04/03/2013
Asking more from chemistry
“More than a pledge, our signature is a vision and a challenge to which we are fully committed”
Jean-Pierre Clamadieu, CEO
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Building a strong leader, a player in the reshaping of the global chemical industry. Asserting ourselves as a model of sustainable chemistry, capable of attracting and developing talented people who conceive, design and produce solutions to meet the major challenges facing society today.
Building a model of sustainable chemistry
10,213 million net sales
26,000 employees
119 sites
52 countries
15 major R&I centers
2014 figures
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26%
18% Automotive
& aeronautics
10% Energy & environment
11% Agro, feed
& food
12% Building & construction
7% Electrical & electronics
16% Industrial applications
Distribution of 2014 net sales
A diversified offering
Consumer goods
& healthcare
Solvay by market
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6 R&I areas to meet the challenges of the future
Expertise in polymers and formulations
Advanced materials
Developing alternatives to fossil fuel consumption: new generation batteries, photovoltaics, bio-energy
Sustainable energy
Materials to improve the sustainability of lighting devices and screens
Organic electronics
New processes offering diminished raw materials and energy consumption, and reduced emissions
Eco-designed processes
Innovation in renewable or recycled raw materials
Renewable chemistry Creating responsible products that provide solutions to global issues
Advanced formulations
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Our business activities…
Soda Ash & Derivatives
Aroma Performance
Coatis
Novecare
Silica
Rare Earth Systems
Specialty Polymers
Acetow
Peroxide P&I
Engineering Plastics
Polyamide
Corporate Functions
Energy Services
Special Chemicals Emerging
Biochemicals
Fibras Adva
nced
Mate
rials
Perfo
rman
ce C
hemi
cals
Func
tiona
l Poly
mers
Corp
orate
& B
usine
ss S
ervic
es
Adva
nced
For
mulat
ions
Function Competitiveness Bio-attribute
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eucalyptus spruce pine coconut palm soybean rapeseed peanut
corn rice
castor bean
guar sugarcane
Plants: a source of natural molecules and polymers
fatty acids
sugars
glucose polymers polysaccharides
wheat
alcohols glycerin
… rely on diversified biosourced materials…
b-pinene
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… from different geographical origins
eucalyptus
eucalyptus
spruce rapeseed
corn/wheat
guar
coconut palm
castor bean
rice pine
pine pine
pine
Sugarcane (sugar, bagasse)
sugarcane
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
Some needs of clarification ? Same challenges ? Same answers ?
Renewable based chemistry
Sustainable chemistry
Biotech-based chemistry
Green Chemistry
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
Some needs of clarification ? Same challenges ? Same answers ?
Renewable based chemistry
Sustainable chemistry
Biotech-based chemistry
Green Chemistry
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The bio-based chemistry is a new production paradigm driven by the latest developments in both classical chemistry and biotechnologies
• A bio-based chemical or polymer is defined as a material that contains carbon derived from renewable feedstocks - Not to be confused with bio-
degradable or bio-processed/biotechnology
- It can be bio-sourced identical replacement (“drop in”), new types (polymers such as PLA, PHA) or functional replacement (esters for plasticizers or hydrocarbon solvents, isobutanol for gasoline, FDCA for TPA)
- No global standard defining the bio-sourced products, but multiple certifications and labels with important variations (bio-sourced content limited to carbon or extended to other atoms, level of minimum bio-sourced content…)
Our definitions
Prod
uct o
rigin
Non
Fos
sil
~ bi
o so
urce
d
Foss
il
Biotechnologies Classic chemistry
Transformation routes
Limited range of opportunities. Indeed, most of the biotransformation raw materials are oxidized products, whereas fossil products are mainly reduced
Scope of the bio-based strategy
E.g: Epicerol, Biobutanol, FDCA,
Bio-sourced ethylene...
E.g: Cobalt/Biobutanol, Succinic acid , 1,3PDO,
production from glucose
fermentation,…
E.g: Acrylamide synthesis from acrylonitrile via
enzymatic hydrolyze, DDDA from paraffins..
