PLASTICS IN A CIRCULAR ECONOMY - KEY CONCEPTS PLASTICON CONTRIBUTION Abdulrahman Al-Fageeh March 14 th, 2018
CONTENT Intensities & the eco-efficiency of plastics Plastic waste perception of litter to be resolved as part of the circular economy Sustainability transforming our way of living as we speak Various examples of reuse, recycle and utilization Conclusion 2
THE ECO-EFFICIENCY OF PLASTICS Automotive Consumer Products Energy Pipes & Fittings Plastics save 5-9 times more CO2 Extends it s shelf life by up to 3 times 7 times more energy is saved Prevent water losses by 8 times & reduce installation costs by up to 60% Plastics have a relative low carbon footprint compared to traditional materials 3
A CHALLENGE WITH 9.6 BILLION PEOPLE BY 2050... We will need 35% more food 50% more energy 40% more water SOURCE:ACCORDING TO A UNITED NATIONS REPORT 4
PLASTIC WASTE PERCEPTION OF LITTER TO BE RESOLVED AS PART OF THE CIRCULAR ECONOMY Adequate waste management is required to reach an acceptable standard of living & Citizens take responsibility for their waste Illegal dumping in nature is a major cause of environmental deterioration Gulfnews.com Marine litter and Microplastics China s Great Green Wall Poor waste collection in coastal cities and poor control over seaside landfill causes massive plastic pollution of the oceans* 80 % of marine litter is from land-based sources istock@ewg3d To impulse the recycling culture in the local community and help reducing MSW impact on environment Waste, plastics should be properly recycled, incinerated. In China 100 Billion Trees Bloom: China s Great Green Wall * Ocean Conservancy study, 2015 5
SUSTAINABILITY TRANSFORMING OUR WAY OF LIVING AS WE SPEAK SABIC is proud of being the first in the Kingdom to achieve carbon credits and register a groundbreaking energy-efficient process. We have once again demonstrated our commitment to sustainable development. Yousef Al-Benyan Chief Executive, SABIC 6
CIRCULAR ECONOMY THINKING Circularity as aspirational design criterion Focus on materials consumption and recycling At each value chain step circularity must a key business model criterion, take the whole chain into account No established method of determining a circularity score Raw Material Design Product Distribution Use Collection Recycle Renewable Recoverable materials Design for recycling Disassembly Renewable energy Minimize materials use Local production Supply chain design Durable products Reparable products Component Separation Collection infrastructure Reuse Disassembly Recycle Consensus on quantification criteria and methods still to be found 7
CIRCULAR ECONOMY AND THE CHEMICAL INDUSTRY A circular economy is one that is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times Source: Ellen MacArthur foundation In which the value of products, materials and resources is maintained in the economy for as long as possible, waste generation is minimised. Source: Pierre Henry DG Environment, EU The chemical industry is challenged by customers and regulators: To reduce the use of fossil resources To reduce the burden that plastic waste puts on the environment Current business models must be adapted or even radically changed 8
PLASTICS IN A CIRCULAR ECONOMY - KEY CONCEPTS BE THE IMPACT 9
RESOURCE AND ENERGY EFFICIENCY AT SABIC Innovation and Sustainability Solutions 78 Total Sustainability Solutions EHSS and Product Safety 21% Decrease in hazardous substance release incidents Resource and Energy Efficiency* 8.3% GHG Emissions Intensity 6.0% Energy Intensity Human Capital Development 31,000 Training program participants Sustainability Report 2016 Learn more about SABIC s sustainability facts and figures. Supply Chain 4 Additional metrics in our initiative: Carbon Footprint, Supply Chain Incidents, Working Capital Efficiency, and Functional Competency Index 41% Material-loss Intensity 10.4% Water Intensity 55% Reduction in Flaring Emissions 3.6 MT Total Current CO 2 Utilization Access Report here Sustainability Report 2017 will be published in April 10
