How does the REACH regulation affect the complex supply chains of space industry and the high-performance, heritage driven designs of spacecraft and launchers?
Impact of REACH regulation on European space industry
1. ESA UNCLASSIFIED - For Official Use
Impact of REACH regulation on
European space industry
Paavo Heiskanen
PGS Workshop 2018-10-24
ESA-TECQE-HO-011264
2. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 2
Introduction – REACH 1/3
Main purpose is to
ensure a high level of protection
of human health and the
environment
in relation to the use of chemical
substances. *
* EU Regulation 1907/2006 of the European Parliament and of the Council
of 18 December 2006 concerning the registration, evaluation,
authorization and restriction of chemicals (REACH)
3. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 3
Introduction – REACH 2/3
Registration, Evaluation, Authorisation and Restriction of Chemicals
• Addresses potential impacts of chemicals to human health and on the
environment
• And production & use of chemical substances.
Strictest law to date regulating chemical substances.
• many chemical substances will face regulatory obsolescence, causing
widespread impacts to downstream users.
Very desirable and ambitious regulation to contribute to a safer and healthier
environment
but causes wide-reaching engineering and management challenges for the space
sector which is by nature driven by performance and heritage design.
4. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 4
Introduction – REACH 3/3
Registered Substances
> 20 000
SINlist* - 919
*) NGO driven, using criteria from REACH to identify
Substances of Very High Concern (SVHC).
SVHCs in
candidate
list - 191
Annex
XIV
43
Substance registration
RMOA
HCL Authorisation
&
Candidate list
Restriction &
others
Annex XIV –
sunset date
R
E
A
C
H
5. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 5
European Union
European Space Agency
Introduction - example space project 1/2
System
Integrator
A
Customer
C
Subcontractor
B
Manufacturer
M
Contractual
relationship
6. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 6
Introduction - example space project 2/2
System
Integrator
A
Customer
C
Subcontrac
tor B
Manufacturer
M
2008
Contract
negotiation Manufacturing
2012
Integration &
Testing
System
Integrator
A
2018
7. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 7
Example substances relevant to space industry
Candidate list
- - Hydrazine: rocket fuel
- - Lead metal: used in soldering and metal alloys
- - Bisphenol A: adhesives
- - Dechlorane Plus: flame retardant
- - …
Annex XIV
Chromates – Applications for Authorisation
pending in the European Commision:
-Chromium Trioxide: used in
corrosion resistive coatings – Sunset date
09/2017
-Ammonium Dichromate: used in
pyrotechnic devices – Sunset date 09/2017
-Strontium Chromate: used in
paints and primers – Sunset date 01/2019
- …
RMOA & others
- MMH, UDMH & NTO: rocket fuel
- Diisocyanates: polymers
- Chromium (III) oxide: corrosion
resistive coatings. Substitute for CrO3!
- GaAs and InP: semiconductor materials
-…
8. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 8
Example timeline of REACH authorisation (Pb)
2018 2019 2020 2021 2022 2023 2024
Candidate
listing
Prioritization*
to A XIV
*) Swift prioritization likely due to large volume
/ mass of use
EC decision
on A XIV
A XIV
inclusion
Sunset
date
Default 3 years
AfA
deadline
Authorisation
can be granted
For 3-12 years.
Reasonable worst case estimate
9. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 9
ENGINEERING CHALLENGES
10. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 10
Impacts of REACH on a Space Supply chain
1. Directly affects the entire industrial sector through obsolescence of materials,
processes, and technologies at unprecedented scale
2. REACH needs to be taken into consideration already in the design phase
(Obsolescence risk management and planning)
3. REACH will affect the project even after manufacturing (fueling, pyrotechnics,
repairs, recurrent models, …)
4. Project duration also increases uncertainty and risk (one-off satellite payload
versus multi-decade launcher program)
5. Not only a compliance matter, but risk management in a niche market.
Cross-sectorial management within space community required
11. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 11
REACH is affecting European space industry as a whole. Coordination and information exchange of risk
analysis and mitigation is to the benefit of the entire community.
The Materials & Process Technology Board is a European platform that includes the major industrial partners and
space agencies. Tasks include:
● Legislation: Intelligence of legislative processes (e.g. REACH, RoHS) and coordination of actions.
● Obsolescence risk management: Identify in advance critical materials and processes.
Propose action plans to mitigate obsolescence risk of Materials & Processes.
Reduce programmatic risks and costs by early replacement.
● Data exchange: Share materials test data and avoid test duplication.
● R&D activities: Coordination of R&D activities, monitoring of alerts, analysis of in-orbit anomalies, etc.
● Communication & information exchange: Coordination of information via symposia, WGs, training. Development of
synergies with other industrial sectors.
● Splinter activities: Chromate space task force, hydrazine task force, European Space Materials Database (ESMDB)
steering board
● Standardisation: Provide inputs to European Space Standards (ECSS) – for example new obsolescence management
handbook (ECSS-Q-HB-70-23A)
European-wide coordination through MPTB
12. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 12
0
5
10
15
20
25
Annex XIV +
recom.
