Vodcomm for electrification in chemical industry

Vodcomm for electrification in chemical industry

Efficient conversion of raw materials with sustainable energy: This is the whole content of the shared innovation project voltachem, an industrial, government and TNO initiative. In addition to using renewable energy to produce industrial heat and green hydrogen, research partners are also focused on producing higher production and less waste chemical components: power-2-chemicals.

The international chemical industry has a large carbon dioxide emission, but it also produces many useful products. Industrial electrification is one of the solutions to realize carbon dioxide neutral industry, especially in the production of fuel, bioplastics and fertilizer.

This energy has also become cheaper and cheaper due to the huge growth of sustainable energy, a special opportunity to link the application of such energy (usually electricity) with the challenges facing the chemical industry.

Building blocks from renewable raw materials

Under the name power-2-specialties, we use electrochemistry to produce high-quality chemical blocks from renewable biological materials. Because traditional chemistry is based on cheaper fossil materials and fuels, such as oil and gas, it has so far overcome more innovative technologies.

However, recently, advanced electrochemical technology has made it possible to run a process faster and more effectively. Coupled with the need for carbon dioxide neutralization, as well as the use of renewable raw materials and energy, this constitutes an interesting business case. Electrochemistry is particularly valuable in this regard, because it leads to a very pure product that does not require additional energy intensive separation steps after the reaction.

Syngas and formic acid in carbon dioxide

Through the power-2-commodities research line, we focus on direct electrochemical conversion of carbon dioxide, focusing on the products of synthetic gas and formic acid. Unlike biological materials, carbon dioxide enters the reactor.

Our in-depth knowledge in electrochemistry, separation technology, process technology, scale expansion and technical and economic analysis provides business support for those enterprises who want to realize carbon dioxide conversion on a large scale. Among other things, we have identified what is required to implement the process under existing specifications, the costs involved and the equipment needed to expand the technology scale.

Pair Electrosynthesis

In paired electrosynthesis, the conversion occurs on both sides of the electrochemical reactor: anode and cathode. In voltachem, we develop processes that combine various chemical reactions to achieve the desired product.

Because the valuable products are produced on both sides, the commercial cases of electrochemical production system have been greatly improved. Examples of this include the conversion of biomass on both sides or the conversion of one side of biomass and the conversion of carbon dioxide on the other side.

POWER-2-INTEGRATE

What are the impacts of industrial electrification, international market and technology development on chemical industry cluster, technology selection and business environment? The market and technology are so fast that you should be constantly involved. We use models to clearly identify the international flow of raw materials and energy, as well as the market demand for chemical products and opportunities for new technologies.

For example, we developed an international system model to test business cases and regulations in the context of power-2-x (Industrial electrification), as well as a bottom-up model that includes scenarios for computing raw materials, electricity, product requirements, and business case pricing.

Want to know more or participate in it?

Do you want to convert a raw material into a specific product by electrochemical method, and then further develop it into a test product and implement it? We are happy to work with you with our knowledge, experience and network to achieve faster production through electrochemical process.

This can be done in a variety of ways. The most feasible way is to be a member of the voltachem community, where companies can discuss the progress of projects and form new alliances and projects.

For example, we can also establish a shared research project, a bilateral project or a joint financing project. We will be very pleased to discuss with you your wishes and possibilities.

How to address key sustainability challenges in the chemical industry

The important role of chemical industry

The role of the chemical industry in the production of all goods and the provision of services is undoubtedly crucial. Chemicals are essential ingredients in many industries, from health, sanitation, construction and transportation to agriculture and energy supply. This makes the industry one of the largest in the world.

Therefore, the chemical industry plays an important role in maintaining growth and prosperity and in the transition to a sustainable society. With the increasing competition around the world, innovation is still crucial in finding new ways to meet increasingly mature, demanding and environmentally conscious consumers.

