1. Green Chemicals & Materials – Unravelling the Myths
and Creating Opportunities
A panel discussion with Frost & Sullivan's leading
Chemicals & Materials analysts:
Robert Outram, Leo Dokos
Brian Balmer, Hari Ramasubramanian
29 October 2008

2. Focus Points
• Key Industry Trends
• Green Sourcing
• Green Processes / Sustainability
• White Biotechnology
• Legislation
• Case Studies / Examples
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3. Key Industry Trends
Putting quot;Greenquot; in Context
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4. Trends’ Impact on the Chemicals Industry
2007 – 2020
High Impact
Power
Customer
Recycling
Nanotechnology Biorenewables
White
Biotechnology Logistics
Excellence
Super Chemical Companies
Projected
Impact on the
Forwards/backwards Integration
Chemicals
Industry By-products/waste Environmental
management Legislation
Internet
Auctions
Low Impact
Low High
Certainty
4

5. Materials Industry Trends
Performance Materials Market: Impact of Key Industry Trends
(Europe), 2008
10
Security
Energy-saving
Safety
Market Impact
Lifestyle
5
Differentiation Functionality
Innovation Sustainable
production
Expansion
0
0 5 Supply chain 10
Internal Impact
5

6. Materials Industry Trends
Performance Materials Market: Impact of Key Industry Trends
(Europe), 2008
10
Security
Energy-saving
Safety
Market Impact
Lifestyle
5
Differentiation Functionality
Innovation Sustainable
production
Expansion
0
0 5 Supply chain 10
Internal Impact
6

