June 19, 2012 SPIRE Sustainable Process Industry European Industrial Competitiveness through Resource and Energy Efficiency Dr. Peter Nagler Chief Innovation Officer Evonik Industries AG Aarhus, June 19, 2012

June 19, 2012 The European Industry is losing ground on production compared to other regions The European Industry Challenge Production of Chemicals Source: ESTEP Innovation needed to reverse the trend by bridging the “valley of death” between research and commercialization disconnecting our growth from footprint

June 19, 2012 Resource and Energy Efficiency Partnership “REP” is a group of European Technology Platforms and Associations motivated to promote resource and energy efficiency in process industries, representing: More than enterprises. Employ over 6.8 million employees, Generating more than 1,600 billion € turnover The founding basis of the European Economy (20%) Struggling with declining global competitiveness

June 19, 2012 Process Industries in the Value Chain Process Industry: Chemical, biochemical, and physical transformation and formulation of raw materials using continuous and batch processes into Materials with new properties and functionalities Raw Materials Components & Products Discrete Manufacturing:

June 19, 2012 SPIRE: Ambitions for PPP Proposal A reduction in fossil energy intensity of up to 30% 1) e. g.: cogeneration-heat-power, process intensification, introduction of novel energy-saving processes, and progressive introduction of alternative (renewable) energy sources within the process cycle. A reduction in non-renewable, primary raw material intensity of up to 20% 1) e. g.: by increasing chemical and physical transformation yields and/or using secondary and renewable raw materials. A full life cycle cost analysis is required to consider all effects of using secondary and renewable feedstocks (e.g. water usage) and to prove the sustainability advantage. Both these aspirations will make a significant contribution to the political and societal objectives of drastic efficiency improvement in CO 2 -equivalent footprints of up to 40% by Potential improvements extend beyond “industry” to all indirectly supplied and dependent economic sectors such as transport, construction, water, electronics etc. 1)Note: from current levels by 2030; The reference data is based on Eurostat.data and definition of ‘current level’ is the period “do more with less”

June 19, 2012 SPIRE – supporting the Vision for the Innovation Landscape Future PPP’s Future PPP’s SPIRE Sustainable Process Industry SPIRE Sustainable Process Industry REP Industrial Competitiveness Water EIP Bio-based Industries

June 19, 2012 SPIRE Status HORIZON COM(2011) 811 final (p42), COM(2011) 809 final (p51) Sustainable and low-carbon technologies in energy-intensive process industries Increasing the competitiveness of process industries, such as chemical, pulp and paper, glass, or non-ferrous metals and steel by drastically improving resource and energy efficiencies and reducing the environmental impact of such industrial activities. Focus will be on the development, and validation of enabling technologies for innovative substances, materials and technological solutions for low-carbon products and less energy-intensive processes and services along the value chain, as well as the adoption of ultra-low carbon production technologies and techniques to achieve specific GHG emission intensity reductions. HORIZON COM(2011) 811 final (p42), COM(2011) 809 final (p51) Sustainable and low-carbon technologies in energy-intensive process industries Increasing the competitiveness of process industries, such as chemical, pulp and paper, glass, or non-ferrous metals and steel by drastically improving resource and energy efficiencies and reducing the environmental impact of such industrial activities. Focus will be on the development, and validation of enabling technologies for innovative substances, materials and technological solutions for low-carbon products and less energy-intensive processes and services along the value chain, as well as the adoption of ultra-low carbon production technologies and techniques to achieve specific GHG emission intensity reductions.

June 19, 2012 Formation of legal entity – Association SPIRE AISBL (A.SPIRE) Drafting SPIRE multi-year roadmap for EC public consultation (July) 2 successful meetings with EC provisional Ad-hoc Industrial Advisory Group completed Broad participation from industrial sectors and academic world ……………..and more SPIRE – The Next Steps

June 19, 2012 Founding meeting on June 28th Formally organise Private sector, partner to Public sector Drive approval of, and define content proposal for PPP Open up to industrial and research members Industrial, Research, Associated Participation in roadmap design, voting rights in general assembly Commitment limited to membership fee and intention to actively participate in the calls Project participation in PPP (and associated specific financial commitment) will be (open) call driven Association SPIRE AISBL

June 19, 2012 Association SPIRE Confirmed Members – 14 th June 2012 AssociationScience Industry

June 19, 2012 SPIRE – Multi-annual Roadmap

June 19, 2012 Industry Commitment

June 19, 2012 Industry Commitment European Commission to match the Private Contribution

June 19, 2012 Evonik Innovation: Technologies and Processes for Resource Efficiency Evonik is dedicated to world scale innovation to contribute to Resource Efficiency with respect to main topics like solar energy and carbon dioxide capture and use. Gentle processes for the generation of high performance and high quality products based on sensitive natural raw materials reducing the CO 2 footprint. Low energy consumption in production, handling and transportation is an ongoing target for our innovation projects

June 19, 2012 Enzymatic vs. Conventional Esterification Process Improvement via Biotechnology aqueous waste raw mat. reaction desodor. bleaching drying filtration packing catalyst steam bleach filter aid volatile comp. aqueous waste solid waste conventional > 180°C 140°C 100°C 60°C 20°C applied temperature raw mat. reaction packing catalyst recycled enzymatic Improving of resource efficiency with new processes: Production of Myristyl Myristate, an emollient for personal care products:

June 19, 2012 Thermal Insulation for Bricks with Fumed Silica The porosity of clay blocks and carefully designed hole geometry intelligently reduce the flow of heat and thereby heat losses through exterior walls. Additionally super insulating materials in the brick holes reduce overall heat flux significantly Evonik developed a ready-to-use system on the base of AEROSIL® fumed silica for the brick holes

June 19, 2012 Sustainability – a PPPP Economy Ecology Society Each nation, institution, and company need to have a sustainability or CR strategy for keeping the balance of all three sustainability aspects in order to keep mankind‘s well being on earth Price stability Balance in foreign trade High employment level Fair distribution of life chances Human rights Education Eco-friendly resource use Environmental protection for keeping a stable eco system Macro economy level People Planet Profit Proactivity

June 19, 2012 The drivers and ambitions of the SPIRE PPP proposal are well recognised and supported in Europe Now is the time to join the SPIRE PPP initiative that will help to Rejuvenate the European Process Industry Conclusions