Chemisches Recycling schwer

verwertbarer Kunststoffe

Dr. Klaus Wittstock, BASF SE

November 23, 2020

BASF’s

ChemCyclingTM

project

2

Incineration Waste to fuel

Landfill Littering

Refinery

Naphtha

Steamcracker Polymer

production

Plastics

production

Plastic

waste

Basic

Chemicals Polymers Plastics Recovery

Disposal

Mechanical recycling

Polymer to polymer

Clean single-stream

waste needed

Products are not “virgin-grade”

Chemical recycling complements mechanical recycling and can

contribute significantly to achieve EU recycling targets

Chemical recycling (depolymerization)

Polymer to monomer

Single-stream waste needed

Products are “virgin-grade”

Chemical recycling (pyrolysis)

Waste to chemicals

Can handle mixed plastic waste

Products are “virgin-grade”

Umsetzung der EU-Kunststoffstrategie23.11.2020

BASF’s ChemCyclingTM projectBreaking new ground in plastics waste recycling

3 Umsetzung der EU-Kunststoffstrategie23.11.2020

Suppliers

Pyrolysis Pyrolysis oil

Char

CO2

Purification Naphtha substitute

Side product

Mixedplastic waste**

Energy

BASF

With ChemCyclingTM more plastic

waste will be recycled

We contribute to the recycling of plastic waste for

which no high value recycling processes are

established yet

Examples of waste plastics which are difficult to recycle

mechanically or which are incinerated include:

Plastics with adhering food residues

Multi-layer food packaging

Tires

Tires

Mixed plastic waste

4

ChemCyclingTM does not compete but

complement mechanical recycling

Umsetzung der EU-Kunststoffstrategie23.11.2020

Upcycling – Transforming potential emissions into the environmentFrom post-consumer uses into high-quality raw material for chemistry

5

Waste management in Germany

Landfilling: not applicable

Incineration/energy recovery: ca. 200 kt/a

Material recycling (as plastic): ca. 156 kt/a

Re-treading,

Component of asphalt

Artificial turf

Recycling as raw material:

steel: ca. 40 - 50 kt/a

sand: ca. 35 kt/a

Pyrolysis – Transformation of potential environmentally relevant plastics uses into high-quality raw materials

for a variety of uses within chemical industry substituting primary fossil raw materials

Umsetzung der EU-Kunststoffstrategie23.11.2020

End-of-life tires in Europe

• Ban of landfilling of entire or

shredded tires

• EU. ca. 3 – 3,5 mio t/a e-o-l tires

• DE: ca. 570 kt/a

TiresEnd-of-Life tires – a problem of plastics in the enviroment?

6

Tires: a valuable source of raw materials

components:

● Steel ca. 17 %

● carbon black ca. 21 %

● Silicates ca. 5 %

● rubber (mixture of natural & synthetic rubber) ca. 47 %

Meets the criteria of the plastic definition of EU-Directive 2019/904

„a material consisting of a polymer as defined in point 5 of Article 3 of Regulation (EC) No 1907/2006, to which

additives or other substances may have been added, and which can function as a main structural component of

final products, with the exception of natural polymers that have not been chemically modified“

Meets the criteria of the definition of post-consumer waste of DIN ISO 14021 2016-07

The EU Commission lists natural rubber as „critical raw material“ (ca. 65 %

imported from Thailand, Malaysia, Indonesia) „ silent tires“ – diffiicult to recycle

Umsetzung der EU-Kunststoffstrategie23.11.2020

In 2019, BASF invested €20 million into Quantafuel. The company operates a pyrolysis plant for mixed plastic waste with a capacity of 16,000 metric tons per year. All of the pyrolysis oil produced is supplied to BASF.

Since 2020, BASF partners with New Energy which supplies us with up to 4,000 metric tons of pyrolysis oil per year derived from waste tires.

In 2020, BASF invested €16 million into Pyrum that operates a tire pyrolysis plant. In the beginning, BASF will receive around one thousand tons of pyrolysis oil per year, with a fast ramp-up planned over the coming years. Future production capacities foreseen of up to 100,000 tons per year.

BASF is further investigating various options for supplying the company’s Production Verbund with greater volumes of pyrolysis oil.