7. What is Green?
Sustainably Bio-enabling
Biodegradable Chemicals
Sourced
& Materials
•Detergents •Biorenewable building blocks •Oxy-biodegradable
•Bioplastics •Bioplastics plastic additives
•Natural fibre •Oleochemicals •Composites for wind
•Biofuels (?) turbines
•Recycled •Solar cell chemicals
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8. Biobased Sourcing is alternative to Naphtha Stream
Starch based polymers
Polyhydroxyalkanoates
CO2 1,3 Propanediol
Wheat Ethanol ethylene Vinyl chloride 1,2 Propanediol
maize C5 and
Starch
potato C6
Lactic Acid Acrylic acid
Sugars
Chiral compounds
3 HP Acrylic acid
Sugar Poly lactic acid
beet, PBS
sugarcane Succinic THF
acid
1,4 Butanediol
Polyether polyols
Sorbitol
Glycols
C5 Isoprene Polyisopropene Isosorbide polymer
and
Cellulose/ C6 Ethanol Ascorbic acid
LignoCellulose Sugars
Levullinic acid MeMbl Cellulose ethers,
Cellulose esters
and Viscose Fibres
Acrolein
Rapseed, Bio Diesel Current bulk productions
Soyseed Vegetable Oil
Allyl alcohol
Glycerol
Production on pilot scale
1,3 Propanediol
Natural oil
Polyols Research Scale
(NOP) Epoxy resins
Epichlorohydrin
1,2 propanediol
Polyurethanes
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9. Materials Industry Trends - Focus on Green
Thermoplastics
Biopolymers
Renewable materials Coating resins
Energy efficiency Natural fibres
Production Cleaner processes
Waste reduction / re-use
Worker safety
Top 10 Trends
Enabling tech. Energy efficiency
Safety
Security
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10. Materials Industry Trends - Focus on Green
Thermoplastics
Biopolymers
Renewable materials Coating resins
Energy efficiency Natural fibres
Production Cleaner processes
Waste reduction / re-use
Worker safety
Top 10 Trends Spec Chem as an enabler of green Materials:
• Chemtura Polybond improves blending of
wood fibres with PP in WPC
• DuPont Biomax Strong at 2wt% greatly
improves properties of PLA
Enabling tech. Energy efficiency
Safety
Security
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11. The chemical industry has cut its energy intensity
annually while reducing greenhouse gas emissions
Between 1990 and 2005 Between 1990 and 2005
Between 1990 and 2005 Between 1990 and 2005 Between 1990 and 2005
Between 1990 and 2005 energy consumption greenhouse gas emissions
production has increased energy consumption greenhouse gas emissions
production has increased remained flat declined
remained flat declined
Index
160
100 106
73
Source: Cefic Time
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12. Bio-sourcing materials - Can analogies be drawn with oil-
based chemistry?
Chart 5.1
High Performance Plastics Market: Chemistry of C9 Monomers for Polyamides (Europe), 2007
C9 Chemistry Commodity C6 Chemistry
Note the similarity of chemistries
Natural Fatty Acids Oleic Acid: used to generate diamines for both
niche C9 and commodity C6
polyamides
O
OH
Adipic Acid
O
OH O O HO
+ PA 6,9 OH
O HO OH O
Azelaic Acid
(old technology,
largely superseded) PA 6,6
Pelargonic acid by-
product:
Used in alkyd resins,
synthetic lubricant base PA 9,T H2N
oils and plasticizers H2N NH2 NH2
HMDA
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13. Legislation
Lack of harmonisation?
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14. The lack of harmonisation in legislation and standards slows down the
momentum required for global adoption of green chemicals and processes
Voluntarily participation
Environment by the industry
Legislation
Not harmonised global
regulatory framework –
Ecology slow replacement of chemicals
under consideration
Economy
Legislation will play an increasingly important role in the future in alignment with a global
carbon footprint of materials and chemicals
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15. Europe is leading a global multifaceted effort to bring the chemicals
industry in the 21st century
GHS
Industry responsible for
Industry responsible for Global Good Management
protecting human health Global Good Management
protecting human health of Chemicals & Materials
and the environment of Chemicals & Materials
and the environment
Change of the responsibility Restriction of the use of certain Identify hazardous chemicals and
from public authorities to hazardous substances in electrical inform users through standard
industry in demonstrating the and electronic equipment symbols and phrases on the
safe manufacture and use of packaging labels and through
chemicals safety data sheets (SDS)
Things will speed up due to recently introduced legislation focusing on protecting the
environment as well as human health
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16. Is “bio” a polished term for “green” products?
Bioplastics
These PLA, PHA's and starch-based
Biolubricants polymers represent the future but
Although the last 10 years these there is no specific legislation
products have experienced a regulating the amount of renewable
Biofuels market growth, this is due to a sourced material that needs to be
State subsidies and EU directives slow replacement. Legislation present in a plastic for it to be called
setting targets have been the mandating their use exists only bioplastic. It is therefore open to
driving force for blending and in few European countries and individual players in the market to
using biofuels. In the future … since 2008 in France as well. assess this particular point.
Is “bio” the next “green” for chemicals and materials?
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17. FAQ’s & Frost & Sullivan Solutions
Case studies from Frost & Sullivan’s research
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18. Frequently Asked Questions
What opportunities could
What does quot;Greenquot; there be for us in quot;energy
actually mean? efficientquot; buildings?
What are the different options to
enter the bioplastics market? Can you charge a
premium for a bio-
based product?
Is there any opportunity for
recycling of advanced
composites?
Do you know what opportunities What impact will the new Pyramid
there would be for [a new Technologies PLA plant have on
material] to improve the thermal the bioplastics market?
efficiency of buildings?
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19. Frost on the Green Revolution
PLA Market: Volume Forecasts (Europe), 2003-2013
• Green Issues Coverage – Up to date 250.0
200.0
studies on green initiatives in our 150.0
kt
various end user segments
100.0
50.0
Constantly changing
• Examples of recent research market requires frequent
0.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
tracking of the key trends
• Chinese Solar Power Markets Old New
• Wood Plastic Composites The European Bioplastics Market
• Renewable Chemicals Markets forecasts had to be revised just in one
year since we wrote the study, to account
• Bespoke consulting work on Green for the rapid changes that had taken
Markets place in the market in 2008
• Biofuels Market – Entry Strategies for
the Hungarian Market
• An Overview on Uses for Flare Gas
• Analyst Briefings
• Such as this one on Green initiatives in
the Chemicals & Materials Market
An analysis of the 170 billion cubic metres of
• White Papers flare gas wasted every year, and
identification of technologies that will create
• Environmental Sustainability Initiatives viable markets for this precious source of
in the Performance Materials Industry energy
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20. Conclusions
• Green initiatives must be self-funding - i.e. themselves sustainable
• There is no one thing that counts as quot;green.quot; It can be anything from:
• emissions reduction or reduced usage of non-renewable raw materials
• ... to broader social responsibility considerations such as the worker's
working conditions
• Marketing is key
• ... But it is not just a marketing gimmick!
• Important to be proactive and do it before legislation forces you to
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21. Your Feedback is Important to Us
What would you like to see from Frost & Sullivan?
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
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22. For Additional Information
Steve Lee
Strategic Account Manager
Chemicals, Materials and Food, Asia Pacific
(65) 6890 0914
steve.lee@frost.com
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