Chinese Regulations Innovation you can build on™ Coastal Zone Permit Application Public Hearing August 2014 Robert Stewart Site Director New Castle Delaware

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Innovation you can build on™

Coastal Zone Permit ApplicationPublic Hearing

August 2014

Robert StewartSite DirectorNew Castle Delaware

http://www.americanchemistry.com/s_acc/sec_multimedia.asp?CID=477&DID=1607&DT=Y

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Company Overview

CRODA is a world leader in natural-based specialty chemicals sold to virtually every industry

Headquarters in UK – Global reach with over 3200 employees in 34 countries

Global businesses broadly classified in three market sectors Consumer Care Performance Technologies and Industrial Chemicals Health Care and Crop Care

Key Business Drivers

Innovation Technology Sustainability

66 % of Raw Materials sourced from renewable resources

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SUSTAINABILITY

Our Approach

At CRODA, sustainability means doing business the right way: environmentally, socially and financially. This means adapting and challenging ourselves to meet business needs, today and in the future.

Our Responsibility

At CRODA, we are fully committed to:

• using renewable raw materials and environmentally sensitive processes; • producing innovative ingredients that help improve the sustainable credentials of

end products; and • supporting our people and the communities in which we operate.

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SUSTAINABILITY

Our Targets

Based on 2010 reduce

- Energy consumption by 5% by 2015

- Water consumption by 10% by 2015

- Waste to landfill by 20% by 2015

Generate 25% of total energy requirements from non-fossil fuel sources by 2015

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4.5% reducti

on

How are we doing against the targets?

Continued focus on energy savingsOffsetting new asset additions

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Minimizing the impact of our operations

The courage to implement change

2012Landfill gas conversion

Groundbreaking ceremony, Atlas Point

20 yrLandfill gas supply

agreement with Cherry Island Renewable

Energy (CIRE)

$6MMProject for

Combined Heat & Power (CHP) units

for LFG conversion

$2.1MMFor steam boiler

providing additional LFG conversion &

other fuels

2014Project completed

with go live of 3,000 solar panels

at Atlas Point

$2.3MMFor solar panel project using

Delaware manufactured

panels

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Raising the renewable energy barWe saved enough energy to:

Renewable Energy – Minimizing the impact of our operations

Our reality

Minimum 25% of energy from non-fossil fuels by 2015

YTD Energy generated by

renewable land fill gas & solar

Our target

25%

>60%


Power

> 1,200 homesFrom LFG and solar

Fuel

2.7 Million carsFrom steam power

Reduce

CO2

EmissionsFor greener footprint

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2010 2014125,000,000

135,000,000

145,000,000

155,000,000

165,000,000

175,000,000

185,000,000

195,000,000

171,924,228

144,588,233

Total Process Water Usage (gallons)

Equivalent to filling 41Olympic size swimming pools

15.9% reductio

n

Reduction of27,335,995 gallons annually

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2,098,780

458,560

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2010 2014

Total Waste to Landfill

78% reductio

n


Equivalent to 63 less truckloads every year to landfill

Reduction of1,638,203 lbs annually

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Glycols Storage

CO2 Removal

EO Reaction

Ethanol Dehydration

Reaction

Ethylene Purification

EO Storage

EO Purification

Glycols Reactor

Steam

EO purge

Ethanol to Ethylene Oxide Process Flow Diagram

Ethanol Ethylene

EthyleneOxide

Oxygen

Carbon Dioxide

Ethylene GlycolWater

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OUR PROCESS SAFETY MANAGEMENT SYSTEM IS ALIGNED WITH THE OHSAS 18001 HEALTH AND

SAFETY MANAGEMENT SYSTEM

A detailed Process Hazard Analysis is conducted by a multi-disciplinary team

A six-week effort evaluating each process component step-by-step using process flow drawings

Failure modes of critical components are analyzed

The process safety aspects of this project have been thoroughly analyzed and addressed

How do we ensure our processes are safe?

