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- Dr. Surendra Kulkarni,
- Research Director, SABIC Technology Centre,
- Bangalore, India
Sustainability - Driving Business & Innovation in Chemical Industry:
SABIC Example
- IGCW – 2013, Dec 7, Bombay
No. 1
Developing world Today : Plastics usage 5-10 kg/person:
Credit: archartist on Stock.xchng - used under stock.xchng license - http://www.sxc.hu/photo/587281
No. 2
WILL CONSUMER AWARENESS CONTINUE TO RISE?
Add public picture of construction in china
“China will build housing for 400 million people in the next 12 years…”
“China builds the equivalent of two NYC’s every year…”
photo: Creative Commons ShareAlike 5: Baycrest - WikiCommons
Developed world - Today & rest of the world – Tomorrow : ~100 kg/person:
No. 3
If we continue the way we live/consume today
- we will need three earths!
Key challenges are:
• Resources and Environment: Ever rising energy demand. Access to clean
water and scarcity of various non-renewable resources.
• Food and Nutrition: Growing world population - needs more food from less
available land.
• Healthcare and Pharmaceuticals: Aging Population.
Only one earth for Nine billion people in 2050
Challenges provide opportunities……
SABIC Innovative Plastics Confidential
4 SABIC Innovative Plastics Program
December 14, 2013
Nature’s Carbon Cycle
Hydrosphere Biosphere
Lithosphere
Ocean uptake
Sedimentation & Fossilization Sedimentation &
Fossilization
Plant uptake
Sedimentation & fossilization of Carbon takes millions of years
Atmosphere
SABIC Innovative Plastics Confidential
5 SABIC Innovative Plastics Program
December 14, 2013
Stressed Carbon Cycle
Hydrosphere Biosphere
Lithosphere
Ocean uptake
Sedimentation & Fossilization
Sedimentation & Fossilization
Plant uptake Atmosphere
Industrial use of fossil resource puts back Carbon in less than a decade
Carbon Emissions
Fossil use
No. 6
then
Feedstock Have Changed
now
then
then
No. 7 SABIC Confidential
Less Energy Content
Ethylene EDC
LLDPE
Propylene
VCM
EO
Ethyl
Benzene
EG
Ethane
Propane
Naphtha
LDPE
HDPE
PP
PS
Styrene
Biomass
PO
Benzene
-3 -4 -2 -1 0 1 2 3 4
Average Carbon Oxidation State
Challenges in conversion: Fossils/ biomass/ CO2
CO2
Top 15
Products
Acrylic
Acid
No. 8
Global Mega Trends
1980s 1990s 2000s 2010s….
Quality Globalization Internet Sustainability
Sustainability is an emerging business mega-trend that will profoundly
impact a company’s competitiveness and even their survival”
Dan Esty, Harvard Business Review, May 2010
Sustainability is a major business mega-trend for some time
Climate Change
Energy Demand
Resource Scarcity
Food Demand
Water Scarcity
Environment Destruction
GHG Reduction
Conservation, Renewable
End-of-Life Solutions
New Crops
Conservation, Desalination
Clean Chemistry, End-of-Life
No. 10
SABIC IN NUMBERS
90 B$ total assets
50 B$ annual revenue
6.6 B$ net income
* Forbes 2012
8000 global patents
No. 11
WE RANK AMONG THE TOP PRODUCERS WORLDWIDE
#1 #2 #3 Mono-ethylene glycol
MTBE
Polycarbonate
Polyphenylene ether
Polyether imide
Methanol Polyethylene
Polypropylene
Polybutylene terephthalate
Engineering plastics
and its compounding
No. 13
THREE PILLARS OF SUSTAINABILITY
Environment
Economic
Social
Socio-
Economic
Eco-
Efficiency
Socio-
Environmental
Sustainability
• Job Creation
• Skills Enhancement
• Local Economic Impacts
• Social Investments
• Business Ethics
• Diversity
• Community Involvement
• Community Health/Education
• Poverty Eradication
• Work/Labor Standards
• Revenue
• Earnings
