24.08.2017, bse Methanol press release

BASF and bse Engineering sign development agreement for the conversion of_CO2 and surplus electricity to methanol

Ludwigshafen and Leipzig, 24 August 2017 - BASF and bse Engineering today signed a joint development agreement under which BASF will provide a tailor-made catalyst for a new chemical energy storage process. This process will enable the economically viable conversion of excess electricity and carbon dioxide (CO₂) from waste gases into the chemical energy storage methanol in small, decentralised production plants.

When electricity is generated from renewable energy sources such as wind or solar power plants, at some times more electricity is produced than consumers need. This surplus electricity often cannot be put to good use at the moment. The effective use of this surplus electricity is a decisive factor in making electricity production from renewable energy sources economical.

In some industrial production facilities, such as steel production, incineration plants or coal-fired power plants, CO₂. Reducing emissions of this greenhouse gas is one of the most important goals agreed in the 2015 Paris Climate Agreement.

The new process developed by bse Engineering enables the sustainable use of electricity and CO₂ in small, decentralised production plants. These plants are built where the two components are produced: near power plants that use renewable energy sources and large-scale industrial plants that produce CO₂ production. The surplus electricity is used to produce hydrogen through discontinuous electrolysis. In a second step, methanol is then produced from CO₂ and hydrogen to produce methanol. In this way, both surplus electricity and CO₂ from exhaust gases.

In the second step, BASF's catalysts for methanol synthesis are used. They were further developed for this process to enable the particularly efficient production of the methanol. Methanol is one of the most important basic chemicals used in various industrial applications. For example, it is added to diesel or gasoline in various countries.

"We are looking forward to participating in this exciting project and to contributing substantially to a concrete solution for the use of surplus electricity and_CO2 as a raw material. We are using our know-how and expertise in catalysts to provide a sustainable solution for the transition to new energy sources and the material use of CO₂ ".

Adrian Steinmetz, BASF SE, Responsible Business Chemical Catalysts

"The collaboration between BASF and bse Engineering is another example of our successful approach to cooperations with engineering companies and plant constructors. In doing so, we contribute our unique know-how as a globally leading catalyst manufacturer and work with our partners on new processes and innovative future technologies."

Detlef Ruff, BASF SE, Head of Global Business Unit Process Catalysts

"After four years of developing the global process concept, we are now ready to enter the licensing phase of this process and start building the first plants shortly. The implementation of the projects will be ensured with the international industry leaders in the respective process components and sub-services through a reliable consortium. This consists of Aker Solutions ASA, Sulzer Chemtech AG, InfraServ GmbH & Co. Knapsack KG under the leadership of bse Engineering. We are very proud to be working with an experienced and innovative industry leader like BASF in the key technology of catalysts to realise our vision."

Christian Schweitzer, bse Engineering, Managing Director

mber bse Engineering

True to the motto "Solutions, not buildings", the bse Engineering Leipzig GmbH focuses on maximising the benefits for its customers through individually coordinated organisational, logistical, economic, normative and - not only - structural measures. We strive for a long-term partnership with our clients as operational planners. And through cooperation with freelancers and, above all, partner companies, we can adapt our competence and capacity flexibly and efficiently to the needs of our clients.

About BASF's Catalysts division

BASF's Catalysts division is the world's leading supplier of environmental and process catalysts. It offers outstanding expertise in developing technologies to protect the air, produce fuels and efficiently manufacture a wide range of chemicals, plastics and other products including battery materials. With our industry-leading R&D platform, passionate pursuit of innovation and extensive knowledge of precious and base metals, BASF's Catalysts division develops proprietary, unique catalysts and adsorbents that help our customers be even more successful. More information about BASF's Catalysts division is available online at: www.catalysts.basf.com

About BASF

BASF stands for chemistry that connects - for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 114,000 employees in the BASF Group work to contribute to the success of our customers from almost all industries and in almost every country in the world. We have combined our portfolio in the Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas segments. BASF achieved global sales of approximately €58 billion in 2016. BASF is listed in Frankfurt (BAS), London (BFA) and Zurich (BAS). Further information at: www.basf.com