Sustainability indicators in the chemical industry: towards the circular economy
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- Adele Lawrence
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1 Sustainability indicators in the chemical industry: towards the circular economy Maija Pohjakallio, August, 2017 Chemical Industry Federation of
2 Chemical Industry Federation of Finland - over 400 member companies
3 Chemical industry is among the leading export sectors in Finland Yearly, EUR Billion 18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 Forest Chemicals Electronics Basic Metals Machinery Others Vechiles Source: Board of Customs
4 Chemical industry contributes to producing solutions to global needs
5 By 2030 people on Earth need 50 % more food 45 % more energy 30 % more water
6 Circular Economy Chemistry enables circular economy
7 Development of the Circular Economy Decoupling economic growth from the growth of raw material use Sustainable raw materials & technologies Industrial symbiosis & partnerships New business models Systemic change of the society New ways to Produce & New ways to Consume Regenerate Share Optimise Loop Virtualise Exchange & Replace (Ellen MacArthur Foundation)
8 Co-operation is in the core of Circular Economy Electricity & Heat Feed, Fertilizers, Nutrients Energy to traffic Chemicals politicians governance at EU,states & companies communes investors Raw materials waste management farmers,forest Consumers media schools R&D: universities, institutes owners associations Materials Food Technologies Medicines
9 The importance of value networks: case Lumene FOOD IN- DUSTRY seeds foodproducts EXTRAC- TION extracts skin care COSME- TICS PRODUC- TION PICKING OF BERRIES
10 The importance of value networks: case St1 Biofuels & NEOT: distributed bioethanol production Brewery Bakery W A St1 Etanolix St1 Etanolix S T E Saw mills St1 Cellunolix Enzymeproduction Concentration BIO- ETHANOL Nutrients, electricity etc.
11 The importance of value networks: case Neste 2016 our customers were able to reduce their greenhouse gas emissions by a total of 6.7 million tons thanks to renewable fuels. It is equivalent to the annual emissions of around 2.4 million cars.
12 Lufthansa has tested Neste Renewable Jet Fuel on a total of 1,187 flights Ikea and Neste partner on production of renewably-sourced polymers
13 Responsible Care
14 Responsible Care Chemical industry s international voluntary sustainability program Carried out in total in more than sixty countries around the world In Finland since 1992 # covers presently 80% of production, 60% of personnel, approx. 100 companies The chemical sector in each country has its specific implementation of the program. In Finland the central themes of the program include # Sustainable use of natural resources # Sustainability and safety of production and products # Well-being of the work community # Open interaction and co-operation
15 Responsible Care in Finland The results of the RC work are monitored through indicator data collected annually from the committed companies: in total 50 indicators Sector s results analyzed and published annually by the Chemical Industry Federation of Finland Further information: merja.vuori@kemianteollisuus.fi alexandra.peth@kemianteollisuus.fi
16 RC results Finland 2016 Safety Well-being at work Co-operation Communications use of secondary material & energy streams types of feedstock resource efficiency environmental impacts *) Propotional to the production volume
17 RC results Finland 2016: Types of feedstock + use of secondary material & energy streams
18 RC results Finland 2016: Types of feedstock + use of secondary material & energy streams Big variation among companies, figures below represent averages Material flow in the production kg/kg of products: 11 % of raw material input is renewable 3 % of raw material input is recycled 20 kg by-products & waste *) produced per 1000 kg of products. 75 % of these secondary streams were further utilized as materials or energy *) waste water excluded
19 Industry-relevant ecoefficiency *) indicator framework: Gaia Refiner *) the importance of using fewer resources and causing less environmental burden per unit of produced goods and services (Schmidheiny 1992) For details, please view Rönnlund,, I., Reuter, M., Horn, S., Aho, J., Aho, M., Päällysaho, M., Ylimäki, M., Pursula, T., Eco-efficiency indicator framework implemented in the metallurgical industry: part 1 -a comprehensive view and benchmark, International Journal of Life Cycle Assessment, 10, vol 21, (2016)
20 Gaia Refiner: Industry-relevant ecoefficiency indicator framework Indicator framework developed to give a comprehensive picture of eco-efficiency, to provide methods that enable relevant comparisons and tools for communicating the results No weighting is applied, instead industry refence data is used (data sources & criteria for the benchmark *) are gathered from literature, publicly available databases, simulation and commercial LCA software) the indicator set reveals what is techno-economically achievable The results are visualized as a sustainability flower consisting of ten indicator groups with 1-5 indicators each *) as benchmarking reflects the current status of technology development and production methods, it requires constant updating
