeFO Propionic Acid Formamide Hydrogen Cyanide Formic Acid Diethylketon Trilone Isophorondiamines Feed Acidifiers Vitamine E 40 Production Iron Carbonyl Propionaldehyde Carbonyl Iron Power Methacrylic Acid Catamold Resins Hydrogen Carbonmonoxide Oxogas H2 n-butanol Valeraldehyde n-nonanol Cyclohexane Butanoles BDO/HDO Butylacrylates Propylheptanol Palatinol N Anon/Anol Butylacrylates THF Dispersions Palatinol 10P Hexamoll DINCH Polyamides Dispersions PTHF GBL NVP/PVP Oxogas Higher Oxalc. Hydroxylaminsulfate Caprolactam Plasticizers Polyamide 6 HA free base 9

Requirements for Synthesisgas-Supply Relevance within the Verbund Syngas - Downstreams (Ludwigshafen extract) 1 CO MeFO Propionic Acid Formamide Hydrogen Cyanide Formic Acid Diethylketon Trilone Isophorondiamines Feed Acidifiers Vitamine E 40 Production Iron Carbonyl Propionaldehyde Carbonyl Iron Power Methacrylic Acid Catamold Resins Hydrogen Oxogas n-butanol Valeraldehyde n-nonanol Palatinol N Hexamoll DINCH H2 Cyclohexane Anon/Anol Polyamides Butanoles Butylacrylates Dispersions are BDO/HDO key requirements for THF PTHF GBL NVP/PVP Synthesisgas-Supply Plasticizers Higher Oxalc. Hydroxylaminsulfate Butylacrylates Propylheptanol Caprolactam Dispersions Palatinol 10P Reliability and Flexibility Polyamide 6 HA free base Carbonmonoxide Oxogas Downstream clients 10

Sustainability Evaluation Balancing all three dimensions Ecology Care for the environment International Communities Global Warming Economy International Ensure Trade the profitability of business Land use change Sustainability Evaluation Society Meet the Training expectations of society 11

Sustainability Evaluation Tools ISO 14040 & 14044 Life Cycle Inventory Quantifies inputs and outputs Life Cycle Assessment (LCA) Evaluates of environmental impacts ISO 14045 Eco-Efficiency Analysis Includes environmental impacts and life cycle costs Already over 600 analysis since 1996 Validated method by and SEEBALANCE Includes social aspects

Sustainability Evaluation Overview of information and effort requirements Sustainability - Information early stage calculation tools Total Cost of Ownership SEEBALANCE Eco-Efficiency Analysis + social impact + environmental impact economic view low Effort high

Sustainability Evaluation Environmental Assessment Effect Category Ecological Fingerprint Environmental Burden Resource Consumption Energy Consumption Energy Consumption Emissions Toxicity Potential Risk Potential Land Use Water use (in future) Calculation of relative product position Land Use Resource Consumption 1,00 0,50 0,00 Risk potential Emissions Toxicity potential process 1 process 2 process 3 Aggregation and weighting of impact categories low 1 2 3 high Calculation Normalization Weighting and aggregation 14

Sustainability Evaluation Eco-Efficiency Analysis result presentation 0.4 Production of Product X Environmental burden (normalized) 1.0 process 2 process 3 process 1 1.6 1.6 1.0 Costs (normalized) 0.4 15

Sustainability Evaluation SEEBALANCE result presentation 0,4 highest socio-ecoefficiency 1,0 intermediate 1,6 1,0 0,4 lowest socio-ecoefficiency 1,0 0,4 1,6 transparent accepted methodology and weighting high aggregation of results possible 16

Chemicals based on renewable feedstock

Chemicals based on renewable feedstock concepts Dedicated plants Raw Fossil materials fuels Production Market Fossil feedstock BASF Verbund Products Conventional Markets Biofeedstock dedicated production dedicated products dedicated consumers Integrated production Raw Fossil materials fuels Production Market Conventional Markets Certified allocation concept (massbalance approach) Fossil feedstock Biofeedstock BASF Verbund Products dedicated consumers 18

Chemicals based on renewable feedstock Integrated production massbalance approach Fossil fuels Raw materials Production Market Conventional Markets Fossil feedstock Biofeedstock BASF Verbund Products dedicated consumers Our integrated and highly efficient production is an available option for the use of renewable feedstock A publicly accepted certification system provides the method to allocate renewable feedstock to certain products / a portion of certain products concept rapidly available to help our clients to achieve their sustainability goals 19

Requirements for Synthesisgas-Supply Key statements typical chemical site Flexibility and reliability are key requirements Single plant demand typically below world scale plant capacities Demand portfolio is site specific, very big variation (quantity, composition) Demand for products based on renewables will increase Sustainability evaluation results will become a quality criteria ( expertise to apply established tools necessary ) Site-specific supply concepts which balances requirements to all aspects technological economical ecological social 20