Tom Theising, C.E.M., C.D.S.M.(979) 709-6389

thomas.theising@basf.com

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An Organized Approach to Energy Management

SSCET, Sep 19, 2014

BASF Corporation

BASF Energy Management

Industry Recognition

Organization of Service Offerings

Overview

BASF worldwide

• The world’s leading chemical company

• 380 production facilities including six Verbund sites

• Employees: 117,000

BASF North AmericaBASF Corporation (U.S.), BASF Canada, BASF Mexicana

2012 sales

Employees

Production sites

R&D sites

$18.5 billion

16,665

99

27

• Agriculture

• Automotive

• Chemicals

• Coatings

• Construction

• Health & Beauty

• Packaging

Keycustomerindustries

BASF North America

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Global Environmental Footprint Goals

Reduce emissions from chemical operations Greenhouse gases (per metric ton of sales product)

Energy Efficiency Improve specific energy efficiency of production processes

Cost /Risk ReductionGoal 2020 Status 2013

- 40 %

+ 35%

- 34.6 %

BASF North America Annual Target• Improve energy efficiency by 2% (in ton/mmbtu) to further reduce greenhouse gas emissions

Path Forward• Actively tracking project schedules and offering technical support/services• Developing new projects – “filling the pipeline”• Efficiency Best Practice sharing with smaller sites through Net-Meetings• Energy efficiency initiative for buildings & admin./warehouse sites

+ 26.2%

1996 Energy Survey Program - Division and Site

1997 Energy Cost Reduction Program - HQ/Research

1998 Utilities Expansion Project - Cogen, Waste Fuels

1999 Corporate Energy Management Program

1999 Corporate Motor Management Guideline

2000 Geismar Cogeneration – AOG Fuel Utilization

2001 Freeport Cogeneration Project

2002 Portsmouth Site Energy Team

2003 Freeport ISBL Energy Audits

2004 Energy management Group (Exceptional Merit)

2004 Geismar Flare Best Practice

2005 Site Energy Audits

2006 Multi-Site Energy Reduction Through Teamwork

2007 Energy Efficiency Improvements for Acquisitions

2008 Energy Efficiency Improvement Goal (EM)

2008 Port Arthur: Improved Hydrogen Utilization

2009 Freeport Steam Optimization (EM)

2009 Compressed Air Optimization (EM)

2010 Energy Efficiency Program (EM)

2010 Corporate Energy Efficiency Improvement Goal

2010 Geismar EO Plant MPC Improvements

2010 Geismar Polyol Plant Steam Reduction

2010 Greenville Energy Optimization Initiative

2011 Corporate Energy Management Process (EM)

2011 Geismar EO Vent Gas Scrubber

2011 Geismar MDI Steam Pressure Optimization

2011 Jackson Flash Dryer

2011 McIntosh Production Schedule Optimization

2011 Pt. Arthur LP Fuel System Optimization

2012 Corporate Energy Management Process (EM)

2012 Geismar TDI Plant Steam Optimization

2012 Kankakee Site Wide Energy Conservation

2012 Peekskill Instrument and Control Upgrade

2013 Corporate Energy Management Process (EM)

2013 Manati Nitrogen Optimization

2013 Pasadena Soy Flare Optimization

2013 Cincinnati Building 53 HVAC Optimization

2013 Freeport Anone II Advanced Process Control

American Chemistry Council Annual Energy Awards

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Continuous Improvement

Management Commitment

Assess Performance & Set Goals

Implement Action Plan

Create Action Plan

Recognize Achievements

Evaluate Progress

Re-

Ass

ess

OptimizationProcurementStrategic Planning

Where are the largest opportunities?

What has been achieved so far?

What is your roadmap to continuous improvement?

Where do we conduct our next deep dive?

Global/Regional Targets

Best Practices,Workshops

KPI’s

Energy Optimization Offerings(toolbox)

Reduce Variable Costs:• Focused Energy Analysis, by Utility Technology

• Steam • Refrigeration System Assessments (Trane)• Compressed Air and Nitrogen System Assessments (Ingersoll Rand)• Lighting (General Electric)• Cooling Tower Assessments

• Energy Efficiency Best Practices (Handbook)

• Boiler MACT Evaluation (Steam System Assessment)

• Best Rates Analysis• Energy Efficiency Evaluation (KPI Screening)

• Utility Invoice Auditing• Water & Waste Water System Evaluations

Energy Optimization Offerings(toolbox)

Reduce Fixed Costs• Energy Maintenance Best Practices

• Steam Trap Management• Leak Repair• Motor Management • Lighting Technologies• Insulation Best Practices

Sustainability• Water Reduction

• Global Targets• Drought Prone Areas

• Responsible Care • Reporting• Audit Preparation

Energy Optimization Offerings(toolbox)

Reliability• Equipment Reliability• External Power Reliability Study• Internal Utility Reliability Check

Organic Growth • Utility Strategy Development• Energy Concept• Calculation Prices• Location Selection • Cogen project development (gas turbine, steam turbine)