Candidate list SIN list
%Materialsaffected
2012
2013
2014
2015
2016
Trend of REACH obsolescence risk
short term long termRISK
MPTB
Future
mission
needs
REACH
risk
Materials
usage
R&D for
alternatives /
replacement
Applications
for
authorisation
Awareness for
obsolescence
/ regulatory
risks
13. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 13
Example of a an obsolescence mitigation action
Supplier actions
caused a need to
substitute a chemical
Affected members of
the MPTB organize a
working group
The working group
decides to evaluate
substitutes
Substitution
alternatives are
mapped:
Product
A
Product
B
Product
C
Product
D
Company A X X
Company B X
Company C X
Working group
agrees on the test
standards. Agencies
provide lab. support
Results are
shared within
the WG
Test A Test B Test C
Product A 55% 80% 95%
Product B 80% 80% 80%
Product C 60% 70% 90%
Product D 65% 55% 85%
Each participant
proceeds to their
individual
qualifications
14. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 14
PROJECT MANAGEMENT
CHALLENGES
15. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 15
Communication in the supply chain under REACH
• For substances, Safety Data Sheets
(SDSes) are mandatory and must contain
information on all SVHCs in the substance.
• For articles, all SVHCs over 0.1% per
weight must be declared (Article 33
declaration)
• European Court of Justice ruled in 2015
that collections of articles still retain the
individual articles. “Once an article,
always an article.”
Typically leading to an article
Process application
Use of substance
Examples
- Solvent cleaning
- Fueling of spacecraft
an object which during production
is given a special shape, surface
or design that determines its function
to a greater degree than its chemical
composition.
Use of mixture
(preparation)
Examples
- Application of adhesive, primer, paint
- Composite manufacturing
- Electrolytic metal plating
16. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 16
Example space project 2/2
System
Integrator
A
Customer
C
Subcontrac
tor B
Manufacturer
M
2008
Contract
negotiation Manufacturing
2012
Integration &
Testing
System
Integrator
A
2018*
*) 10.9.2015
ECJ rules:
“Once an Article,
Always an Article”
17. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 17
Example space project – Article 33
European Union
System
Integrator
A
Customer
C
Subcontractor
B
Manufacturer
M
Article 33 declaration request
Even though Article 33
declarations are a regulatory
requirement for B, it needs
to be in the contract for M!
18. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 18
CONCLUSIONS AND FUTURE
CHALLENGES
19. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 19
Conclusions
• In mid-term ~8% materials may be affected, in long-term possibly 20%. Impairment of quality
and reliability or even loss of critical technologies through obsolescence of qualified M&P must be avoided.
• Active European-wide obsolescence risk management necessary through the Materials and
Processes Technology Board (MPTB) as observatory and technical focal point.
• Space related uses of hazardous substances may have high potential for successful REACH authorisation,
however, there remains a significant commercial obsolescence risk due to the small market share.
• Project management needs to take current legislation into account, and realize that even future
legislation can affect current projects.
• Significant future investments are needed by industry and agencies for product replacements and
maintenance of production capabilities.
• Early replacement of materials/processes containing SVHCs may position European space industry on the
forefront of green technologies, and provide it with a commercial advantage after successful qualification.
• Stakeholder communication (supply chain, authorities, associations, etc.) is pivotal for success of
sustainable supply. SMEs are innovation drivers but often have limited resources to engage in deep long-term
risk assessment. Coordination of obsolescence issues with all stakeholders very challenging but
necessary for pro-active obsolescence risk management.
20. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 20
Future challenges of the REACH legislation
1. Waste Framework Directive.
• EU aims to minimize waste and enable efficient recycling. This directive will
require article manufacturers to provide SVHC information to the
European Chemicals Agency (ECHA) database starting 2021.
• This creates multitudes of questions and concerns that are currently
evaluated in the MPTB.
2. Brexit
• The exit agreement is still under negotiation, worst case is that UK will
become a third country with respect to REACH, which will have significant
disruptive impacts across the space supply chains.
3. Circular economy
• The legislation will not get more lenient. Future legislation might impact
ongoing projects.
21. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 21
Future workshops
2nd workshop on REACH regulation and its impact on space sector
13 November 2018, ESA HQ, Paris - https://indico.esa.int/event/268/
Materials and Processes Technology Board Stakeholder Day
11 June 2019, ESTEC, The Netherlands - https://indico.esa.int/event/264/
22. ESA UNCLASSIFIED - For Official Use
Thank you!
paavo.heiskanen@esa.int
reach.officer@esa.int
23. ESA UNCLASSIFIED - For Official Use Paavo Heiskanen | 24/10/2018 | Slide 23
Reference material
• ECHA Annex XIV authorisation list
• ECHA Candidate list for authorisation
• Article 33 declarations
• ECSS-Q-HB-70-23A – Materials, mechanical parts and processes obsolescence
management handbook (20 November 2017)
• Acknowledgements
• Thomas Rohr, Head of the Materials and Processes Section, ESA
• Tim Becker, REACHLaw