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12 067_bea.ppt 1 BASF Aktiengesellschaft BASF Aktiengesellschaft 1 Eco Eco-Efficiency Analysis Efficiency Analysis – BASF BASF David R. Shonnard, Chemical Engineering, MTU David R. Shonnard, Chemical Engineering, MTU Eco Eco-Efficiency Analysis Efficiency Analysis – BASF BASF David R. Shonnard, Chemical Engineering, MTU David R. Shonnard, Chemical Engineering, MTU Validated Validated Ecoefficiency Ecoefficiency Analysis Analysis Method Method BASF Aktiengesellschaft BASF Aktiengesellschaft 2 SEEbalance ® - analysis* * being developed * being developed Ecoefficiency- Analysis Sustainable Development is based on three Pillars Sustainable Development is based on three Pillars Sustainable Development is based on three Pillars Sustainable Development is based on three Pillars Society Ecology Economy Sustainable Development Sustainable Development Sustainable Development Sustainable Development

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12 067_bea.ppt

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BASF AktiengesellschaftBASF Aktiengesellschaft

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EcoEco--Efficiency Analysis Efficiency Analysis –– BASFBASFDavid R. Shonnard, Chemical Engineering, MTU David R. Shonnard, Chemical Engineering, MTU EcoEco--Efficiency Analysis Efficiency Analysis –– BASFBASFDavid R. Shonnard, Chemical Engineering, MTU David R. Shonnard, Chemical Engineering, MTU

Validated Validated EcoefficiencyEcoefficiency

AnalysisAnalysisMethodMethod

BASF AktiengesellschaftBASF Aktiengesellschaft

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SEEbalance®-analysis*

* being developed* being developed

Ecoefficiency-Analysis

Sustainable Development is based on three PillarsSustainable Development is based on three PillarsSustainable Development is based on three PillarsSustainable Development is based on three Pillars

Society

Ecology

Economy

Sustainable DevelopmentSustainable DevelopmentSustainable DevelopmentSustainable Development

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What is EcoWhat is Eco--Efficiency Analysis?Efficiency Analysis?What is EcoWhat is Eco--Efficiency Analysis?Efficiency Analysis?

�� Method for the Method for the comprehensive assessment comprehensive assessment of products and of products and processes.processes.

�� Ecological and economic aspectsEcological and economic aspects are given equal weight in are given equal weight in assessments. assessments.

�� The products are analyzed from the The products are analyzed from the angle of the end angle of the end customercustomer..

�� (Future) scenarios (Future) scenarios and effects of various action options are and effects of various action options are presented.presented.

�� EcoEco--efficiency analysis is a efficiency analysis is a standard standard tool in the tool in the BASF GroupBASF Group; ; more than 170* analyses have been carried out.more than 170* analyses have been carried out.

* Status 12/2002* Status 12/2002

BASF AktiengesellschaftBASF Aktiengesellschaft

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A LifeA Life--Cycle View on Environmental ImpactsCycle View on Environmental ImpactsA LifeA Life--Cycle View on Environmental ImpactsCycle View on Environmental Impacts

LCA studies are conducted according to accepted international standards, ISO 14040 LCA studies are conducted according to accepted international standards, ISO 14040 –– 14043.14043.

Saling, P. et al., 2002, Int. Jour. LifeSaling, P. et al., 2002, Int. Jour. Life--Cycle Assessment, Vol. 7(4), 203Cycle Assessment, Vol. 7(4), 203--218.218.

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Main Stages in a LifeMain Stages in a Life--Cycle AssessmentCycle AssessmentMain Stages in a LifeMain Stages in a Life--Cycle AssessmentCycle Assessment

�� Definition of a Definition of a Functional UnitFunctional Unit

�� Compiling an Compiling an Inventory ofInventory of inputs into and outputs from a inputs into and outputs from a product system. product system.

�� Evaluating the potential Evaluating the potential Environmental ImpactsEnvironmental Impacts of the product of the product system. system.

