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Topics on this page:
The energy of the future
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Efficient use of resources in the Verbund
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Safeguarding energy supplies for production sites
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Renewable energies
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Using renewable raw materials
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CO2 reduction through thermal insulation
The energy of the future
As the world's leading company in an energy-intensive industry, our success depends on long-term secure supplies of energy and raw materials such as oil, naphtha and gas. Because the fossil fuel base is limited, we want to ensure a sustainable energy policy that does not lose sight of the vital needs of its business locations in view of global competition.
Increasing the efficient use of energy and raw materials on a sustainable basis is a top priority for BASF. We already implement a three-pronged approach to resource conservation: through highly efficient production and energy provision at our Verbund sites, through innovative products and processes, and through replacing fossil fuels by renewable raw materials wherever this is realistic.
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Efficient use of resources in the Verbund
Energy costs may make up as much as 60 percent of the manufacturing costs for chemical products. Promoting efficient use of resources is therefore in our own interest. At major production sites around the world, we use a Verbund approach that links production and energy requirements in an intelligent manner. Primary energy carriers are used optimally both as raw materials and for generating electricity and steam. Heat from production processes is not discharged into the environment but captured to power downstream production plants (see energy balance diagram). Without our Energy Verbund, the total energy needed to generate electricity and steam in BASF's power plants would be about 56 percent higher at approximately 4.4 million metric tons of oil equivalent. The Verbund is one of our prime strengths in ensuring the efficient use of resources. It therefore offers us a crucial competitive advantage, while also having a positive impact on the environment.
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Safeguarding energy supplies for production sites
We increasingly use combined heat and power (CHP) plants to generate both heat and steam. Such cogeneration plants are an extremely effective means of supplying energy and, with an overall fuel efficiency of almost 90 percent, are the front-runners among energy conversion methods suitable for use on an industrial scale. BASF currently operates 16 cogeneration plants worldwide. Partner companies at BASF sites operate another seven gas turbine plants with steam cogeneration, mainly to supply BASF. Our new CHP power plant in Ludwigshafen started operations in June 2005. The new plant reduces CO2 emissions by more than 500,000 metric tons per year.
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Renewable energies
Our sites require a reliable energy supply at a reasonable price if they are to remain globally competitive. Renewable energies can reduce our dependence on fossil fuels, and their use is CO2 neutral. In order for renewable energies to take a permanent place in our energy mix, they need to be competitive and be able to exist without subsidies.
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Using renewable raw materials
We replace fossil raw materials with renewable raw materials wherever it makes technological, economic and environmental sense to do so.
One example is our cooperation with the research team of Professor Robin Rogers at the University of Alabama. We are working on a joint project to investigate cellulose dissolution and processing with the aid of ionic liquids. Cellulose is hugely important as a renewable raw material, but a lack of suitable solvents has prevented its wider use. For the first time, our ionic liquids make it possible to produce genuine solutions of cellulose in technically useful concentrations, while simplifying processes.
In our Plastics segment, we launched Ecovio®, a biodegradable plastic based on a renewable raw material starting in 2006. Ecovio consists of 45 percent polylactic acid derived from corn (maize). The other component is BASF's existing biodegradable plastic Ecoflex®, which is derived from petrochemicals. The new product enables BASF to expand its position as the world's leading supplier of biodegradable plastics.
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CO2 reduction through thermal insulation
BASF is an advocate of sustainable global climate protection and supports the Kyoto goal of reducing emissions of all greenhouse gases in industrialized countries by 5.2%. Carbon dioxide is the most important greenhouse gas, accounting for approximately 80% of total emissions of greenhouse gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, per.uorocarbons and sulfur hexa.uoride) in the EU in 2000. 
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