Download pdf - Green Chemicals & Materials – Unravelling the Myths and Creating Opportunities - Oct08

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Green Chemicals & Materials Unravelling the Mythsand Creating Opportunities

A panel discussion with Frost & Sullivan's leadingChemicals & Materials analysts:

Robert Outram, Leo Dokos

Brian Balmer, Hari Ramasubramanian

29 October 2008


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Focus Points

Key Industry Trends

Green Sourcing

Green Processes / Sustainability White Biotechnology

Legislation

Case Studies / Examples


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Key Industry Trends

Putting "Green" in Context


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Trends Impact on the Chemicals Industry

Projected

Impact on theChemicals

Industry

High Impact

Low Impact

CertaintyLow High

2007 2020

EnvironmentalLegislation

By-products/wastemanagement

WhiteBiotechnology

Forwards/backwards Integration

Super Chemical Companies

LogisticsExcellence

Biorenewables

Recycling

PowerCustomer

InternetAuctions

Nanotechnology


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Performance Materials Market: Impact of Key Industry Trends

(Europe), 2008

Supply chain

Expansion

Sustainable

production

Innovation

SecurityEnergy-saving

Lifestyle

Safety

Differentiation Functionality

0

5

10

0 5 10

Internal Impact

Market

Impact

Materials Industry Trends


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Performance Materials Market: Impact of Key Industry Trends

(Europe), 2008

Supply chain

Expansion

Sustainable

production

Innovation

SecurityEnergy-saving

Lifestyle

Safety

Differentiation Functionality

0

5

10

0 5 10

Internal Impact

Market

Impact

Materials Industry Trends


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What is Green?

BiodegradableSustainably

Sourced

Bio-enabling

Chemicals& Materials

DetergentsBioplasticsNatural fibre

Biorenewable building blocksBioplastics

OleochemicalsBiofuels (?)

Recycled

Oxy-biodegradableplastic additives

Composites for wind

turbines

Solar cell chemicals


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Materials Industry Trends - Focus on Green

Top 10 Trends

Production

Enabling tech.

Renewable materials

Energy efficiencyCleaner processesWaste reduction / re-useWorker safety

Biopolymers

Natural fibres

Thermoplastics

Coating resins

Energy efficiencySafetySecurity


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Materials Industry Trends - Focus on Green

Top 10 Trends

Production

Enabling tech.

Renewable materials

Energy efficiencyCleaner processesWaste reduction / re-useWorker safety

Biopolymers

Natural fibres

Thermoplastics

Coating resins

Energy efficiencySafetySecurity

Spec Chem as an enabler of green Materials: Chemtura Polybond improves blending of

wood fibres with PP in WPC DuPont Biomax Strong at 2wt% greatly

improves properties of PLA


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The chemical industry has cut its energy intensityannually while reducing greenhouse gas emissions

Between 1990 and 2005energy consumption

remained flat

Between 1990 and 2005energy consumption

remained flat

Between 1990 and 2005production has increased

Between 1990 and 2005production has increased

Between 1990 and 2005greenhouse gas emissions

declined

Between 1990 and 2005greenhouse gas emissions

declined

Time

Index

Source: Cefic

100

160

106

73


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Bio-sourcing materials - Can analogies be drawn with oil-based chemistry?

Chart 5.1

High Performance Plastics Market: Chemistry of C9 Monomers for Polyamides (Europe), 2007

Natural Fatty Acids Oleic Acid:

O

OH

O

OH

O

HOO

OH

+

NH2H2N

PA 6,9

PA 9,T

C9 Chemistry Commodity C6 Chemistry

Adipic Acid

HMDA

(old technology,largely superseded) PA 6,6

Note the similarity of chemistries

used to generate diamines for bothniche C9 and commodity C6

polyamides

NH2

H2N

O

O

OHHO

Azelaic Acid

Pelargonic acid by-

product:Used in alkyd resins,synthetic lubricant baseoils and plasticizers


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Legislation

Lack of harmonisation?