��AA ClassificationClassification of impacts into categories (global warming, etc.)of impacts into categories (global warming, etc.)

��A A CharacterizationCharacterization of impacts using impact potentials (global of impacts using impact potentials (global warming potential, etc.)warming potential, etc.)

�� InterpretationInterpretation of results and an of results and an ImprovementImprovement analysis. analysis.

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Sources of Data for EcoSources of Data for Eco--efficiency Analysisefficiency AnalysisSources of Data for EcoSources of Data for Eco--efficiency Analysisefficiency Analysis

�� EmissionsEmissions from the consumption of electricity, fossil fuels, and from the consumption of electricity, fossil fuels, and raw materialsraw materials

��Academic research, government research and documents, Academic research, government research and documents, and commercial software databases.and commercial software databases.

�� Characterization FactorsCharacterization Factors are obtained from several sources. are obtained from several sources.

��Government documents, databases, and commercial Government documents, databases, and commercial software tools. software tools.

�� NormalizationNormalization data. We are often concerned about how large data. We are often concerned about how large the impacts are compared to some reference. A common the impacts are compared to some reference. A common reference is national impact data (USA, EU, Japan, etc.)reference is national impact data (USA, EU, Japan, etc.)

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Energy consumption

Raw materialconsumption

Area requirement

Emissionen

Toxicity potential

Risk potential

Emissionen

Environmental Impact Categories Environmental Impact Categories Environmental Impact Categories Environmental Impact Categories

Emissions

Luft-emissionen

50%

Wateremissions

35%

Wastes15%

Luft-emissionen

50%

Airemissions

50%

Greenhousewarming potential

Ozone depletionpotential

Photochemicalozone creation

potential

Acidification potential

BASF AktiengesellschaftBASF Aktiengesellschaft

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Energy consumption

Raw materialconsumption

Area requirement

20%20%

20%20%

10%10%

20%20%

10%10%

20%20% Emissionen

Toxicity potential

Risk potential

Emissionen

Social Assessment Factors Social Assessment Factors Social Assessment Factors Social Assessment Factors

quantitative:quantitative:

Emissions

Luft-emissionen

50%

Wateremissions

35%

Wastes15%

Luft-emissionen

50%50%50%

20%20%

20%20%

10%10%

Airemissions

50%

Greenhousewarming potential

Ozone depletionpotential

Photochemicalozone creation

potential

Acidification potential

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BASF AktiengesellschaftBASF Aktiengesellschaft

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Jeans Dyeing Jeans Dyeing ProjectProject

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Determine demandDetermine demand--specific benefitspecific benefit

Dyeing of blue

denim for the

production of

1000 jeans

Define comparableDefine comparableproductsproducts

Select BASFSelect BASFproductproduct

synthetical

indigo

granules

Indigo powder from plants

Alternative Systems for Indigo GranulesAlternative Systems for Indigo GranulesAlternative Systems for Indigo GranulesAlternative Systems for Indigo Granules

biotechnological Indigo granules

synthetical indigo solution,40%,

synthetical lndigo solution, 40%,electrochemical dyeing process

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The detailed Results can be read off in the The detailed Results can be read off in the Environmental FingerprintEnvironmental FingerprintThe detailed Results can be read off in the The detailed Results can be read off in the Environmental FingerprintEnvironmental Fingerprint

Energy consumptionEnergy consumption

ToxicityToxicitypotentialpotential

RiskRiskpotentialpotential

EmissionsEmissions

MaterialMaterialconsumptionconsumption

Powder Powder from plantsfrom plants

0,00,0

0,50,5

1,01,0

Granules,Granules,biotechnobiotechno--logicallylogically

Granules, Granules, syntheticallysynthetically

Solution, Solution, 40%40%

Solution, Solution, electroelectro--chemicallychemically

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In the EcoIn the Eco--Efficiency Portfolio, the Environmental Efficiency Portfolio, the Environmental Impact is plotted against the CostsImpact is plotted against the CostsIn the EcoIn the Eco--Efficiency Portfolio, the Environmental Efficiency Portfolio, the Environmental Impact is plotted against the CostsImpact is plotted against the Costs

