BASF Report 2021 Management’s Report – Energy and Climate Protection 128 Global targets and measures Energy supply of the BASF Group 2021 a Fossil fuels and residual fuels used in the BASF Group’s Compared with baseline 2018, we want reduce greenhouse gas Electricity supply central power and steam generation plants emissions from our production sites (excluding emissions from the 26% sale of energy to third parties) and our energy purchases by 25% by Purchased (nonrenewable) 16% 15.3 million 80.3% Natural gas 2030, i.e., from 21.9 million metric tons to 16.4 million metric tons. MWh 30.9 million MWh This corresponds to a reduction of around 60% compared with Purchased (renewable) 1990. Our long-term goal is net zero greenhouse gas emissions by 58% 0.2% Heating oil 2050 (Scope 1 and 2). Internally generated 0.1 million MWh 2.1% Coal 2030 and 2050 targets 0.8 million MWh Steam supplya –25% Net zero 44% 17.4% Substitute fuels Waste heat 6.7 million MWh 13% 45.0 million Reduction in our absolute Greenhouse gas emissions MWhb Total: 38.5 million MWh a Purchased (nonrenewable) greenhouse gas emissions by 2050 43% by 2030 compared with 2018a (Scope 1 and 2) (Scope 1 and 2) Internally generated a BASF operations excluding sale of energy to third parties, including offsetting a Adjusted method for recognizing import/export of electricity and steam b Conversion factor: 0.75 MWh per metric ton of steam The BASF Group’s emissions reported under these targets in 2021 amounted to 20.2 million metric tons of CO equivalents (2020: 2 20.8 million metric tons of CO equivalents). We were able to reduce lever), and ongoing measures to further increase energy and To generate our own steam and power, we mainly use natural 2 emissions by around 3% year on year despite significantly higher resource efficiency in our production (continuous opex lever). gas (80.3%) and substitute fuels (17.4%). These are residues from production volumes due to the increased use of renewable energy For more information on climate protection, see page 27 chemical production plants that cannot be reused in the BASF and measures to improve energy efficiency and optimize processes. A projection of greenhouse gas emissions in 2022 can be found in the forecast from page 148 onward Verbund. We cover more than 58% of our electricity demand with Lower ammonia production due to the high price of natural gas also our own gas and steam turbines in highly efficient combined heat reduced emissions. and power plants. To achieve the highest possible energy yield with Energy supply the lowest possible greenhouse gas emissions, we continu ously To achieve our ambitious climate protection goals, we have adopted invest in our combined heat and power plants. One example is our comprehensive carbon management. This has five levers to Our total energy consumption, comprising fuel demand in our own gas and steam turbine power plant at the Schwarzheide site in reduce greenhouse gas emissions: Using renewable energies central power and steam generation plants, primary energy require- Germany, which is undergoing a €73 million modernization. Once it for both electricity and steam production (gray-to-green and power- ments in our process plants, and net power and steam imports, was is started up in 2022, it will produce 10% more electricity and the to- steam levers), developing and applying new carbon-free and 58.8 million MWh in 2021. CO emissions factor of the power generated will be around 10% 2 low-carbon production processes (new technologies lever, see lower thanks to higher fuel efficiency. page 132), using alternative raw materials (bio-based feedstocks