Dr. Udo Huenger On BASF’s plan to achieve net zero emissions in the Petrochemical Industry

Companies will have to invest in state-of-the-art equipment and innovative processes, along with strong collaborative partnerships if they want to align with the major changes that the industry faces. 

Furthermore, as the world moves toward a more sustainable future, many of these investments in the petrochemical industry will need to focus on transitioning to net zero and thus change the production footprint in order to meet both their own and their customers’ needs. Transitioning from a linear to a circular model necessitates a fast transition towards renewable feedstocks and energy supplies by the petrochemical and energy sector.

Many of the multimillion-dollar low-carbon investments in the Middle East, such as blue- and green-hydrogen and ammonia projects, and big petrochemical programmes, are driven by transformation towards net zero by the region's leading energy players.  investing the income from the traditional oil and gas sectors into the future of renewable energy sources.  

Focusing more on sustainability, Dr. Udo Huenger, Vice President of Market Area Middle East at BASF stated, “Business sustainability is a multifaceted goal, and different companies’ objectives dictate the paths they take to get there. BASF established its own sustainability targets as one of the first in the industry, and closely collaborated with the UN to develop the SDGs which created a natural alignment between BASF’s targets and the SGDs.  While we agree that there needs to be a focus on carbon emissions and the environmental impact when discussing sustainability, we look at sustainability in a broader way in alignment with the SGDs. Sustainability is an integral part of BASF’s corporate strategy, as is our path to net zero. We have a dedicated unit in place that addresses all sustainability related topics and ensures that we deliver on our sustainability targets as a company.  

On its path to climate neutrality, BASF has set itself the goal  to produce zero greenhouse gas emissions by the year 2050 and  to reduce its greenhouse gas emissions worldwide by 25 percent compared with 2018 by 2030.  This will be achieved  despite targeted growth including the construction of a large Verbund site in South China.  This decrease is based on the company's drive towards electrification and use of green power in addition to developing low-emission and CO2-free technologies.

BASF To Replace Fossil Fuels With New Technologies

The utilisation of new technologies is key to the transition to net zero CO2 emissions by 2050, as these will power the replacement of fossil fuels like natural gas with energy from renewable sources. BASF, in conjunction with its business partners,  is leading the way in the development of many of these technologies.  BASF implements  continuous improvement procedures for existing manufacturing sites  to significantly reduce  CO2 emissions leading up to 2030 and beyond.  In addition, BASF has invested  in wind farms in order to gradually transition to renewable sources to meet a share of its electricity needs.

Electrically heated steam crackers for the manufacturing of basic chemicals like ethylene, propylene, and butadiene are one of the most important new technologies that BASF is currently researching. These compounds represent the foundation of many different supply chains and are indispensable to the chemical industry. Many chemical manufacturing processes also require hydrogen as a feedstock. In order to produce hydrogen without emitting carbon dioxide, BASF is working on several initiatives including  the already-commercialized water electrolysis and the newly-developed methane pyrolysis technology. The usage of electric heat pumps to create CO2-free steam from waste heat is another major lever to boost energy efficiency. It is BASF's intention, in collaboration with Siemens Energy, to bring this technology to an industrial scale and put it to use for waste heat recovery across all of their sites.

This transition to climate-neutral production processes is anticipated to significantly increase electricity demand at BASF's key locations, including the largest production site in Ludwigshafen, over the next decade. The business anticipates a more than threefold increase in its electricity usage by  2035.

“Our transition to a zero-energy state will be driven by three primary considerations. Changes include switching to renewable energy sources, creating innovative methods to reduce carbon dioxide emissions, and enhancing existing methods to be more efficient. In this respect, the greatest impact will be felt in scope 1 and 2 emissions at first, and afterwards in all three scopes of emissions,” informed Dr Huenger. 

Together, BASF, SABIC, And Linde Create The First Steam Cracker Furnace To Use Electrical Heating

Jointly developing and demonstrating solutions for electrically heated steam cracker furnaces is a priority for BASF, SABIC, and Linde, thus they inked an agreement to work together on this innnovation. Partners have already collaborated on proposals to replace fossil fuel gas in the heating process with renewable electricity. The parties hope to provide a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical sector with this novel approach centred on one of the petrochemical industries' main operations.

In future large-scale applications, CO2 emissions could be reduced by as much as 90%. Hydrocarbons are broken down in steam crackers to produce olefins and aromatics, a process that requires a great deal of energy but is essential in the synthesis of base chemicals. In their furnaces, the reaction is typically carried out at temperatures of around 850 °C. Today, we burn fossil fuels to achieve these temperatures. Using green energy instead of fossil fuels to power the process will significantly cut down on carbon dioxide emissions is the goal of this initiative. The revolutionary new technology could cut carbon dioxide emissions by up to 90 percent if it were to run on electricity generated from renewable resources.

Together, BASF, SABIC and Linde have brought together their extensive knowledge and intellectual property in developing chemical processes, as well as their long-standing experiences in operating steam crackers.

Stretching further sustainability goals, Dr Huenger said, “In my opinion, the petrochemical industry will not be able to achieve net zero until industry partners and governments work together to establish appropriate frameworks for innovation and implementation. As an example, our initiative to electrify steam crackers is at the forefront of such partnerships.”

Sustainable Development Goals (SSGs)Established By the United Nations

The Sustainable Development Goals (SDGs) were adopted by the United Nations in an official ceremony (2015). As a UNGC charter member, BASF not only had a hand in the goals' development and inception, but it is also widely regarded as a frontrunner in their strategic implementation through initiatives like the CFO Taskforce for the SDGs and the Accelerator Ambition Program. With the SDGs having been established at the international level, the global private sector will be essential to achieving them, especially during this Decade of Action.

“BASF joined the UN Sustainable Development Goals (SDGs) upon their inception in 2015, making it one of the organization's earliest corporate signatories. By taking part in initiatives like the CFO Taskforce for the SDGs and the Accelerator Ambition Program, we have not only contributed to the development of the SDGs, but have also been a frontrunner in the implementation thereof.  Though the United Nations considers all 17 SDGs to be of equal significance, businesses like ours must align our business strategy and core values with the SDGs.  BASF conducts sustainability audits along its value chain to ensure that the goals and the implementation thereof are aligned.  In particular, through its various initiatives BASF supports the goals of promoting gender equality, improving access to clean water and sanitation, reducing energy costs while increasing efficiency, creating decent jobs and fostering economic growth, reducing waste in production and consumption,  taking action on climate change, and ending world hunger.” stated Dr. Huenger.

The BASF Stiftung also works tirelessly to help achieve the SDGs. More than seventy disaster relief projects, initiatives, and activities around the world contribute to the SDGs in various ways. Each of these initiatives contributes to a more permanent solution to the problems faced by the poor, especially their children and young adults.

However, like many sectors, the petrochemical sector also faces challenges when it comes to embedding sustainable solutions into its operational cycle. Expanding further on this, Dr. Huenger said, “The greatest challenge is fostering effective partnerships with other sectors and governments to build and develop the existing  infrastructure to supply of green energy and resources to the areas where they are most needed. This is of particular importance  for landlocked locations.   

In his private capacity, Dr. Huenger prioritises quality time with his family and enjoys participating in a wide variety of athletic pursuits, including cycling, climbing, and swimming.