Benefit:

1.000 jeans

dyed with

indigo

BASF indigo(synthetic)

Indigo powder from

plants

Indigo(biotechnologically)

BASF indigo vat solution40%

(dyed traditionally)

BASF indigo vat solution40%

(dyed electrochemically)

0.4

1.0

1.6

0.41.01.6

Total costs (normalized)

En

vir

on

me

nta

l im

pac

t (n

orm

ali

ze

d)

Low eco-efficiency

High eco-efficiency

13

4

5

2

1

2

3

4

5

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Consequences of the AnalysisConsequences of the AnalysisConsequences of the AnalysisConsequences of the Analysis

�� Construction of a plant for the production of 40% indigo solution Construction of a plant for the production of 40% indigo solution

(beginning production at the end of 1999)(beginning production at the end of 1999)

�� Increased R&D expenditure for the electrochemical process Increased R&D expenditure for the electrochemical process

(construction of a pilot plant)(construction of a pilot plant)

�� Communication with customersCommunication with customers

��Success of the measures: Increase of the market share Success of the measures: Increase of the market share from 2% (1999) to approximately 40% (2002)from 2% (1999) to approximately 40% (2002)

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Determine demandDetermine demand--specific benefitspecific benefit

Coating of

1000 wooden

front doors to

the performance

specification.

Other Coating TechnologiesOther Coating TechnologiesSelect BASFSelect BASFproductproduct

uv cured

coating

technology

polyurethane

Alternative Systems for Industrial CoatingsAlternative Systems for Industrial CoatingsAlternative Systems for Industrial CoatingsAlternative Systems for Industrial Coatings

acid curing

nitrocellulose

Water based coating

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LifeLife--Cycle Costs of Alternative CoatingsCycle Costs of Alternative CoatingsLifeLife--Cycle Costs of Alternative CoatingsCycle Costs of Alternative Coatings

0

1000

2000

3000

4000

UV-system Aqueous

system

2 C-PU

system

AC-system NC-system

Co

sts

[€/u

ser

ben

efi

t]Primer Coating Stain Machinery Personnel costs Energy

BASF AktiengesellschaftBASF Aktiengesellschaft

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EcoEco--Efficiency Portfolio, CoatingsEfficiency Portfolio, CoatingsEcoEco--Efficiency Portfolio, CoatingsEfficiency Portfolio, Coatings

Customerrelatedbenefit: Coating of 1000 wooden doors with asemi gloss, transparent texture

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

The base case shows the UV-varnish as the most ecoefficientalternative

0,1

1,0

1,9

0,11,01,9

Total costs (normalised)

En

vir

on

men

tal im

pacts

[no

rmali

zed

]

UV

2C-PU

Aqua.

AC NC

Base case

Customerrelatedbenefit: Coating of 1000 wooden doors with asemi gloss, transparent texture

Customerrelatedbenefit: Coating of 1000 wooden doors with asemi gloss, transparent texture

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

The base case shows the UV-varnish as the most ecoefficientalternative

The base case shows the UV-varnish as the most ecoefficientalternative

0,1

1,0

1,9

0,11,01,9

Total costs (normalised)

En

vir

on

men

tal im

pacts

[no

rmali

zed

]

UVUV

2C-PU

Aqua.

2C-PU

Aqua.

AC NCAC NC

Base case

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Scenario Analysis:Scenario Analysis:Scenario Analysis:Scenario Analysis:

Customerrelatedbenefit: Coating of 1000 wooden

doors with asemi gloss, transparent texture

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

In this scenario

the UV- coating isstill the mosteccoefficientalternative

0,1

1,0

1,9

0,11,01,9

Total costs (normalised)

En

vir

on

me

nta

l im

pa

cts

[no

rma

lize

d]

UV

Aqua.

