Eco-efficiency and sustainability as strategy

Transcription

1 Industry Strategy Symposium (ISS Europe) 2009 Eco-efficiency and sustainability as strategy Marc Van Sande Umicore February 2009 ISS Europe Dresden, Germany

2 15,000 people in more than 80 industrial locations around the world Key figures (financials in million) 2006* 2007 HYR 2008 Revenue (excl. metal) 1, , ,126.4 EBITDA Recurring EBIT Net Profit (r) EPS adjusted * restated for discontinued operations 2

3 Materials will be key Silicon age Materials are at the core of today s life and will continue to be enablers for future wealth creation Metal and semiconductor related materials have a vital role, as they can be efficiently and infinitely recycled, which makes them the basis for sustainable products and services Umicore strives to be a leader in providing and creating material based solutions which contribute to improvements in the quality of life 3

4 The Umicore approach to materials technology Metals and semiconductors 4 4

5 A history of transformation Vieille-Montagne 1853 Asturienne des Mines Cumerio 1928 Compagnie des Metaux d Overpelt Société Générale Métallurgique de Hoboken 1887 Usine de Désargentation (Degussa) Société Générale des Minerais 1959 Mechim Union Minière du Haut-Katanga 2001 Union Minière ACEC 1989 UM 1919 SIBEKA 1990 MDK Kombinat Pirdop Sogem 2007 Nyrstar 1873 Degussa (EM) DMC 2 PMG 2003 * Smaller acquisitions not mentioned in this overview 5

6 Umicore today provides the automotive catalysts for more than 1 in 4 cars produced in the world key materials for the rechargeable batteries for more than 30% of all cell phones and laptops sold this year the semiconductor substrates for more than 60% of all satellite solar cells in the last 2 years recycling services for complex materials able to extract more than 20 different metals 6

7 A transformation changing the expense profile capital-intensive metals refining industrial 2,000 1,750 1,500 1,250 capex & R&D over revenues (in million ) 10.9% 1,358 1,704 1, % 8.4% 1,685 1,930 1,000 1, % 7.2% % 5.7% 5.8% 5.7% R&D-intensive materials technology company % 3.2% (extrapolated revenues capex / revenues R&D / revenues from H1) restated for discontinued operations from 2006 on 7

8 The sustainable business context Economic Prosperity Profit Cost, investment, profitability, growth, national and regional economic development and prosperity regeneration etc. Planet Climate change, land use, noise, air quality, resource use, waste management, energy use, land contamination, climate change, biodiversity, etc.. Environmental Stewardship Sustainable Development Meeting the needs of the present without compromising the ability of future generations to meet their own needs People Social inclusion, marketplace responsibility, safety, health, workplace responsibility, quality of life, community livelihoods etc. Social Responsibility 8

9 More than a business context Production processes Markets R&D portfolio Metrics Values 9

10 Key leverage areas for Umicore Less is more Creating value by reducing the use of rare and valuable materials Energy solutions Materials for energy storage and sustainable energy production Recycling solutions Addressing resource scarcity and emissions by closing the materials loop Environmental solutions Technologies to mitigate environmental impacts 10 10

11 Industry Strategy Symposium (ISS Europe) 2009 Energy solutions February 2009 ISS Europe Dresden, Germany

12 Materials for photovoltaics Silicon based PV High efficiency PV Thin layer PV Organic PV 12

13 Bulk silicon solar cells value chain Metallurgical - grade Si Solargrade Si Si ingots & wafers Si solar cell Si module/ system PV module recycling Application know-how Metals Chemistry Material science Metallurgy Material solutions Recycling Development of process for the production of solar grade Si in a joint venture between Hydro and Umicore (HyCore) Ag-based contacting materials Zn roof structures for PV building integration Recycling solutions from production scrap to end-of-life modules 13

14 Solar-grade Si HyCore 51% 49% HyCore 14

15 Solar-grade Si Process Si (>98.5%) Si chlorination SiCl 4 SiCl 4 reduction Si (6N) Zn ZnCl 2 Cl 2 ZnCl 2 recycling Closed loop process 15