NB: the « bio » terms used in every day life corresponds to a defined specifications , without any systematic link with bio sourced or bio transformed
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Propylene glycol
2,3 Butanediol
Lactic acid
Ethane/ Ethylene
Propylene
Butanes Butadiene
Isobutylene
Maleic anhydride Succinic acid
PE, PVC
PP
Ethylene oxide
Propylene oxide
Acrylic acid
Acrylic fibers ABS Adiponitrile Acrylamide
Methane Methanol
Epichlorhydrin
C4
C3
C2
C1
MTBE
PUR
Ehylene glycol
Butanol
Polybutadiene, neoprene, Styrene butadiene rubber
Epoxy resins
Acrylic esters, polymers
Syn gas
Antifreeze, polyester, resins, surfactants
Formaldehyde
1,3 propane diol PTT
O OO
N
Glycolic acid
O
OHO
OHOH PGA
Acetic acid
CO
Furfural (C5) H2O2
CO2
Glycerol (C3)
Glucose C6
Biomass Acrylonitrile
OH
O
3-HP
Ethanol
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Agro/food/feed Chemical Renewable Chemistry
Petroleum
BP Shell
Tate&Lile
Cargill
Roquette
ADM
Dupont
DSM
Teijin Dow
Arkema BASF Evonik
Cognis Ajinomoto Kyowa Hakko
Kureha
General motors
Toyota Car
Planes Boeing
Many changes appearing in the value chain (1)
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Starch
Sugar
Oils
Wood ligno-cellulose
Sugar
Oils
Many changes appearing in the value chain (2)
Bio-based value chain
Feedstock/Agro Chemicals
Recycling Seed Farming Biomass producer
Biomass transformer
Chemical intermediates and building
blocks
Derivatives Finished Products
End Consumers
Consumer
Natureworks Galactic
2nd generation biomass
transformer
Enzyme majors
NOT EXHAUSTIVE
Potential new entrants
Partnership and joint
development
Secure competitive feedstock
Premium
Downstream integration
Sell licences for making competitive feedstock
Sell licenses of breakthrough processes and new building blocks
Sell Enzymes
Bioprocessing Chemocatalytic
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Bio-conversions have an intrinsic disadvantage for large scale bulk production
Chemical
Fermentation
Plant size
Prod
uctio
n co
st /
t Scale up savings are limited
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Reading
Writing
Technology – synthetic biology
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An ever faster pace of innovation
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An increasing number of alternative for the same market needs
Illustration: Polyamide production routes
Bio feedstock (sugar /
cellulose, glycerin,
castor oil)
Petro chemical feedstock
PA12
PA11
PA 6-10
Propylene / ACN
Benzene / Toluene
HMDA
Laurolactam Butadiene
PA 6-6 Adipic acid
Gas, coal, others
Sebacic acid (C10)
Undecylenic acid (C11)
Future GMO: algae and oil
Other
Polyvinyl Butyral
Other Resins
Polycarbonates
Polyethylenes
Acrylonitr-Butadi-Styrene 6%
8%
12%
15%
Polyvinyl Chloride
Polyamides
Polyurethanes
Polypropylene
Plastics in cars [2011]
170 kg/car
9% 2%
13%
5% 5%
24%
Function to material arbitrage Chemical to raw material arbitrage
New feedstock
(algae, GMO crops,..)
New fossil feedstock
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.. leading to an ever increasing complexity ! Addressing renewable chemistry means answering to questions like:
• The competitiveness of biobased raw materials versus present and new C-
sources
• The ability to define new competitive chemical schemes more specific to biobased molecules
• The breakthrough economic potential of biorefineries, which would integrate several businesses
• The suitability of biobased raw materials for designing final products with differentiated properties and market traction
• The potential of biotechnologies to revolutionise or not the commodity/specialty chemical production, from raw materials to end products
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
- Natural vanillin: Rhovanil Natural® - Augeo® solvent, based on glycerol for paints
- Polyamides using sebacic acid: Stabamid® 6.10, Kalix® HPPA - JAGUAR®, a guar based rheological agent for cosmetic - Rhodoclean, surfactant based on pine derivatives
The 3 levers of Renewable Based Chemistry
Improve competitiveness
New functions and properties
Valorisation of Bio-Attribute(s)
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
Renewable based chemistry
Sustainable chemistry
Biotech-based chemistry
Green Chemistry
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The central problem with the present times,
is that the future
isn’t what it used to be….
Paul Valéry
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The main drivers for competitive biotech-based production
Sugar unit. price Yield Capital
Process definition
Strain/ Chemistry
Process definition
Integration within existing sites Tuning
Lockers :
Levers :
* Chemical or enzymatic hydrolyisis
Biomass cost Capital
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Cellulosic transport solved?
Technological
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Feedstocks costs:volatility for all ?
0%
100%
200%
300%
400%
500%
600%
700%
1981
1982
1983
1985
1986
1987
1989
1990
1991
1993
1994
1995
1997
1998
1999
2001
2002
2003
2005
2006
2007
2009
2010
Maize (USD/ton)Wheat (USD/ton)Palm oil (USD/ton)Soybean oil (USD/ton)Sugar (USD/lb)Crude oil (USD/barrel)
Jan 2001 = 100%
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Feedstock: correlation ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Feedstock: dispersion ?
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Return on investment - Constraints Develop Process Build Factory Operate
Timeline
Time
Spen
ding
Pathway eng. Optimization
Pilot Demo
~100 mUSD Or more…
5-10 yrs 2 yrs
2000-4000 USD/T
Fine Specialty Bulk
Margin
Market
Price
• Equation will not work for many molecules… Upfront analysis! - Market size - Margin - Scaling factor - Drop-in vs new molecule - Etc.
• One factory will not cover R&D investment… Business Model!
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Challenges to reduce constraints • Total cost should decrease – Don’t forget: Time is money too!