• Shareholder Return
• Growth
• Resource Efficiency
• Energy Efficiency
• Product Stewardship
Lifecycle Analysis
• Emissions Reduction
• Water management
• Waste Minimization
• Regulatory Compliance
• Incident/Spill Prevention
• Biodiversity
• Safety & Health
• Local Environmental Impacts
• Global Climate Change
• Resource Management
No. 14
SABIC’S SUSTAINABILITY CAN BE TRACED BACK TO ITS ROOTS
SABIC was founded in 1976 from a vision to
turn natural gas that had been previously flared
into valuable petrochemical products that we
could supply to meet the world’s needs
No. 15
SABIC SUSTAINABILITY KPIs
Established environmental performance targets for reductions in
2025 Intensity Reduction Targets
• 25% reduction in
• GHG emissions
• Energy
• Fresh Water Use
• 50% reduction in
• Material Loss Intensity
Sustainability Report
2011
GHG Energy
Water Material
Loss
Baseline Year- 2010
Sustainability Report
2012
Journey so far:
No. 16
Manufacturing improvements
Short term strategic projects
Investments
Long term strategic projects
Breakthrough
Technologies
2025
CONTINUOUS JOURNEY TO IMPROVE SUSTAINABILITY PERFORMANCE
2010
No. 18
INNOVATING ON SUSTAINABILITY ACROSS THE VALUE CHAIN
Lifecycle assessment
plays the role of
strategic tool both for
quantification and
innovation
around sustainability
No. 19
INNOVATING ON SUSTAINABILITY ACROSS THE VALUE CHAIN
UPSTREAM
PRODUCTION SABIC
DOWNSTREAM
VALUE ADDITION
END USER (CONSUMER)
END
OF LIFE
Sustainable Feedstocks
New Chemical
Routes/Pathways
Sustainable Sourcing
Sustainable Biofuels
New Technologies/
Processes
Best Oper Practices
Footprint Reduction
Supply Chain Optimzn
Sustainability in Design
Green Chemistry
Projects
Sustainable Products
Material Efficiency/
Downgauging
Energy Efficiency
Solutions to
Customers
Alternate Products
Light Weighting
Use Phase Savings
Enhanced Life and
Functionality
Replacement of toxic
chemicals with non-toxic
chemicals
Waste Management
Closing the loop -PCR
Bio-degradable Products
Chemical Recycling
No. 20
LCA AS A BUSINESS TOOL
Sustainability
Policy Making
Regulations
Process Improvement
Product Marketing
Supply Chain Optimization
Technology Assessment
LCA
Environmental
Economic
Social
No. 21
SUSTAINABILITY ASSESSMENT IN PROCESS / PRODUCT EVALUATION
Project Proposed
Stage
e.g. R&D
Stage
(e.g. Piloting)
Project Completion
(e.g. commercialization)
Success
Sustainability
Evaluation
Business
Decision
Sustainability
Evaluation
Sustainability
Evaluation Sustainability
Evaluation
Business
Decision
Business
Decision Business
Decision
Data quality and richness increases over time
Sustainability Evaluation in Business Decision Making
No. 24
VALOX IQ* RESIN - CHEMICALLY RECYCLED PBT
Based on novel chemical “up-cycle” process
• Eliminates post-consumer solid waste
• Delivers performance of virgin PBT
• Inhouse technology with # patents granted
Valox iQ* Recycled PBT Resin has better
environmental footprint
LIFE CYCLE GHG AND ENERGY
FOOTPRINT COMPARISON
Cradle to Gate Analysis
49% lower
GHG emissions 61% lower
energy demand
VALOX IQ*
40% fossil derived
input
Fossil Feedstock
Waste Plastic Feedstock
60% PCR
Applications
No. 25
25
IMPACT OF IQ PBT AND XENOY IQ* PRODUCTS ON ENVIRONMENT
Carbon Dioxide
Barrels of Oil
Solid Waste
Saved vs Standard PBT
~ 2 Tons/Ton
8 barrels/Ton
0.9 Tons/Ton
No. 27
SABIC CARBON CAPTURE AND USE PLANT
Largest CO2 plant (1500 tons/day) in the world
Concentrated CO2 vented gas from ethylene glycol plants
Ethylene Glycol
Plant
Methanol
Plant
Liquid CO2
EG (Main Product)