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Voluntarily participationby the industry

The lack of harmonisation in legislation and standards slows down the

momentum required for global adoption of green chemicals and processes

Legislation

Legislation will play an increasingly important role in the future in alignment with a globalcarbon footprint of materials and chemicals

Environment

Ecology

Economy

Not harmonised globalregulatory framework

slow replacement of chemicalsunder consideration


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Europe is leading a global multifaceted effort to bring the chemicalsindustry in the 21st century

Things will speed up due to recently introduced legislation focusing on protecting theenvironment as well as human health

Change of the responsibilityfrom public authorities to

industry in demonstrating the

safe manufacture and use ofchemicals

Restriction of the use of certainhazardous substances in electrical

and electronic equipment

GHS

Identify hazardous chemicals andinform users through standard

symbols and phrases on the

packaging labels and throughsafety data sheets (SDS)

Global Good Managementof Chemicals & Materials

Global Good Managementof Chemicals & Materials

Industry responsible forprotecting human health

and the environment

Industry responsible forprotecting human health

and the environment


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Is bio a polished term for green products?

Is bio the next green for chemicals and materials?

BiofuelsState subsidies and EU directives

setting targets have been thedriving force for blending andusing biofuels. In the future

BioplasticsThese PLA, PHA's and starch-basedpolymers represent the future but

there is no specific legislationregulating the amount of renewablesourced material that needs to be

present in a plastic for it to be calledbioplastic. It is therefore open to

individual players in the market toassess this particular point.

Biolubricants

Although the last 10 years theseproducts have experienced a

market growth, this is due to aslow replacement. Legislation

mandating their use exists onlyin few European countries andsince 2008 in France as well.


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FAQs & Frost & Sullivan Solutions

Case studies from Frost & Sullivans research


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Frequently Asked Questions

What does "Green"actually mean?

What opportunities couldthere be for us in "energy

efficient" buildings?

What impact will the new PyramidTechnologies PLA plant have on

the bioplastics market?

What are the different options toenter the bioplastics market? Can you charge a

premium for a bio-

based product?Is there any opportunity forrecycling of advanced

composites?

Do you know what opportunitiesthere would be for [a new

material] to improve the thermalefficiency of buildings?


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Green Issues Coverage Up to datestudies on green initiatives in ourvarious end user segments

Examples of recent research Chinese Solar Power Markets Wood Plastic Composites

Renewable Chemicals Markets

Bespoke consulting work on GreenMarkets

Biofuels Market Entry Strategies forthe Hungarian Market

An Overview on Uses for Flare Gas

Analyst Briefings Such as this one on Green initiatives in

the Chemicals & Materials Market

White Papers Environmental Sustainability Initiatives

in the Performance Materials Industry

Constantly changing

market requires frequenttracking of the key trends

PLA Market: Volume Forecasts (Europe), 2003-2013

0.0

50.0

100.0

150.0

200.0

250.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

kt

Old New

The European Bioplastics Marketforecasts had to be revised just in oneyear since we wrote the study, to accountfor the rapid changes that had takenplace in the market in 2008

An analysis of the 170 billion cubic metres offlare gas wasted every year, andidentification of technologies that will createviable markets for this precious source ofenergy

Frost on the Green Revolution


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Conclusions

Green initiatives must be self-funding - i.e. themselves sustainable

There is no one thing that counts as "green." It can be anything from:

emissions reduction or reduced usage of non-renewable raw materials

... to broader social responsibility considerations such as the worker'sworking conditions

Marketing is key

... But it is not just a marketing gimmick!

Important to be proactive and do it before legislation forces you to


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Your Feedback is Important to Us

Growth Forecasts?

Competitive Structure?

Emerging Trends?

Strategic Recommendations?

Other?

Please inform us by taking our survey.

What would you like to see from Frost & Sullivan?


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For Additional Information

Steve LeeStrategic Account Manager

Chemicals, Materials and Food, Asia Pacific(65) 6890 [email protected]