Sustainability in Industry: Benchmarks and Road Maps Darlene Schuster Director, Institute for Sustainability November 2008

Sustainability in Industry: Benchmarks and Road Maps

Darlene SchusterDirector, Institute for Sustainability

November 2008

Acknowledgements

– Calvin Cobb, Chair Institute for Sustainability 2006-7– Subhas Sikdar, Chair Instiute for Sustainability 2008– Golder and Associates

• Beth Beloff, • Dicksen Tanzil,• Abigail Martin

– Industry Representatives to Center for Sustainable Technology Practices (CSTP) Sustainability Guide Task Group

• Carol English, Cytec Industries, Inc.• Charlene Wall, BASF• Dave Taschler, Air Products

– Lafayette College • Professor Javad Tavakoli

• A community of sustainability “practitioners” – Companies (Center for Sustainable Technology Practices)– Professionals—industry and academic (Sustainable Engineering

Forum)– Youth (Youth Council for Sustainable Technology Practices)

• Organized under the American Institute of Chemical Engineers (AIChE) – Professional membership organization– Non-profit 501c(3)

The Institute for Sustainability

Overview of the Institute

Mission: to serve the needs of and influence the efforts of professionals, academes, industries, and governmental bodies that contribute to the advancement of sustainability and sustainable development.

IfS

Practitioners, students & companies

Sustainability Engineering Forum

745 AIChE members950 additional non-

AIChE members$25 dues

Center for SustainableTechnology Practices

Industry Group10 companies, growing

Air Products, BASF, Cytec, Dow, FMC, Honeywell

Interface Inc. , Middough (WalMart)

Projects of IfS1.Sustainability Index

Purpose of financial guidance,benchmarking & management

Differential to other indicesPotential for high profitability

2. ICOSSE Aug 09

Youth Council onSustainable Sciences

& TechnologiesPartnership w/ SustainUS9750 students, growing

Incorporates sustainabilityinto undergrad research,

sponsors awards & studentchapters

[email protected]

Triple Bottom Line: A Business View of Sustainability

“Sustainability is a path of continuous

improvement, wherein the products

and services required by society are

delivered with progressively less

negative impact upon the Earth”

Defined by AIChE Institute for Sustainability November ‘04-July ‘05 Grassroots Project, Earl Beaver, Chair IFS

IndustrialEcology

WatershedProtection

EcosystemsModeling

Credit TradingDesign

How is your Company’s Sustainability Performance Viewed?

• By the community?• By your shareholders?• By your customers?• Versus your peers?

The AIChE Sustainability IndexTM

How is your Company’s Sustainability Performance Enhanced?

• Via the value chain?• by corporate decision making?• by job function?

The CSTP Sustainability Roadmap A Process for Sustainable Decision Making

Purpose of a Sustainability Index

• Investment guides» Ethical investment/SRI

» Long-term return (“stock picks”)

• Stock market indices

• Stakeholder ratings

• Benchmarks for company management

Examples of Financial SI’s

Investment Guide?

Market Index?

Manage-ment

Benchmark?

Consult to Companies?

DJSI

FTSE-4Good

GS- Sustain

Innovest

An Example The Dow Jones Sustainability Index (DJSI)

• Investment guide

– Includes only companies that meet DJSI criteria – governance, transparency, accountability

• Stock market index

– Track market performance of DJSI components

– Subset of corresponding broader indexes

• DJSI World, subset of Dow Jones World Index

• Benchmarking

– Inclusion, being sector leader

– Consulting services through SAM – analysis and recommendations for companies who want to be included, improve ratings

Used for Market Tracking

Source: SAM, Dec 2007

Reporting of Financial SI’s

• Dow Jones Sustainability Indices– Inclusion (in or out), ‘Supersector Leaders’

– Individual company scores & analysis – to licensees only

• FTSE4Good– Inclusion (in or out)

– Individual company scores & analysis – to licensees only

• GS SUSTAIN– Ratings: leaders, average, and laggards

– Analysis for sector leaders

» energy, mining & steel, food & beverage, pharmaceutical, alternative

energy, environmental technologies, biotechnology

• Innovest– Top companies – sector leaders & Global 100 list

– Ratings (AAA to CCC) and analysis, for investor clients only

What a Company Can Get from Financial SI’s

• Dow Jones Sustainability Indexes– Benchmarking with peers, advisory

• FTSE4Good– “Guidance and support” for companies to work towards inclusion in

FTSE4Good – through EIRIS

• GS SUSTAIN– (none specific to sustainability and its ESG analysis)