ICE TM HOUSE AT THE WORLD ECONOMIC FORUM IN DAVOS The Circular Economy utilizes product design with materials that contribute to conserve energy and are recoverable, reusable and recyclable. CONSTRUCTION: Driving cutting-edge building designs 50% energy savings thanks to transparency and insulation 250% times impact resistance and ease to reuse: durability 50% weight savings: resource efficiency 100% recyclable ICE TM* house driving sustainable, cutting-edge building designs 11
CO 2 UTILIZATION PLANT AND PERFORMANCE World s largest CO 2 capturing plant at United, SABIC affiliate in Saudi Arabia designed to capture and purify up to 500,000 metric tons of CO 2. 3.6 million tons Total CO 2 utilization in 2016 173 ktons CO 2 utilization First operative year 1500 tons of CO 2 per day can be used from new capture and purification plant Continues to recover more CO2 as feedstock for valuable products such as urea, methanol and liquid CO2 for the food industry 12
SABIC S SOLUTION: CERTIFIED RENEWABLE PE AND PP MATERIALS BY USING OUR EXISTING PROCESSES TO PRODUCE IDENTICAL PRODUCTS AS IN OUR EXISTING PORFOLIO BY REPLACING PART OF THE FOSSIL BASED FEEDSTOCK USED IN OUR PROCESSES BY RENEWABLE FEEDSTOCK BY USING INDEPENDENT MASS BALANCE CERTIFICATION TO GUARANTEE THE PROCESSING OF RENEWABLE FEEDSTOCKS AND ALLOCATION TO SPECIFIC PRODUCTS 13
THE BEAUTY OF FEEDSTOCK RECYCLING SABIC IS THE FIRST IN INDUSTRY TO SCALE UP HIGH-QUALITY RECYCLING PROCESSES FOR CHEMICAL RECYCLING OF MIXED PLASTIC WASTE TO THE ORIGINAL POLYMER. FOSSIL BASED STEAM CRACKER POLYMER PLANT CONVE RTER FEEDSTOCK RECYCLING ENERGY RECOVERY MECHANICAL RECYCLING LANDFILL USE Contributes to sustainability targets Builds brand reputation Turns waste into valuable product Aligned with EU ambitions 14
ESTIDAMAH CENTER: FOSTERING NATIONAL AGRICULTURAL SUSTAINABILITY Estidamah a first step to enhance national agricultural sustainability Purpose: Agricultural research for sustainable agriculture innovations with focus on: Increase production per unit area Improve quality and minimize usage of pesticides Improve water use efficiency Location King Saud University, Riyadh, Saudi Arabia. Source: SABIC 15
TAKE AWAY Circular Economy business model will be radically different from our current industrial model. CE strive to minimize net extraction of the key resources through movement from linear to close- loop model. Partnership with different industries is must to share value creation 16
DISCLAIMER THE MATERIALS, PRODUCTS AND SERVICES OF SAUDI BASIC INDUSTRIES CORPORATION (SABIC) OR ITS SUBSIDIARIES OR AFFILIATES ( SELLER ) ARE SOLD SUBJECT TO SELLER S STANDARD CONDITIONS OF SALE, WHICH ARE AVAILABLE UPON REQUEST. INFORMATION AND RECOMMENDATIONS CONTAINED IN THIS DOCUMENT ARE GIVEN IN GOOD FAITH. HOWEVER, SELLER MAKES NO EXPRESS OR IMPLIED REPRESENTATION, WARRANTY OR GUARANTEE (I) THAT ANY RESULTS DESCRIBED IN THIS DOCUMENT WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (II) AS TO THE EFFECTIVENESS OR SAFETY OF ANY DESIGN OR APPLICATION INCORPORATING SELLER S MATERIALS, PRODUCTS, SERVICES OR RECOMMENDATIONS. UNLESS OTHERWISE PROVIDED IN SELLER S STANDARD CONDITIONS OF SALE, SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS MATERIALS, PRODUCTS, SERVICES OR RECOMMENDATIONS DESCRIBED IN THIS DOCUMENT. Each user is responsible for making its own determination as to the suitability of Seller s materials, products, services or recommendations for the user s particular use through appropriate end-use and other testing and analysis. Nothing in any document or oral statement shall be deemed to alter or waive any provision of Seller s Standard Conditions of Sale or this Disclaimer, unless it is specifically agreed to in a writing signed by Seller. Statements by Seller concerning a possible use of any material, product, service or design do not, are not intended to, and should not be construed to grant any license under any patent or other intellectual property right of Seller or as a recommendation for the use of any material, product, service or design in a manner that infringes any patent or other intellectual property right. SABIC and brands marked with are trademarks of SABIC or its subsidiaries or affiliates, unless otherwise noted. 2017 Saudi Basic Industries Corporation (SABIC). All Rights Reserved. Any brands, products or services of other companies referenced in this document are the trademarks, service marks and/or trade names of their respective holders. 18