Platform Molecules End User Perspective Bob Crawford Unilever HPC
Agenda Introduction Raw materials and company development Unilever s mission Priorities for sustainability Considerations Vegetable oils & biodiesel Innovation Other considerations Conclusions
Raw materials and company development 1872 Juergens & Van den Bergh first margarine factory 1884 Lever & Co. start making soap 1900s Competition for oils & fats. Rising Prices Companies focus on securing supplies 1909 Lever Bros. palm plantation Solomon Islands Van den Bergh & Juergens JV in Africa Lever Bros. buys African company for palm oil 1913 Whale Oil Pool established 1954 WW1 UK govt. controls oils & fats market 1930 Unilever established WW2 Development of synthetic detergents, ABS 1960s on LAS, other synthetic detergents, polyacrylates 1990s Sell chemical business, focus on consumer goods 1963 EARLY DAYS - COMMON RAW MATERIALS LATER - NEW PRODUCTS
Unilever s mission
Unilever s mission Unilever s mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life We are not a chemicals company, but we do want to ensure that we have a raw materials base for our business at competitive prices Sustainable sourcing of our raw materials contributes to the protection of our business and brands
Our priorities for sustainability
Our priorities for sustainability Resources
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.)
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic Innovation acid etc.)
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.) Innovation Reducing the impact of current and future products
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.) Innovation Reducing the impact of current and future products New properties and functions for better products
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.) Innovation Reducing the impact of current and future products New properties and functions for better products Manufacture
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.) Innovation Reducing the impact of current and future products New properties and functions for better products Manufacture We will continue to reduce the impact of our operations. Renewables may have a sourcing and supply chain impact. (our improvements detailed in 2005 Environmental and Social Report at www.unilever.com)
Our priorities for sustainability Resources Agriculture, fish and water. Over 65% of raw materials come from agriculture 15.1bn spent with suppliers of raw materials and packaging Opportunity to find alternatives to petro-chemical (ethylene, propylene, oxyethylene, acrylic acid, methacrylic acid etc.) Innovation Reducing the impact of current and future products New properties and functions for better products Manufacture We will continue to reduce the impact of our operations. Renewables may have a sourcing and supply chain impact. (our improvements detailed in 2005 Environmental and Social Report at www.unilever.com)
Resources - Vegetable Oils
Vegetable Oil vs. Mineral Oil Price 1100 Vegetable Oil vs Crude Oil Cost Correlation for Biofuel 1000 Break-even for Veg. Oil Price ( /ton) 900 800 700 600 500 400 300 200 ASSUMPTIONS: Origin: Netherlands Diesel price at pump: 1.05-1.10 100 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 Mineral Crude Oil Price ($/barrel) RP with Subsidies PO with Subsidies RP without Subsidies PO without Subsidies
Bio-fuel Land Requirements
Bio-fuel Land Requirements Food vs. Fuel 1950 0.23 hectares/person 2.5bn people 2006 0.11 hectares/person 6.5bn people Deforestation for soya and palm oil 2050 Crop yields not rising as fast as they once did 9bn people
Biofuels
Biofuels Low performance biofuels
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low.
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low. High performance biofuels
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low. High performance biofuels 2 nd generation bio-fuels (bioethanol from lignocellulose or biodiesel from biomass gasification) are better in terms of land area required per tonne of CO 2 reduction (Land Efficiency). Bioethanol from Brazilian sugar cane has a low GHG reduction cost and intermediate Land Efficiency (i.e. between 1 st and 2 nd generation).
