Sustainability tools at AkzoNobel

Caterina Camerani,Pulp and Performance Chemicals, AkzoNobel

The world of AkzoNobel

2AkzoNobel company presentation | 2014All figures relate to 2013

North America 15% Mature Europe 38% Asia Pacific 25%

Other countries 3%Emerging Europe 8%Latin America 11%

Revenue by end-user segmentBuildings and Infrastructure 44%Transportation 16%Consumer Goods 16%Industrial 24%

Revenue by Business AreaDecorative Paints 28%Performance Coatings 38%Specialty Chemicals 34%

Key regions by revenue

Business is sustainabilitySustainability is business

3Company presentation | 2014

Sustainability strategic targets

AkzoNobel ranked #1 in 2014 Dow Jones Sustainability Index for the Materials industry group

REI(Resource Efficiency Index) A new indicator measuringhow efficiently we generate value expressed as cradle-to-gravecarbon footprint divided by gross profit

of revenue by 2020 from products that are more sustainablefor our customers than the products of our competitors, the Netherlands.

20%

25-30%more efficient resource and energy use across the entirevalue chain by 2020 (measured by carbon footprint reduction)

CONTENT

1. Sustainable Fresh Water Risk AssesmentBusiness Case for Water Sustainability

SFRWA tool

Water Facts & Figures AkzoNobel 2013

2. From Waste to By-productZero Waste vision

From Waste to By-product: an 8 step approach

AkzoNobel’s achievements in waste reduction

3. Fiber use optimization

RD&I at AkzoNobel

Eka BleachSim tool

Support work, examples

5

Sustainable Fresh Water Risk Assesment

Business Case for Water Sustainability

SFRWA tool

Water Facts & Figures AkzoNobel 2013

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Fresh Water as an Ecosystem service

Ecosystems provide us with multiple ecosystem services, the provision of fresh waterbeing one of them. They also deliver other services related to the availability and quality ofwater:§ Water regulation§ Water purification§ Water retention§ Aquifers recharge§ Flood control

Source: The Nature Conservancy

People and companies’ ability to extract and utilize water resources can easily overcomethe ability of our ecosystems to provide them in the quantity or quality for which they arebeing used.

7

Water matters for AkzoNobelBusiness Case for Water Sustainability

Risk / Opportunity area Upstream Production process Product use

Physical /Operational

Commodity prices spikes Disruption in water supply Availability allowing for scales

Regulatory Early lobbing to raisestandards and securesupply

Suspend license to operate Assurance of water rights

Reputational Suppliers singled out forviolations

Business to be viewed asvillain taking water from people

Marketing advantagestowards consumers

Environmental Enhancement ofproducing ecosystems

Affecting health of employeesImpact on ecosystem

Healthy markets vulnerability

Financial Raw material pricesincrease

Increase cost of water andecosystem services increases

New technologies andproducts leading to newrevenues

Reflected and assessed in theSustainable Fresh Water Risk Assessment

Jan-FebPublication of current

status in internal andexternal reporting

Feb-AprSites create/updateimprovement plans

Aug-NovSites carry out

self-assessment

Individual site supportwhere required

May-JulAnnouncements of

upcoming assessment

Trainings and (individual) support

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Sustainable Fresh Water Risk Assessment

Dec -FebDetailed analyses per site providing

input for site improvement plans

Preparation

Communication& Training

Data Entry

Data Analysis

Reporting

Improvement

Jan-AprPreparation of training and communication material

Contact sites and update site editors and reviewers

Sustainable Fresh Water Risk AssessmentSFWRA Tool - Microsoft Silverlight based Application

9

WBCSD

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Sustainable Fresh Water Risk AssessmentSFWRA Tool - Connection to WBCSD Maps

The following information willbe gathered for all sites:

§ Annual Renewable Water Supplyper Person (1995)

§ Annual Renewable Water Supplyper Person (2025)

§ Access to Improved Sanitation

§ Access to Improved Water

§ Mean Annual Relative WaterStress Index

§Ratio of Industrial to Total WaterUse

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Sustainable Fresh Water Risk AssessmentSFWRA Tool – Water Balance and assessmentin six key areas

Water Balance +Six key areas SFWRA:§ Water Sources

§ Supply Reliability

§ Water Discharge

§ Efficiency

§ Compliance

§ Social Context

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Sustainable Fresh Water Risk AssessmentSFWRA Tool - Reporting with Improvement Suggestions

A. Comprehensive Report (PDF)§ Generic data§ 6 maps§ Water balance (if necessary)§ Water assessment§ Results, incl. spider, comments, traffic lights§ User data

B. Summary Report (PDF)§ Generic data§ Results, incl. spider, comments, traffic lights

C. Reports for visitors (restricted)§ Report with all (overview and xls)§ Report per BU (overview and xls)§ Report per location (pdf)

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Water Facts & Figures AkzoNobel 2013

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Sustainable Fresh Water Risk AssessmentStatus 2013

To achieve sustainable fresh water management at allour manufacturing sites in 2015

15

From Waste to By-product

Zero Waste vision

From Waste to By-product: an 8 step approach

AkzoNobel’s achievements in waste reduction

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What do you see?

