Foreword
Climate protection
Future-oriented climate protection
In the environmental protection activities in its production plants Bayer focuses strongly on climate protection, one of the world’s biggest challenges. This is because the chemical industry as an energy consumer makes a not inconsiderable contribution to the emission of gases that are partly responsible for global warming. According to the Kyoto Protocol, these gases comprise not only carbon dioxide (CO2), but also methane (CH4), nitrous oxide (N2O) and halogenated and partially halogenated hydrocarbons. When calculating emissions, their percentages are converted into CO2 equivalents.
In the 2004/2005 period covered by the Report, the absolute greenhouse gas emissions at Bayer dropped to 5.6 millions metric tons of CO2 equivalents in 2004 and 3.9 million metric tons of CO2 equivalents in 2005. In total, greenhouse gas emissions throughout the Bayer Group decreased by over 70 percent from 1990 to 2005 – from 15 million metric tons to 3.9 million metric tons of CO2 equivalents.
The key factors contributing to the reduction in environmental impact of over 5.5 million metric tons of CO2 equivalent were our wide-ranging investments and technological innovations.
The most important single measures were:
Organizational changes such as the sale of Erdölchemie (3.0 million metric tons of CO2 equivalents) and the carve-out of Lanxess (approx. 1.4 million metric tons of CO2 equivalents) reduced the Bayer balance sheet by an additional 4.4 million metric tons of CO2 equivalents, which are now booked to the new companies.
In addition, there has also been a reorganization of energy supply in Dormagen. Two older Bayer coal-fired power plants were closed and the necessary energy is now provided by a modern combined cycle and CO-generation plant, with RWE serving as the contractor. This resulted in an additional reduction for Bayer of 1.2 million metric tons.
As a result, one of the goals of the Bayer Group, namely to halve climate-related emissions between 1990 and 2010, has already been achieved.
In December 2005, at the Climate Summit in Montreal, Bayer was presented with the “Low Carbon Leaders Award” by The Climate Group, an international climate protection organization founded in 2004, in recognition of its achievements in this sector. It met with a certain amount of criticism among the general public because the reduction in emissions is attributable not only to energy-efficient measures and the use of new technologies, but also to organizational changes. In this context, however, it is also relevant to look at energy consumption: In the Bayer Group, worldwide energy consumption has been reduced by around ten percent since the beginning of the 1990s. Evidence of the careful handling of resources and of increasing energy efficiency is provided above all by the fact that the reduction in energy consumption in relation to product volume declined by over 40 percent between 1990 and 2004.
Emissions trading: Higher costs due to higher electricity prices
Bayer is integrated into the emissions trading system of the European Union (E.U.) with a total of 12 production plants in Germany, the United Kingdom and Spain, and was allocated the corresponding number of emissions allowances. They were sufficient in the first year to ensure day-to-day operation.
In the second trading period, which will extend from 2008 to 2012, the intention is to reduce the overall allocation to industry. From our point of view, this will have a negative effect on economic growth, because the reduction in the number of allowances available will push up their price, and consequently further increase the costs of our electricity and heat. Since we also purchase energy from external suppliers at our German sites, we will be directly affected by price increases.
In order to prevent such disadvantages, we advocate an industry-friendly solution, which, at the same time, supports the European Union’s demanding climate protection targets. We are also keen to cut down the time-consuming bureaucracy connected with the current emissions trading system. Our interests are represented by the German Chemical Industry Association (VCI) and the European Chemical Industry Council (CEFIC). We are also a member of a Federal Ministry for the Environment working group looking at emissions trading to combat the greenhouse effect (AGE).
Our contribution to climate protection is, of course, not limited to the nations that have signed the Kyoto Protocol. We endeavor to consistently reduce emissions throughout the world, including in the United States. Through our voluntary participation in the four-year pilot phase on emissions trading of the Chicago Climate Exchange (CCX), we have committed ourselves to cut direct greenhouse gas emissions by one percent a year. At the end of the test phase, we will continue our commitment and also participate in the second phase of the CCX up to the year 2010.
Energy savings: Bayer materials utilize the potential
Our responsibility for the global climate goes beyond optimizing our production processes. The products themselves also make an important contribution to lowering energy consumption. Our polycarbonate, for example, is frequently used as a substitute for glass and metal in vehicle parts, reducing the overall vehicle weight and thus lowering fuel consumption. Our polyurethane also reduces energy consumption, whether in the form of an insulating material in refrigerators or as heat insulation in buildings. Its outstanding insulating properties help to cut energy consumption very significantly. The total volume of polyurethane produced every year by Bayer and used in refrigerators alone helps to save around 11 million metric tons of CO2. As far as the insulation of buildings is concerned, a similar calculation shows an annual worldwide CO2 saving of between 80 and 175 million metric tons. If we add together all the energy savings resulting from the use of the polyurethane and polycarbonate, we obtain a figure that exceeds the energy required to manufacture them several times over.
