Bio-based Chemicals BASF’s perspective Markus Pompejus

Why Renewables? What has changed during the last years? Sustainability becomes a common future goal Raw material price development Brand-owners addressing consumer demands Bio-based technology & production Climate Protection Fossil Ressources

Our strategic principles 33 3 We add value as one company We innovate to make our customers more successful We drive sustainable solutions We form the best team

‣ The world’s leading chemical company ‣ Serves all major industries ‣ 380 production facilities including six Verbund sites ‣ 2013 Sales: €74 Billion ‣ Employees: 112,000 Company overview BASF – The Chemical Company 4

5 Verbund Extremely efficient use of raw materials and energy Conserves natural resources Reduces emissions and waste Renewable Raw Materials New Structures, new Technologies Availability / prices volatile No premium on “green” products The Production-Verbund Key for competitiveness Fossil Raw Materials Grown Structures Established feedstock logistics Often fully depreciated plants

6 Mass Balance Approach Renewable feedstock in interlinked production Challenge: Physical dilution of the bio-based content of end products

Technology field White Biotechnology 7 We use nature’s synthetic power to develop innovative and resource-conserving solutions for our customers. 7 Research focus  Development of new products and processes for a wide range of industries  Sustainable production and increased use of renewable resources  Identification and optimization of production organisms such as micro-algae and fungi, development of novel enzymes and proteins Examples of existing activities  Food and animal nutrition: Vitamin B 2, thermostable enzymes (phytase, xylanase, glucanase)  Enhanced oil recovery: biopolymer Schizophyllan  Bulk chemicals: biobased succinic acid

Technology field Raw Material Change 8 We work on sustainable processes for using alternative raw materials such as natural gas, biomass and CO2. 8 Research focus  Increased use of natural gas, biomass and CO2 as basis for raw materials  Integration of competencies: synthesis, catalysis, process development and unit operations, high- throughput methods Examples of existing activities  Natural gas: Olefins from natural gas by using catalyst technologies  Carbon dioxide (CO2): Synthesis of formic acid and acrylates  Biomass: Lignocellulose as a raw material

Broad range of activities in BASF 99 Renewables

Fossil feedstocks dominate Renewables gain importance 10