BASF establishes partnerships

to develop chemical recycling

7

BASF collaborates with partners to secure supply of large volumes

of pyrolysis oil derived from post-consumer plastic waste

8

Example: Quantafuel

Unique integrated process of pyrolysis of mixed plastic

waste and purification into a secondary raw material

16kt/a plant in Skive, Denmark (world’s largest plastic

pyrolysis plant) is operating

Norwegian Environment Agency has confirmed that

the technology qualifies as material recycling

Quantafuel will recycle up to 10,000 t/a of waste

plastic for the Grønt Punkt Norge in this plant

Roll-out of standard modularized plants

based on the Skive design planned

Umsetzung der EU-Kunststoffstrategie23.11.2020

9

Approach

Life Cycle Assessment (LCA) study commissioned by BASF,

performed by a third-party in consistence with international

LCA standards and reviewed by three independent and

recognized experts

Results

Pyrolysis of mixed plastic waste emits ~50% less CO2than incineration of mixed plastic waste.

Manufacturing of plastics via chemical recycling

(pyrolysis) or mechanical recycling of mixed plastic

waste results in similar CO2 emissions*.

0

1000

2000

3000

4000

Pyrolysis Mechanicalrecycling**

Incineration

CO2 emissions [kg CO2e/t product]

Fig. 3: Production and end-of-life treatment of 1t of plastics via pyrolysis emit 2,100 kg CO2e, whereas production and end-of-life treatment of 1t of plastics via mechanical recycling emits 2,000 kg CO2e. Production and incineration of 1t of plastics emits 3,700 kg CO2e.

LCA results should be used as a multiplier for the

acceptance of the method

Comparison of CO2 emissions of the life cycle of

1t of virgin plastics with three end-of-life optionsLCA demonstrates that chemical

recycling is a sustainable way to

close the loop for plastics

* Differences in product quality (virgin-grade quality for chemical recycling / non-virgin-grade quality for

mechanical recycling) as well as differences in sorting losses are included in the calculation by applying the

Circular Footprint Formula of JRC / EU Commission.

** The error bar reflects the different scenarios by changing the

quality factor and the material loss rates after sorting of waste.

The value can vary +/-25%Umsetzung der EU-Kunststoffstrategie23.11.2020

With ChemCyclingTM plastic waste

is turned into virgin-grade

high-performance materials

Products manufactured with chemically recycled plastic

waste under a mass balance approach achieve the

same level of quality and purity as virgin plastics.

This makes it possible to manufacture products with

recycled content that have to meet high quality and

hygiene standards, for example food packaging.

With ChemCyclingTM we can increase recycled

content in efficient materials for demanding

applications and offer customers opportunities for

innovative business models.

10 Umsetzung der EU-Kunststoffstrategie23.11.2020

Examples for customers applications made with CcycledTM products

Chris Brown Senior Sustainability

Manager, Jaguar Land Rover

Plastics are vital to car manufacturing and have proven

benefits during their use phase, however, plastic waste

remains a major global challenge. Solving this issue

requires innovation and joined-up thinking between

regulators, manufacturers and suppliers

Commercial product –in the German market since summer 2020

Maximilian Tönnies, Managing Director

Zur Mühlen Gruppe

The innovative packaging based on recycled

raw materials is a perfect match for our new

Gutfried organic chicken meat sausage

Prototyping

23.11.2020 Umsetzung der EU-Kunststoffstrategie11

Regulatory support for

chemical recycling needed

Chemical recycling needs to count towards

recycling targets

Incentives for recycled content should apply to all

kinds of recycling

Acceptance of mass balance approach: mass

balanced recycled content should be supported to

the same extent as single sourced recycled content

12 Umsetzung der EU-Kunststoffstrategie23.11.2020

Source: Pew Charitable Trusts, SYSTEMIQ,

U o Oxford, U Leeds, EMAF 2020: Breaking

the Plastics Wave

The Big Picture: Report Breaking the Plastic WaveThe report forecasts annual plastic waste generation and outlines solutions for reducing it

23.11.2020 Umsetzung der EU-Kunststoffstrategie13

With ChemCyclingTM we are

contributing to a circular economy and

are saving resources and emissions

More plastic waste is recycled as the project

focusses on plastic waste for which no high-value

recycling processes are established yet

Using recycled feedstock from plastic waste in chemical

production helps to save fossil resources.

CO2 emissions are saved against conventional plastic

production and incineration of plastic waste

Umsetzung der EU-Kunststoffstrategie14 23.11.2020