BASF uses innovation to cut carbon footprint and help customers operate more sustainably
A company’s success is no longer measured only by the bottom line. Customers, shareholders and employees now expect businesses to operate in ways that create positive impacts and are environmentally responsible.
The chemical industry is no exception. Globally, it generates approximately 925 million metric tons of C02 annually – or about 2 percent of the world’s greenhouse gas emissions. As a result, the industry is taking targeted actions to operate in ways that are more environmentally friendly.
One company that is taking the lead in this area, in line with its overriding commitment to sustainability and climate protection, is BASF. The multinational corporation, which operates in more than 90 countries, manufactures chemicals that are key ingredients in a range of industrial and consumer products, from cosmetics and furniture to automobiles and even spaceships. BASF is committed to using innovation to reduce the carbon footprint of its products and, by extension, those of its customers. This commitment runs “from the executive level, all the way down to those closest to our manufacturing operations,” said Christen Campbell, site development and energy & Verbund director at BASF in North America.
BASF, which calls climate change “the greatest challenge of the 21st century,” takes a three-pronged approach to driving sustainability: Internal efficiency, sourcing energy responsibly and helping its customers reduce their carbon footprint. BASF accomplishes the latter by offering materials that improve the sustainability profile of numerous industries, including construction, automotive manufacturing, aviation and more.
Sustainably efficient
BASF is aiming for net zero emissions by 2050. By 2030, the company wants to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 25 percent, compared to 2018 levels. BASF is also one of the few chemical companies to have a Scope 3 target: By 2030, BASF aims to reduce its specific Scope 3.1 emissions by 15 percent compared with 2022 across the portfolio. To get there, BASF is developing innovative ways of working to save energy and is investing up to €4 billion through 2030 in initiatives to reduce its carbon footprint. “We take a portfolio approach,” said Campbell. “It’s not just one solution, we look at a variety of solutions. And we also look at emerging technologies that are evolving.”
BASF emissions goals
REDUCED
SCOPE 1 AND SCOPE 2
EMISSIONS
by 2030*
REDUCED SCOPE 3.1
EMISSIONS
by 2030**
NET EMISSIONS
by 2050
The company is reinventing numerous manufacturing processes with a focus on transitioning away from fossil fuels, such as natural gas, and electrifying where possible with energy from renewable sources. BASF also seeks to maximize the use of energy captured through its Verbund operating method. This method, which plays a crucial role in efficient production processes, relies on an integrated approach to manufacturing, research and other activities. Business units are purposely located in close proximity to one another to facilitate sharing and efficiency. “We produce our molecules strategically, by locating different businesses next to each other,” said Campbell. “We use as many molecules as we can, and in a circular format to eliminate emissions by design.”
“We use as many molecules as we can, and in a circular format to eliminate emissions by design.”
Christen Campbell
Site development and energy
& Verbund director,
BASF North America
For example, BASF is looking for ways to capture steam emitted during certain production processes and use it as energy to power other activities. “If we can come up with processes that generate steam, it’s less steam that we have to generate via natural gas,” said Dave Mazzia, senior expert, energy and Verbund management at BASF’s North American headquarters in Florham Park, New Jersey.
BASF is also supporting the circular economy. For example, the company is processing sustainable feedstock, like end of life plastics and other hydrocarbons, in its existing chemical manufacturing process to make new materials with virgin-grade qualities. With its ChemCycling® project, BASF processes pyrolysis oil derived from plastic waste into its portfolio of certified mass-balanced products.
By 2025, BASF aims to process 250,000 metric tons of recycled and waste-based raw materials annually, replacing fossil raw materials. By 2030, the company aims to double its sales generated with solutions for the circular economy to €17 billion.
Sourcing energy responsibly
Beyond using less energy, BASF strives to ensure that much of the energy it does use comes from renewable sources, including wind and solar.
For example, BASF has entered into power purchase agreements (PPAs) for solar power totaling almost 300 megawatts for its U.S. operations. “These agreements are specifically designed to offset the carbon-intensive, grid-supplied electricity that’s being used at facilities across the United States,” said Aaron Oaks. an energy management specialist at BASF in Freeport, Texas.
These agreements will help BASF reduce its Scope 2 emissions, which are indirect greenhouse gas emissions associated with purchasing electricity, steam, heat or cooling. In North America, BASF’s renewable energy contracts account for about 40 percent of total purchased power, with further progress planned.
One site that is leading the way in this area is BASF’s Freeport plant. In September 2022, BASF signed a 12-year PPA with X-ELIO, under which X-ELIO will provide BASF Freeport with 48 megawatts of solar power – offsetting more than 82,000 metric tons of C02 emissions annually. With the agreement in place, 100 percent of the plant’s purchased power will come from renewable sources.
Renewable energy at BASF’s Freeport, TX plant
MEGAWATTS
OF SOLAR POWER
purchased
ANNUAL OFFSETS
NET EMISSIONS
Sourcing renewable energy is critical if BASF wants to meet its climate targets, as the company expects demand for power at its major sites to triple by 2035.
Solutions for a sustainable future
Through its innovative products and manufacturing methods, BASF is also helping its customers and consumers meet their own climate goals. Indeed, many sustainable goods rely on innovations from the chemical industry. These include foams for energy-efficient buildings and lightweight construction components, as well as ingredients for sustainable cleaning solutions, personal care applications and agrochemical materials.
BASF’s Alkyl Polyglucosides (APGs), which are readily biodegradable, mild secondary surfactants derived from 100 percent natural and renewable feedstocks, are a key ingredient in numerous formulations. They are used in cosmetics, household goods and industrial products. BASF manufactures APGs at three plants worldwide, including one in Cincinnati, Ohio. BASF is expanding the Cincinnati plant as it seeks to help more customers reformulate their products to meet increasing consumer and regulatory demand for more sustainable goods. “This reflects the market’s desire for bio-based surfactants such as ours,” said Jim Esposito, product manager for APGs at BASF.
“This will increase our ability to service more customers locally to help them enhance their own green portfolios.”
Jim Esposito
Product manager for APGs
BASF, North America
The expanded capacity is expected to be online by 2025. “This will increase our ability to service more customers locally to help them enhance their own sustainable portfolios,” said Esposito.
Beyond cosmetics, BASF is working with companies in other industries to help them make their products more sustainable. For example, the company partnered with Steelcase on its Flex Perch Stool, which is the first furniture product to reduce the use of fossil fuels through chemical recycling. The stool is 100 percent recyclable and is made with BASF’s Ultramid B3EG6 Ccycled, a nylon-like material that is made from a diverted waste stream.
BASF is also working to make electric vehicles more sustainable and energy efficient. Its innovative cathode active materials (CAMs) deliver high-energy density and reliability for lithium-ion batteries. The goal is to enable EVs that can go 360 miles on a single charge by 2025.
BASF plans to continue its commitment to sustainable innovation with more sustainable products in the pipeline. “There are other things to come that will help continually move us forward,” said Mazzia. “It’s a journey.”
*Compared to 2018 levels
**Compared to 2022 levels