Environmental friendly vehicle design throughout the life cycle
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1 Environmental friendly vehicle design throughout the life cycle 6. Ökobilanz Werkstatt, Darmstadt Dr. Stephan Krinke Head of Environmental Affairs Product
2 Agenda Environmental aspects of vehicles Life cycle assessment: Internal and external applications Life cycle assessment: Success factors for application in industry Examples for application Resource risk assessment Conclusion Page 2
3 Environmental aspects of vehicles Manufacturing Consumption and emissions Environmental impacts of fuel extraction and production Maintenance Recycling The assessment of a product has to cover all aspects of the life cycle! Page 3
4 Life cycle assessment The life cycle assessment is a method to evaluate all potential environmental impacts throughout a product lifecycle. Page 4
5 Life cycle assessment Method Analysis of the environmental performance over the entire lifecycle. Assessment of all relevant environmental impacts to soil, water and air. Raw materials Emissions Waste Assignment and assessment of environmental impacts Page 5
6 Life cycle assessment Internal application in companies Results are based on data and facts and will be a used to support the decision process. 100% A B Assessment of the complete value chain including suppliers. Investigation and assessment of all potential environmental aspects. The environmental impacts of different technologies can be compared and assessed prior to the decision process and market introduction. Greenhouse gas emission 80% 60% 40% 20% 0% 1 C D E F Page 6
7 Life cycle assessment Application for external communication International recognized method for environmental assessment (ISO 14040). Firm basis for the environmental dialogue with stakeholders. Increasing relevance in politics and legislation. Part of company ratings. Page 7
8 extern Environmental challenges for the future Climate Change Health & Local Air quality Resources Page 8
9 Environmental Strategy Volkswagen Group Individual ecological mobility Group Management Group Environmental Strategy Committee Environmental Policy Environmental Standards Product Environmental Standards Production Preamble Climate Resources Health - Emissions - Consumption - - Alternative fuels - Recycling - - Pollutants -Noises - Infrastructure - Energy -Water -Waste - Production processes - Press shop - Paint shop - Foundry - Guidelines Regional Environmental Conferences / Environmental-Audits ISO / EMAS Page 9
10 extern Environmental Affairs Product Environmental Affairs Product K-EFUP (Mr. Dr. Krinke) Environmental Analysis Product Environmental Control Product Material Controlling and Data Systems Life Cycle Assessment Environmental commendations Analysis of raw materials Strategic environmental topics Supervision of vehicle projects Environmental product management Sustainability assessments Environmental product information Global material legislations Material prohibitions REACh Material data acquisition Page 10
11 Success factors for the application in industry Integration in internal processes Reasonable time and resource demand Reliable and stable recommendations Page 11
12 Life Cycle Thinking as Core Principle for the Product Development In future, we will develop each model in such a way that, in its entirety, it presents better environmental properties than its predecessor. As we do so, we will make sure that improvements are attained over the entire product life cycle. Page 12
13 Integration of LCA in the Product Development Research & Development Market Launch Life-Cycle Assessment Environmental Commendation Costs for changes in product design Definition of product characteristics Possibility of intervention Time Page 13
14 extern Environmentally compatible product development Volkswagen brand Product development over time Development stages and tasks Research Advance engineering Vehicle targets Characteristics catalog Performance specifications Product description book Model update Environmental Analysis LCAs and strategic environmental topics Raw material analysis Follow-up Environmental commendations Environmental Control Material controlling Environment and innovation roadmaps Global material legislations Supervision of vehicle projects Screening of environmental related laws and activities of competitors Environmental targets, performance specifications and standards Material controlling Material data acquisition (MISS/IMDS) Product communication Environmental product descriptions Legends Tasks Instruments Page 14
15 Time and resource demand for LCA of cars Starting position in 2000 Page 15
16 Time and resource demand for LCA of cars Starting position in 2000 expert knowledge Page 16
17 Time and resource demand for LCA of cars Situation today Page 17
18 Life Cycle Assessment Quality check LCA result LCA result Results unstable if varied minor Results stable if varied major modelled system modelled system Study without sufficient sensitivity analysis Study with sufficient sensitivity analysis Page 18
19 Life Cycle Assessment Quality check To derive reliable recommendations the following items have to be checked Which factors are dominating the environmental profile? Which measures can be derived? Is the direction of recommendation the same while varying different parameters? Yes: Congratulation! No: How can you assure that the dominating parameters will be achieved in reality? Which stakeholders are responsible for the realisation of the measures? Page 19
20 Applications of Life Cycle Assessment Product development Communication & Customer information Page 20
21 Application in the product development Lightweight design Is lightweight design always a good measure for the environment? Page 21
22 Increasing greenhouse gas emissions Comparison of the greenhouse gas emission of materials Production (cradle-to-gate) Increasing lightweight potential Materials are not comparable directly, because of different applications and functionalities just production will be analysed Steel Aluminium Magnesium Carbon fibre Greenhouse gas emissions [kg CO 2e / kg material] Page 22
23 Lightweight design throughout the lifecycle Production Running distance [in km] Recycling GHG emissions [Kg CO 2 -eq.] Break-even super lightweight design intelligent lightweight design conventional Intelligent lightweight design leads to less emissions during the lifecycle Page 23