Ten challenges of sustainable development

By evaluating the reports of the top 10 companies in the chemical industry, we identified the 10 most important sustainability related themes / challenges facing the industry:

energy management

Sustainable products (materials)

Carbon dioxide emissions

Occupational health and safety

Human rights assessment

Water and wastewater

Customer health and safety

Wastewater and waste

Anti corruption

Environmental compliance

The main challenges facing the industry are the first and third, energy management and carbon dioxide emissions. High energy use in the industry leads to high investment requirements for fossil fuels and key components of hydrocarbons in power production. Greenhouse gas emissions come from the use of fossil fuels, flue gas emissions and gas burning practices. In terms of procurement, these products have a large emission factor, which means that the goods and services purchased will occupy an important position in the carbon footprint. For the remaining eight challenges, see the full report.

In addition, if you are interested in scope 3 management and supply chain opportunities, why not read "enterprise greenhouse gas emission action"?

Using supply chain and reporting standards to meet the challenges of sustainable development

In order to meet the challenges of sustainable development, supply chain or report driven standards are usually adopted.

In the context of supply chain driven standards, suppliers are required to disclose their human rights considerations, labor standards, compliance systems, environmental participation and carbon dioxide emissions through third-party solutions. The most relevant are ecovadis and CDP.

The report driven standard is based on the report standard, which is most suitable for finding the position of a company compared with its competitors, measuring the effectiveness of its management, and understanding the attitude of stakeholders towards it. Providing information on achievements in the field of sustainable development increases transparency, thereby enhancing the confidence of stakeholders in the company. A report is also highly recommended because investors are increasingly making investment decisions based on ESG standards.

The most popular reporting standards include the United Nations Global Compact and the global reporting initiative standards. The former is also suitable for beginners of sustainable development, while the latter requires more time and reports as well as professional knowledge of sustainable development.

To learn more about the challenges of the chemical industry, please refer to dfge's white paper on the chemical industry. To learn how to solve the problem of carbon dioxide emissions in the supply chain, please refer to the latest report of ecovadis analysts.

Explore key chemical industry trends

Chemical industry plays an important role in the economic development of a country, and affects the downstream sectors, such as agriculture, pharmaceutical, polymer additives, etc. Without a smooth supply of chemicals, commercial activities and company operations that use them as raw materials will face obstacles. Unfortunately, the chemical industry is not without interference, and many factors contribute to this. However, enterprises can take appropriate management steps to prepare for these challenges as soon as possible, so as to reduce supply chain risk.

Explore key chemical industry trends

The first step for chemical enterprises to prepare for supply chain risk is to understand the key current and future trends. Many types of research have emerged in the market to predict possible market trends in the chemical industry. Companies should be aware of these trends and adjust their supply management strategies to avoid problems in the immediate procurement process.

In 2019, the chemical industry has made a good response to consumer demand, price fluctuations, fierce competition and regulatory barriers, and is seeking sustainable development. In 2020, the industry outlook gives a similar picture, as companies will continue to struggle with tight trade, slower sales and tighter regulation of chemicals. This means that relying on chemical distributors cannot solve the procurement problem unless the enterprise takes additional measures to establish a seamless supply chain.

Expected trend of chemical industry in 2020

With the continuous fluctuation of oil and gas prices, the uncertainty of the chemical industry is expected to continue until 2020, which will affect transportation costs, manufacturing costs and enterprise operating costs. When the energy market is in chaos, enterprises often need to spend more money to purchase the necessary raw materials. Therefore, with the rise of primary product prices, enterprises will continue to face huge profit pressure. However, chemical suppliers will continue to play an important role in the trade and supply of commercial products, which may help overcome pricing problems.

The slowdown in the US, China, India and other major economies is real. The continuous trade protectionism policy between China and the United States has restrained economic growth and consumer demand, and affected the stability of the supply chain. In addition, there are political turbulence, fundamental changes in laws and regulations due to environmental problems, and other disturbances that cause industry problems.