• Innovest– “Confidential custom benchmarking studies” for companies –

operational efficiency and business opportunities per peer analysis

• Based on the Wright Killen Refinery Survival Index (Oil and Gas Journal)• Meant to fill a gap:

– Relies more heavily on quantitative performance indicators– Provides a heavier weighting applied to various indicators of safety and

environmental performance and to technological innovation towards SD – Available to range of sectors, company size

– The scoring: robust methodology designed to account for subjectivity in a transparent manner.

• Designed to avoid the ‘black box’ problem of other indices• Intended for executives and directors to manage company business lines• Global, initially focusing on major chemical companies• Publication remains silent on individual company ratings• Companies find it useful to benchmark themselves relative to a set of

companies

Research funded by United Engineering Foundation

Concept of the AIChE Sustainability Indexsm

Status

• Needs analysis completed in the Fall of 2005• Pilot study performed in 2006• Launch

– Methodology Published June ‘07 – Index for Fortune 500 CPI November ’07

• Additional pilots underway for Engineering Construction and Energy/ Power Sectors

• Requests to explore development of index from water resources, textile chemical manufacturers

Research funded by United Engineering Foundation

Advisory Panel

• Mission – to protect and promote the soundness, credibility and utility of

the AICHE Sustainability Index™

• Advisors:– International financial community– Industrial sector experts– Media– Non-governmental Organizations (NGO’s)

0

1

2

3

4

5

6

7

Strategic Commitment

Safety Performance

Social Responsibility

Value Chain ManagementSustainability Innovation

Product Stewardship

Environmental Performance

Gray Shading = Ranges of individual company scoresBlue Line = Simple average of 11 representative companies

AIChE Sustainability IndexTM for the Chemical IndustryNovember 2007

AIChE Sustainability IndexTM for the Chemical IndustryNovember 2007

0

1

2

3

4

5

6

7


Safety Performance



Product Stewardship


Net Revenue > $10 Billion USD

Net Revenue < $10 Billion USD

0

1

2

3

4

5

6

7


Safety Performance



Product Stewardship


Net Revenue > $10 Billion USD

Net Revenue < $10 Billion USD

0

1

2

3

4

5

6

7


Safety Performance



Product Stewardship


Major DiversifiedSpecialty MaterialsIndustrial GasesCommodity Chemicals

0

1

2

3

4

5

6

7


Safety Performance



Product Stewardship


Major DiversifiedSpecialty MaterialsIndustrial GasesCommodity Chemicals

AIChE Sustainability Index for the Chemical Industry (Simple Average) September 2007

0

1

2

3

4

5

6

7


Safety Performance



Product Stewardship


Major DiversifiedSpecialty MaterialsIndustrial GasesCommodity ChemicalsGray Shading = Ranges of individual company scores


Fall 2007

Chemical Industry Overall 4.1/7.0

Elements

Sub-industry

Diversified Chemicals 4.9/7.0

Commodity Chemicals 3.5/7.0

Fertilizers & Agricultural 3.3/7.0

Industrial Gases 4.1/7.0

Specialty Chemicals 5.0/7.0


EnvironmentalPerformance

ProductStewardship

SafetyPerformance

Innovation – meeting social needs

Value-ChainManagement

4.34.3 4.34.3

4.14.1

4.04.0

3.93.9

3.83.8

Notes:

For Sustainability Index methodology and data sources, see CEP, June 2007, pp. 38-42.

