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1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE Energy Efficiency Management in Manufacturing Plants IFMR, Stockholm 27./28.09.2012

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Page 1: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

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The Energy Efficiency Directive and The Way Forward for Manufacturers

Brigitta Huckestein, BASF SE

Energy Efficiency Management in Manufacturing Plants

IFMR, Stockholm 27./28.09.2012

Page 2: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

The EU Energy Efficiency Directive

Saving potentials of sectors

The energy cap

The global context

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BASF Energy Efficiency

Strategy and Goals

Measures

Organisational Processes

Agenda

Page 3: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

BASF – The Chemical CompanyWe create chemistry for a sustainable future

Our chemicals are used in almost all industries

We combine economic success, social responsibility and environmental protection.

Sales 2011: €73,497 million

EBIT 2011: €8,586 million

Employees (as of December 31, 2011): 111,141

In 2011, BASF filed for around 1,050 new patents worldwide

6 Verbund sites and around 370production sites

3

Platzhalter für Bild

Page 4: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Structure of BASF’s segments

4

Chemicals Plastics Performance Products

Functional Solutions

AgriculturalSolutions Oil & Gas

Inorganics

Petrochemicals

Intermediates

PerformancePolymers

Polyurethanes

Dispersions & Pigments

Care Chemicals

Nutrition & Health

Paper Chemicals

PerformanceChemicals

Catalysts

ConstructionChemicals

Coatings

Crop Protection Exploration & Production

Natural Gas Trading

Page 5: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Board of Executive Directors of BASF SE

Sustainability Council

Sustainability -firmly established at the Board level

5

Climate Protection Officer

SustainabilityCenter

Chairwoman: Margret Suckale

Central units Functional units Operating units Regions

Page 6: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Energy Supply of the BASF Group 2011

05.07.2012Achatz, Globales Energiemanagement6

Page 7: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

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Global greenhouse gas reduction andenergy efficiency goals (2012)

Page 8: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Highly efficient processes: Examples for energy efficiency measuresContinuous improvement in energy efficiency and use of modern energy production processes

Saving of thermal energy: Heat integration Use of waste heat for drying processes Optimized operation of distillation

columns

Saving of electrical energy: Use of frequency controlled pumps Energy efficient motors Energy efficient lighting Automation measures

Reduction of water consumption and avoidance of wastewater.

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Page 9: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Energy generation at BASF

BASF-owned combined heat and power plants (CHP) with combined cycle gas turbines (fuel efficiency of almost 90%)

Supply of more than 70% of BASF’s own energy requirements for the production of chemicals by CHP plants possible.

9

Primary energy: 1,0 Mio. toeCO2 emissions: 2,4 Mio. t CO2

Annual avoidance*BASF-Group 2011:

* Comparison: Conventional power and steam generation in separate plants based on natural gas.

Page 10: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Verbund site major chemical production site

Altamira

Freeport

Bradford

Schwarzheide

Tarragona

Antwerpen Ludwigshafen

Nanjing

KuantanPort Arthur

Geismar Monthey

Emlichheim

Boussens

- Worldwide 27 gasturbines (GT) at 14 sites- Generation of 70% of the electrical power demand

(of total 16.2 TWh/yr)

BASF Sites Using Co-Generation

05.07.2012Achatz, Globales Energiemanagement10

Page 11: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

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Platzhalter für Bild

Energy (and Raw Materials) Flow in a Chemical Plant

Page 12: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Energy Verbund at a Verbund site

Example: Steam Cycle at a Verbund Site

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Primary energy:1,6 Mio. toe

CO2 emissions:3,7 Mio. t CO2

Annual avoidance * BASF Group 2011:

Steam export Steam consumption

Acrylic acid plant

Urea/carbamide plant

Power plant

*Comparison: Conventional power and steam generation in separate plants based on natural gas.

Office building

Sulfuric acid plant

Adipic acid plant

Page 13: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

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Heat Integration in a plant: Optimal concepts of heat exchanger networks

Heat integrationanalysis provides theminimum heating andcooling energy demandby using economictemperature differences

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Process automation: Effective reduction ofprocess fluctuations by optimizing control

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Small measures count, too

Leakage detection by soapy water Leakage detection by ultrasound

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Energy efficient buildings

Buildings accout for 3-5 % of our energy consumption

Buildings are long-term infrastructural measures

BASF has a buildingspolicy

BASF signed the WBCSD buildings manifesto

BASF Fire station with new wall and roofinsulation, new windows and doors

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Limits of Energy EfficiencyInnovation needed

New process

+new plant

New plant

Existingplant, ideally

operated

Planttoday

Spe

cific

Ene

rgy

Con

sum

ptio

n

EnergyManage-

ment

StrategicInvest-ment

Inno-vation

+ Invest-ment

Existingplant, ideally

operated+

technicalimprove-

ments

EnergyManage-

ment

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New chemical processes and processtechnologies

L-Menthol (BASF Ludwigshafen, 2012)

Bio propylene glycol(Oleon, Belgium, 2012)

Toluene diisocyanate and precursors(BASF Ludwigshafen, 2014)

Several investments after conceptualchanges for drying of products, separation of mixtures etc.

