Chemistry in the European Framework Programme

1. Chemistry in the European Framework Programme European Commission Research & Innovation Industrial Technology Søren Bøwadt

2. Europe 2020 Strategy Successful exit from the crisis sustain demand and stem the rise in unemployment Boost competitiveness make EU industry lead in world markets strengthen and modernise our industrial base Lay foundations for a sustainable future sustainable growth of economies and societies tackle climate change including energy efficiency

3. Strategy for smart, sustainable and inclusive growth: - Innovation, Competitiveness, Green & Social aspects Among 7 flagship initiatives, Chemistry can play a strategic role in Innovation Union, Resource-efficient Europe and Industrial policy Innovation Partnerships will create new frameworks Focus on facing the Grand Challenges: - Recovery, Employment, Ageing, Environment, Energy … 3% for R&D and 20/20/20 climate targets should be met Support to PPPs as a tool to combine public and private funding Acting efficiently together as in the Recovery Plan EUROPE 2020 and Chemistry

4. Chemistry and Society Chemistry penetrates every aspect of our daily lives • In order to keep improving our quality of life it is essential to keep developing chemistry and chemical products • However, the traditional oil based resources are getting limited and expensive • Need to transform the oil based chemistry towards sustainable chemistry using renewable resources and energy efficient production methods and facilities • Need to achieve energy and emission reductions as well as safer chemicals and products • Plays a crucial role in achieving the goals of Europe 2020 This transformation is only possible if all the major players in the process industry work together to make real and verifiable commitments

5. Chemistry in Horizon 2020 • The process sector stakeholders are positioning themselves for the new FP, in line with the flagship initiative on the Innovation Union • Potential to implement industry driven partnerships within the Key Enabling Technologies  SusChem sent a White Paper on “Sustainable Production” to the European Commission in March 2010 and a joint proposal for a “Resource and Energy Efficiency Partnership” with 12 platforms and associations of Energy intensive industries in September 2010 (Updated in October 2011)  The European Commission is expecting all stakeholders to provide additional input about the future direction and implementation together with a firm commitment

6. Resource efficiency improvement Key success factor for the chemical industry Decreasing raw material availability and increasing prices will require decoupling economic growth and resource consumption Ambitious political targets have been set for the raw material intensive industry, e.g. in Germany (1994  2020: - 50%) In the chemical industry raw materials have the largest share of manufacturing costs (32% of raw materials vs. 3% of energy)* Production raw material intensity (DE) kg / TEUR 602 819 409 Target: 50% reduction 2007 1994 2020 Source: Stat. Bundesamt 2009 Energy Other Costs Auxiliaries Labour Margin Material Manufacturing costs distributionin the chemical industry* *Source: „Zukunft des Chemiestandorts Deutschland“ TCW München, 2009

7. Resource efficiency covering the whole production process Input Process Output Energy CO2 Raw Material Products Solvents,Catalysts &Auxiliaries Byproducts Residues Water Waste Water Packaging Landfill Waste Gaseous Emissions Recycling

8. Efficient catalytic systems based on Nanotechnology Faster, safer and more flexible processes using micro processing systems Efficient recycling systems covering the whole value-chain More efficient use of raw materials and integration of bio-resources while using less energy and creating less waste Development of platform technologies facilitating bio-based industries Use of CO2 as carbon source for chemicals and materials New ultra-light, multifunctional and structural materials Better, more flexible and efficient energy storage systems Leading to demonstration and validation of the technological concepts Technological challenges to achieve the objectives of Europe 2020 in the chemical sector

9. Continuation of the Public-Private-Partnership concept, where industry groups work together with the public side to address “Grand Challenges” and demonstrate the benefits of the integrated technologies throughout the value-chain Europe should build on its strong interdisciplinary research landscape through collaborative projects between SME’s, industry and academia More emphasis on Standardisation and Pre-normative research integrated in collaborative projects Facilitation of access to IPR, especially for SMEs Better access to loans and venture capital Such a transformation is only possible if policy and industry work together through the PPPs and ETPs, and despite the economic crisis keeps investing in research and innovation Removing non-technological bottlenecks - A European model for innovation

10. Involvement of the Chemical industry in potential Innovation Partnerships and PPPs • Healthy Ageing • Raw materials • Water • Smart Cities • Sustainable Agriculture • Possible PPP on Energy-intensive industries • The Chemical Industry should play a major role in the relevant actions related to the Europe 2020 strategy

11. Industrial Policy flagship An Integrated Industrial Policy for the Globalisation Era Putting Competitiveness and sustainability at Centre Stage (COM(2010)614) Many references to resource efficiency in industry e.g. 8.5 Addressing concerns of energy-intensive industries: “The Commission will: In the context of the discussion on future research Public-Private Partnerships, consider an Energy-intensive Industries Low Carbon Implementation initiative, bringing together the relevant technology platforms with the EU and Member States, to ensure the appropriate R&D, financing and deployment strategies for low-carbon production;”

