BASF drives sustainable innovation with carbon-neutral solutions

In an exclusive interview with Energy Connects ahead of World Utilities Congress 2024, Khaldoun Bouacida, Managing Director and Country Cluster Head Arabian Peninsula at BASF, highlights how the company leverages digital transformation, including AI and quantum computing, to innovate and support local industries.

BASF has a significant presence in the Middle East. Could you share with us the strategic vision and key initiatives BASF is focusing on to drive growth and innovation in this region?

BASF has a significant presence in the Middle East with over 50 years of engagement with various actors and key players in the region. As a provider of raw materials and technical solutions our aim is to create local added value with our partners. Our strategic vision is centred on creating chemistry for a sustainable future. Compared to the last decade the region has shown a growing appetite for innovation and is considered a pioneer in certain areas.

BASF proudly chaperones many customers and partners by adapting our portfolio to local needs and participating to the economic and social growth of the Arabian Peninsula. From heat insulation material used to reduce energy consumption in housing, to long lasting coil coatings (such as those used at Dubai Metro stations), to unique light weight engineering plastics solutions (like the Ferrari world roof brackets) and of course our direct participation to the largest Concentrated Solar Power plant in the world in Dubai. This plant, thanks to our high purity molten salt energy storage solution, produces electricity during peak hours after sunset.

BASF is committed to ongoing innovation and progress in the Middle East, leveraging our expertise to stay at the forefront of the chemical industry and promote sustainable advancements.

Sustainability and innovation are at the core of BASF's operations. How is BASF leveraging digital transformation and advanced technologies enhancing operations and services in the Middle East and what impact do you foresee on the local industries?

As the leading Chemical company, we are of course also using new technologies such as quantum computing and AI to innovate and support our end users with best-in-class solutions. For instance, I can name carbon capture technologies, our gas treatment design (Oase) and customised catalysts that enable higher yields while reducing inefficiencies, are major advanced technologies used in the region.

What are some of the key trends and market dynamics that you believe will shape the future of the chemical industry in the Middle East?

Key trends include products that are carbon neutral, mass-balanced products and have traceable carbon footprints. A product that cannot be recycled or that does not originate from recycled raw materials will not be offered in the market in the future. The younger generation is very aware of this, and consumer trends are changing in the right direction. Most of our customers are asking for more and more Product Carbon Footprint (PCF) and mass balanced products. We successfully introduced a couple of products in the region but are still facing some resistance regarding pricing and regulations. Nevertheless, we are confident that this will change over time and that the industry standard will change rapidly (bear in mind that we were the first to introduce water-based paint for cars 15 years ago, now this is a standard and solvent-borne car refinishes are no longer allowed).

As BASF prepares for the World Utilities Congress 2024, what are your main objectives for participating, and what key messages do you hope to convey to industry stakeholders at the event?

Since our target for carbon abatement by 2025 is clear and we are accelerating the introduction of carbon neutral products, we would like to learn more about the trends in the regions that confirm our predictions. We will participate to be closer to end-users and understand future trends, adapt our offer and be inspired by others. Our main message is that it takes two to tango. We need to know our end-users’ needs and they should know what our capabilities are. Take for instance plastic recycling and Chemcycling, where BASF is a very active partner in Europe, we are proposing solutions for accurately sorting different types of plastics. We are also engaged in the different partnering scenarios with pyrolysis oils and Chemcycling Naphta producers. Additionally, we are active in NOX reduction in power plants or stationary batteries. As you can see there are plenty of collaboration opportunities and our aim is to materialise them as well.

• World Utilities Congress 2024 will be taking place from 16–18 September 2024 in Abu Dhabi. Book your conference delegate pass: https://bit.ly/4cwsSYM