Winning the Green Revolution The Business Case

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Winning the Green RevolutionThe Business Case

• Mike Lancaster
• Chemical Industries Association

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Why does industry need to become sustainable?

• Supply chain pressure
• Stakeholder pressure
• Legislative pressure
• Increasing natural resource cost
• Reputation
• Reporting requirements
• Its the right thing to do

It Makes Good Business Sense
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Sustainability Green Chemistry

• Sustainability is the goal green chemistry is a
  means of getting there
• Green Chemistry efficiently utilises (preferably
  renewable) raw materials, eliminates waste and
  avoids the use of toxic / hazardous reagents and
  solvents in the manufacture and use of chemical
  products

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Green Chemistry is AboutREDUCING
Energy
Carbon footprint
Waste
Cost
Plant
Environmental impact
Materials
Risk / Hazard
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Products and processes

• Stakeholder demand for more environmentally
  benign non-persistent products
• From plastic bags to cosmetics
• Great strides on process HSE, energy use, waste
  minimisation
• But much more to do
• Green chemistry is a culture and a toolkit that
  can help design more benign products and
  processes.

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Some techniques of green chemistry

• Catalysis use instead of stoichiometric
  reagents
• Solvents- avoid harmful and VOC solvents
• Water, supercitical CO2, ionic liquids
• Consider renewable feedstocks
• Look at the energy used in processes
• Reactor design, microwaves, ultrasound
• Design for degradation
• Use low hazard starting materials

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What a waste
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Cost of waste

• In an ideal factory there is no waste, only
  products. The better an real factory makes use of
  its waste, the closer it gets to its ideal and
  the bigger the profits. Hoffman 1848
• 2006 CIA members disposed of 1 million tonnes non
  hazardous waste at an average cost of 70/te and
  over ½ million tonnes hazardous waste at an
  average cost of 270/te
• Potential saving 200 Million plus raw,
  materials, energy, time etc?

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Waste Prevention Hierarchy
Prevention Reduction
Recycling Reuse
Increasing Greenness
Treatment
Disposal
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CIA Environmental SD Goal
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Examples of Win Win InvestmentsAvoiding EoP
Capex detergent additive

• Problem
• Needed to reduce VOC emissions from use of very
  volatile process solvent.
• Cost of EoP equipment 300K
• Threat of moving production to another site
• Solution
• Simple RD water used as solvent, cost 50K
• Plant mods for new process 80K
• Payback
• Materials cost reduced by 120Kpa
• Improved relationship with EA, neighbours

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Justifying replacing old equipment

• Problem
• Old vacuum system leading to product loss, high
  maintenance and disposal of contaminated oil
• But liveable with
• Solution
• New dry vacuum system justified on, reduced cost
  of oil disposal, opportunity to rationalise
  number of pumps, reducing maintenance, improved
  product yields
• Payback
• Cost 270K
• Savings 120K pa direct but over 200K indirect
  on improved production,
• Reduced energy consumption and waste production

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Killer Technology for licensing

• Investment in killer technology can be justified
  by licensing
• Often needed for Far East JVs
• BPs Cativa Acetic acid process
• New catalyst, low water methanol carbonylation
• 30 reduction in capital
• 20 variable cost reduction
• Debottlenecking gains of 25
• 30 reduction in energy use

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Pfizer redesign of Sertraline process
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Drivers and barriers to adopting greener
technologies
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Business Case

• More competitive industry attractive to
  investment
• More efficient use of resources more for less
• Safer, healthier, less polluting reduced
  insurance, risk / legal liability
• Strongly motivated, highly skilled workforce
• Reduced risk to reputation due to SHE incidents
  and unethical practices
• Key to more proportionate regulation
• Reposition the industry / improve reputation
• Problem Solution

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advocacy, authority, action