The pace of technology adoption in the chemical industry will continue to accelerate. More companies will invest in research, development and technology to improve service and product quality. With the development of circular economy, the demand for environmental protection chemicals and sustainability will be increasing next year.

India's position as a new chemical center

Indian chemical companies will continue to benefit from plant closures in China and the European Union. Although Indian companies are small, they are stepping up efforts to improve the output and quality of products produced in India. Even these companies are taking Indian chemical trade seriously and contacting Indian chemical suppliers to buy products.

conclusion

Experts in the chemical industry predict that the results in 2020 will be mixed, and some problems in the previous year will continue to exist. However, driven by capital investment and government support policies, India's chemical industry will usher in growth.

Dynamic resource allocation of chemical

The global chemical industry continues to experience tremendous changes. In the past 20 years, due to the increasing use of shale gas as a cheap raw material, petrochemical production in North America has experienced a transition from low cost to high cost and then to low cost. At the same time, despite the squeeze on profitability, China has transformed from a bizarre curiosity into the world's largest chemical market. Several of the largest companies are actively restructuring, and major divestitures and mergers and acquisitions that affect the industry are in the news.

McKinsey's research in a series of industries has shown that in enterprises, capital and other resources are easier to flow to another business opportunity, shareholders' returns are higher in the medium and long term, and the risk of bankruptcy or acquirer is lower. A new study in the chemical industry confirms this conclusion: more active resource redistribution is associated with higher shareholder returns. It also shows that the difference in chemical properties is more significant.

In the field of chemicals, as in a broader sample across industries, companies are often slow to transfer resources between enterprises. In general, the distribution of capital expenditure in that year has been close to that of the previous year. But a more detailed observation will show that the levels of activity and results displayed by individual companies are quite different. We use the redistribution score to measure the resource movement of individual companies, which represents the proportion of resource movement among enterprises over the years (see sidebar, "how do we measure redistribution").

The results show that there is a significant correlation between more active resource redistribution and total shareholder income. From 1990 to 2013, the most dynamic one-third of companies reallocated their resources during this period, showing a 10.8% CAGR of TRS. In contrast, the proportion of low redistributors is 2.5%, including the bottom third. In these 23 years, the market value of a dynamic company will grow to six times that of a low dynamic company. Persistent redistributors also get higher shareholder returns than less persistent peers: in TRS, companies with more than 15 significant resource transfers (more than 5% of total capital expenditure allocation) far outnumber less active peers.

Companies with active redistributors are also more likely to remain independent: the survival rate of active redistributors is 30 percentage points higher than that of low redistributors.

The way chemical enterprises allocate resources varies with industry segmentation. In the field of petrochemical, high-volume plastics and other commercial chemicals, the key factors for success are low-cost raw materials, excellent operation and process R & D. Therefore, executives usually focus on these factors to organize strategy and resource allocation, and pay attention to the region of production and the value chain they participate in. For example, several major polyethylene companies organize their reporting departments by geography and value chain.

The most successful companies tend to build attractive positions in the chain where the cost curve is steep (e.g., ethylene production costs significantly change the entire industry globally), and regions based on raw material advantages may use their financial influence or process technology to obtain such advantaged raw materials.

In the field of specialty chemicals, the key factors for success are the choice of end market, the choice of products and the scope of value-added and differentiation. Professional companies are usually organized around these factors, focusing on the end market and product line.

For example, coating enterprises can organize around the market of construction, automobile and industry. Producers active in multiple areas of expertise organize around different components of their portfolios in a similar way.

Diversified chemical enterprises with larger scale integrate the investment portfolio of bulk commodities and special products, and balance more dimensions - geographical selection, value chain, end market, products and sources of differentiation.

In some market segments, the main performance drivers service level, cost structure and competition are regional. Examples include industrial gases, cement and other low value weight products such as sulfuric acid. In these areas, strategic decisions and resource allocation are usually regional.