AC NC

Scenario: Doubling the Irradiation Energy for the UV-varnish

2C-PU

UVCustomerrelatedbenefit: Coating of 1000 wooden

doors with asemi gloss, transparent texture

Customerrelatedbenefit: Coating of 1000 wooden

doors with asemi gloss, transparent texture

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

Aqueous varnish

UV-varnish

2 C-PU varnish

AC-varnish

NC-varnish

In this scenario

the UV- coating isstill the mosteccoefficientalternative

In this scenario

the UV- coating isstill the mosteccoefficientalternative

0,1

1,0

1,9

0,11,01,9

Total costs (normalised)

En

vir

on

me

nta

l im

pa

cts

[no

rma

lize

d] 0,1

1,0

1,9

0,11,01,9

Total costs (normalised)

En

vir

on

me

nta

l im

pa

cts

[no

rma

lize

d]

UVUV

Aqua.

AC NCAC NC

Scenario: Doubling the Irradiation Energy for the UV-varnish

2C-PU

UV

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Determine demandDetermine demand--specific benefitspecific benefit

Other Coating TechnologiesOther Coating TechnologiesSelect BASFSelect BASFproductproduct

2. PET, 1.5 L, case of 6

Mineral Water Beverage Packaging StudyMineral Water Beverage Packaging StudyMineral Water Beverage Packaging StudyMineral Water Beverage Packaging Study

3. Glass, 0.7 L, case of 12

4. PET, 1.5 L, case of 6, use once, 56% return rate

5. PET, 1 L, case of 6, use once, 56% return rate

1.

PET bottle, 1 L,

reusable 15 times,

recycle to textile

industry, case of

12, refundable

deposit, return

rate of 95%

Marketing of

1000 liters of

mineral water in

a perimeter of

200 kilometers

from the

production site

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BASF AktiengesellschaftBASF Aktiengesellschaft

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EcoEco--Efficiency Portfolio, Beverage PackagingEfficiency Portfolio, Beverage PackagingEcoEco--Efficiency Portfolio, Beverage PackagingEfficiency Portfolio, Beverage Packaging

0,2

1,0

1,8

0,21,01,8

Total costs (normalized)

En

vir

on

men

tal im

pacts

(n

orm

alized

)

PET, 12 x 1 liter,depositPET, 6 x 1.5 liter,depositGlass, 12 x 0.7 liter,depositPET, 6 x 1 liter, nodepositPET, 6 x 1.5 liter, nodeposit

Customerbenefit: Marketing of 1000 liters of mineral water in a perimeter of 200 km for the house-hold

market.

Customerbenefit: Marketing of 1000 liters of mineral water in a perimeter of 200 km for the house-hold

market.

The PET reusable 1 liter bottle and the PET recyclable 1.5 liter bottle are the most eco-efficient

The PET reusable 1 liter bottle and the PET recyclable 1.5 liter bottle are the most eco-efficient

High Eco-efficiency

Low Eco-efficiency

High Eco-efficiency

Low Eco-efficiency

1

3

4

2

5

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What does BASF use EcoWhat does BASF use Eco--Efficiency Efficiency Analysis for?Analysis for?What does BASF use EcoWhat does BASF use Eco--Efficiency Efficiency Analysis for?Analysis for?

InternalInternal

ExternalExternal

Politics

• Discussion with opinion makers in political decisions

Strategy

• Decisions on investments

Marketing

• External customers optimize their products and processes with eco-efficiency analyses

Research/product development

• Prioritization of research projects

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Consequences of EcoConsequences of Eco--Efficiency AnalysesEfficiency AnalysesConsequences of EcoConsequences of Eco--Efficiency AnalysesEfficiency Analyses

costscosts (normalized)(normalized)

Environmental Impact Environmental Impact (normalized)(normalized)

1,01,0

1,01,0highhigh lowlowhighhigh

lowlow

Depending on the position of the analysed product, different strategical recommen-dations are given.