16 Solar-grade Si Comparison with other Si refining technologies 16

17 Zn PV roof structures Solar panels for residential and commercial applications can be integrated in the roof architecture Umicore Building Products offers solutions for residential integration of solar cell modules in its (zinc) roof systems 17

18 Zn PV roof structures Products Rigid panels Used for crystalline silicon, Zinc and panel at the same level PV laminates Zn roof Flexible panels Made for lightweight and flexible panels In collaboration with thinfilm PV cell manufacturers 18

19 Thin film solar cells Value chain Base materials Solar cell active layers Thin film cell/module Thin film PV system PV module recycling Application know-how Metals Chemistry Material science Metallurgy Material solutions Recycling Refining of In, Se & Te out of secondary materials Non-vacuum CIGS materials TCO sputtering targets (ITO, AZO) Zn roof structures for PV building integration Recycling solutions from production scrap to end-of-life modules 19

20 Thin film base materials Thin film solar cells require special metals Cadmium telluride (CdTe) Copper indium gallium diselenide (CIGS) Indium tin oxide (ITO) (transparent conductive oxide) Umicore Precious Metals Services recycles and refines these materials Tellurium (Te) Selenium (Se) Indium (In) 14 other elements In Bi Ag Pb Sn Au Te Pd Cu A Sb Se Pt Rh Ni Ir Ru Umicore is the largest precious special metals recycler worldwide 20

21 TCO sputtering targets Production & development Focus on planar and rotary TCO sputtering targets Used technique: magnetron sputtering deposition Current capacity ITO Mass production phase AZO Pilot phase 21

22 High efficiency solar cells Value chain Ge refining Ge ingots & wafers MOCVD epi III-V solar cell CPV module CPV system PV module recycling Application know-how Metals Material solutions Recycling Refining of highpurity Ge from by-products from the mining industry and production scrap Production of mono-crystalline, dislocation-free Ge ingots & substrates Solder pastes for die-bonding Recycling solutions from production scrap to end-of-life modules 22

23 High-efficiency solar cells Best energy conversion ratio III-V compounds are deposited onto a germanium substrate to form a number of cells on top of each other solar spectrum converted more efficiently Application Main application up to today is space solar cells Use of these cells in terrestrial applications is rapidly growing, using concentration (mirror, lens) up to factor 1000x A/R* front contact top cell (1.8eV) GaInP tunnel junction middle cell (1.4eV) Ga(In)As tunnel junction A/R* bottom cell (0.7eV) Ge substrate Ge back contact *A/R: Anti-Reflective coating 23

24 Ge substrates Production & development Capability Vertically integrated Capability of 2 300mm Capacity Currently: 500,000 wafers ( 100mm) Doubling of capacity under execution, in new production plant in USA Larger diameter wafers for terrestrial, small size solar cells under development 150mm and beyond 24

25 Li-Ion battery materials separator anode separator Anode (= negative) graphite/carbon Separator Ion permeable inert membrane Cathode (= positive) Lithium cobaltite and new generation materials Electrolyte Liquid or gel cathode Charge : Li-ions from cathode to anode Discharge : Li-ions from anode to cathode 25

26 Cathode material evolution Lithium cobaltite (LiCoO 2 ) dominated first decade of Li-ion technology Cobalt price spike in 2004 sparked substitution towards nickel and manganese Constant balance sought between capacity, reversibility and costs while maintaining safety Evolution of cathode material volumes Capacity '000 tonnes Umicore sales volumes indexed Reversibility Safety Source : IIT + internal data (2008) World cathode material sales (LH axis) Umicore sales rebased 0 26

27 Industry Strategy Symposium (ISS Europe) 2009 Recycling solutions February 2009 ISS Europe Dresden, Germany

28 Electronics contain up to 60 elements A complex mix of valuables & hazards Material content of mobile phone mobile phone substance (source Nokia) 28