• Increase range of potential molecules
Development stage
• Faster and cheaper optimization
• Eliminate demo stage
• Novel enzymes/Micro-organisms
Operations
• Low-cost, available feedstock with low price volatility
• Trinity - Titer, Yield and Productivity (Impact on building cost, operating cost and scaling)
• Novel industrial downstream processes
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Other challenges, questions, trends • Societal challenges
• Competition with food / feed chains • ILUC (indirect land use change) • Engineered crops and GMO • GMM and corresponding processes • Synthetic biology: understanding ? acceptability ? • Circular economy, waste valorisation • Management of emerging technologies
• CO2 challenge: helping or not ? - LCA and footpint improvement of processes and products ?
• Scientific and technological challenges
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• Economical challenges • Regional ? Which advantages for each region ? • Switch to biomass: when ? • Raw materials: a new one per decade ?
– Methane / shale gas/ methanol – Coal
• Speed of evolution of fossil energies / raw materials ? • Price variability of biobased raw materials, especially if exposed to food/feed chains • Time and cost of process developments
• Regulatory questions : • Increasing number of labels, triggering even more debates: eg biosourced contents • Biology: one of identified KET • Support to R&D : • Subsidies and biaised competition :
– Subsidies to biofuels ? – Subsidies to biosourced products ?
• Some trends:
• Convergence nano/bio/info
Other challenges, questions, trends
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Some signals for the future • BOB = Berkeley open biofoundry
• In silico development: - The robo-chemist + IBM’s robo-chef - Interconnected databases - Targeted evolution of enzymes
• Consortia of strains
• Outsourcing of chemistry to upstream part: - Tailored crops
• Impact of circular economy ?
• Discoupling biotech and biosourcing: - Biotech on paraffins, on gases (CH4,..)
• Artificial enzymes with non-natural amino-acids
• Synthetic biology - Increasing knowledge on the system level - Increasing speed of the integration/optimization process
• Intracellular isolation of toxic intermediates
• Metagenomics as a way to tap into new enzymes, MOs
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
Renewable based chemistry
Sustainable chemistry
Biotech-based chemistry
Green Chemistry
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Some questions the Twelve Principles of Green Chemistry: a need for redefinition ?
• What does « green » mean ? an old fashioned, imprecise concept ?
• The 12 principles: interesting but too narrow scope - Too closely linked to the manufacturing process - Process not seen as a possible loop - Missing a more systemic view - Not a complete set able to capture the many dimensions we now have to take into
accounts - …
• Balance between the benefit and the cost (environmental, societal, ..etc)
• From a « clean production » to a « beneficial product » to a « sustainable solution »
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(Green) Chemistry facing breakthroughs ? • Increasingly powerful materials
• Increasing ability to design chemicals
• But also increasing ability to analyse, detect, monitor - Improvement of detection systems - Dramatically increased number of sensing / monitoring devices - Ability to detect / predict harmfull effect - Ability to track more systematically « cocktail effects »
• Nevertheless, gaps could become wider between: - Fast product innovation pace - Longer time needed to evaluate the products or even build new assessment /
evaluation methods - Even longer time to generate a (detrimental) impact and detect it
• Sharper expectations from “non chemical stakeholders”
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- Use of glycerol instead of propylen: Epicerol® - Development of N-butanol production on bagasse in Brazil
Renewable based chemistry
Sustainable chemistry
Biotech-based chemistry
Green Chemistry
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How to mainstream « green chemistry » ? Sustainability, a more inclusive concept
• Some possibilities external to the company, pushed by a growing public sensitivity - Regulation, as long as it doesn’t introduce a competitive biais and is
scientifically sound - Norms, referentials, environmental notation agencies - Pressure from external stakeholders: Markets, NGOs, Communities
• Internal possibilities, from the industry as a whole or for a company
• Solvay’s answers - Formalised approach (Solvay Way) embedding Corporate Social
Responsibility - Responsible Research & Innovation (Nanos, GMO,..) - SPM methodology and tool to assess each product (or each R&D project)
along 2 dimensions (production vulnerability, market sustainability)
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SPM materializes the business sustainability risks and opportunities
Forces us to consider key elements that are usually
overlooked
Operations Vulnerability
What and where are the risks and opportunities on our P&L if consumers or actors in the downstream value chain prefer solutions with lower environmental footprint? • Ecoprofile (cradle-to-gate) • Monetization of the impacts • Compare to sales price
Market Alignment
From a sustainability standpoint and a consumer perspective, is our product used in selling propositions that are part of the solutions or part of the problems? • Questionnaire (cradle-to-grave) • Authoritative external evidences to support
claims
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Responsible Research & Innovation what happens if you don‘t keep an eye out!
“In the age of information, ignorance is a choice.” Anne Goldberg, New Innovation Platform Director, Solvay,
EIRMA Consultation meeting Towards a set of responsible innovation guidelines for members;
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Solar Impulse needs our Chemistry for energy management and weight reduction
Solar Impulse Pioneering sustainable chemistry
www.solvay.com