The chemical industry consists of the companies that produce industrial chemicals

The chemical industry consists of companies that produce industrial chemicals. The industry uses chemical processes such as chemical reactions and refining methods to convert raw materials such as oil, gas, air, water, metals and minerals into more than 70000 different products. These products include petrochemicals, agrochemicals, ceramics, polymers and rubber (elastomers), oil and chemical products (oils, fats and waxes), explosives, spices and flavors. Therefore, chemical industry is the center of modern world economy.

Most of the products produced are used for the production of other products, but a small part is directly used by consumers. Solvents, pesticides, lyes, washing alkali and Portland cement are several examples of products used by consumers.

Although the pharmaceutical industry is generally considered a chemical industry, it has many different characteristics that make it a separate category. Other closely related industries include oil, glass, paint, ink, sealants, adhesives and food processing manufacturers.

Chemical processes such as chemical reactions are used in chemical plants to form new substances in various types of reaction vessels. In many cases, these reactions are carried out in special corrosion resistant equipment using catalysts at high temperature and pressure. The products of these reactions are separated by various techniques, including distillation, especially fractionation, precipitation, crystallization, adsorption, filtration, sublimation and drying. Processes and products are usually tested by special instruments and on-site quality control laboratories during and after manufacturing to ensure safe operation and to ensure that the products meet the required specifications. Products are packaged and delivered in a variety of ways, including pipelines, tank trucks and tankers (solid and liquid), cylinders, barrels, cylinders and boxes. Chemical companies usually have a research and development laboratory for the development and testing of products and processes. These facilities may include pilot plants and these research facilities may be located separately from the production plant.

Polymers and plastics - especially polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, polystyrene and polycarbonate - account for about 80% of global industrial production. Chemicals are used to make a variety of consumer goods, as well as inputs to agriculture, manufacturing, construction and services. Major industrial customers include those using rubber and plastic products, textiles, clothing, petroleum refining, pulp and paper, and primary metals. Chemicals is a global enterprise with nearly 2 trillion US dollars. Chemical companies in the European Union and the United States are the world's largest producers.

What do chemical industry analysts foresee for 2019?

 The world has been changing, especially in the chemical industry. With the development of technology, new products and processes, new regulations and even new companies, the future chemical industry will be a very different place.

As SAP CEO Bill McDermott pointed out at the recent sapphire now meeting, "the pace of change has never been so fast - and it will never be so slow."

A major impact on the change of the chemical industry is in the field of M & A. Where ICI, Allied Chemical, AkzoNobel and Agfa once stood, corteva, nouryon and covestro now stand.

With the impact of these changes on the strategy of chemical enterprises, experts spend a lot of time and energy to predict future mergers and acquisitions. Given that the value of chemical industry mergers is more than $200 billion a year, the time and effort are worth spending.

So what are the chemical industry analysts' forecasts for 2019?

Deloitte's 2019 global chemical industry M & A and acquisitions outlook points out that "compared with the period 2015-2016 Private equity investors saw a decline in trading volume in 2017. " Although the volume of transactions continued to decline in 2018, the value of these transactions increased significantly due to the acquisition of Akzo Nobel by Carlyle Group and GIC. As a result, delloitte predicts, "private equity will continue to play a role in the M & a market in 2019." If valuations are still high, private equity will continue to work with other bidders to make rolling acquisitions or reinforcement acquisitions. "

The results were highlighted in a December 2018 report by ey's chemical industry adviser, saying "the growing influence of private capital is creating new possibilities for trading." Activists and private equity groups have raised record amounts of money, which means competition for direct acquisitions will be more intense. As a result, we expect more innovative financing partnerships between private investment groups and enterprises in the coming year, especially in asset divestiture. It also means more big deals. 2018 was the largest year on record, with $5 billion and $10 billion respectively. We expect this trend to continue as the market corrects and private equity firms seek to allocate capital.

