BASF, University Of Alabama Receive LES Award For Joint Cellulose Research

The Alexandria, Va.-based Licensing
Executives Society (USA and Canada) Inc. (LES) has presented its LES 2006 Deals of Distinction
Award for the Chemical, Energy and Materials Industry Sector to Germany-based BASF AG and the
University of Alabama (UA), Tuscaloosa, Ala. The award, presented last week at LES’s annual meeting
in New York City, recognizes BASF’s and UA’s deal, “The Ionic Fluids for Cellulose Processing
Transaction,” to develop environmentally sustainable alternatives for cellulose extraction using
ionic liquids as a solvent. A research team led by Robin Rogers, Ph.D., director of UA’s Center for
Green Manufacturing, developed and patented the technology, and UA has licensed its use to BASF. UA
and BASF will work together on an ongoing basis to develop practical applications with a goal of
expanding renewable resource usage.

BASF’s Intermediates division now offers ionic liquids under the Basionic™ brand for use
with its Basil™ cellulose-processing technology.

According to BASF, cellulose is renewed in nature at the rate of 40 billion tons per year,
while only 100 million tons currently are used as feedstock for further processing. The new
technology is expected to increase the potential for processing the raw material. The company notes
that the traditional viscose process for extracting cellulose requires more than two metric tons of
chemical additives and a substantial amount of water for each metric ton of fiber produced, and
therefore generates waste water that must be treated. When ionic liquids are used, no filtration is
required, fewer additives are needed, and the liquids can be almost completely recycled. In
addition, water needed for fiber spinning also can be recycled.

“By combining our knowledge of innovative ionic liquids with the specific expertise the
University of Alabama possesses in the field of cellulose products, we are progressing into a
fascinating area,” said Stefan Marcinowski, Ph.D., executive director, research, BASF. “The
intelligent use of ionic liquids in this field can lead to the sustainable long-term conservation
of resources.”

BASF also has been working with the Germany-based Denkendorf Institute for Textile Chemistry
and Chemical Fibers (ITCF) to develop cellulose-processing technologies using ionic liquids. “We
have teamed up with ITCF, [which has] extensive fiber manufacturing experience, to develop this new
technology and practical processes for fiber manufacturers,” said Eric Uerdingen, Ph.D., new
business development, BASF Intermediates. “To design processes that respond to practical
requirements, we now seek to cooperate closely with fiber manufacturers.”

September 19, 2006