Companies included in the assessment are ____, ___, ____, …

Strategic Commitment Safety Performance Environmental Performance

Resource Use Waste & Emissions Environmental liabilities

Product Stewardship Innovation

Product and service innovation – meeting social needs Process innovation

Value Chain Management EHS Management Supply Chain Management Stakeholder Engagement

Elements of the Index

Strategic Commitment Safety Performance Environmental Performance

Resource Use Waste & Emissions Environmental liabilities

Product Stewardship Innovation

Product and service innovation – meeting social needs Process innovation

Value Chain Management EHS Management Supply Chain Management Stakeholder Engagement

Unique Elements

Calculations Use Existing Data Sources

• Company reports – Annual Corporate Reports – SEC 10-K Filings– Sustainability/EHS Reports

• Government Agencies – EPA– CSB– U.S. Patent & Trademark Office

• Company websites • Media reports • Independent NGO reports

Value Chain Management Details

– Environmental Management System • Corporate level environmental management system – ISO14001,

RC-14001, RCMS or EMAS certified

• Facility level environmental management system – ISO14001, RC-14001, RCMS or EMAS certified

• % certified

• Indication of presence/current effort

– Supply Chain Management • Presence of a supply chain policies and procedures related to

sustainability

• Sustainability evaluation required of suppliers

• Audits of supplier practices

• Policies extended to suppliers’ suppliers

Value Chain ManagementIdeal Score of 7

• Value-Chain Management—Project Orientation• System in place to manage sustainability performance in operations

and project delivery• System in place to manage sustainability performance of sub-

contractors and other suppliers• Significant number of projects demonstrate excellence in long-term

environmental and social performance • Value-Chain Management—Product Orientation• Externally recognized environmental management system in-place

at the corporate level and at all major facilities• Presence of company-wide supplier management policies and

procedures related to sustainability, applied and enforced to all supply-chain entities with potentially significant impacts

AIChE Sustainability IndexTM

• Drills down, but remains broad enough

• Based on public data

• Targeted for managers and corporate executives, not investors

• Focused on

– Environmental – performance metrics

– Safety – performance metrics (workplace, process)

– Product stewardship – mgmt system, history

– Value chain management – mgmt system

– Sustainability innovation – initiatives, tools, results

• Social performance and strategic management also covered

– Less than other indexes

• Benchmarked to peers and best practices

How is your Company’s Sustainability Performance Viewed?

• By the community?• By your shareholders?• By your customers?• Versus your peers?


How is your Company’s Sustainability Performance Enhanced?

• Via the value chain?• by corporate decision making?• by job function?

The CSTP Sustainability Roadmap A Process for Sustainable Decision Making

• CSTP formed in 2004 as part of the AIChE’s Institute for Sustainability

• Supported by member companies• Tailored collaborative projects and pre-competitive research• Monthly sustainability education “virtual” sessions• Utilize members to conduct project work

– Project: Development of Case studies and evaluation of Decision Support Tools in industrial Use

– Project: Focus Groups for Survey of Sustainability in the Chemical Industry (PriceWaterhouse Coopers)

– Project: R&D Checklist for Sustainability– Project: Sustainability Roadmap

Background

• Project: EPA Grant 2005: Case Studies of Industry Decision Support tools for Sustainability

• Identified gaps & challenges– Great tools, not widely used

– Need for better integration of sustainability into business processes

– Understand context of management and technology decisions along value chain

• Understand key decision points, relevant SD considerations, and key functional areas/decision makers involved

– Need to understand the broader set of tools, approaches, and other resources to help integrate SD into the organization

Roadmap Structure & Organization

Sustainability Considerations

Idea

Gen

erat

ion

/ In

no

vati

on

Co

nce

pt

Sco

pin

g

Def

init

ion

Dev

elo

pm

ent

Sca

le-u

p

Co

mm

erci

aliz

atio

n

Fac

ility

Mo

lecu

le

Strategic ConsiderationsBusiness Strategy & Core Values

What is the company's global strategy and how can it support sustainable development?

n What are the company's regional strategies and how can they support regional sustsainable development?

n

What are the company's core values (short- and long-term?

n Decide how to use sustainability in the business strategy.

n n n nSD Objectives & Targets

Does the company have objectives to support sustainable development (e.g. emission reductions, renewable energy use, conducting life-cycle analyses of products, developing renewable-resource based products?)

n

What are the company's metrics and targets related to sustainable development?

n n n n n n nCore Competencies

What are the company's core competencies and how can they support sustainable development?

n

Market Drivers

What are the key markets for the business? n Are there sustainability-related trends, drivers and opportunities in these markets?

n Can feedstock price, availability and acces be maintained over the long-term?

n Would customer/stakeholder concerns affect the future use of the feedstock?

n

Can a new product/process enhance the company's reputation in any area of sustainable development (economic, social, or environmental)?

n

Is there a demand for sustainable products by the end-use consumer?

