Chemistry powers energy

Renewable generation, safe storage, efficient transport and use

BASF Research Press Conference on May 7, 2013

2

Chemistry powers energy

Renewable power generation, safe storage, efficient transport and use

Dr. Andreas Kreimeyer Member of the Board of Executive Directors and Research Executive Director, BASF SE Ludwigshafen

BASF Research Press Conference on May 7, 2013

3

Today’s agenda

11:00 a.m. Dr. Andreas Kreimeyer Member of the Board of Executive Directors and Research Executive Director, BASF SE, LudwigshafenChemistry powers energy

12:00 noon Prof. Dr. Robert SchlöglDirector for Inorganic Chemistry Fritz Haber Institute, Max Planck Society, Berlin Chemistry enables sustainable energy

ca. 1:00 p.m. Lunch Break – Exhibition

ca. 4:15 p.m. End of the Conference

2:00 p.m.

Dr. Ulrich Müller Executive Expert for Zeolites and MOFs, BASF SE, Ludwigshafen Metal-organic frameworks store natural gas more efficiently

Dr. Carla SeidelHead of Innovative Business Unit Energy, BASF New Business GmbH, LudwigshafenElectrical power management ensures efficient grids and applications

2:30 p.m. Dr. Holger RuckdäschelHead of Systems Research Wind Energy, BASF SE, Ludwigshafen Multi-material systems enhance efficiency of wind energy plants

3:00 p.m.

Dr. Peter ErkHead of Research OPV Systems, BASF SE, LudwigshafenInnovative solutions expand potential of photovoltaics

3:30 p.m.

4

2012: R&D expenditures €1.7 billion, launch of ~250 new products, leading Patent Asset IndexTM, further increase of R&D expenditures planned in 2013.

Growth and technology fields have been continuously developed.

Chemistry – a key enabling technology contributing to eco-efficient energy conversion, transportation, storage and use.

Globalization of our R&D activities took a major step in 2012.

Implementation of “We create chemistry” strategy on track

5

Innovation at BASFR&D 2012 at a glance

Research for the future: with our innovative products and processes, we provide sustainable solutionsfor global challenges.

Expenditures for R&D circa €1.7 billion

Around 10,500 employees worldwide involved in research and development

Around 3,000 research projects

1,170 new patents registered in 2012

Global Know-How Verbund with 600 excellent partners from universities, industry, high-tech joint-ventures and start-up companies

1 Chemicals10%

2 Performance Products20%

3 Functional Materials & Solutions20%

4 Agricultural Solutions25%

5 Oil & Gas 2%

6 Corporate Research, Others23%

1

2

3

5

6

4

Circa

€1.7billion

6

BASF entered the list of the world’s 50 most innovative companies together with Apple, Google and BMW.

Key features accordingto the BCG study: Deep understanding of customers Quick reaction to market conditions R&D engagement of top management Effective and cross-functional

project design

BASF is the most innovative companyin the chemical industry

Measures strength of a company’s patentportfolio in global markets

Takes into account relevance of patents (normalized number of citations)

Factors in market size covered by individual inventions (expressed by Gross National Income)

Patent Asset IndexTMBoston Consulting Group

100%

71% 66% 63%

34%

7

Omega-3-Fatty Acids

Plantaquat ® NC

Neopor ® Plus

Keropur ®

Priaxor ® Fungicide aqua ® Ecovio ® F Mulch

Masterseal ® 6100 FX

New BASF products 2012

RELEST ® Wind RepKit Cupur ® T

8

2012: R&D expenditures €1.7 billion, launch of ~250 new products, leading Patent Asset IndexTM, further increase of R&D expenditures planned in 2013.

Growth and technology fields have been continuously developed.

Chemistry – a key enabling technology contributing to eco-efficient energy conversion, transportation, storage and use.

Globalization of our R&D activities took a major step in 2012.

Implementation of “We create chemistry” strategy on track

9

R&D globalization took a major step in 2012

Research center for white biotechnology and microbiology, Tarrytown, New York

Research laboratory for thermoplastic polyurethanes, Wyandotte, Michigan

Headquarters BASF Plant Science moved to Research Triangle Park (RTP), North Carolina

Carbon Materials Innovation Center, Ludwigshafen, Germany

Innovation Campus Asia Pacific, Shanghai, China

Research center for battery materials, Amagasaki, Japan

R&D center for mining, Perth, Australia

R&D center for electronic materials, Korea

By 2020, BASF plans to conduct 50 percent of its R&D outside of Europe to gain local access to customers, talents and innovation centers.

BASF R&D sites opened in 2012/2013

New R&D activities worldwide

Existing important R&D sites

WyandotteTarrytown

Basel Ludwigshafen

GuaratinguetáDemarchi

Mumbai

Shanghai

Perth

10

BASF interdisciplinary know-how VerbundHighlights 2012 from our cooperation network

Working with the best partners in science and industry

NORA: Harvard, MIT, Amherst BasCat Berlin

Innovative in micro- and nanostructured polymers

Expandable thermoplastic polyurethane in running shoes

adidas Energy BoostTM

Joint research activities on catalysis

11

2012: R&D expenditures €1.7 billion, launch of ~250 new products, leading Patent Asset IndexTM, further increase of R&D expenditures planned in 2013.

Growth and technology fields have been continuously developed.

Chemistry – a key enabling technology contributing to eco-efficient energy conversion, transportation, storage and use.

Globalization of our R&D activities took a major step in 2012.

