Ensuring the “Chemistry”in Europe’s Regions

is Ripe for Innovation?

Russel MillsDow Europe & SusChem

Fostering Competitiveness through Innovation. Brussels – 7th March 2007.

European Regions

transitioning

to

Lower Carbon Economies

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

CompanyTechnology

PlatformHLGCEE

Common Interest in Effective Innovation

• Frameworks to facilitate innovations• Enabling leadership in resource efficiencies in EU• Implementing NOW (before other regions value)

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

Overview

2. Enabling needed Innovations - total value chain resource efficiency

3. Speeding that Innovation - stakeholders focusing on progress

1. Understanding future Innovation - in lower carbon economies

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

1. Understanding Future InnovationSome reminders on innovation :

In knowledge economy, generating knowledge

is the start (initial investment)– Converting investments in know-how or new ideas

(research) back into wealth & jobs is the goal

Focus is on excellence– “outperforming the alternatives”

We’re all involved– equally applicable to older (thriving) industries

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

1. Understanding Future InnovationInnovation requires Portfolio approach

- Incremental + Breakthrough

- Continuous incremental improvements yield real value

Imagine if our

industry/company

performance

was copied

by EU citizens

or USA citizens

EU: climate goals

USA: no M.E. imports

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

Transitioning to low resource economies requires efficiency in every step of the value chain – “Chemistry” often key enabler

Petroleum

Minerals

Biomass

• Energy• Transport• Construction• Health and hygiene• Safe food supply• Communications• Clothing & furnishings• Recreation etc.

Chemicals

By-products & waste streams

2. Value Chain innovation

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

2. Chemistry Value Chain Innovations

More intelligent

bio-mass use via

bio-refinery concept

i.e. turning waste

into higher value

Chemicals or Fuel

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

2.5 m

27 m

2. Chemistry Value Chain Innovations

From batch to

continuous plus

Process

Intensification gains

Reducing space,

waste , energy,

defects etc.

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

Catalysis, process

technology and/or

chemicals to enable

CO2 capture

Making CCS

economically

viable at scale

2. Chemistry Value Chain Innovations

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

2. Chemistry Value Chain Innovations

Integrated approaches

for the smart energy

homes of the future

Making use of

fuel cells, thin

film solar, bio-gas,

phase change

materials etc.

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

• Lightweight plastics and composites

• Paint to increase durability• Improved efficiency seals

• Antifouling paints to reduce marine pollution and fuel consumption

• Lower VOC paints• Biodegradable metal

working fluids

• Adhesives which aid disassembly

• Lubricants and fuel additives to improve fuel economy and emissions

• Exhaust catalysts• Biofuels• Fuel cells and other new power units

Raw materials Manufacture Distribution Use Disposal/recycle

2. Chemistry Value Chain Innovations

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

Biomass co-firing for coal powerplant and industrial CHP(Combined Heat and Power)to optimise both resource use& energy efficiency

2. Chemistry Value Chain Innovations

Bio-based tyre tread

for 2-6% energy savings

Platinum nanoparticle catalyst for fuel cells

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

3. Speeding ProgressTaste is the enemy of Creativity

Perfection is the enemy of Innovation

There are never perfect solutions, but there are always better alternatives

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

3. Speeding Progress

Industries innovate - Governments enable• We will innovate more, the only question is where

– First support & stimulate before you regulate

– Prioritise! - we invest where we can be world-class

Chemical industry is key enabler for industrial innovation• Support initiatives to integrate chemistry processes that

facilitate downstream innovations– Ensuring “Sustainable Chemistry” is sustained in EU

Support early deployment and market pull initiatives• More assertive use of our market power will ensure most

resource efficient innovators implement first in the EU

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

SusChem: visit www.suschem.orgor email horizontal@suschem.org

HLG on Competitiveness, Energy & Environment: 3rd report that focuses on innovation available on site of DG Enterprise

Dow: Surf at www.dow.com to review our commitments to energy efficiency, renewables & climate change

For more information

Fostering Competitiveness through Innovation - Russel Mills – 7th March 2007 - Brussels

Summary

• Resource efficiency already offers high value growth– Implementation NOW is key to maintain advantage

• Off-shoring world class energy intensive industries will not contribute to global climate change problem– Improving efficiency NOW (in EU) will contribute

• Some already implement integrated approaches that build on enabling technologies (such as Chemistry)– IS YOUR REGION OPEN (NOW) TO IMPLEMENT SUCH

INNOVATIONS?

The “Chemistry” is ripe for Innovation