n What is the competitive environment for a new sustainability technology?

nRegulatory Drivers

Bu

sin

ess

Str

ateg

y D

evel

op

men

t &

A

lign

men

t

Up

stre

am In

pu

t

R&D Stages

Pro

du

ctio

n

Dis

trib

uti

on

Ind

ust

rial

Co

nsu

mer

U

se

Cu

sto

mer

Use

End of Life

Composite Checklist –Questions to guide sustainability consideration at each value-chain stage

Summary Table –Form to record answers, action plans, responsible parties, status and documentation

Scoring FrameworkHighlight issues and opportunities, updated at each stage

Value Chain Stages

Co

rpo

rate

Fu

nct

ion

s

Chart on corporate functions to involve or consult at each value chain stage

Highlights of sustainability considerations for each value chain stage

Tools & Resources

Raw M

ater

ials

Product

ion

(Man

ufact

uring)

Deliv

ery

of

Product

(Tra

nsporta

tion)

Product

Use

Recyc

le

(or D

isposa

l)

Sustainability DimensionResource Usage 0 0 0 0 0

Energy Usage 0 3 3 3 0Water Usage 0 0 3 3 0Land Usage 4 3 3 0 0

Human Health Factor 0 0 0 0 0Toxicity 0 2 3 3 0Hazards 0 0 3 3 0Process Safety 0 2 3 3 0

Environmental Impact 0 0 0 0 0GHG Emissions 1 3 3 3 0Air Emissions 0 3 3 2 0Solid Waste 4 5 3 3 0

Societal Impact 0 0 0 0 0Local Community Impact 1 0 3 3 0Global Societal Impact 4 0 3 3 0

Economical Impact 0 0 0 0 0Corporate Financials 0 0 3 2 0Customer Financials 0 0 3 2 0

1 Positive Influence2 Slight Positive Influence3 Neutral4 Slight negative5 Negative impact0 No data

Main Page: Overview

Key corporate functions & resources

Potential for Improvement

SD Roadmap Summary Table • 192 Key Sustainability

Questions• Where to ask them during

process and product development

• Who should be included in the “answers?”

SD Considerations

Resource Use

Environmental Impact

Health & Safety

Societal Impact

Economic Impact

Env

ironm

enta

lS

ocia

lE

con.

Bus

ines

s P

ersp

ectiv

e

Energy use, material intensity, water use, land use

GHG emissions, air emissions, solid waste, (pollutant effects)

Toxic reduction, hazards, process safety

Workers’ well-being, local community impacts/QOL, global societal impacts/contributions

Financials along value-chain (corporate, customers, …)

Management

Business Strategy

Internal process, value-chain partnership, stakeholder engagement

Alignment with business strategy, core values & competencies, market & regulatory drivers

• Energy Use• How energy intensive is the feedstock? Which feedstock materials are the most energy intensive and

are there energy-efficient alternatives?• Can the feedstock be produced using renewable energy?• Has energy consumption been optimized for the selected process? • Can any byproducts be used as energy ?• Will energy be saved or conserved in the distribution of this product vs. alternative

products/processes?• Will the use of this product save or conserve energy for the customer versus alternative

products/processes? • Would there be opportunities to use renewable energy in the production, distribution or use of the

product/process? • Are there alternatives for more energy efficient transportation/distribution system?• Could the product be reused/recycled to reduce life-cycle energy use?• Water Use• How water intensive is the feedstock? Which feedstock materials are the most water intensive and are

there water-efficient alternatives?• Has water use been optimized for the selected process as both a reagent and processing medium? • Have water source alternatives been evaluated and considered? • Have water quality considerations been aligned with use requirements?• Will the product/process be more water efficient in production and use?• Has water been reused and recycled appropriately?• Have equipment and technology alternatives been evaluated for optimizing water use?

Resource Use

Elements of the Roadmap

Value Chain StagesC

orp

ora

te F

un

ctio

ns

Corporate functions to involve or consult at each value chain stage.