12. Industrial Technologies Calls related to Chemistry in FP7 • NMP has published over 50 call topics related to chemistry with a total Commission funding above 800 M€ • NMP has published 12 call topics in CORE CHEMISTRY areas with a total Commission Funding of around 250 M€ • Presently running Flagship projects in Chemistry: F3 Factory, EuroBioRef, AFORE, Copiride, Synflow, INCAS, POLYCAT, CAEC, Pills……

13. F³ Factory ─ Short Overview

14. The Dilemma: World-scale, continuous facilities for large-volume chemicals, polymers, biological products efficient, but inflexible Multi-purpose, multi-product, batch facilities for actives, formulations and specialties flexible, but inefficient Both concepts require significant upfront investment high business risk Future Manufacturing The F³ Factory Task The Task: • Introduce efficiency to multi-purpose, multi-product facilities • Add flexibility to efficiency of world-scale facilities • Reduce risk in large-scale investment • Move risk of process development to early phases F³ Factory aims at solving this dilemma

15. Future Manufacturing – The F³ Target • Taylor-made and local manufacturing • Differentiated or new products • Local markets and alternate feedstock Taylor made and local manufacturing • Forward-integrated Manufacturing • New business models • New supply chain concepts Forward-integrated manufacturing Efficient and flexible Manufacturing • Efficient and flexible Manufacturing • Sustainable, ecological • Globally competitive F³ Factory enhances competitiveness of the European industries

16. Conventional design creates efficiency with plant scale Technological progress starts with small-scale facilities Modularity offers flexibility, but reduces economy-of-scale effects World Scale Small Scale Modular Design Future Manufacturing – The Modular-Scale Paradigm Manufacturing Costs Scale Scale F³ Factory challenges the conventional approach to large scales

17. Future Manufacturing: The Assembly-line Paradigm Demonstrate technical and economical viability of F³concepts, thanks to an optimum and integrated arrangements of standardized intensive equipments, for distributed mono-product processes and flexible multi-products processes Multi product, continuous, small-to-medium scale productionas an alternative to conventional multipurpose plants Distributed, dedicated small-to-medium scale productionas an alternative to large scale production

18. Modular F3 Factory: The Demonstration Plant Arkema • A physical backbone facility will demonstrate the feasibility of the F3 approach. • In the INVITE facility consortium partners will demonstrate their respective units in different areas BASF Rhodia F3 backbone facility Speciality polymer • Dissemination • Standards • Modules • Equipment INVITE Facility is set up at BTS in Leverkusen to demonstrate F³ Factory concepts in action PEC1low-to-medium viscous PEC2high viscous Speciality Chemicals/ Intermediates PEC 4 PEC 3 Fine Chemicals for Consumer Goods PEC 6 PEC 5 Astra Zeneca Evonik Procter&Gamble Only a public-private partnership of industry leaders and academia with public funding can initiate this paradigm change

19. F³ Factory: Demonstration Activities by Partners • Arkema – Acrylic acid from glycerolFeedstock: From oil-based to green-glycerol, distributed manufacturing • Astra Zeneca – AIs & intermediatesNew potential drug substances, flexible small-scale manufacturing, robust and speedy • BASF – PolyetherketoneHT thermoplastics, high-viscosity modules, solvent-free, sustainable • Evonik – IntermediatesOxidation (H2O2) and catalysis, cold downstream processing • Procter & Gamble – Customized surfactantsGas/liquid reactions for consumer products, distributed production • Rhodia – Polyacrylic acidWater soluble synthetic polymers, • BTS – Demonstration & backbone facility, Polymer intermediatesModular design methodology, plant operation, process models, …

20. Future of Manufacturing –The F³ Consortium F³ Consortium • applies a systems approach linking technology and supply chain aspects • forms interdisciplinary teams addressing complexity to create and demonstrate new concepts • is a coordinated effort of academia and industries boostering the competitiveness of Europe

21. More info: Søren Bøwadt European Commission - DG Research Industrial technologies - Production Mail: CDMA 0/022, B-1049 Brussels - Belgium Visit Address: Rue du Champ de Mars 21, B-1050 Brussels Belgium Phone Direct line: +32 (2) 299 42 03 Fax: +32 (2) 296 05 50 E-mail: Soren.Bowadt@ec.europa.eu About the 7th Framework Programme see:http://ec.europa.eu/research/participants/portal/page/home

22. Additional Information Innovation Union website: http://ec.europa.eu/research/innovation-union/ Innovation Union Facebook page: http://www.facebook.com/Innovation.Union Innovation unlimited blog: http://blogs.ec.europa.eu/innovationunlimited Thank you for your attention