assured
Performance Report

Use of materials and energy

Material and energy efficiency are decisive parameters when it comes to success on today’s markets. Bayer Technology Services has developed and introduced the Resource Efficiency Check [131] to optimize efficiency in the handling of resources used throughout the Group. The knowledge gleaned from selected pilot projects in all three subgroups over the past three years has flowed into research and development projects to improve processes. In 2012 potential savings were identified in particular in the use of raw materials, solvent consumption and wastewater. Bayer Technology Services will work with the subgroups to exploit this potential, with annual cost reductions of more than €10 million anticipated.

Since business activities and therefore also the material requirements differ fundamentally from one subgroup to another, production-specific procurement activities are organized decentrally in each subgroup. Detailed information on the procurement and use of raw materials, consumables and supplies for each subgroup is published in the Annual Report 2012. Renewable raw materials have so far played only a minor role in Bayer’s overall use of raw materials. We are increasing their use when it makes technical, economic and ecological sense to do so. For example, the Bayer MaterialScience subgroup is experimenting with replacing oil-based raw materials in innovation and cooperation projects. Among other things, a bioengineering process is being tested that is based on biomass conversion using microorganisms and can deliver material for the production of plastics. The use of carbon dioxide as a raw material for polyurethanes has already been successful on a pilot plant scale – the early results of an independent ecological evaluation are also giving a positive signal. At Bayer HealthCare, a number of hormones are synthesized from plant sources. Suppliers deliver certain kinds of sterols and phytosterols that are by-products of the production of vegetable oils from soybeans, canola or sunflowers. Palm oil or palm kernel oil is not used at Bayer HealthCare, due to its low concentration of sterols. We also purchase various steroids that are manufactured from diosgenin. Today, this substance is usually obtained from yam grown in countries such as China. In the fermentation process, we also use raw materials such as water, glucose, yeast, soybean starch, castor oil and corn steep water. Extracts of plant leaves (Centella asiatica) are used in some Consumer Care products. This plant is very common in Asia. None of the plants used is endangered. You can read more about the use of plant raw materials at Bayer CropScience and responsible materials procurement here.

Material and energy consumption and emission levels are highly dependent on the manufactured sales volume. That is why we use this as a reference figure to evaluate energy and resource efficiency. In 2012 Bayer again increased the manufactured sales volume by 2.4 percent to 11.2 million metric tons. Despite this increase, we were able to further improve many performance indicators. The Group’s total energy consumption fell by about 2.1 percent on the previous year to 83.2 petajoules. We differentiate between primary energy consumption at our sites, mainly in the form of fossil fuels for the generation of electricity and steam, and secondary energy consumption that reflects the purchase of electricity, steam and refrigeration energy and the use of process heat. Primary energy consumption fell by 2.1 percent, primarily due to the phased closure of production at the Bayer CropScience site in Institute in the United States. Secondary energy consumption fell by 2.0 percent (see explanation in Table 17).

17 Energy consumption (terajoules)
2008 2009 2010 2011 2012
Primary energy consumption
for the in-house generation
of electricity & steam
(in 1,000 terajoules)
51.9 48.1 51.6 50.1 49.0
Natural gas 29,848 29,413 31,847 31,162 30,411
Coal 19,103 16,976 17,801 16,776 15,954
Liquid fuels 1,077 772 532 660 656
Waste 775 -33 678 515 1,005
Other * 1,078 996 774 983 1,021
Secondary energy consumption
as steam, electricity, refrigeration energy (net) (petajoules)
30.9 29.2 34.1 34.8 34.1
Electricity (net) 26,183 23,675 25,229 25,475 25,849
Steam
(net from purchase/sale) **
-4,008 -2,092 722 1,054 -121
Steam from waste heat
(process heat)
9,580 8,273 8,722 9,000 9,144
Refrigeration energy
(net from purchase/sale)
-850 -654 -595 -683 -735
Manufactured sales volume
(million metric tons)
10.0 8.7 10.4 11.0 11.2

* Other, e.g. hydrogen
** We have made an adjustment to the invoicing of steam procured from third parties at one of our contracting sites. The net steam figure resulting from this adjustment will give a more exact representation of the actual state of affairs from this reporting period onward.

At various sites, Bayer and its service company Currenta operate facilities for the cogeneration of electricity and heat. Our cogeneration facilities worldwide generate approximately 3.5 terawatt hours (TWh) of electricity and around 7.5 TWh of steam for use in our production facilities and third-party facilities (especially of Lanxess AG as the other shareholder in Currenta). In addition to the energy produced in our own power plants, we obtain electricity directly from outside producers. This energy is also used in both our own production facilities and those of third parties. Furthermore, we purchase electricity on the external market, via electricity exchanges, for example. In the reporting period, the proportion of renewable energies Group-wide was 0.7 percent. In 2012 a major solar power system was installed at the Bayer HealthCare site in Berkeley, United States, for example. It is made up of 1,000 solar panels, and produces 295 kilowatt hours (KWh) of electricity.

Last updated: April 26, 2013  Copyright © Bayer AG
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