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Apply industry recognized safeguards e.g. American Chemistry Council Ethylene Oxide Safety Task Group design manual

Design according to nationally recognized standards (API, ASME)

Review by external third parties and regulatory agencies e.g. DNREC Boiler Safety, State Fire Marshal, etc.

Install multiple layers of protection

Use automatic interlocks that shutdown the process if any abnormalities are detected

Provide redundant detections systems

Automate with computer control systems which eliminate human errors

How do we ensure chemicals are not released?

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Project & Coastal Zone “Footprints”

• Project is within CZ footprint• Project area previously disturbed• 30+% decrease in impervious area

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Summary of Project Air Emissions

Potential Annual

Emissionslb/hr TPY lb/hr TPY lb/hr TPY TPY

CO 1.0 4.5 0.067 0.29 -- -- 4.8NOx 0.7 3.3 0.079 0.35 -- -- 3.6

SO2 0.0074 0.032 4.8E-04 0.0021 -- -- 0.035VOC 0.8 3.6 0.060 0.26 0.0052 0.023 3.9TSP 0.094 0.41 0.0060 0.026 -- -- 0.44CO2e 1,395 6,109 2,920 12,789 -- -- 18,898

PollutantEthanol Dehydration

FurnaceCatalytic Combustion

UnitEthanol Tanks

= 8 tpy

DNREC required Croda to offset air emissions 1.3 to 1 or 10.4 tpy

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Air Emission OffsetsCroda Projects

PM(total) NOx SOx VOC

Multi-purpose plant upgrade

Dedicated raw mat'l line

1 15 1 1

76 1080 71 88

18 76 1 13

163 2315 152 189

Boiler #5 Upgrades

Blowdown cooler 8 33 1 6

Utilities Upgrades

Automatic blowdown control

10 44 1 8

Improve condensate return control

19 78 1 13

Improve condensate return from Warehouse

7 28 1 5

Solar Field 775 kW 972 2251Total lb/yr 301 4643 2480 323

Tons per year 0.2 2.3 1.2 0.2

Total tpy 3.9

Acquired Credits tpy 7.0

Total Offset tpy 10.9

Annual Air Emission Reductions - lb/yr

Croda Inc. Air Emission Offset

Plant Wide Tank Farm

Fixed Storage tanks

Title Description

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Water/Wastewater OffsetsCroda Projects

Material Conserved

Water gal/yr Wastewaster gal/yr

Water Reduction to 5 AC Scrubber

Make-up water control Water Reduction WaterWastewater

2160000 2160000

Plant Wide Tank Farm

Fixed Storage Tanks Truck Washouts WaterWastewater

1680000 1750000

4 A/C Deodorizer cooling improvement

recirculate once-through cooling water

Water Reduction WaterWastewater

1167100 1167100

MP-1 condensate recovery

Condensate Recovery Water Reduction Wastewater 111800

Utilities Upgrades Automatic blowdown control Water Reduction WaterWastewater

1350000 1350000

Improve condensate return control


2400000 2400000

Improve condensate return from Warehouse


864000 864000

Totals gal/yr 9,621,100 9,802,900

Croda Inc. Water/Wastewater Offsets

Title Description Basis Annual Reductions

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CRODA is a socially conscious, responsible corporate citizenCRODA’s chemical facilities are built and maintained to world class standards for process safetyCRODA is committed to continue to invest in its Atlas Point facility to make it safe and reliableCRODA is dedicated to providing its customers with sustainable productsThe ethanol to ethylene oxide facility is a significant advancement in making CRODA’s products sustainableThe ethanol to ethylene oxide facility will

- preserve over 200 full time current employees for the foreseeable future- create some 250 construction jobs and 28 new well-

paid permanent jobs- eliminate the transportation of ethylene oxide by

railcar

Summary

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CRODA has met the requirements of Delaware’s Coastal Zone Act, and requests the Department issue a Coastal Zone permit in accordance with the statute

Conclusion

Documents

Chinese Regulations Innovation you can build on™ Coastal Zone Permit Application Public Hearing August 2014 Robert Stewart Site Director New Castle Delaware