(RACI Chart)

Sustainability considerations

Tools & Resources

Value Chain StagesC

orp

ora

te F

un

ctio

ns

Corporate functions to involve or consult at each value chain stage


Tools & Resources

Engaging Key Corporate Functions

Value Chain Axis

• Business Strategy Development • Upstream Input• R&D

• Idea Generation• Concept• Scoping• Definition • Development• Scale up• Commercialization

• Production• Distribution• Industrial Consumer Use• Customer Use• End of life

• Facility• Molecule

Value Chain StagesC

orp

ora

te F

un

ctio

ns



Tools & Resources

Engaging Key Corporate Functions

Corporate Functions Axis(each box represents a different corporate function that is critical

to driving sustainability in the organization)

• Executive Management• Financial• Business Management• R&D• EHS• Engineering• Manufacturing / Operations• Logistics / Supply Chain• Sales• Customer Technical Service/Support• Marketing• Communications• Public Relations• Human Resources• Legal• Information Technology & Management


Checklist along the Value Chain


Idea

Gen

erat

ion

/ In

no

vati

on

Co

nce

pt

Sco

pin

g

Def

init

ion

Dev

elo

pm

ent

Sca

le-u

p

Co

mm

erci

aliz

atio

n

Fac

ility

Mo

lecu

le

Strategic ConsiderationsBusiness Strategy & Core Values

What is the company's global strategy and how can it support sustainable development?

n

What are the company's regional strategies and how can they support regional sustsainable development?

n

What are the company's core values? nSD Objectives & Targets How can sustainability support the business strategy?

n

Does the company have objectives to support sustainable development (e.g. emission reductions, renewable energy use, conducting life-cycle analyses of products, developing renewable-resource based products?)

n n

What are the company's metrics and targets related to sustainable development?

n n n nCore Competencies What are the company's core competencies and how can they support sustainable development?

n n

Market Drivers What are the key markets for the business?

n n Are there sustainability-related trends, drivers and opportunities in these markets?

n n Is there a demand for sustainable products by the end-use consumer?

n What is the competitive environment for a new sustainability technology?

n How would new environmentally sound technologies, service or information-based offerings meet the market or customer need?

n n n n

Can a new product/process enhance the company's reputation in any area of sustainable development (economic, social, or environmental)?

n

Dis

trib

uti

on

Ind

ust

rial

Co

nsu

mer

U

se

Cu

sto

mer

Use

End of Life

Bu

sin

ess

Str

ateg

y D

evel

op

men

t &

A

lign

men

t

Up

stre

am In

pu

t

Product & Process Development

Pro

du

ctio

n


Specific questions, applied and modified along the value chain

whenever appropriate

Value Chain Axis

Elements of the Roadmap

Value Chain StagesC

orp

ora

te F

un

ctio

ns



Tools & Resources

Tools & Resources

Publicly available & in-house tools to support sustainability considerations

along value chain

Scoring FrameworkConcept Stage Click here to return to Roadmap.

Project A Product Life Cycle Screening Matrix

Raw M

ater

ials

Product

ion

(Man

ufact

uring)

Deliv

ery

of

Product

(Tra

nsporta

tion)

Product

Use

Recyc

le

(or D

isposa

l)







Idea Idea Genera-Genera-tiontion

ConceptConcept ScopingScoping Defini-tionDefini-tionDevelop-Develop-mentment

Scale-UpScale-UpCom-Com-mercial-mercial-izationization

Raw M

ater

ials

Product

ion

(Man

ufact

uring)

Deliv

ery

of

Product

(Tra

nsporta

tion)

Product

Use

Recyc

le

(or D

isposa

l)








Using the Roadmap

• Model developed by CSTP member companies & associated consultants

• Next step… validation of concept in use

Illustration of Roadmap

– “Evaluation of Biofuels Processing Plant—Upstate New York”.• Reuse of existing brownfields site

• Possible Feedstocks: Corn; Willow

– Stages of Roadmap to Illustrate: • Upstream Input Stage (show examples)

• Commercialization Stage (in progress)

– Provide feedback on criteria, questions– Partner with Lafayette College cross functional team

Process of Evaluation

Our Hypothetical Company– Information• Located in upstate New York• Purchases corn primarily from mid-

western states• Has onsite corn ethanol refinery• Grows willow biomass onsite• Has onsite willow ethanol refinery

– Focus of study:• Not to consider the most sustainable

industry possible• Developing a plausible vantage point

to make comparisons between corn and willow ethanol

Test Case: Biofuels Plant

– Established process for biofuel from publicly available information

– Answered Roadmap questions based on internet sources & personal/professional opinion/insights