29 Environmental impact of metalproduction: CO 2 ISS Europe

30 A significant impact on metals demand important EEE metals world mineproduction* demand for EEE demand related to mine production metal price** value of EEE use Main uses in electro/electronics t/a t/a $/kg billion $ silver Ag % 371 2,2 contacts, switches, (leadfree) solders, conductors, MLCC, gold Au % ,8 bonding wire, contacts, IC palladium Pd % ,3 Multilayer capacitors (MLCC), connectors, PWB plating, platinum Pt % ,5 hard disks, thermocouple wires, fuel cells ruthenium Ru % ,0 hard disks, resistors, conductive pastes, plasma display panels copper Cu % 7 30,3 cables, wires, connectors, conductors, transformers, e-motors tin Sn % 9 0,8 (leadfree) solders antimony Sb % 5 0,3 flame retardants, CRT glass cobalt Co % 36 0,4 rechargable batteries bismuth Bi % 11 0,01 leadfree solders, capacitors, heat sinks, electrostatic screening, selenium Se % 52 0,01 electrooptic, copiers, solar cells, indium In % 822 0,3 LCD glass, leadfree solders, semiconductors/led, total 41,0 * rounded, source: USGS Mineral commodity summaries 2007; GFMS; JM-Plat** avg

31 ISS Europe US-$/kg In US-$/lb Cu Bi USD / tonn Ag US cents/troz USD/troz Increasing prices put new attention on potential metal scarcities Gold price Jan Oct 2007 (monthly averages London Fixing) Au

32 Impact on metals demand 2 prominent examples Global sales, 2006: a) Cell phones: 1000 Million units x 250 mg Ag 250 t Ag x 24 mg Au 24 t Au x 9 mg Pd 9 t Pd x 9 g Cu 9000 t Cu 1000 M x 20 g/battery* x 3.8 g Co 3800 t Co b) PC & laptops: 225 M units x 1000 mg Ag 225 t Ag x 220 mg Au 50 t Au x 80 mg Pd 18 t Pd x 500 g Cu 113,000 t Cu 75 M laptop batteries* x 65 g Co 4900 t Co World Mine / a+b Production / share Ag: 20,000 t/a 2.5% Au: 2,500 t/a 3% Pd: 230 t/a 12% Cu: 16 Mt/a 1% * Li-Ion type ** Li-Ion type is > 90% used in modern laptops Co: 58,000 t/a 15% Although negligible metal quantities per piece, the leverage of huge unit sales leads to significant total numbers! value of these five metals at 2006 prices: 2.8 billion US-$ CO 2 burden for producing these metals (primary): 2.1 million t CO 2 32

33 Example low tech Gold recycling in Bangalore/India How to Transform Existing Systems? Total Au-recovery efficiency only 25%, while environmental & health damage is dramatic (Rochat, Keller, EMPA 2007) foto: EMPA/CH this takes place in large parts of the world today! 33

34 In spite of all efforts - Mobile phone recycling largely fails today Recycling potential 2006*: 400 million units per anno x 100 g = 40,000 t/a Recycling¹ collected reuse %? %? Stored in drawer (potential for recycling at later stage) Not collected %? Disposed with household waste (unrecoverable loss) Not to scale 34 Use in 2nd life Recycling reality²: < 1000 t (< 10 M) in 2006 EOL not collected Exported to developing countries Re-export to ESM-recycling Use in 2nd life Final end of life Collected Not collected %? Local backyard recycling

35 Recycling potential vs reality The potential: Value of electronics sales worldwide (2006) metals worth > 40 billion US-$ (EU > 10 billion $) CO2 emissions of primary production: > 23 million t (EU > 6 Mt) potential CO2 saving at 80% metals recycling: > 14 million t (EU 4 Mt) Europe losing annually > 10 billion $ of metals value wasting a CO 2 saving potential of at least 4 million t CO 2 35

36 the art of metals recycling 36