In Focus: Innovative Processes BASF Report 2021 Management’s Report – In Focus: Innovative Processes 132 In focus: Innovative Processes for Climate-Smart Chemistry Most of our production processes are already highly optimized. This makes it increasingly difficult to implement further improvements to reduce CO . Completely new technologies are needed to reduce 2 greenhouse gas emissions over the long term and on a large scale. Different teams are working on this in our Carbon Management R&D Program. Our focus here is on the production of basic chemicals such as It will provide insights into the heating concept, as well as the use of hydrogen. The element is needed as a reaction partner in many new types of materials. processes. The processes currently used to produce hydrogen, such as steam reforming, produce high levels of CO emissions. That is Another focus area is alternative heating concepts for our steam 2 why BASF is open to different technologies and is driving forward cracker furnaces (see page 72). We use these plants to split two alternative processes for climate-smart hydrogen production: petroleum into olefins and aromatics. This requires temperatures of water electrolysis and methane pyrolysis. In water electrolysis, around 850 degrees Celsius, which are normally achieved by burning water is split directly into its two components, hydrogen and oxygen. fossil fuels – which emits high levels of CO . A fundamentally new 2 If the required energy comes from renewable sources, the process is heating concept based on electric resistance heating ( eFurnace) and carbon-free. We intend to use the hydrogen generated by water the use of renewable energy could eliminate up to 90% of process- electrolysis primarily as a material in the BASF Verbund and also, to related emissions in the future. To develop and pilot the concept, we a limited extent, for hydrogen model region projects in Germany’s signed a cooperation agreement with SABIC and Linde in 2021 and Rhine-Neckar region. We are currently working with Siemens Energy jointly applied for funding to build a demonstration plant. on initial concepts for the construction of a PEM (proton exchange membrane) water electrolyzer with a capacity of 50 megawatts at the In addition to new, low-carbon production processes, we are also Ludwigshafen site in Germany. We are also exploring various options investigating the use of innovative carbon storage methods. for project funding. At the Antwerp site in Belgium, BASF plans to invest in one of the largest carbon capture and storage (CCS) projects under the North In parallel, we are developing methane pyrolysis technology Sea together with its Antwerp@C consortium partners. The project together with partners from academia and industry in a project spon- can potentially avoid more than one million metric tons of CO2 sored by the German Federal Ministry of Education and Research. emissions per year from the production of basic chemicals. A final In this innovative process, (bio)methane is split directly into hydrogen investment decision is targeted for 2022. Hydrogen is a key element on the journey to climate neutrality. BASF and solid carbon. The process requires around 80% less electricity For more information on carbon management, see basf.com/carbon-management is developing a process – methane pyrolysis – that significantly than water electrolysis and is virtually carbon-free if renewable energy reduces carbon emissions in the production of hydrogen. Find out is used. Following extensive groundwork, we started up a test plant more about what drives project manager Dieter Flick and which for methane pyrolysis at the Ludwigshafen site in Germany in 2021. groundbreaking technologies are still being researched in the online report at report.basf.com.