A Dream Comes True Use of carbon dioxide for the production of - PowerPoint PPT Presentation

A Dream Comes True Use of carbon dioxide for the production of plastics covestro.com September 30 th , 2015 Japan Tokyo Dr. Kai Laemmerhold

Forward-Looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available on the Covestro website at www.Covestro.com. The company assumes no liability whatsoever to update these forward- looking statements or to conform them to future events or developments. October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 2

Fossil raw materials Traditional basis of the chemical industry > 40,000 chemical products ~ 400 intermediate products ~ 40 basic chemicals 4 Oil Natural gas Biomass Coal classic carbon sources Q U A N T I T Y U S E D October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 3

Three dreams … “Reduce our carbon “Make CO 2 react …!” “Find an alternative footprint!” (the catalyst quest) carbon source!” Society’s dream The researchers’ dream Our industry’s dream October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 4

Three dreams … Covestro makes the dream come true October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 5

Scientific breakthrough The right catalyst was found after 40 years of research … … thanks to close cooperation be- tween Covestro and the CAT Catalytic Center at Germany’s RWTH Aachen University . October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 6

Sluggish CO 2 Catalysis enables efficient reaction Catalyst Energy content Raw material Polymer CO 2 October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 7

Incorporation of CO 2 into the polyol leads to polyethercarbonate polyols + CO 2 Polyol Isocyanate Polyurethane + Flexible Foams October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 8

Covestro starts using CO 2 From flue gas to high-performance foams October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 9

Mini-Plant State-of-the-art reaction engineering Construction and operation of a mini- plant • Upscaling • Sample production for material trials • State-of-the-art safety and technology Page 10 October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 10

Eco-efficiency analysis LTT Standardized methodology Environmental factors Environmental effect October 15 │ Proprietary & Confidential 11

Eco-efficiency analysis LTT Positive outlook Raw material replacement: Epoxide Epoxide kg CO 2 -eq CO 2 CO 2 / kg polyol Epoxide Starter Utilities and others (process steam, electricity, Conventional polyol CO 2 -based polyol cooling water, catalyst etc.) Savings in fossil raw materials as main lever for carbon footprint reduction October 15 │ Proprietary & Confidential 12

Imagine … resting on CO 2 • With CO 2 , Covestro will produce polyols – a basic component of polyurethanes • First step: A new kind of poly- urethane soft foam based on CO 2 • First end-consumer product: mattresses • New polyols and foams have been intensively tested • Properties are at least as good as those of conventional materials October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 13

Dream Production • CO 2 content of new polyols at roughly 20 percent • Excellent carbon footprint of new technology • CO 2 is chemically integrated and cannot escape • Production of new polyether polycarbonate polyols planned to start from 2016 at the Covestro site in Dormagen, Germany October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 14

Imagine … speeding up CO 2 research � Next step: Extending the range of plastics based on CO 2 � Typical end-consumer products: Sporting goods like ski boots, car interiors � With CO 2 , Covestro is able produce another new kind of polyol � Polyoxymethylene polycarbonate polyols (Dream Polymers) are for thermoplastic poly-urethanes, films, casting elastomers and more October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 15

Dream Polymers A two-pronged approach • CO 2 is used twice: • Directly by incorporating it into the new polyol • Indirectly by transformation into a methanol-based precursor for the new polyol • CO 2 or renewable content of new material already at 40 percent • Positive application tests October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 16

The dream goes on… CO 2 Polyols making their way to market Path ahead October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 17

Commercialization Covestro to start industrial production New production plant • Currently being built at Covestro site Dormagen • Startup Q2/2016 Plant Facts • Production capacity of 5,000 tons / year • Production start planned in 2016 • Permission process started October 15 │ A Dream Comes True | Dr. Kai Laemmerhold 18

Thank you for your attention covestro.com