Europa. Special Board Meeting March 20, Life-Changing Research and Innovation. Keith Pauley x81

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1 Special Board Meeting March 20, 2009 Life-Changing Research and Innovation Keith Pauley x81 Chemical and Environmental Technologies Health and Life Sciences Advanced Engineering Systems

2 About MATRIC US-based contract research and development corporation formed in 2004 Research staff of 85 and engineering staff of 65 (total of 150 technical staff) 33 PhD-level researchers 19 professional engineers 25+ average years of technical experience 2 members of US National Academy of Engineering MATRIC performs high value-added, fastpaced, market-driven research, development and engineering MATRIC focuses on developing intellectual property in the form of new processes and products MATRIC was formed from the downsizing of over 2000 research scientists and engineers located at the Dow Chemical Technology Park, WV from MATRIC 2

3 MATRIC s United States Headquarters Dow Chemical Technology Park Facility opened in ,000 patents; worth US$18B 681 acres Over 800,000 sf of research and engineering buildings MATRIC facilities 32 chemistry and life science laboratories 16 pre-manufacturing pilot plants MATRIC Engineering Building MATRIC Pilot Plants MATRIC Laboratory Building MATRIC 3

4 MATRIC Enterprise Non Profit R&D Corporation European offering of the MATRIC Enterprise For Profit Commercial R&D Corporation Holding Company to Commercialize IP Technical Consulting Firm Full Service Professional Engineering Firm 4

5 MATRIC/MCR Business Areas Chemical and Environmental Technologies Business Area Health and Life Sciences Business Area Advanced Engineering Systems Business Area MATRIC 5

6 Chemical and Environmental Technologies Business Area Biomass Fuels and Products Biodiesel development Corn ethanol development Cellulosic ethanol development Biomass gasification Biomass digestion Bio-polymers Fossil Fuels and Products Coal to Liquids Coal Gasification Integrated Gasification Combined Cycle Coal to Chemicals Oxyfuel Combustion Greenhouse gas emissions control Coal rail car de-icer Environmental Technologies Carbon dioxide capture Water purification Natural gas purification (nitrogen, carbon dioxide, sulfides) Selenium and metals removal Nuclear remediation MATRIC 6

7 Health and Life Sciences Agricultural Sciences Genomic research on crop species (cotton, tomatoes, peppers) Species selection and testing for land remediation Biofuels species selection (oil, ethanol) Medical Device Development Devices and systems that enhance patient treatment and healthcare capabilities (both diagnostic and therapeutic) Cellular and Immunological Research Stem cell, T-cell and aptemar studies for cancer, diabetes, and Sjorner s disease Pharmaceutical Support Analytical and clinical trials support Statistical process enhancement MATRIC 7

8 Advanced Engineering Systems Critical Control System Software Development Spacecraft, defense and industrial real-time systems NASA Constellation Program Lunar Lander ARES I Upper Stage New Space Suit Software Assurance Independent Verification and Validation of NASA mission software Robotic Systems Robotics Technology Development Flight Systems MATRIC 8

9 MATE Capabilities and Skills Detailed Engineering Process engineering Control system engineering Electrical system engineering Mechanical engineering Civil engineering Drafting Procurement Major equipment Minor equipment Bulk material Construction Management Construction oversight Process Representation Operations Training and Start-up OSHA training Process operations training Plant process start-up support Project Management MATE 9

10 Overall Research and Engineering Enterprise 10

11 Utilize the entire MATRIC Enterprise to produce value for European manufacturers and governments Focus on Energy and Environment Alternative energy and energy efficiency Green chemistry and REACH compliance (solvent substitution, biodegradable materials, biomass products) Process intensification (micro-reactors) Partnerships with API (Italian manufacturers association) and other European trade associations MATRIC 11

12 MATRIC S REACH OFFERING It deals with the Registration, Evaluation, Authorization and Restriction of Chemical substances. The new law entered into force on 1 June REACH has been developed in a climate of transparency and consultation. MATRIC 12

13 REACH Most significant body of chemical regulation to be enacted in more than 20 years. Estimated to involve 30,000 chemicals and many of the products that contain them. Chemical industries are one of the largest manufacturing industries in the European Union (EU) directly employing 1.9 million people. In 2004, the European chemicals sales amounted to $800 billion. (Those of the U.S. totaled $566 billion.) Chemical exposures are a major cause for concern for many Europeans, particularly those from Scandinavian countries. MATRIC 13

14 Existing European Chemical Regulation Patchwork system involving 60 laws Primary law (EC 793/93) was enacted in 1981 and created a two tier system. For 100,000 existing chemicals, no testing was required For new chemicals ( >10 kg), substantial testing is required. Broadly perceived by Europeans as having serious weaknesses.

