Refining & Petrochemicals Middle East



One year after its initial announceme­nt, BASF has reaffirmed its ambitious climate targets. In an update for investors and financial analysts on its transforma­tion roadmap BASF confirmed that by 2030 it aims to reduce its greenhouse gas emissions by 25 % compared with 2018 and is maintainin­g its goal of net zero emissions globally by 2050.

On its path to reducing global emissions to 16.4 million metric tons by 2030, BASF is publishing an annual CO2 emissions forecast for BASF Group as part of its outlook with a corridor of plus or minus 0.5 million metric tons.

“There is a brutal war raging in Europe with far-reaching consequenc­es for both people and the economy. Neverthele­ss, we must not lose sight of the greatest global challenge of our time – climate change,” said Dr. Martin Brudermüll­er, chairman of board of executive directors of BASF SE.

Renewable energy as a main driver of emission reduction

In 2021, BASF reduced CO2 emissions by around 3 percent compared with 2020 despite significan­tly higher production volumes. To a large extent this was due to the increased use of renewable energy. Switching power to renewable energy will be the main driver of emission reduction until 2025. In 2021, renewables accounted for 16 percent of BASF Group’s global power demand. By 2030, the company projects that 100 percent of its 2021 global power demand will be obtained from renewable sources.

Next step: BASF ready to offer first net-zero and low-pcf products

“BASF is making significan­t progress on its path to achieving its emission reduction targets. And we are ready for the next step – achieving sustainabl­e growth through products with reduced carbon footprints,” says Brudermüll­er.

By using green power, low-carbon steam, bio-based feedstocks and highly efficient processes BASF is able to offer its

customers net-zero products and products with a low product carbon footprint (PCF).

The company expects that demand for such products will exceed supply in the medium term and that their market value will more than compensate for the higher production costs.

BASF believes that end consumers will drive the transforma­tion towards net-zero and low-pcf consumer products since they are increasing­ly requesting alternativ­es to convention­al consumer products and want to make a personal contributi­on to reducing emissions. BASF therefore aims to be among the first companies to provide large volumes of as many products as possible with reduced carbon footprints.

Many of BASF’S customers are eager to reduce the carbon footprint of their products to reach their own emission goals. For this, a new level of transparen­cy is required. BASF has thus developed an in-house digital solution to calculate the PCFS for approximat­ely 45,000 sales products. In this tool, BASF currently has to use industrial averages and values from commercial databases as the basis to include upstream Scope 3 emissions. In order to create more transparen­cy on Scope 3 emissions, BASF is intensivel­y working with suppliers to improve the data for the raw materials it purchases from them. BASF supports suppliers by sharing knowledge of evaluation and calculatio­n methods. In this way, the company is contributi­ng to the standardiz­ation of PCF calculatio­ns.

Structured approach to capital expenditur­es

During the period from 2021 to 2025, BASF continues to expect that capital expenditur­es of less than $1.1 billion (€1 billion) will be needed to develop the lowemissio­n technologi­es and scale them up in pilot plants. This amount is included in BASF’S capex budget. For some projects, public funding has been granted already, for others a decision is expected shortly.

In the 5-year period from 2026 to 2030 capital expenditur­es are expected to increase to around €2 billion to $3.3 billion (€3 billion). In this timeframe, BASF plans to bring the first new Carbon Management technologi­es to scale and accelerate the switch to renewable power. Significan­tly higher investment­s are then to be expected for the constructi­on of worldscale production plants using the new technologi­es, and to further scale up the use of renewable energy after 2030.

 ?? ?? image for illustrati­on purpose only
image for illustrati­on purpose only

Newspapers in English

Newspapers from United Arab Emirates