Energy Efficiency at BASFby new investements in new plant

Page 19: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Strategy & goals defined at Board Level People: Organisation, information, involvement Detailed know-how from inhouse experts -> Engagement of all empolyees Data: Monitoring/documentation -> Analysis -> Steering Implementation of ISO 50001: Energy management systems add formalism, but

no new ideas

Energy Efficiency at BASFOrganizational Processes

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Energy Efficiency at BASFInvolvement of experts and employees

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Life cycle view for investments

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Project savings pay for energymanagment system costs

Costs for Energy Management -but savings from more than 100 projects in 2011

Initial Costs

• Engineering• Procurement• Quality assurance• Equipment• Construction• Commissioning• Downtime

Operating Cost

• Raw material• Energy• Environmental• Insurance• Staff• Maintenance• Repairs

End-of-life costs

• Decomissioning• Disposal

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EU Energy and Climate Goals 2020

Source: EU Commission

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EU Energy Efficiency Directive Ambition

Source: EU Commission

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Transformation, transmissionDistribution

Voluntary actions and existing legislationalready taps most of the potential in industry

85 % 70 %               33 %               48 %

Economic energy efficiency potential per sector in 2020

Source: EED Impact Assessment

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Climate Protection and BASF: Chances for new products and applicationsThe chemical industry is a major driverof innovative technologies in the energyand energy efficiency sector, e.g.

innovative insulation

insulating windows

concrete admixtures

lighting products

´cool paints´

fuel additives

products for wind power or solar industry

products for batteries, energy storage

Page 26: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

Transport 4

Climate protection at BASF: BASF Corporate Carbon Footprint 2011

Without the use of BASF products: 1768With the use of BASF products: 1438

CO2e emissions at customers [Mio. t CO2e/a]:

Emissions along the entire value chain [Mio. t CO2e/a]:

CO2e emissions BASF Production(GHG Protocol Scope 1&2)CO2e emissions along the value chain (GHG Protocol Scope 3)

Avoidance of emissions:330 Mio. t CO2e/a

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BASF Production

Raw materials

Use of BASF end products

Disposal

Further Sources

26

65

50

30

3

We help our customers to shrink the carbon footprint.

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Energy Efficiency Directive 2012General targets and obligations 1474 Mtoe energy consumption Member States to set an national target End-use energy savings of 1.5%

per year between 2014 and 2020 Energy efficiency obligation schemes

or alternative measures Exemptions up to 25 % Exemption of transport sector

(optional) Further measures to be proposed

in 2014

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Energy Efficiency Directive 2012Industry obligations Energy audits for large companies are

now obligatory

Cost-benefit-analysis for heat use from installations > 20 MW may be required.

Priority access given to renewable energy - may hamper feed in of electricity from combined heat and power (CHP) installations

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Energy Efficiency Directive 2012Buildings Obligations

MS shall establish a long-term strategy for renovation

From 2014 until 2020, 3% of the total floor area of central government buildings to be renovated each year

Page 30: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

ZOA/DE30

EU Energy Efficiency Directive 2012:An energy cap may limit growth

Page 31: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

4,99

2,51

4,32

5,87

3,564,06

5,42

9,70

3,79

0,00

2,00

4,00

6,00

8,00

10,00

USA China EU27

CO2-emissions per region/country 1990/2000/2011(unit: billion tonnes of CO2)

199020002011

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CO2 emissions in USA, China, EU 

Emissions/capita 2011: 17,3 7,2 7,5

Source: JRC/EU Commission

Page 32: The Energy Efficiency Directive and The Way Forward for … · 2016-12-19 · 1 The Energy Efficiency Directive and The Way Forward for Manufacturers Brigitta Huckestein, BASF SE

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Towards a harmonizedEU Energy and Climate policy CO2 is the leading parameter Energy efficiency target as aspirational

goal We need more – not less – industrial

solutions Level playing field to ensure energy

efficient production in Europe Allow for growth and innovation:

No energy cap covering industry Promotion of energy efficiency

improvements welcome –but cost-efficiency must be given

Tap the potential of the building andtransport sector