21 Gaia Refiner: Industry-relevant ecoefficiency indicator framework Based on seven eco-efficiency guidelines introduced by DeSimone & Popof in 1997: #reduce the material intensity of goods & services #reduce the energy intensity of goods & services #reduce toxic dispersion # enchance material recyclability # maximize sustainable use of renewable resources # extend product durability # increase the service intensity of products
22 Gaia Refiner: Industry-relevant ecoefficiency indicator framework The general system boundaries for the indicators encompasses production phases from extraction of raw material to product s end life #raw material sourcing # raw material pretreatment # processing and refining # product design # use phase # product s end of life
23 Gaia Refiner: the ten indicator groups Initially developed for metallurgical industry: resource depletion & resource efficiency are key issues Water intensity Water scarity Results of the bencmarking are displayed with colours Not evaluated Out of scope
24 Gaia Biorefiner: indicator set for biobased industry Source: Gaia Consulting
25 Gaia Refiner: indicator groups 1. Climate change 1a) GHG emissions from production 1b) GHG emissions from transport 2. Water 2a) Water intensity 2b) Water Scarity 3. Energy 3a) Energy intensity of processing 3b) Share of renewables and recovered energy 4. Land use 4a) Land use intensity 4b) Land use synergies through ecosystem services 4c) Land use impact and risk mitigation of mines 4d) Lans use impact and risk mitigation of tailing ponds
26 Gaia Refiner: indicator groups 5. Chemical risks 5a) Chemical intensity 5b) Environmentally hazardous chemical use 5c) Health hazardous chemical use 5d) Safety hazardous chemical use 6. Resource depletion 6a) Fossil intensity 6b) Mineral availability 6c) Mineral substitutability 7. Material efficiency 7a) Raw material suitability and utilization 7b) Main metal utilization efficiency 7c) Waste prevention 7d) Residue utilization and repurposing 7e) Secondary raw material/ total raw material
27 Gaia Refiner: indicator groups 8. Unrecovered materials 8a) Unrecovered aqueous 8b) Unrecovered gaseous 8c) Unrecovered solids 8d) Fugitive emissions 9. Impacts from emissions 9a) Eutrophication potential 9b) Acidification potential 10. End use and end of life 10a) Functionality 10b) Risks related to product 10c) Design for recycling (DfR)
28 Sustainability indicators and tools for development for industrial symbioses: case Kilpilahti
29 The largest oil refinery and petrochemical cluster in the Nordic countries In Porvoo area, about 40 km from Helsinki
30 Kilpilahti Pobi project Aim: map growth opportunities through synergies, e.g. by evaluating common material, waste and energy balances of the industrial park *) and by creating a common vision for the area Actors: 19 industrial companies in the area, development company Posintra (funding from European Regional Development Fund), City of Porvoo, Gaia Consulting Oy, Neste Jacobs Oy *) the material and energy balances are based on a novel methodology developed in co-operation by the Ministry of economic affairs and employment of Finland and Gaia Consulting. Kilpilahti was the first industrial park in which the methodology was piloted.
31 Sankey diagram of the energy balance of the the Kilpilahti area Input to power plant 4 TWh Output from the companies 10 TWh **Return flow to power plant Steam produced Kilpilahti power plant Fuels (natural gas) Other companies in Kilpilahti Waste heat to sea water Electrical grid Internal energy production and heat release from prosesses * Waste heat to sea water 8TWh/v ** Estimate based on available data Translated from Ervasti, O., et al., Progress report (in Finnish) Kilpilahden kiertotalouden materiaali- ja energiatase, Posintra (2017)
32 Kilpilahti Pobi project Three main areas of development were indentified # refining of bio-fractions # exploitation of waste heat # reinforcement of the synergies of different actors Follow-up indicators 1. Exploitation of biowaste fractions 2. Utilization of waste heat 3. Further use of waste in material and energy applications 4. Activity of the actors in co-operative development of the area Source: Ervasti, O., et al., Progress report (in Finnish) Kilpilahden kiertotalouden materiaali- ja energiatase, Posintra (2017)
33 Summary
34 Chemical companies are key players in the development of a more circular economy i) Material & energy efficiency ii) Minimization of emissions iii) Safety, wellbeing at work iv) Increase of the share of renewable and secondary raw materials v) New business models, partnerships & networks Green Economy Circular Economy Bio-economy vi) Sustainable development in the core of the business strategy
35 Thank You!
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