1. 11 Kemiens Dag – København – 16/11/2011 Chemistry in the European Framework Programme European Commission Research & Innovation Industrial Technology Søren Bøwadt

2. 2 Kemiens Dag – København – 16/11/2011 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. 3 Kemiens Dag – København – 16/11/2011 ● 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. 4 Kemiens Dag – København – 16/11/2011 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 Chemistry and Society

5. 5 Kemiens Dag – København – 16/11/2011 Chemistry in Horizon 2020 l The process sector stakeholders are positioning themselves for the new FP, in line with the flagship initiative on the Innovation Union l 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. 6 Kemiens Dag – København – 16/11/2011 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)* *Source: „Zukunft des Chemiestandorts Deutschland“ TCW München, 2009 19942020 2007 819 409 602 Target: 50% reduction kg / TEUR Production raw material intensity (DE) Source: Stat. Bundesamt 2009 Energy Material Labour Auxiliaries Other Costs Margin Manufacturing costs distribution in the chemical industry*

7. 7 Kemiens Dag – København – 16/11/2011 Resource efficiency covering the whole production process InputOutputProcess Energy Solvents, Catalysts & Auxiliaries Water Raw Material Packaging CO 2 Gaseous Emissions Products Byproducts Waste Water Residues Landfill Waste Recycling

8. 8 Kemiens Dag – København – 16/11/2011 ● 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. 9 Kemiens Dag – København – 16/11/2011 ● 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. 10 Kemiens Dag – København – 16/11/2011 Involvement of the Chemical industry in potential Innovation Partnerships and PPPs Healthy Ageing Raw materials Water Smart Cities Sustainable Agriculture Healthy Ageing Raw materials Water Smart Cities Sustainable Agriculture The Chemical Industry should play a major role in the relevant actions related to the Europe 2020 strategy Possible PPP on Energy-intensive industries

11. 11 Kemiens Dag – København – 16/11/2011 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. 12 Kemiens Dag – København – 16/11/2011 Industrial Technologies Calls related to Chemistry in FP7 l NMP has published over 50 call topics related to chemistry with a total Commission funding above 800 M€ l NMP has published 12 call topics in CORE CHEMISTRY areas with a total Commission Funding of around 250 M€ l Presently running Flagship projects in Chemistry: F 3 Factory, EuroBioRef, AFORE, Copiride, Synflow, INCAS, POLYCAT, CAEC, Pills……

13. 13 Kemiens Dag – København – 16/11/2011 F ³ Factory ─ Short Overview

14. 14 Kemiens Dag – København – 16/11/2011 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 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 Future Manufacturing The F ³ Factory Task

15. 15 Kemiens Dag – København – 16/11/2011 ● Forward-integrated Manufacturing  New business models  New supply chain concepts ● Taylor-made and local manufacturing  Differentiated or new products  Local markets and alternate feedstock ● Efficient and flexible Manufacturing  Sustainable, ecological  Globally competitive F³ Factory enhances competitiveness of the European industries Future Manufacturing – The F³ Target

16. 16 Kemiens Dag – København – 16/11/2011 Manufacturing Costs Scale World Scale Conventional design creates efficiency with plant scale Technological progress starts with small-scale facilities Small Scale Modularity offers flexibility, but reduces economy-of-scale effects Modular Design F³ Factory challenges the conventional approach to large scales Future Manufacturing – The Modular-Scale Paradigm

17. 17 Kemiens Dag – København – 16/11/2011 Future Manufacturing: The Assembly-line Paradigm Multi product, continuous, small-to-medium scale production as an alternative to conventional multipurpose plants Distributed, dedicated small-to-medium scale production as an alternative to large scale production Demonstrate technical and economical viability of F³ concepts, thanks to an optimum and integrated arrangements of standardized intensive equipments, for distributed mono-product processes and flexible multi-products processes

18. 18 Kemiens Dag – København – 16/11/2011  A physical backbone facility will demonstrate the feasibility of the F 3 approach.  In the INVITE facility consortium partners will demonstrate their respective units in different areas Only a public-private partnership of industry leaders and academia with public funding can initiate this paradigm change Rhodia BASF Arkema Astra Zeneca Evonik Procter&Gamble INVITE Facility is set up at BTS in Leverkusen to demonstrate F³ Factory concepts in action Dissemination Standards Modules Equipment F 3 backbone facility PEC1 low-to-medium viscous Speciality polymer PEC2 high viscous Speciality Chemicals/ Intermediates PEC 3 PEC 4 PEC 5 PEC 6 Fine Chemicals for Consumer Goods Modular F 3 Factory: The Demonstration Plant

19. 19 Kemiens Dag – København – 16/11/2011 F³ Factory: Demonstration Activities by Partners ● Arkema – Acrylic acid from glycerol Feedstock: From oil-based to green-glycerol, distributed manufacturing ● Astra Zeneca – AIs & intermediates New potential drug substances, flexible small-scale manufacturing, robust and speedy ● BASF – Polyetherketone HT thermoplastics, high-viscosity modules, solvent-free, sustainable ● Evonik – Intermediates Oxidation (H 2 O 2 ) and catalysis, cold downstream processing ● Procter & Gamble – Customized surfactants Gas/liquid reactions for consumer products, distributed production ● Rhodia – Polyacrylic acid Water soluble synthetic polymers, ● BTS – Demonstration & backbone facility, Polymer intermediates Modular design methodology, plant operation, process models, …

20. 20 Kemiens Dag – København – 16/11/2011 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 Future of Manufacturing – The F ³ Consortium

21. 21 Kemiens Dag – København – 16/11/2011 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.euSoren.Bowadt@ec.europa.eu About the 7th Framework Programme see: http://ec.europa.eu/research/participants/portal/page/home

22. 22 Kemiens Dag – København – 16/11/2011 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 Additional Information