Evonik preemptively secures German energy supply “in case of Russian gas stop” as EU braces for winter

10 Aug 2022 --- As Europe faces uncertainties regarding Russian gas supplies, Evonik is substituting up to 40% of natural gas with liquefied petroleum gas (LPG) and coal alternatives at its German sites which produce personal care chemicals.

“The production in Germany covers a broad portfolio of cosmetic ingredients such as surfactants, emollients, emulsifiers and active ingredients,” a spokesperson at Evonik tells PersonalCareInsights. 

“Gas is an important raw material and a source of energy for the chemical industry and thus also for the personal care industry. We have taken measures to supply our customers in the best possible way even in challenging situations.” 

Russia has kept gas supply “intentionally as low as possible, despite the high gas prices,” underscores Ursula Gertrud von der Leyen, President of the European Commission, in her statement urging member states to save gas for the coming winter. 

Gas cut-off: A dream or reality?
Evonik’s move ensures less dependence on natural gas, providing more energy security. Additionally, the company is contributing to replenishing natural gas for Germany – equivalent to the consumption of more than 100,000 households annually.“The production in Germany covers a broad portfolio of cosmetic ingredients such as surfactants, emollients, emulsifiers and active ingredients,” shares the spokesperson. Credit: Evonik.

“The energy supply at our European sites is thus largely secured, even in the event of a Russian gas stop,” adds Christian Kullmann, chairman of the executive board at Evonik.

Von der Leyen highlights that 12 member states have already been hit by a partial or total cut-off of Russian gas supply, accusing Russia of “using energy as a weapon” and that “Europe needs to be ready.” 

“We have to be proactive and prepare for a potential full disruption of Russian gas. This is a likely scenario.” 

The “save gas for a safe winter” plan urges the member states to reduce gas consumption by 15% to pass through this winter safely in case of a total gas cut-off. 

Diversifying energy consumption
Kullmann claims that alternative energies can replace a large percent of Germany’s gas supply “without significantly curtailing chemical production.” 

“Evonik produces at different sites in Germany but also in Europe, America and Asia with cross-regional redundancies. We do not expect a significant impact on our specialties portfolio due to our taken measures,” adds the spokesperson. 

“Many companies in the chemical industry need natural gas not only for energy production but also as a valuable resource in their production processes.”

For instance, Marl – Evonik’s most significant site in Germany – is unveiling a new gas-fired power plant where LPG, supplied by BP, will be used.Evonik plans to substitute natural gas at its other German sites, where natural gas is to be partially replaced by fuel oil. Credit: Evonik.

“With LPG, we are more diversified in our energy consumption. This secures our production and ability to fulfill our customers’ needs. 

Collaboration with BP
The company shares that it receives 15 terawatt hours (TWh) of natural gas annually, of which most is used for power and steam generation. 

It shares that energy supplies outside of Germany are mainly independent of gas supplies from Russia. On the other hand, its German sites, which account for a third of Evonik’s gas procurement, would face chemical production issues if there was no gas supply from Russia. 

However, as LPG will be used instead, the risk of production loss is mitigated. “LPG is a liquefied gas mainly comprising butane, unlike natural gas or liquefied natural gas, which mainly comprises methane,” explains Evonik. 

Via the BP refinery in Gelsenkirchen, Germany, the company can use existing production, logistics and infrastructure to ensure efficient LPG supply in Marl. 

“Saving gas is an important and pressing issue for us all in Germany in the present situation. Therefore, we are happy to support Evonik through collaboration between the BP location in Gelsenkirchen and Evonik’s site in Marl to realize the planned substitution of natural gas by LPG,” says Wolfgang Langhoff, chairman of the board at BP Europa.

By Venya Patel