CO2 Vent CO2 Purification
Process Urea Plant
Reduces 500,000 MT CO2/year
venting
Material Efficiencies
Displaces need for additional natural gas
Affiliate
United Jubail Petrochemical
Company (UNITED) plant
Beverage
Industry
No. 29
EU RENEWABLE ENERGY DIRECTIVE (RED)
*for installations where production started on or after 1 Jan 2017
EU Mandatory Targets for 2020 Sustainability criteria for biofuels and
bioliquids
0
20
40
60
80
100
Fossil Gasoline Biofuel (2010) Biofuel (wef 1Jan 2017)
Biofuel (wef 1Jan 2018*)
Gre
enh
ou
se g
as e
mis
sio
ns,
gC
O2/M
J
Direct ( emissions from combustion)
Indirect (process, transportation)
-35% -50%
-60%
2010 2017
2018*
The GHG emissions saving from the use of
biofuels and bioliquids 20 % share of energy from renewable
sources
Mandatory national target of 10%
share of energy from biofuels in
transport petrol and diesel
consumption
No. 31
High performance materials help customers meet industry and
environmental challenges
Environmentally Progressive
Safety Fuel Efficient
Enabling Design Branding Durable @ Every Temp
TODAY AND INTO THE FUTURE
No. 32
FENDERS MADE WITH NORYL GTX RESINS
KEY BENEFITS • On average 50% lighter than steel
• Improved fuel economy
• Improved dent resistance
• Electrostatically paintable
• Greater design freedom vs. steel and aluminum
• Compatible with recycling practices
LIFE CYCLE GHG AND ENERGY
FOOTPRINT COMPARISON
45% lower
Energy Demand
46% lower
GHG emissions
No. 35
SABIC MULTILAYER PACKAGING FILM CONCEPT
C4 LLDPE + LDPE
HDPE + LDPE
mLLDPE + LDPE
LDPE + HDPE
mLLDPE + LDPE 9
27
9
HDPE + LDPE
C4 LLDPE + LDPE
LDPE + HDPE
5
17
4
4
5
Total film thickness down from 45 microns to 35 microns (22% downgauging)
Market Incumbent Solution SABIC 5 Layer Film
Smart Combinations Leading to Material Efficiency
Beverage Collation Shrink Film
for packaging application
No. 36
LCA RESULTS
5 Layer PE Film SABIC solution is environmentally better than 3 Layer PE Film
Cradle to Grave Analysis
-50
0
50
100
150
200
IPC
C 2
00
7 G
WP
10
0a
,
kg
CO
2 e
q. p
er
fun
cti
on
al u
nit
SABIC 5 Layer PE Film
3 Layer PE Film
-1000
0
1000
2000
3000
4000
Cu
mu
lati
ve
En
erg
y D
em
an
d,
M
J p
er
fun
cti
on
al
un
it
SABIC 5 Layer PEFilm
Functional Unit: 1000 m2 of multilayer PE packaging film
No. 38
Alternatives to halogenated flame retardants –
elimination of hazardous incineration byproduct
Noryl NH series, Lexan non-BR FR series, Cycoloy
FR series, Valox/Xenoy ENH series, Flexible Noryl
ADVANCED FLAME RETARDANTS – ENHANCED PRODUCT SAFETY
Broad Portfolio – different applications
Noryl printed
circuit board
enclosure –
washing machine
Cycloloy LED
lighting enclosure
Lexan LED cover
High Performance
Eco-labels
External Regulations
RoHS, WEEE
EPAT, TCO,
Ecoflower,
Blue Angel
Flexibly Noryl
cables and
wires
http://www.sabic-ip.com/gep/en/AboutUs/SustainabilitySolutionsDetail/advancedflameretardance.html
No. 40
GREEN CHEMISTRY CAMPUS
Green chemistry campus
in Netherlands to convert
agricultural waste into
value-added bio-based
building blocks
SABIC Sustainability report 2011
No. 41
SABIC | GRIHA | RECOGNITIONS
Award for Exemplary Demonstration of Site Management Practices
SABIC Research Center Bangalore
No. 42
OUR KEY ASSETS: PEOPLE AND INNOVATION
SABIC’s Bangalore Global Research Center,
Inaugurated last week, is the largest of the
4 Research and application Centers SABIC
will inaugurate in 2013
No. 44
EXTERNAL ADVOCACY / ENGAGEMENT
Global Sustainability Consortiums
Industry Associations
Academia/ International Sustainability Conferences