Implementation of “We create chemistry” strategy on track

12

Growth and technology fields Chemistry enables solutions

*including growth fields still under evaluation

Resources, environment & climate Food & nutrition Quality of life

Chemistry as enabler

Health & Nutrition

Consumer GoodsConstructionTransportation Electronics Energy &

ResourcesAgriculture

E-Power Management

Water Solutions

Wind Energy

Heat management Enzymes Plant

BiotechnologyBatteries

for mobilityLightweightcomposites

Functional Crop Care

Medical Solutions

OrganicElectronics

Raw Material Change

Materials Systems & Nanotechnology

White Biotechnology

Cus

tom

erIn

dust

ries

Gro

wth

Fie

lds*

Tech

nolo

gyF

ield

s

13

2012: R&D expenditures €1.7 billion, launch of ~250 new products, leading Patent Asset IndexTM, further increase of R&D expenditures planned in 2013.

Growth and technology fields have been continuously developed.

Chemistry – a key enabling technology contributing to eco-efficient energy conversion, transportation, storage and use.

Globalization of our R&D activities took a major step in 2012.

Implementation of “We create chemistry” strategy on track

14

1990 2010 20300

2

4

6

8

10

12

14

16

18

1990 2010 20300

2

4

6

8

10

12

14

16

18

Global energy mix today and in the future

By region By fuel

NuclearHydroelectricityRenewables*

By primary use

Transport

Other

Industry

Source: BP 2013 – Energy Outlook 2030, * Includes biofuels

Energy mix for power generation

Oil

Gas

Coal

Renewables

Hydroelectricity

[Billion toe] [Billion toe] [Billion toe] [Thousand TWh]

Energy demand

Powergeneration

1990 2000 2010 2020 20300

5

10

15

20

25

30

35

40

Nuclear

Coal

Gas

Oil1990 2010 20300

2

4

6

8

10

12

14

16

18

Non-OECD

OECD

15

Targets of German energy turnaround

Reshaping of the energy landscape in Germany

Exit from nuclear power generation until 2022 Increase of percentage share of power

generation from renewables:

2009 2010 2011 2012 2020 2030 2040 2050

16% 17% 20% 23%*35%

50%

65%

80%

Minimum renewables targetsin the energy concept of the German government

Electricityproduction 2012

* preliminary data

renewables 26%

lignite 26%

nuclear energy 16%

hard coal 19%

natural gas 11%

mineral oil 2%

wind 7%

biomass 6%

photovoltaics 5%

others 5%hydroelectric 3%

photovoltaics 7%

hydroelectric 3%

renewables42%

lignite 25%

nuclear energy 0%

hard coal 21%

natural gas 10%

mineral oil 2%Electricityproduction 2023

wind 18%

biomass 9%

others 5%

16

Key success factors – German energy turnaround

Technical challenges

Increase of efficiency levels of renewable energy sources

Grid extension:

Optimization of the existing grid in the range of 4,400 km

Construction of new grids in the range of 2,100 km

Development of efficient and feasible storage technologies

Continuation and strengthening of efficient and effective use of energy, e.g. insulation, lighting

17

Renewable power generationChemistry as enabler

Existing BASF solutions for the wind industry Epoxy systems and adhesives,

coatings, structural foams for blades (e.g. Baxxodur®, Relest®, Kerdyn®)

Grouts and admixtures, coatings for tower and base (e.g. MasterFlow®)

Hydraulic fluids and gear lubricants for nacelle

Existing BASF solutions for the solar industry Ultramid®/Ultradur® as mounting

brackets for installation of panels Plastic additives (Uvinul®, Irganox®) Colofast polyurethane casting system Solutions for etching, texturizing,

doping and cleaning solar cells, e.g. Seluris® Clean

Metallization inks and pastes, e.g. Cyposol®

Next generation of photovoltaics

Development of absorber materials based on dyes/pigments and hole conducting materials

New PV modules can be thin, light, semi-transparent, colored and flexible

Cost-competitive to Si-based photovoltaics modules

18

Safe power storageChemistry as enabler

Battery materials for electric mobility

Development of materials and functional components to make Li-ion batteries capable to store more energy, make them longer lasting and more cost efficient

Metal Organic Frameworks (MOF) as gas storage materials

Highly crystalline structures with nanometer-sized pores to store natural gas or other gases (hydrogen and CO2).

Electrochemical large-scale batteries

Research on materials and system design for large-scale batteries

Power to gas

Use of excess electricity generated from wind sources or solar PV to produce hydrogen or methane

Concentrated solar power plants Major global supplier of sodium nitrate Research on developing new heat storage

systems and heat transfer fluids

19

Efficient power transport – example: superconductorsChemistry as enabler

Superconductors Materials characterized by the fact that their electrical resistance

drops to zero below a critical temperature

Potential fields of application Electricity transport and transformation with minimal electrical

and thermal losses Substitution of permanent magnets in generators (e.g. wind turbines)

Advantages High current density electrical transport through medium voltage

cables with minimal electrical and thermal losses Increase of grid capacity by exchange of medium voltage cables

in existing underground shafts with minimal additional costs

nitrogen return

dielectric

nitrogeninlet

HTSphase 1

HTS phase 2

HTS phase 3

neutral conductor

cable cryostat

HTS = High Temperature Superconductor

20

Efficient use of energyChemistry as enabler

Magnetocalorics – Solid State Cooling

Magnetocaloric material heats up when introduced in a magnetic field and cools down when removed.

Organic Light Emitting Diodes –

New Lighting and Display Solutions Lighting and display applications significantly expand energy efficiencies.

Lightweight Composites

Significant weight reduction by replacement of metal in automotive applications by fiber-reinforced polymer composites

Innovative Insulation Materials

Polyurethane systems and thermo-plastic foams ensure increase of energy efficiency in construction and automotive applications.

Around €7.2 billion sales with climate protection products (9% of sales of BASF Group)