Waste to Chemicals. London, May 2016

Transcription

1 Waste to Chemicals London, May 2016

2 AkzoNobel today Revenue 14.9 billion in ,600 employees Major producer of Paints, Coatings and Specialty Chemicals 44% revenue from high growth markets Leadership positions in many markets Sector Leader 2012/2013/2014 Revenue by Business Area Operating income by Business Area Invested Capital by Business Area 33% 40% 35% 45% 40% 29% Performanc e Coatings Decorative Paints Specialty Chemicals 27% 20% 31% 10.6% Return on sales (operating income/revenue) 15.0% Return on investment (Operating income/average 12 months invested capital)

3 Our bio-based strategy has been in place for almost 4 years updated in 2015 Strategy and Guiding Principles A proactive effort to lead the deployment of selected, relevant bio-based chemicals in our core markets and applications 1. Leverage market innovation to focus on development of channel and applications for bio-based chemicals rather than the in-house development of bio-based raw materials and technologies. 2. (a) Focus on cost competitive, high impact areas across BA s and (b) Provide tailored support to novel bio-based programs in BU s/smu s, to deliver economical materials contributing to sustainability targets 3. Work across the supply chain to integrate bio-based raw materials; Joint development or other partnerships are possible where these enhance our business 4. Carefully consider sustainability implications to ensure feedstocks are sustainably sourced and managed A strong platform: 13% bio-based in our organic spend, and 8 partnerships.

4 based on our experience and work to date we can start to see a path to over time to green significant parts of our supply chain Feedstock Base chemicals Major organic raw materials Major intermediates Monomers Key raw materials OILS & FATS Tallow & Fatty acids natural oils Surfactants NATURAL GAS >300 Methanol (C1) >300 Ethylene (C2) Ammonia Formaldehyde Acetic acid Ethylene oxide MMA Butyl acrylate Styrene Alkyds Pure acrylics Vinyl acrylics Styrene acrylics OIL ~300 Propylene (C3) Acetone Acrylic Acid VAM (Vinyl Acetate) Vinyl Acetate Ethylene (VAE) >300 Materials in scope Aromatics (C6+) n-butanol Phenol Benzene Bisphenol A ECH (Epichlorohydrin) NPG (Neopentyl glycol) Epoxies Polyesters # Volume in kt (incl derivatives) Xylenes PTA/IPA/PA (Terephthalic acid) Solvents

5 * Significant investments are taking place predominantly in the Americas Investments Geographical spread $M No. Investments EMEA 12% Asia Pacific 1% Millions USD Number of investments Lux report - Dynamics of Venture Capital Funding in the Bio-based Chemicals Industry. * 2014 figure based on extrapolation 87% Americas Despite the downturn investments in bio-based chemicals were close to $3B over last 3 years and predominantly in the Americas.

6 This investment is driving a sustained growth in manufacturing capacity Growth in bio-based Material and Chemical Facilities from World capacity in 2017 of 7 primary petrochemicals expected to grow to ~685,000 kilotons (bio-based ~2%) World capacity in 2010 of 7 primary petrochemicals is 478,000 kilotons (bio-based < 1%) Source: Lux Research (2014); IHS (2011; 2013) Note: capacity includes both chemical intermediates and final products.

7 $/barrel But it is difficult. The cost competitiveness of bio-based chemicals has been threatened recently by the significant drop in the oil price Oil price predictions and history $/barrel 200 High (EIA) 150 Oxford economics handbook Mid (EIA) 100 Current price compared with OEH and EIA reference scenarios 50 Low (EIA)

8 One idea which has come up in our work is around realizing the circular economy Basic chemicals Resource Products Recycling carbon as a technical nutrient

9 Enerkem has developed a novel technology Feedstock preparation Gasification Cleaning and conditioning process Catalytic synthesis and product purification Sorting, shredding, drying (if required) and feeding Conversion of carbonrich residues into synthetic gas Heat recovery Primary syngas purification Chemical-grade, ultra clean syngas Conversion of chemical-grade syngas into final renewable products Oxygen Sorted MSW, residual biomass and other feedstocks Bubbling fluidized bed gasifier Primary syngas (CO, H 2 ) Scrubbing towers Catalytic conversions Product purification Base chemicals Biofuels Solids/inerts for aggregates and construction materials Water treatment Separation of residues Water e.g. methanol & ethanol Source: Enerkem

10 Waste-der. Incumb. which, compared to natural gas-based methanol, could possibly save 1.5 tonne CO 2 / ton product Carbon footprint comparison Tonne CO 2 eq. / tonne methanol Natural gas based Cradle-to-Gate End of Life High carbon utility supplies Low carbon utility supplies Comments Natural gas-based footprint based on industry average Source of utilities (e.g. renewable or fossil power for plant and air separation, heating, others) has large impact on waste-derived methanol footprint End of life carbon typically allocated to original product lifecycle, not to waste-derived product(s) - Avoided GHG emissions from landfilling waste (CH 4 ) could be deducted - Fossil carbon content in waste (~50%) could for 50% be allocated to end of life waste-derived product(s), adding 0.3 t/t Source: AkzoNobel analysis 10

11 and waste is a feedstock with many benefits No competition with food chain or land use No equivalent of food versus fuel concerns Widely available and Collection & Collation system already in place Avoids need to source and ship biomass A strategic feedstock Waste is owned by cities and provinces who can direct it to benefit their citizens Attracts a gate fee You get paid to resolve Upgrading fits with (supra)national strategies to move to circular economy "Vuilnis bij Essent Milieu". Licensed under CC BY 1.0 via Wikimedia Commons -

12 But how to build a value-chain that does not yet exist? Waste Biobased methanol (Biobased / Circular) Methanol Enerkem technology Production of secondary chemicals Everyday materials

13 We have had to bring together a unique consortium Waste management Advanced thermochemical technology Public Sector - Crucial support Chemical players - Converting methanol into high-value chemicals

14 In Summary Projected key figures, per plant Challenges & opportunities Capital investment Methanol output Waste input Direct jobs Indirect jobs CO 2 reduction 180 million 90 ktpa 200 ktpa 50 jobs 200 jobs 135 ktpa How do we duplicate this in the UK? Historically low fossil fuel prices, existing technology very competitive Financing between equals needs building the win-win for all involved, matching different roles and contributions with the right governance True partnership, between private parties and with public parties, is key