15 REACH Legislation Introduces legislation and mandatory data requirements for new and estimated 30,000 existing chemicals Transfers responsibility for risk assessment from government to the manufacturers and importers Introduces authorization and restriction procedures for the most hazardous chemicals Provides greater transparency and public access to information Establishes a new European Chemicals Agency

16 Underlying REACH Policy: The Precautionary Principle 1. When human activity raises threat of harm 2. to human health or environment 3. precautionary measures should be taken, 4. even if some cause and effect relationships are not fully understood. Shift burden to industry to prove safe

17 REACH Implementation Dec. 2006: REACH was passed by both the European Parliament and the European Council June 2007: REACH entered into force June 2008: European Chemicals Agency became operational. It is located in Helsinki, Finland and is anticipated to eventually have a staff of 450. June Nov. 2008: Pre-registration of existing substances. Nov. 2010: Registration deadline for 1000 ton substances as well as carcinogens, mutagens, and reproductive toxicants produced at > 1 ton, and agents very toxic to aquatic organisms produced at > 100 tons. June 2013: Registration deadline for substances produced in 100 tons and substances toxic to the aquatic environment. June 2018: Registration deadline for substances produced in quantities of 1 ton.

18 REACH Registration Pre-Registration For substances produced in quantities 1 ton per year, basic information on the chemical, contact information, the anticipated production volume and registration deadline is to be provided to the new European Chemicals Agency (ECA). Registration For substances produced in quantities 1 ton per year, a registration dossier is to be provided to the ECA. Based largely on volume, specific information about physicochemical, toxicological and ecotoxicological properties must be included. Individual downstream uses throughout the supply chain as well as the associated risk and safety measures must be provided. For chemicals 10 tons, a Chemical Safety Report must also be provided.

19 REACH Evaluation and Authorization Evaluation Member states can check compliance and examine testing proposals. Member states may also examine dossiers to evaluate whether a substance presents a risk to humans or the environment. Authorization Required for substances considered to be CMR (carcinogenic, mutagenic or reproductive toxicants), PBT s (persistent, bioaccumulative and toxic), and vpvbs (very persistent and very bioaccumulative). Authorization granted if the manufacturer or importer is able to demonstrate that the risks can be adequately controlled. If not controllable, the chemical must be shown to have compelling socioeconomic benefits without suitable alternatives. A research plan is also to be submitted.

20 Authorization/Substitution Authorize after showing of adequate controls Where adequate control not possible, authorize only if: no safer alternative exists; and socio-economic benefits outweigh risks MATRIC focuses its efforts on working with manufacturers to assess and implement alternative chemicals within processes

21 REACH Restriction Restriction If a risk is identified as inadequately controlled, a proposal to restrict the use and marketing of a substance can be made by the Commission or a Member State. The final decision on authorization will be taken by the Commission, in consultation with the Member States.

22 REACH Impacts Estimated to involve 30,000 chemicals and most articles manufactured in Europe or imported into the EU. Direct costs: Best estimates range from ~USD 3.5 to 6.3 billion (<0.1% of sales; some estimates are projected to $50+ billion). Benefits: Hypothesized to prevent 4500 cancer cases per year with possible overall health savings of up to $50 billion over 30 years.

23 MATRIC s REACH Program Goal is ensure full compliance with REACH by manufacturers through the substitution of chemicals in processes Focus on redesign of manufacturing equipment to utilize authorized chemicals and minimize new capital investment Partnership with Italian manufacturers association (API) 60,000 members MATRIC is located in the Milan area and leverages both European and US chemical engineers MATRIC 23