Industrial bioeconomy –examples of the chemical industryGlobal Bioeconomy Summit, BerlinCarsten Sieden

Why renewable feedstock?

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Sustainability: Saving of fossil resources and climate protection

Raw materials: diversification of the raw material base

Opportunities: Customer / consumer demand and regulations

Competitiveness: product with a certain performance not accessible or at higher cost or market demand

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Vision 2050: a world in which nine billion people can live well, and within the planet’s resources

Four main drivers are influencing BASFs renewable-based portfolio.

Different approaches to a renewable-based portfolio

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Biomass balance products, e.g.n Polyurethanes

n Polyamides

n Acronal Dispersions

n Polystyrol

Products only accessible from renewables, e.g.n Oleochemicals

n Furandicarboxylic Acid

n Enzymes

n Schizophyllan (Biopolymer)

RRM-based drop-ins, e.g.n 1,4-Butanediol

n Succinic acid

n Vitamin B2

n Beta-carotin

BASF purchases a broad range of renewable raw materials

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Oils & Fats Grains Sugar Wood

n Natural oilsn Fish oiln Castor oiln Sebacic acidn Fatty acidsn Fatty alcoholsn Glycerinn Stearates

n Starchesn Modified

Starchesn Dextrosen Maltodextrinn Gluconates

n Raw sugarn White sugarn Ethanoln Itaconic acidn Citric acid

n Ligninsulfonaten Cellulose-

Derivativesn Gum Rosinn Tackifiern Furfuraln Tall oil sterolsn TOFA

~ 5% of BASF’s total raw material purchase are renewables.

Growing demand, renewable raw materials not per se sustainable

Hotspots in renewable raw materials (RRM)

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Deforestation

Agricultural Commodity Culture

Palm Sugar Grain Wood

Palm and palm kernel oil

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Unique chemical properties make substitution unfeasible to date

Supply chain complexity challenges traceability

Wide-spread use in personal care and food applications

Plantations cause deforestation and related issues of concern

Palm is an example for the sustainability dilemma of renewables.

How do we work on our journey to Sustainable Palm?

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Co-create for sustainability

Collaboration: one of the first members of the Roundtable on Sustainable Palm Oil (RSPO) and member of the High Carbon Stock Approach Steering Group

Collaborate Drive physical transformation

Co-Creation: engagement in smallholder inclusion with our partners

Physical transformation: certified sites worldwide enable the shift towards sustainable palm

More: on.basf.com/palm-dialog or Twitter: @BASF_palm

Examples for bio-based portfolio

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Joint venture BASF and Corbionn bio-based succinic acid

(Succinity®) as platform chemicaln Production start Montmeló,

Spain Q1 2014

Patented process of Genomatican 1,4-Butanediole based on sugarn Commercial volumes available

since end 2013

Joint venture BASF and Avantiumn Furandicarboxylic acid (FDCA) from

renewable feedstock for polyethylenefuranoate and more

n FDCA-production planned at BASF’s Verbund site Antwerp, Belgium

ecovio® - bio-based and compostablen Consists of the compostable BASF

polymer ecoflex® and polylactic acid derived from corn

n Applications: fruit & vegetable bags, mulch films, packaging

Biomass Balance: groundbreaking way of derivingproducts from renewable raw materials

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Product examples for biomass balance products

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HySorb® Biomass Balanced –Sustainable superabsorber for baby diapers

Flexible films for new packaging made of Ultramid®

Construction elements containing BASF’s Elastopir®

systems

Acronal® binders for interior paints

Glasurit® automotive refinish products

Summary

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n For the use of renewable raw materials at BASF 4 different value drivers are crucial� Competitiveness� Sustainability� Business Opportunity� Diversification of raw materials base

n Renewable Raw Materials are not per se sustainable

n BASF offers bio-based materials as well as biomass balanced materials