Bring to market!Bring to market!

reduce reduce environmental environmental impact!impact!

Develop Develop alternatives!alternatives!

reduce reduce costs!costs!

BASF AktiengesellschaftBASF Aktiengesellschaft

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Acceptance of the Method by Stakeholders, Acceptance of the Method by Stakeholders, NGOs and Science ...NGOs and Science ...Acceptance of the Method by Stakeholders, Acceptance of the Method by Stakeholders, NGOs and Science ...NGOs and Science ...

Dr. Reinhard LoskeMitglied des Deutschen BundestagesUmweltpolitischer Sprecher Bündnis 90/DIE GRÜNEN

Öko-Institut e.V.;Bereiche Chemie und Umweltrecht

...Basically, the large number of indicators used in eco-efficiency analysis make relatively reliable statements possible ...

......Politically, it is worth considering how this tool can find wider application.......

....The sensitivity considerations carried out in the eco-efficiency analysis make sense and provide good orientation as regards further ecological and economic optimizations....

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... and the whole World.... and the whole World.... and the whole World.... and the whole World.

Pilot project with UNEP/UNIDO to improve the eco-efficiency of Moroccan dyehouses

Assessed since 2002 as one of the world’s most sustainable chemical companies, partly as the result of the development of eco-efficient products

BASF AktiengesellschaftBASF Aktiengesellschaft

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Germany PicturesGermany PicturesGermany PicturesGermany Pictures

BASF Ludwigshafen:Global Headquartersand worlds largestintegrated productionfacility.

Badische Anilin & Soda FabrikFounded April 6, 1865in Ludwigshafen byFriedrich Engelhorn

Global Data89,000 employees$32 billion annual sales

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Ludwigshafen SiteLudwigshafen SiteLudwigshafen SiteLudwigshafen Site

BASF Ludwigshafen:7 km2, 300 productionsites, 8000 products,39,000 employees.

Eco-efficiency AnalysisGroup, Z570

ApartmentEschenbach Strasse 8,Ludwigshafen, DE

BASF AktiengesellschaftBASF Aktiengesellschaft

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Hochhaus (High House)Hochhaus (High House)Hochhaus (High House)Hochhaus (High House)

BASF Ludwigshafen:administration.

Across the street, First high pressure ammonia reactor,1909.

Haber-Bosch process

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Bldg Z570, EE, ToxicologyBldg Z570, EE, ToxicologyBldg Z570, EE, ToxicologyBldg Z570, EE, Toxicology

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EcoEco--efficiency Analysis Groupefficiency Analysis GroupEcoEco--efficiency Analysis Groupefficiency Analysis Group

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Some Skiing in Champrey, SwitzerlandSome Skiing in Champrey, SwitzerlandSome Skiing in Champrey, SwitzerlandSome Skiing in Champrey, Switzerland

BASF AktiengesellschaftBASF Aktiengesellschaft

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Heidelburg, Castle Ruins and Neckar RiverHeidelburg, Castle Ruins and Neckar RiverHeidelburg, Castle Ruins and Neckar RiverHeidelburg, Castle Ruins and Neckar River

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Almond Tree Festival, GimmeldingenAlmond Tree Festival, GimmeldingenAlmond Tree Festival, GimmeldingenAlmond Tree Festival, Gimmeldingen

BASF AktiengesellschaftBASF Aktiengesellschaft

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Smart Car (Mercedes Benz / Swatch)Smart Car (Mercedes Benz / Swatch)Smart Car (Mercedes Benz / Swatch)Smart Car (Mercedes Benz / Swatch)

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Examples of Fachwerkhaus ConstructionExamples of Fachwerkhaus ConstructionExamples of Fachwerkhaus ConstructionExamples of Fachwerkhaus Construction

BASF AktiengesellschaftBASF Aktiengesellschaft

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Neuschwanstein and HohenschwangauNeuschwanstein and HohenschwangauNeuschwanstein and HohenschwangauNeuschwanstein and Hohenschwangau