§Waste§ Costs§ Environmental impact§ Occupational health related issues§ Unhappy stakeholders

PROBLEMS!

§ Raw material§ Economic profit§ Reduced footprint§ Added value toour business§ Happy customers,investors andauthorities§ Positive socialimpact

POSSIBILITIES!

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Zero Waste Vision: How to make it happen?

”Zero Discharge Mindset” is the answer

2. Fully convert existing waste streams intouseful products or valuable raw materials.Often this is more efficient (quicker andrequires less investments).

1. Pollution prevention strategies: rawmaterial and process optimization(f.e. R&D projects)

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Operational Eco-Efficiency: common themes

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From Waste to By-product: an 8 step approach

Congratulations!You have now a by-product!

Congratulations!You have now converted aNRW stream into a moresustainable RW

AcrobatDocument

AcrobatDocument

AkzoNobel at 4 sites in Sweden, Norwayand VenezuelaAlOx to cement industry and reclassification to by-product

20

Historic situationAlOx (Aluminiumoxide, a by-product ofH2O2 production) was disposed of as waste.

Current situationClient company uses AlOx as a rawmaterial for their cement production inSweden, Norway and Venezuela.

New EU waste framework directive andVenezuela environmental waste legislationallow for reclassification of AlOx intoby-product.

Result• Waste reduced with 2,200 ton per year• Venezuela site towards zero waste

production site• Environmental benefit by using AlOx as raw

material for other industry• Lower tariff for both AlOx and transport

AkzoNobel inTaiwanFilter cake to bricks industry and reclassification to by-product

21

Historic situationFilter cake (SiO2 30%, water 70%), a restproduct of colloidal silica production wasdisposed of as waste.

Current situationClient company uses filter cake as replacementfor sand raw material in their brick production inTaiwan.

Standard 3 allows for reclassification of filtercake into by-product.

Result• Waste reduced with 630 ton per year• Environmental benefit by using silica cake

as raw material for other industry

AkzoNobel in Canada and BrazilBrine purification sludge to farmers for soil acidity control or fertilizerand reclassification to by-product

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Historic situationBrine purification sludge (CaCO3 55%, MgCO3 6%, restwater), a rest product of raw material purification in chlorateproduction, was disposed of as waste.

Current SituationThe Canadian sites hired an agronomist group who reusesthe brine sludge as replacement for commercial limestone,the product bought by farmers to control soil acidity.The group works together with the Environmentalauthorities to get all the permits needed.

In Brazil, client company (local producer of organicfertilizers) uses it as component in fertilizers type D (onlycitrus, eucalyptus, sugar cane, coffee and flowers )

Result• Waste reduced with 1,800 ton per year• Environmental benefits by using brine sludge instead

of natural limestone• Environmental analyses, permits, transport and

trucks covered by fee to agronomist group

Historic situationVirgin HCl was bought for regenerationof the ion exchange resin in the silicaplant. It was also used for pH adjustmentof waste water.

Current SituationA local manufacturer delivers his HClstream as a raw material to our site.

Result• No need for local supplier to

neutralize its HCl waste streambefore it could discharge via wastewater treatment plant

• Lower tariff for HCl

AkzoNobel in North AmericaReusing a HCl waste stream as raw material

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Historic SituationTW 2009 = 18442 tTW/PQ 2009 = 12,09 kg/t

Current SituationTW 2014 R4Q = 9740 tTW/PQ 2013 R4Q = 6,31 kg/t

Result• 2014 R4Q vs 2009 TW = - 47%• 2014 R4Q vs 2009 TW/PQ = - 48%

Pulp & Performance Chemicals Results

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Conclusions

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Waste to By-product toolkit helps to convert materials from waste to by-products and this means:

§ Key activity in reducing waste, ultimately leading to zero waste

§ Avoid waste disposal cost and generating income (up to ~500 €/ton)

§ Common practice in several Business Units across all three Business Areaswithin AkzoNobel

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Fiber use optimization

RD&I at AkzoNobel

Eka BleachSim tool

Support work, examples

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§ Research and development of sustainablechemistry and business concepts that:innovatively respond to customer needs,strengthen customer businesses,decrease environmental impact

§ R&D about 2 % of sales

§ Cooperation with leading universities

§ Main R&D facilities in Bohus, Sweden,with additional units in Sundsvall,Sweden, Gunsan, Korea, and Songjiang,China

Innovation and R&D

AkzoNobel Bleaching ChemicalsApplication R&D

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Chemical pulp– Bleaching technology– Reduced fresh water consumption (closure aspects)– Life Cycle Assessment– Support to our customers

Mechanical pulp bleaching– Bleaching technology– Energy reduction– Support to our customers

Biorefinary– Pulp and Paper mill applications

Other applications of hydrogen peroxide, chlorate, chlorine dioxide– NOx abatement– Bleaching outside P&P– Fish farming

Bleaching trendsDriving forces

§ Costs§ Pulp quality

- Brightness- Strength properties

§ Runnability

§ Environmental legislation- Water emissions (AOX, COD,..)- Emissions to air (NOx, SOx,..)