– Used publicly available information on willow and corn-derived feedstocks

– Focused on issues with sustainability and energy efficiency


Example Industries

– Corn Ethanol• Well developed industry

– Studies done by a variety of sources; data readily available

– Production plants already in operation across the US

– 2 processes: dry and wet milling

Process of Evaluation Corn Ethanol Process Flow Diagram

Farm

Herbicide, Pesticide, and

Fertilizer Production

Plant

Energy (Diesel andother fossil fuels)

GHG

Corn SeedEthanol RefineryCorn

WaterYeast

Ethanol

Dry Distillers Grain

GHGH2O

CO2Equipment

Water

Raw Materials

Herbicides, pesticides,

and fertilizer

Corn

GHG

GHG

Energy (diesel or other fossil fuels)

Energy (Diesel or other fossil fuels)

Ethanol

GHG

Energy

Shipping (Truck or Train)

Ethanol Storage Tank

Shipping (Truck)Ethanol,Gasoline mix

Modified Gas Pumps

Ethanol, gasoline mix

Energy (Diesel or other fossil fuels)

GHG

Solar Energy

Labor

Farm Equipment Factory

Energy (Fossil fuels)

Labor

Raw Materials

Shipping (Truck)

Labor

Labor

Energy

Ethanol Refinery Equipment Factory

Equipment

Energy (fossil fuels)Labor

Raw Materials

GHGGHG

Surface Runoff

Gasoline

Gasoline

Process of Evaluation Corn Ethanol Energy Balance

FarmKernel7.1*10^-4 kg

59000J(Shapouri, 2004)

Ethanol RefineryCorn

Water3.36*10^-4 m^3 wate

(Ring, 2007)

Yeast

95% Ethanol, 5% gasoline7.47*10^-5 m^3 EtOH

1.64*10^6 J(Shapouri, 2004)

Dry Distillers Grain

0.715 kg ddg (American Coalition for Ethanol, 2007)

GHG

CO2

Equipment

Water0.0059 m^3 (Ring, 2007)

Fertilizer.033 kg

9.82*10^5 J (Shapuri, 2004)

Corn2.36 kg

(National Corn Growers Association, 2006)

GHG

GHG

Energy (diesel or other fossil fuels)

2.91*10^6 J [1]

Energy (Diesel or other fossil fuels)1.34*10^4 J [2]

Ethanol

GHG

Energy8.00*10^5 J

(Shapouri, 2004)

Shipping (Truck or Train)


Shipping (Truck)85% Ethanol,15% Gasoline

Modified Gas Pumps


Energy (Diesel or other fossil fuels)1.34*10^4 J [2]

GHG

Energy1.5*10^5 J

(Shapouri, 2004)

Shipping (Truck)

Energy

Equipment

Surface Runoff

Gasoline9.26*10^-9 m^3 gas

Herbicide5.6*10^-4 kg1.99*10^5 J

(Shapouri, 2004)

Pesticide5.72*10^-5 kg2.05*10^5 J

(PAN Pesticide Database, 2005)

Basis: 1 m^2 farm land


Corn Ethanol

• Facts about corn ethanol– Cost

• Corn – $4.00 per bushel

• Corn ethanol– $1.20 - $1.50 per gallon

– Production• US production goals

– 15 billion gallons by 2017

• Current production– 4.8 billion gallons of ethanol in general

» Demand calculated to be 5.4 billion tons

• Estimated production capacity– 6.183 billion gallons of ethanol in general from 113

refineries in 20 states


Corn Ethanol Production

Mill

ions

of

gallo

ns


Example Industries

• Willow Ethanol– In developmental stages

• Majority of studies done by SUNY ESF

• Only one plant in operation

• More energy/sf than corn

Process of Evaluation Willow Ethanol Process Flow Diagram

Farm Land

Willow Sprouts

Herbicide, Pesticide, and

Fertilizer Production

Plant

Herbicide, pesticides,

fertilizer

Energy (Diesel and other fossil fuels)

GHG

CO2

Ethanol Refinery

Wood Chips (On-Site Transportation)

H2O

CO2

CO2

Ethanol

Methanol

Acetic Acid

Energy (Lignon, Chips)

Equipment

Raw Materials

CO2

Diesel or other fossil fuels

GHG

EthanolShipping (Truck or Train)


