BASF Report 2021 Management’s Report – Energy and Climate Protection 129 Additional key indicators for energy and climate protection in BASF operations capacity of 24 megawatts peak (MWp) to supply the Schwarzheide 2018 site in Germany. 2021 2020 (baseline) Specific greenhouse gas emissionsa (metric tons of CO2 equivalents per metric ton of sales productb) 0.564 0.639 0.577 In addition to these cooperative ventures, in 2021 we concluded Primary energy demandc (million MWh) 57.627 60.256 60.586 further long-term supply agreements for green power. In Europe, these include a power purchase agreement for wind energy with the Energy efficiency (kilograms of sales productb per MWh) 621 540 626 Engie group (volume: up to 20.7 TWh / term: 25 years) and an off- a Scope 1 and Scope 2 (market-based) according to the GHG Protocol, excluding emissions from the generation of steam and electricity for sale to third parties, including offsetting shore wind power purchase agreement with Ørsted (installed b Sales product volumes include sales between BASF Group companies; merchandise is not taken into account. c Primary energy used in BASF’s plants as well as in the plants of our energy suppliers to cover energy demand for production processes Purchased renewable energy has a primary energy conversion efficiency rate of 100%. capacity: 186 MW / term: 25 years). We will procure energy for our new Verbund site in Zhanjiang, China, from a wind and solar park with a capacity of 400 megawatts. Further long-term supply agree- Compared with separate methods of generating steam and elec- To ensure access to energy from renewable sources, we are pursu- ments for wind and solar power were concluded in the United States tricity, we saved 15.0 million MWh of fossil fuels and avoided ing a make and buy approach. Firstly, BASF is investing in its own for the Freeport and Pasadena sites (both in Texas). 3.0 million metric tons of carbon emissions in 2021. In 2021, inter- renewable power assets, particularly offshore wind farms. Secondly, nally generated power in the BASF Group had a carbon footprint of BASF will purchase green power on the market through long-term In addition, we have converted existing agreements to green power around 0.24 metric tons of CO per MWh of electricity and was supply agreements with plant operators, green power agreements and have acquired renewable energy certificates in a number of 2 below the national grid factor at most BASF Group locations. or renewable energy certificates, depending on the region and mar- regions. The aim is to gradually replace these temporary measures ket regulations. A key purchasing criterion is the “additionality” of the with our own power assets or long-term supply agreements. Another important component of carbon-optimized energy supply energy purchased. This means that power is primarily generated by at our sites is the Verbund system. It helps us realize synergies and new wind and solar farms. In total, over 88 sites worldwide (2020: 19) were already partially or manage value chains in a resource-efficient way. For example, fully powered by emission-free electricity at the end of 2021. The waste heat from one plant’s production process is used as energy in In 2021, we entered into pioneering cooperative agreements to carbon footprint of purchased electricity in 2021 was around other plants. The Verbund saved us around 21.4 million MWh in transform our energy supply. For instance, we currently hold a 0.21 metric tons of CO /MWh (market-based approach), significantly 2 2021, which translates to 4.3 million metric tons less CO released 49.5% share in Vattenfall’s Hollandse Kust Zuid (HKZ) offshore wind lower than in the previous year (0.41 metric tons CO /MWh). 2 2 into the environment. With combined power and steam generation farm. Pending approval of the relevant merger control authorities, as well as our optimized Energy Verbund, we were thus able to we plan to sell shares in HKZ to Allianz Capital Partners in the first avoid a total of 7.3 million metric tons of carbon emissions in 2021. originally quarter of 2022. This will reduce our interest to 24.3%. The That is why we will continue to invest in the creation and optimization agreed power purchase volumes remain unaffected by the trans- of Verbund structures and drive forward the consolidation of pro- action on the basis of a long-term fixed-price power purchasing duction at highly efficient sites. agreement. Once fully operational, expected in 2023, HKZ will have a total capacity of 1.5 gigawatts. We will use part of the electricity A central component of reducing greenhouse gas emissions as part generated there at the Verbund site in Antwerp and at other of our carbon management is gradually shifting our energy sup- European production sites. Under a letter of intent, together with ply to renewable sources. This applies to both our electricity RWE we are developing a project concept for an offshore wind farm and steam supply and our production processes, where we will in the German North Sea with a capacity of 2 gigawatts. Provided increasingly replace fossil fuels with energy from renewable sources. the regulatory framework is adapted by the authorities, this wind The electrification of our processes will significantly increase the farm could supply the Verbund site in Ludwigshafen, Germany, with BASF Group’s green power demand over the coming years (see green electricity before 2030. Together with enviaM, we are also page 27). planning to build and operate a solar park with a total installed