§ Market demand§ NGOs

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Bleaching trendsBREF (BAT) document

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§ The original BREF for the Pulp and Paper industry was started in 1997§ Finalized in 2000 and adopted by the European Commission in 2001.

§ The Review of the Best Available Techniques (BAT) forthe Pulp and Paper industry held its first plenary meeting November 2006.§ The final draft was planned to be finalized November 2008§ The final (third) draft was ready July 2013§ Decision was taken by the European Commission May 2014

The presented emission levels in BAT 2001 was recommendations, thelevels in BAT 2014 will be legislative

BREF = Best Available Techniques Reference Document

§ Environmental legislation- Water emissions (AOX, COD,..)- Emissions to air (NOx, SOx,..)

§ Market demand§ NGOs

Bleaching sequence

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The choice of bleaching sequence and kappa number is dependent on:• Pulp quality• Environmental aspects• Cost• Investments• Runnability

§ Costs§ Pulp quality

- Brightness- Strength properties

§ Runnability

AkzoNobel Pulp Vision Database

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§ Contains over 40 000 laboratory bleachedstages

§ Stores data created since mid 1980’s§ Wood raw material§ Pulping process§ Bleaching conditions (temp, pulp cons,

time)§ Chemical charges§ Incoming pulp properties (brightness,

kappa number, viscosity)§ Output (brightness, kappa number,

viscosity, pH, residual chemicals)§ Specific analysis made (metal profile, AOX,

etc.)

The model is based onlab bleaching results(Pulp Vision)

AkzoNobel BleachSim - Eucalyptus

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D EOP D DIncomingBrightness 52Kappa 11,5Viscosity

Conditions Conditions Conditions ConditionsKF 0,200 Oxygen 0,22

ClO2 (a Cl) 23 H2O2 3ClO2 (aCl) 11

ClO2 (aCl) 5

pH 1,94 pH 10,7 pH 3,1 pH 4

Temperature 70 Temperature 90Temperature 65

Temperature 65

Time 60 Time 120 Time 240 Time 220P.C P.C P.C P.C

Results Results Results ResultsBrightness 53,6 Adjust 0,00 Brightness 69,9 Adjust 0,00 Brightness 82,6 Brightness 86,1Kappa 6,2Adjust 1,00 Kappa 3,2Adjust 1,00 Kappa 1,3 Kappa 0,8Viscosity Viscosity Viscosity Viscosity

Comparison between bleaching modeland laboratory bleaching

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88

88.5

89

89.5

90

90.5

91

91.5

92

92.5

93

93.5

10 20 30 40 50

52 %ISO modell

58 %ISO modell

57 Mill B

52 Mill A

58 Mill C

52 Mill D

Final Brightness %ISO

Total aCl, kg/t

74

76

78

80

82

84

86

0 10 20 30 40

EPO Brightness %ISO

kg aCl in D0

Customer support work

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§ Optimisation of the bleachplant conditions§ Trouble-shooting§ A discussion partner§ Improving pulp properties

Customer support workExamples

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Bleaching efficiency§ By mapping the bleachplant and comparing the results with our

models and reference data, inefficient conditions in the D1 stagewas discovered and adjusted. The result was increased pulp viscosityand utilization of the bleaching chemicals.

§ Inefficient utilization of bleaching chemicals due to an unfavorabledistribution of the bleaching chemicals was discovered. Optimizationwork gave improved final brightness and a potential to reach otherpulp qualities.

§ Changing the bleaching conditions and chemical distribution between thestages reduced the brightness reversion of the final pulp.

§ Optimization of the bleachplant to reduce COD and AOX in the final effluentby modification of the conditions in the different stages made it possible tomeet the regulations.

§ Support to customers when selecting the bleaching sequence ingreenfield mills

Customer support workExamples

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Scaling in D0-stage§ The problem was solved by optimizing the conditions in the

bleaching stage resulting in increased runnability§ The solution was found trough mapping the conditions and whitewater

circulations in the bleachplant

Reduced water usage§ By decreasing the bleaching work in the initial stage it was possible to

recirculate the alkaline filtrate towards the closed part of the mill leadingto a reduced water usage.

§ Speaking partner in closure related issues has made it possible for mills toreduce the water usage in the mill

Thank you for your attention!