In the 2004/2005 period covered by the Report, the absolute greenhouse gas emissions at Bayer dropped to 5.6 millions metric tons of CO2 equivalents in 2004 and 3.9 million metric tons of CO2 equivalents in 2005. In total, greenhouse gas emissions throughout the Bayer Group decreased by over 70 percent from 1990 to 2005 – from 15 million metric tons to 3.9 million metric tons of CO2 equivalents.
The key factors contributing to the reduction in environmental impact of over 5.5 million metric tons of CO2 equivalent were our wide-ranging investments and technological innovations.
The most important single measures were:
- Incineration of N2O generated during the production of adipic acid (now part of Lanxess operations) – since 1993, this has eliminated approx. 4 million metric tons of CO2 equivalents a year;
- Conversion of chloralkali electrolysis from the amalgam to the membrane process (reduction of approx. 0.4 million metric tons of CO2 equivalents a year);
- In 2003, Bayer trod new ground with an innovative electrolysis process for producing chlorine from hydrochloric acid. The oxygen depolarized cathode technology consumes up to 30 percent less electrical power than the conventional diaphragm process.
Organizational changes such as the sale of Erdölchemie (3.0 million metric tons of CO2 equivalents) and the carve-out of Lanxess (approx. 1.4 million metric tons of CO2 equivalents) reduced the Bayer balance sheet by an additional 4.4 million metric tons of CO2 equivalents, which are now booked to the new companies.
In addition, there has also been a reorganization of energy supply in Dormagen. Two older Bayer coal-fired power plants were closed and the necessary energy is now provided by a modern combined cycle and CO-generation plant, with RWE serving as the contractor. This resulted in an additional reduction for Bayer of 1.2 million metric tons.
As a result, one of the goals of the Bayer Group, namely to halve climate-related emissions between 1990 and 2010, has already been achieved.
In December 2005, at the Climate Summit in Montreal, Bayer was presented with the “Low Carbon Leaders Award” by The Climate Group, an international climate protection organization founded in 2004, in recognition of its achievements in this sector. It met with a certain amount of criticism among the general public because the reduction in emissions is attributable not only to energy-efficient measures and the use of new technologies, but also to organizational changes. In this context, however, it is also relevant to look at energy consumption: In the Bayer Group, worldwide energy consumption has been reduced by around ten percent since the beginning of the 1990s. Evidence of the careful handling of resources and of increasing energy efficiency is provided above all by the fact that the reduction in energy consumption in relation to product volume declined by over 40 percent between 1990 and 2004.
Emissions trading: Higher costs due to higher electricity prices
Bayer is integrated into the emissions trading system of the European Union (E.U.) with a total of 12 production plants in Germany, the United Kingdom and Spain, and was allocated the corresponding number of emissions allowances. They were sufficient in the first year to ensure day-to-day operation.
In the second trading period, which will extend from 2008 to 2012, the intention is to reduce the overall allocation to industry. From our point of view, this will have a negative effect on economic growth, because the reduction in the number of allowances available will push up their price, and consequently further increase the costs of our electricity and heat. Since we also purchase energy from external suppliers at our German sites, we will be directly affected by price increases.
In order to prevent such disadvantages, we advocate an industry-friendly solution, which, at the same time, supports the European Union’s demanding climate protection targets. We are also keen to cut down the time-consuming bureaucracy connected with the current emissions trading system. Our interests are represented by the German Chemical Industry Association (VCI) and the European Chemical Industry Council (CEFIC). We are also a member of a Federal Ministry for the Environment working group looking at emissions trading to combat the greenhouse effect (AGE).
Our contribution to climate protection is, of course, not limited to the nations that have signed the Kyoto Protocol. We endeavor to consistently reduce emissions throughout the world, including in the United States. Through our voluntary participation in the four-year pilot phase on emissions trading of the Chicago Climate Exchange (CCX), we have committed ourselves to cut direct greenhouse gas emissions by one percent a year. At the end of the test phase, we will continue our commitment and also participate in the second phase of the CCX up to the year 2010.
Energy savings: Bayer materials utilize the potential
Our responsibility for the global climate goes beyond optimizing our production processes. The products themselves also make an important contribution to lowering energy consumption. Our polycarbonate, for example, is frequently used as a substitute for glass and metal in vehicle parts, reducing the overall vehicle weight and thus lowering fuel consumption. Our polyurethane also reduces energy consumption, whether in the form of an insulating material in refrigerators or as heat insulation in buildings. Its outstanding insulating properties help to cut energy consumption very significantly. The total volume of polyurethane produced every year by Bayer and used in refrigerators alone helps to save around 11 million metric tons of CO2. As far as the insulation of buildings is concerned, a similar calculation shows an annual worldwide CO2 saving of between 80 and 175 million metric tons. If we add together all the energy savings resulting from the use of the polyurethane and polycarbonate, we obtain a figure that exceeds the energy required to manufacture them several times over.
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