Chemicals 4.0: The next evolutionary step of the chemical industry

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1 Chemicals 4.0: The next evlutinary step f the chemical industry Understanding and cperating with custmers becme very imprtant t be sustainably cmpetitive. Bart Vander Velpen

2 Principles f «Chemicals 4.0» Framewrk fr re-thinking future business and ecnmic grwth Fcus n availability, access and price vlatility f strategic resurces, materials and energy. TaBaChem is a cntributing element t a sustainable ecnmy Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

3 Take Back Chemicals : A general descriptin ChL / TaBaChem Mdel Bundled mtivatin Traditinal Business Mdel Cntradictry mtivatin supplier Delivery f gds and service / knw-hw user supplier Delivery f gds user Benefit riented pricing Vlume based pricing less is mre less is mre the mre the better less is mre Selling f service functin f chemical is payment base functinal unit Nt /kg prduct, but /result Vlume n lnger driver but cst Clse cperatin between partners Share respnsibility knw hw benefits TaBaChem = ChL + clsed lp / re-use f chemicals Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

4 Example 1 : backward business innvatin recvery f sulfuric acid H2SO4 Supplier Waste treatment Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

5 Example 1 : backward business innvatin recvery f sulfuric acid H2SO4 Supplier Waste treatment Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

6 Case : Case Envirnmental WINs 90 % 20 % 20 % Material Water Energy Ecnmical Unit f payment: per tnne dried chlrine Feasible Expected Pay Back perid : < 3 years Up-scaling pprtunities fr H2SO4 supplier Legal Clsed life cycle and avidance f waste phase n waste legislatin, but prduct legislatin H2SO4 supplier retains wnership f H2SO4 Prgram Circular Ecnmy 18/01/ Bart Vander Velpen 25/01/2017 pagina 06 I

7 Example 2 Starting Pint : Use f TCE (SVHC) New Situatin: Use f substitute TCE prducer Wax Prducer Prducer wax Trader Wax + Slvent Used wax + Slvent Untreated textile Wax TCE Wax designed textile Untreaded textile Wax designed textile Used wax, Used TCE 7 Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

8 Case Wax Prducer Wax + Slvent Used wax + Slvent Envirnmental Ecnmical Legal Used wax stream recvered in cleaning unit and in batches Feasibility will be further defined in the cming 5 years Investment > 25 millin at the textile prducer & > 2 millin at the wax prducer. Partnership Textile Prducer will retain wnership f the wax used wax has waste label QA-QC / Cntract / Reuse /. wax btains end-f-waste label when taken back at Textile Prducer Untreade d textile Wax designed textile Material Water Energy - 100% SVHC +40 % +20 % Textile Prducer has a service cntract with wax prducer fr recvering waste stream. 8 Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

9 Lessns learned Ptential Hurdles / Challenges Innvatin Issues Sales + Purchasing: Changing perceptin during sales and purchasing f prducts Technical Issues: Quality requirements f acquired side streams Vlume changes f acquired prducts Legislatin Issues: Transitin frm waste t material (incl. cnsequences fr applied legislatin) Waste Plicies in Eurpe Careful evaluatin f REACH dssier(s) Change f management behavir: All parties interested in lng term relatin (> 5 year depending n investment requirements) Innvative thinking by tp management f parties User and Prducer/Seller willing t share knwledge and t use f mutual expertise Innvatin ptential n prcess level: Service linked t chemicals is crucial but nt cre fr cstumer Recvering/regenerate side streams New financial engineering mechanism: Adapting financial engineering fr traded prducts Lgistics: Physical distance between Prducer & User feasible frm a cst & eclgical pint f view Prduct-Service Cntract: Cntractual agreements (frm sales t sales-lease cntracts), withut transfer f wnership f prducts 25/01/2017 pagina 09 I Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

10 D yu have a ptential demnstratin case at yur site? Are yu interested in participating in a prgram demnstrating the feasibility f this new business mdel Take Back Chemicals? If interested, please cntact: Bart Vander Velpen: Bart.van.der.velpen@RHDHV.cm Mnique de Mel: MPM.Mel@prtfrtterdam.cm Prgram Circular Ecnmy 18/01/ Bart Vander Velpen

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