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low. High performance biofuels 2 nd generation bio-fuels (bioethanol from lignocellulose or biodiesel from biomass gasification) are better in terms of land area required per tonne of CO 2 reduction (Land Efficiency). Bioethanol from Brazilian sugar cane has a low GHG reduction cost and intermediate Land Efficiency (i.e. between 1 st and 2 nd generation). Unilever Position
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low. High performance biofuels 2 nd generation bio-fuels (bioethanol from lignocellulose or biodiesel from biomass gasification) are better in terms of land area required per tonne of CO 2 reduction (Land Efficiency). Bioethanol from Brazilian sugar cane has a low GHG reduction cost and intermediate Land Efficiency (i.e. between 1 st and 2 nd generation). Unilever Position Recognises that bio-fuels have an important role to play in developing a sustainable economy
Biofuels Low performance biofuels 1 st generation biofuels are neither environmentally efficient nor cost effective ways to reduce greenhouse gas emissions. Vegetable oil feedstock crops, in particular rapeseed oil, are intensive users of fertilisers and pesticides. Energy yield per hectare is low. High performance biofuels 2 nd generation bio-fuels (bioethanol from lignocellulose or biodiesel from biomass gasification) are better in terms of land area required per tonne of CO 2 reduction (Land Efficiency). Bioethanol from Brazilian sugar cane has a low GHG reduction cost and intermediate Land Efficiency (i.e. between 1 st and 2 nd generation). Unilever Position Recognises that bio-fuels have an important role to play in developing a sustainable economy Supports policies to accelerate the introduction of 2 nd generation bio-fuels
Innovation
Innovation Polymers
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge)
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?)
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?)
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules Solvents & hydrotropes
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules Solvents & hydrotropes Sequestrants
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules Solvents & hydrotropes Sequestrants Dyes, fluourescer
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules Solvents & hydrotropes Sequestrants Dyes, fluourescer Perfume components
Innovation Polymers Modifiable polymers (hydrophobic/hydrophilic and charge) Structurants for liquids ideally with additional function (sequestrant?) Structurants for solids ideally with additional function (sequestrant?) Packaging Modified Hydrophobes Surfactants. Replacements for petro- hydrophobes & ethylene oxide Waxes Small Molecules Solvents & hydrotropes Sequestrants Dyes, fluourescer Perfume components Scale of Opportunity e.g. Laundry products ~ 5.2 Million tpa ~ 3 Million t Powders ~ 0.7 Million t Liquids ~ 1.2 Million t hard soap ~ 0.5 Million t NSD bars
Platform Molecules Glycerol HO OH OH OH Glucose, fructose HO HO O OH O OH Lactic acid Me OH OH HO O OH O Succinic acid, itaconic acid O HO OH 1,3-propanediol HO OH O C16/18 acids from palm oil O Methyl ester OMe
Platform Molecules Glycerol HO OH OH Glucose, fructose Lactic acid Succinic acid, itaconic acid 1,3-propanediol C16/18 acids from palm oil Me OH O HO OH HO HO OH HO OH O OH O HO OH O O OH O OH O Commercial Feasibility Lower value feedstocks Choice of platform molecules Multiple higher value end uses Life Cycles Analysis Methyl ester OMe
Other considerations
Other considerations New Functions
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use Consistency of properties e.g. colour, odour
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use Consistency of properties e.g. colour, odour Variability of price link to fuel
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use Consistency of properties e.g. colour, odour Variability of price link to fuel Regulatory
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use Consistency of properties e.g. colour, odour Variability of price link to fuel Regulatory Impurities effect of low-impact chemistry?
Other considerations New Functions To go further with new functionality sector-specific evaluation is vital Development potential e.g. of polymer back-bone chemistry Supply Chain Need to consider supply chains and impact of global/regional/local sourcing on end-use Consistency of properties e.g. colour, odour Variability of price link to fuel Regulatory Impurities effect of low-impact chemistry? Registration requirements
Conclusions
Conclusions Good end-use targets: functional water soluble polymers small molecules e.g. sequestrants successful platform molecules will have multiple end-uses Feedstocks glycerol as well as lignocellulose Full Life Cycle Analysis is essential Collaboration is required for fastest progress Unilever objective is to be a good partner in the development of new feedstocks and chemical products