No. 45
SUMMARY
SABIC commitment to sustainability
Sustainability is in SABIC DNA
Sustainability as Innovation Driver
Clear and transparent sustainability goals
Footprint reduction projects
LCA as a strategic tool
LCA studies helped business make informed decisions
Reduce cost by terminating non sustainable projects at early stage
Help identify major hotspots in value chain
Direct technologists to develop sustainable solutions for customers and society
No. 46
REFERENCES
1. DIRECTIVE 2008/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 March 2008, Official
Journal of the European Union, L 81/48, 20.3.2008,
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:081:0048:0050:en:PDF
2. DIRECTIVE 2009/30/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009, Official
Journal of the European Union, L 140/88, 5.6.2009,
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0088:0113:EN:PDF
3. Well-to-Wheels analysis of future automotive fuels and powertrains in the European context, WELL-TO-TANK Report,
Version 2c, March 2007JRC, http://ies.jrc.ec.europa.eu/uploads/media/WTT_Report_010307.pdf
4. Ecoinvent Report# 08_Chemicals
5. PERP Report # 07/08-2, Methanol
6. PERP Report # 94/95-4, MTBE
7. http://www.prnewswire.com
8. Ecoinvent Report 14_Transport
9. International Reference Life Cycle Data System (ILCD) Handbook: Recommendations for Life Cycle Impact Assessment in the European context, First Edition, 2011.
10. ISO 14040:2006 “Environmental management — Life cycle assessment — Principles and framework”
No. 47
REFERENCES
11. ISO 14044:2006 “Environmental management — Life cycle assessment — Requirements and
guidelines”
12. Eco-profiles of the European Plastics Industry, “HIGH DENSITY POLYETHYLENE (HDPE)”, A report by I
Boustead For PlasticsEurope, 2005
13. Eco-profiles of the European Plastics Industry, “LOW DENSITY POLYETHYLENE (LDPE)”, A report by I
Boustead For PlasticsEurope, 2005
14. Eco-profiles of the European Plastics Industry, “LINEAR LOW DENSITY POLYETHYLENE (LLDPE)”, A
report by I Boustead For PlasticsEurope, 2005
15. PlasticsEurope (May 2009) Eco-profiles & Environmental Declarations _ Methodology, PCR & Protocol ,
Belgium; Brussels
16. PlasticsEurope Report “Plastics - the Facts 2011: An analysis of European plastics production, demand
and recovery for 2010”, 2011
17. Ecoinvent Report# 01_OverviewAndMethodology
18. Ecoinvent Report# 11_II_Plastics
19. Ecoinvent Report 13_I_Waste_treatment_General_V2.1
20. Ecoinvent Report 13_II_Waste_Incineration_V2.1
No. 48
REFERENCES
21. Ecoinvent Report 13_III_Landfills_V2.1
22. Franklin Associates Final Report “Life cycle inventory of 100% postconsumer HDPE and PET recycled
resin from postconsumer containers and packaging”, April 2010.
23. ReCiPe 2008 “A life cycle impact assessment method which comprises harmonised category indicators
at the midpoint and the endpoint level” First edition, Report I: Characterisation, Mark Goedkoop, Reinout
Heijungs, Mark Huijbregts, An De Schryver, Jaap Struijs Rosalie van Zelm, 6 January 2009.
24. “LIFE CYCLE ASSESSMENT: PRINCIPLES AND PRACTICE” By Scientific Applications International
Corporation (SAIC), EPA/600/R-06/060 May 2006.
25. SimaPro 7.3.3, http://www.pre-sustainability.com/simapro-lca-software
26. http://www.mfe.govt.nz/publications/waste/product-stewardship-options-mercury-containing-
lamps/page9.html
27. http://www.pod-sabic-ip.com/KBAM/Reflection/Assets/Thumbnail/22508_2.pdf
28. http://www.pod-sabic-ip.com/KBAM/Reflection/Assets/Thumbnail/20333_5.pdf