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BASF, Cargill and Novozymes Target Commercial Bio-Based Acrylic Acid Process

LUDWIGSHAFEN, GERMANY- MINNEAPOLIS, MINNESOTA - COPENHAGEN, DENMARK, August 17, 2012 - BASF, Cargill and Novozymes have signed an agreement to develop technologies to produce acrylic acid from renewable raw materials.

LUDWIGSHAFEN, GERMANY- MINNEAPOLIS, MINNESOTA - COPENHAGEN, DENMARK, August 17, 2012 - BASF, Cargill and Novozymes have signed an agreement to develop technologies to produce acrylic acid from renewable raw materials.

Presently, acrylic acid is produced by the oxidation of propylene derived from the refining of crude oil. BASF – The Chemical Company, Cargill and industrial biotechnology company Novozymes will develop bio-based technologies to produce acrylic acid from renewable feedstocks.

“The cooperation combines BASF’s global market strength and innovation power with the excellent know-how and competencies of Novozymes and Cargill, who are global leaders in their respective industry segments. Together we are uniquely positioned to more sustainably meet market and society needs,” said Michael Heinz, Member of the Board of Executive Directors of BASF SE.

New milestone towards commercialization
Novozymes and Cargill have collaborated on renewable acrylic acid technology since 2008. Both companies have worked to develop microorganisms that can efficiently convert renewable feedstock into 3-hydroxypropionic acid (3-HP), which is one possible chemical precursor to acrylic acid. BASF has now joined the collaboration to develop the process for conversion of 3-HP into acrylic acid. BASF is the world's largest producer of acrylic acid and has substantial capabilities in its production and downstream processing. The company plans initially to use the bio-based acrylic acid to manufacture superabsorbent polymers. The three companies bring complementary knowledge to the project. Novozymes, the world-leader in industrial enzymes, has years of experience with developing technologies for bio-based production of chemicals used in plastics, ingredients, etc.

“BASF and Cargill are global leaders in their industries and we are very excited to partner with them,” says Novozymes CEO Steen Riisgaard. “By offering bio-based alternatives to fossil-based products we will take a big step towards a more sustainable economy.”

“Cargill is pleased to bring its global expertise in sourcing renewable feedstocks and largescale fermentation to this collaborative project,” said Chris Mallett, Cargill's Corporate Vice President of research and development. “The work with BASF and Novozymes underscores our commitment to developing innovative new technologies that help our customers meet their business objectives.”

Acrylic acid is a high-volume chemical that feeds into a broad range of products. One of the main applications is in the manufacture of superabsorbent polymers that can soak up large amounts of liquid and are used mainly in baby diapers and other hygiene products. Acrylic acid is also used in adhesive raw materials and coatings. The annual global market volume

of acrylic acid is around 4.5 million tons with a value of $11 billion1 at the end of 2011. The market has been growing at a rate of 4 percent per year.

About BASF

BASF - The Chemical Company is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success, social responsibility and environmental protection. Through science and innovation we enable our customers in almost all industries to meet the current and future needs of society. Our products and system solutions contribute to conserving resources, ensuring healthy food and nutrition and helping to improve the quality of life. We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about €73.5 billion in 2011 and had more than 111,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available at www.basf.com.

About Cargill

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 140,000 people in 65 countries. Cargill helps customers succeed through collaboration and innovation, and is committed to applying its global knowledge and experience to help meet economic, environmental and social challenges wherever it does business. For more information, visit Cargill.com and its news center.

About Novozymes

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries Novozymes creates tomorrow’s industrial biosolutions, improving its customers' business and the use of our planet's resources. With over 700 products used in 130 countries, Novozymes’ bioinnovations increase industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace. Read more at www.novozymes.com.

1 Based on ICIS pricing

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