Shipping (Truck)Ethanol, Gasoline mix

Diesel or other fossil fuels

GHG


Modified Gasoline Pumps

Labor

Farm Equipment

Factory

Labor

Solar Energy

Labor

Raw Materials

GHGSurface Runoff

Energy (fossil fuels)


Energy

Ethanol Refinery Equipment Factory

LaborEnergy

(Fossil Fuels)

GHGRaw Materials

Equipment

LaborGHG

Gasoline

Gasoline

Process of EvaluationWillow Ethanol (Energy Balance)

Farm Land

Willow Cuttings8.847*10^5 J1.48 cuttings

(Abrahamson et al, 2002)

Fertilizer2.64*10^6 J

0.009 kg(Stockfleth, 2006)

CO2

Ethanol Refinery

Wood Chips (On-Site Transportation)

2.69 kg dry biomass5/38*10^7 J

(Ferguson, 2004)

H2O120 mm

(Stephens et al, 2003)

CO2

CO2 [2]

95% Ethanol, 5% gasoline3.17*10^-5 m^3 EtOH/kg corn

1.64*10^6 J/m^3(Iogen Corporation, 2005)

Methanol

Acetic Acid2.89*10^-4 m^3 Acetic Acid

(Bilodeau. 2006)

Energy (Lignon, Chips)

2.10 kg(Blue Fire Ethanol, 2002)

Equipment2.95*10^5 J

(Stockfleth, 2006)CO2

Diesel or other fossil fuels1.64*10^5 J [1]

GHG

EthanolShipping (Truck or Train)


Shipping (Truck)85% Ethanol,5% Gasoline

Diesel or other fossil fuels1.64*10^5 J [1]

GHG


Modified Gasoline Pumps

GHGSurface Runoff


1.36*10^5 J(Stockfleth, 2006)

Energy

EquipmentGasoline

1.52*10^-5 m^3

Gasoline9.26*10^-6 m^3

Herbicide2.95*10^6 J

(Stockfleth, 2006)

Pesticide3.9*10^-5 kg

(Stockfleth, 2006)

Basis: 1 m^2 farm land


Willow Ethanol

• Facts about willow ethanol– Costs

• Willow biomass– $50 per dry ton cellulosic biomass

• Willow ethanol– $1.90 - $2.25 per gallon

– Production• US production goals

– 1 billion gallons per year by 2015

• Current production– 0.66 million gallons of cellulosic ethanol per year from Iogen in Canada

Can feedstock price, availability and access be maintained over the long-term?

– Corn Feedstock expected to continue to see dramatic increase in demand resulting in increase in price.

• Increase demand for Corn Feedstock causing an increase in prices. • Corn planted in 2007 saw a 113% increase over 2006• Corn is in high demand as a food product as well.

– used livestock feed various livestock– corn syrup as the sweetener for most soft drinks. (Hargreaves, 2007) – This competition will further limit access and raise prices.

• Corn feedstock price and availability can not be maintained if demand continues to increase. The limit for maximum corn production has nearly been reached

– New technology in feedstocks may cause drop in demand and price.

– Long-term viability of corn feedstock not likely to be maintained.

Can feedstock price, availability and access be maintained over the long-term?

• Demand for low-value timber, willow, has dramatically decreased in New York state recently

• Current growth rate exceeds removal by 317%. (Bower, 2007)• Production potential of 188 million dry tons of willow in NYS by 2008 • Long term market should be stable (Bower, 2007)

– Willow feedstock shows very little fluctuation in price or availability.

How energy intensive is the feedstock? Which feedstock materials is the most energy intensive and are there energy-efficient alternatives?

– Corn feedstock production is heavily reliant on fossil fuels for the production of pesticides and fertilizers, operation of the equipment, and transportation.

– Short Rotation Willow Coppice (SRWC), the hybrid of willow used as biomass for energy, is much less energy intensive than corn. This is because willow has far fewer inputs.

– Other alternatives for cellulosic ethanol feedstock such as sugar cane, switchgrass and miscanthus have the potential to be developed as very low input crops, if suitable for the region – lower Net Energy Balance.

– Willow is more energy efficient than corn, but not necessarily the most energy efficient.

Would the new product or process reduce GHG emissions over the entire lifecycle?