24 Environmentally friendly lightweight design Life Cycle Phase and Main Actors Production (Supply Chain, OEM) Use Phase (OEM, Customer) End-of-Life (Recycling Industry) Aspects Energy demand Energy mix Secondary materials Process specific aspects Realized fuel reduction by lightweight design Weight induced effect Secondary measures (e.g.engine downsizing) Recovery of materials High quality recycling Measures Reduction of energy demand CO 2 reduced energy mix Enhanced usage of secondary materials Optimized protecting agents Lightweight measures have to be assessed always in the context of the realized fuel reduction Collection systems Separation technology Enhanced quality of secondary materials Page 24
25 Life cycle assessment as an environmental management tool Lightweight design LCA is able to derive measurable technical targets for environmentally friendly light weight design, like e.g. What weight reduction has to be realized in comparison to a reference car to achieve the ecological break even point during the use phase? How much CO 2 can be saved during the production e.g. with closed-loop recycling? How much CO 2 can be saved by lightweight secondary measures? Which amount of CO 2 can saved with increased use of secondary materials? Page 25
26 Communication and customer information Environmental commendations of the brand Volkswagen Page 26
27 Environmental commendation for the brand Volkswagen Concept Profile of the environmental performance over the entire life cycle Point out the improvements in comparison to the predecessor Specific technological highlights related to the environment Requirements of the target groups Reliable: Certification according to ISO 14040/44. Clear and understandable message: Environmental commendation Comprehensive and transparent: Background report Page 27
28 Environmental Commendation Polo Highlights for our customers Page 28
29 Environmental Commendation Polo Results of the life cycle analysis Page 29
30 Environmental Commendation Polo Comparison with the predecessor Page 30
31 Environmental commendation Executive summary Page 31
32 Environmental commendation Communication Environmental commendation as print media (english/german) Dealernet in Germany/Europe Fleet customers / Importers Hotline: Online Platform (English/German) and Page 32
33 Conclusions for life-cycle assessment Environmental friendly product development over the entire life cycle has to be integral part of the company environmental policy. must be applied in the early phase of the product development. supplies information for a technology comparison to support the decision-making process. considers beyond climate change other environmental impacts to air, water and soil. Life cycle assessment as an environmental management tool is able to derive measurable targets for the product development. can derive reliable and stable recommendations. is a useful basis for communication and customer information. Page 33
34 Resource risk assessment of metals Page 34
35 Motivation up- and downturns of resource prices 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Relative Price Trends since 2000 Al Cu Ni Co Li Costs of Resources for Li- Ion-Battery* [US$/kWh] Li Co Ni Cu Al HJ Q 2008 Okt H 2008 Okt 08 * NCA-Cathode Page 35
36 Impact of New Technology on Resource Demand Demand of 6 Mio Electric Vehicles* relative to World Production of 2008 [%] Portion of World Production 2008 [%] Lithium Nickel Cobalt Aluminium Manganese Copper Neodymium demand battery cells 100% equals world production of respective resource in magnets for e- machines battery, e-machine, periphery Page 36 *22 kwh-battery
37 Goals Method for detailed and long-term risk assessment of resources particulary saving new technologies like Light weight construction E-mobility Page 37
38 Indicator system for resource risk assessment Goal: Identifying price and supply risks Supply and Demand Cash Costs Geostrategic Risks Market power Supply and demand trends Market supply Stocks Geographic distribution / Countryspecific risks Company concentration (oligopoly) Exploration Invest Utilization ratio of refinery / mines Market supply scenarios 35 % * Federal Institute for Geosciences and Natural Resources Page 38
39 Case study: resource risk assessment of E-mobility Indicator Lithium Cobalt Neodymium 1. Supply and demand current status Cash costs Geostrategic risks 5 5,5 *1 4,5 4. Market power Supply and demand trends 4 *2 3 5 Assessment scale uncritical moderate alarming Page 39
40 Lithium production from brines Market shares of lithium producers SQM (Chile) SQM Chemetall Chemetall (Chile) Chemetall Chemetall Foote (USA) Foote 3 Produzenten China (China) 6 % FMC FMC (Argentinien) Quelle: Roskill 2009 Only 3 companies produce almost 90 % of all Lithium-Carbonate Page 40
41 Case study: resource risk assessment of E-mobility Indicator Lithium Cobalt Neodymium 1. Supply and demand current status Cash costs Geostrategic risks 5 5,5 *1 4,5 4. Market power Supply and demand trends 4 *2 3 5 Assessment scale uncritical moderate alarming Page 41
42 Geostratecic risk for neodymium Neodym is part of the Rare Earth Elements (REE) Shares REE production Cer Yttrium 1000 t REE-oxide China Sonstige SEE Praseodym Lanthan 2008 Source: USGS 2006/2009 Dysprosium Neodymium t Source: USGS2006, Asian Metal Ltd. 2008, BGR % of current production comes from China China imposes export quotas Page 42
43 Conclusions for resource risk assessment Resource risk assessment has two different targets reduction of economical and supply risks reduction of ecological risks has to be managed by different tools dependent on the target (economy or ecology) Ressource efficiency is defined in different ways dependent on the target Page 43
44 Conclusions for resource risk assessment and finally current LCIA methods for resource risk assessment such as ADP show strong linear correlation to other categories such as GWP and therefore gives NO added value geological shortage of resources is relevant for energy resources whereas for mineral resources there is no geological shortage economic risks are based on 4 areas demand and supply cash costs geostrategic risks market power Page 44
45 Contact Volkswagen AG Dr. Stephan Krinke Head of Environmental Affairs Product Letter box 011/ Wolfsburg Page 45
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