Challenges and opportunities for chemical Bio-based products FEDIOL - - PowerPoint PPT Presentation

Challenges and opportunities for chemical Bio-based products

FEDIOL 2015 General Assembly Conference

19 June 2015

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This is Cefic

Since its creation in 1972, Cefic has grown to become one of the largest industry trade organizations in Europe and in the world.

• Representing over 95% of the European Chemical Industry
• Representing 29 000 chemical companies in Europe
• 30 National Chemical Federations across Europe
• Over 600 direct Company Members from Europe
• More than 30 Associate Company Members from around the world
• 40 Partner Companies & Associations
• 25 European Affiliated Associations
• Operates 94 Sector Groups focusing on 120+ product families and over 79 Strategy

Implementation and Issue Teams dealing with the industry’s horizontal issues (REACH, International Trade, Energy & Climate Change, Research & Innovation, …)

• About 5000 industry experts from companies and federations participate in the Cefic

groups

Cefic Organogram

Directorate

Product Stewardship/ ICM Industrial Policy Energy & HSE Public Affairs Research & Innovation Legislation & Institutional Affairs Finance & Administra- tion Halogens/ Euro Chlor Petrochemicals Europe Fine, Specialty & Consumer Chemicals Plastics Europe Communi- cations Advocacy Affiliated Associations Sustainability

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EU biomass: Competitive 1st and 2nd generation biomass Imported biomass:

• Carbohydrates
• Bioethanol
• Natural Oils

Access to biomass for the chemical industry

Innovation

Public Private Partnerships for démonstration and flagship projects

Market Development

 EU Industrial Policy  Standards Setting (biosolvents, biosurfactants, biolubricants, biopolymers)  Labels  Public Procurement

The dimensions of the Bioeconomy for the EU Chemical Industry

EU Bioeconomy Strategy

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Chemical industry Fine and specialty chemicals

Chemical Value Chain

Refineries Customer industries

including agroindustry, refineries, mining

Agroindustry

Natural gas production Coal Mining

• Chem. industry

Energy use Inorganics mining Organic base chemicals Inorganic base chemicals

Salt, phosphate, flurospar, lithium, potassium, pre- ciuos metals, and many others

Raw Materials Base

= internal energy use in crackers

Naphtha, condensates, LPG, gasoil Vegetable oils, Animal fats, Cellulose, Sugar, Starch, Bioethanol, Natural Rubber, Glycerol, and others Bioethanol Coal tar Simplified; proportions not to scale!

Value Chain

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The Chemical Industry: key player

Mix of traditional and new applications:

• Carbohydrates used in specialties like enzymes, vitamins, organic acids,

polymers

• Animal fats/vegetable oils used in surfactants/emulsifiers for detergents,

cosmetics, coatings

• Natural extracts for cosmetics and fragrances
• Bio-based plastics, eg. PLA (polylactic acid), starch based or bio

polyethylene, bio PET, polyethylene-terephthalate (PEF, polyester polyethylene-furanoate)

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Renewables hold a 9% share of our carbon- containing Raw Materials

Shares in total organic raw materials – material (feedstock) use only, EU chemical industry, 2011 derivatives 68% 21% 1% 9% Mineral Oil Natural Gas Coal Renewables

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Renewables shares: detailed breakdown

Renewables shares in total renewables, EU chemical industry, 2011

Vegetable waxes, natural resins, tanning agents, proteins, medicinal plants

18% 6% 10% 18% 7% 12% 14% 5% 9% Vegetable Oil Animal Fat Chemical Pulp Starch and Sugar Bioethanol Bioethanol for ETBE Natural Rubber Glycerol Others total: 8.5 mill. tonnes/a

(for ETBE) 8

Why bio-based?

• Awareness for intrinsically sustainable products
• Increased political support
• Europe’s highly sophisticated chemical industry
• Expansion of our raw material base
• Development of new, differentiated & sustainable products
• new or drop-in
• Integration of fermentation into chemical processes

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Source: European bioplastics, http://en.european-bioplastics.org/

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Source: Nova Institute for Ecology and Innovation, http://www.bio-based.eu/

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Innovation: Bioplastics - the case of PEF (100% bio- based replacement for PET)

Pilot plant: On stream in 2012 Name plate capacity: 20-40 Tpy First commercial plant: On stream in 2016 Name plate capacity: 30-50k Tpy Full scale industrial plant: On stream in 2018 - 2019 Name plate capacity: 300-500k Tpy …. and other

• pportunities in

advanced materials 12

Bioethanol is the key building block for bio- ethylene CH3-CH2-OH  CH2=CH2

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Access to Biomass - Is there enough of it?

Example – Dutch Sugar beet to ethylene in the Netherlands

• To make 2 MM MT/yr of ethylene, 600.000 ha of sugar beets are needed , equivalent to

15% the surface area of the Netherlands Conclusion: Theoretically, there is enough biomass globally, however we need to include citeria like regional and local food and feed demand, ILUC, biofuels demand and cost 14

Challenges

• Free and fair access to (renewable) raw materials
• Competition for resources

(food vs energy vs materials);

• Discrimination fossil vs ‘green’ feedstock;
• Discrimination vs 3rd countries having (free) RM

access, Brazil, US;

• Discrimination between agricultural products for

chemical use (palm oil vs bio ethanol);

• Tariff anomaly (duties on RMs vs finished goods)
• Stable, coherent and predictable policy framework
• Innovation

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Bio-economy and the way forward

• Cefic Board concluded that bio-economy is a priority for our industry.
• Cefic rejects “subsidy supporting schemes”, binding targets and other

market distorting policies and we advocate for creating/keeping a level playing field. request for tariff suspension for limited chemical uses

• As regards Market Development, we make no distinction between fossil

based and renewables, as both are resources for our sector.

• Cefic Bio economy Task Force Team: Under auspices of Cefic Industrial

Policy, aligning positions with Sector Groups and external players like EuropaBio.

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Win-Win situation chemical and rural sector

Development of bio-based production is creating a great opportunity for both the European chemical industry as well as for the rural sector, promoting the much desired investment and job creation. Common denominators for both chemical and rural sector are:

• Promoting bio-based economy will allow to develop new markets to which the

agricultural sector can feed into, but most importantly, help boosting economic growth;

• The EU is (relatively) not well positioned with regards to resources and

developing bio-based economy will help extending our feedstock range;

• Developing bio-based economy will help meet the (growing) consumer

demand for bio, that is predominantly concentrated in the EU (automotive, construction, cosmetics, packaging materials). This requires a holistic policy approach across the Commission DGs that removes discrimination and market distorting practices and stimulates

• innovation. Key success factor is collaboration throughout the entire value

chain, from agriculture to bio chemicals.

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Nutrition Chemicals & Materials Energy Nutrition Paper, fibers etc.

Value chain: Agro meets Chemicals