– Plants sequester CO2 – Given the conditions of 0.25 tons ground C increase per hectare per year, “no net CO2” will be emitted

– Fewer N2O emissions will be released in willow farming than is released in corn farming because of the fewer amounts of fertilizers used

– Shipment by train and truck is needed and will require more energy usage than shipment by pipelines

• GHG emissions are increased because of long-distance shipment by diesel burning trucks

– While willow feedstock has less GHG emissions compared to corn, sequestration depends on farming conditions and GHG emissions in other life-cycle stages especially remain significant

Are there any demonstrated or anticipated changes to the marketplace or regulations that could affect environmental, societal or economic attractiveness?

– Increasing costs of fossil fuels and future regulatory and other constraints on GHG will make ethanol less expensive than gasoline

– Both cellulosic (willow) and corn ethanol are heavily tied to the government through subsidies

• If political opinion and support were to be turned away from ethanol, this fledgling industry would have major issues

• If the US government drops its tariffs against sugar cane import equaling $1.05 per gallon ethanol, it would make the marketplace more challenging

– Willow ethanol can be very attractive in the long term, however the industry can only develop with the continuation of political support and subsidies

QuestionSummary of

FindingsAction Items

Responsible Parties

Priority/ Status

Sources & Documentation

… … • …• …

… …

Using the ChecklistSummary Table

Legend: High priorityMedium priorityLow priority

Completed

Scoring Framework0 1 2 3 4 5 6Idea Generation /

Innovation Concept Scoping Definition Development Scale-up Commercialization

R&D StagesProduct & Process Development

Raw M

ater

ials

Product

ion

(Man

ufact

uring)

Deliv

ery

of

Product

(Tra

nsporta

tion)

Product

Use

Recyc

le

(or D

isposa

l)








What the Guide Does

– Provides list of considerations asked as questions by key decision makers at each stage

• Ability to score responses

• Track improvement to sustainability concepts through each stage

– Provides list of resources and tools

Summary

• Sustainability Roadmap identifies key sustainability questions and criteria in a gated process/product development scheme

• Use of Roadmap in biofuels case illustration appears to be increasing the level of discourse on sustainability issues in a short time period

• Roadmap offers a holistic framework for consideration of progress down the path towards sustainability

• Feedback is continually sought for improvement of the model

Sustainability: An emerging trend?

All the benefits & blessings flowing from the use of the earth were held to be the

rightful heritage of all generations

The Old Testament- Genesis & Deuteronomy

“…treat the earth as though we are tenants, rather than

owners”….we must leave behind ‘enough and as good’

for others”

John Locke, Two Treatises of Government, 1689

“Then I say the earth belongs to each…generation during its course…no

generation may contract debts greater than may be paid during the course of its

own existence”

Thomas Jefferson, 1789

2008 Projects (2009 continuation)• Sustainability Guide (English—20 min)

• CSTP SUSTAINABILTY GUIDE (Cytec lead)– Release of Version 1 November 18, 2008 – Version 2 Tools/scoring additions 2009 .

• Raising Awareness (BASF lead)– Internal—Newsletter review of 08 and 09 needs – Select/approve Exchange topics for 09

• 3rd Party guidelines (FMC/Colgate/Packaging Institute) – Survey plans– Supply Chain Certification Issues Table

• Best Practices (Dow 2008, 2009?)• Tools (Air Products)

– Publication of Tools to CSTP members– Incorporation into Sustainability Guide Version 2

2009 CSTP Proposed Projects• Sustainability Guide (English—20 min)

• Biofuels Metrics Roundtable (John Carberry, lead; Federal Request) • Total Cost Assessment/Full Cost Accounting Users Group

(Request by GE, Toyota, Formosa • Water Resources Workshop (Request by ASME)• Academic Sustainability Roundtable (Request by U Michigan) • Certification of Technologies for Carbon Management (request

Chevron) • Certification of Water Footprinting (10 minutes, overview by xxxx)• NIST Metrics Data Sourcing (Request by NIST)• Sustainable Supply Chain Forum (Colgate-Palmolive, Packaging

World)• Interaction with ACC research activities (Honeywell)• More??? Eastman????

Documents

Sustainability in Industry: Benchmarks and Road Maps Darlene Schuster Director, Institute for Sustainability November 2008