Their view of this trend is based on their research. The study found that 74% of U.S. executives believe the U.S. M & a market is improving. In addition, 51% of executives expect acquisitions next year.

This anticipated surge in activity may partly offset the slight calm experienced by many chemical industries in 2018.

One of the slower performing sectors in 2018 was agricultural M & A, with Deloitte reporting that "M & A activity in the industry was mainly driven by portfolio restructuring resulting from large deals in previous years." This means smaller, more precise initiatives, such as divestiture of product lines. "Trade disputes, especially between China and the United States, have had a negative impact on agricultural prices," he added

Based on this, Deloitte predicts that "given these challenges facing the industry, M & A activities in 2019 are likely to continue to target a smaller and more concentrated Portfolio Rebalancing." Big deals of the size of 2015 and 2016 are unlikely. Economic activity in 2019 and beyond is likely to favor fertilizers over pesticides, and the major rebalancing and integration in this area is nearing the end. "

Similarly, trading activity in the commodity chemical sector is also relatively slow, "measured by trading volume, trading activity in 2018 It's down 10% from 2017, and the volume in 2017 is the highest since 2010. "

This is due to new restrictions on foreign capital by the Chinese government and the overall slowdown in the Chinese economy.

Another area where deals are down is in the intermediate products and specialty chemicals sector, "number of M & A transactions For the second year in a row In other words, "despite the decline in the number of transactions, the value of transactions in the industry has risen to its highest level since 2014." This is partly due to five deals worth more than $1 billion, including the $12.5 billion acquisition by Carlyle and Singapore Government Investment Corporation of nouryon, AkzoNobel's specialty chemicals business, and the $7.1 billion acquisition of Frutarom industries by IFF.

2018 was also a quiet year for the industrial gas industry, with the exception of two big deals after the merger of Praxair and Linde.

On the whole, Deloitte expects to see "... In 2019, despite the reduction in M & A activity in many industries in 2018 and economic uncertainty at the global level (trade stress, brexit, China's economic slowdown, and interest rate rise)" Strong M & a market in global chemical industry ". In particular, as, "past experience shows that mergers and acquisitions in the chemical industry can flourish even in uncertain times."

Chemical Manufacturing Industry

Services or products. Chemicals are an very important element of producing and so are important industries for instance construction, cars, paper, electronics, transportation, and agriculture. However some chemical manufacturers produce and then sell consumer products for instance soap, bleach, and cosmetics, most chemicals are employed as intermediate products for other goods.

Industry organization. Chemical manufacturing is split up into seven segments, six that are covered here: fundamental chemicals, man-made materials, farming chemicals, paint, coatings, and glues, cleaning formulations, as well as other chemicals. The seventh segment, pharmaceutical and medicine manufacturing, is incorporated in the separate statement.

The essential chemicals segment produces various petrochemicals, gases, dyes, and pigments. Petrochemicals contain carbon and hydrogen and so are made mainly from gas and oil. Producing both organic and inorganic chemicals occur in this segment. Organic chemicals are employed to make a range of products, for instance dyes, plastics, and pharmaceutical products however, almost all these chemicals are employed in producing other chemicals. Industrial inorganic chemicals usually are produced from salts, metal compounds, other minerals, as well as the atmosphere. Furthermore to producing solid and liquid chemicals, firms associated with inorganic chemical manufacturing produce industrial gases for instance oxygen, nitrogen, and helium. Many inorganic chemicals work as processing ingredients inside the creation of chemicals, try not to are available in the best products since they are utilized as catalysts - achemicals that accelerate otherwise aid a reaction.

The person-made materials segment produces numerous finished products additionally to recycleables, including common materials for instance polyethylene, polypropylene, polyvinyl chloride (PVC), and polystyrene. Among products into which these plastics could be produced are loudspeakers, toys, PVC pipes, and beverage bottles. This industry segment also produces materials useful for mixing and blending resins around the custom basis. Automobile manufacturers are particularly large users of individual-made materials.

The farming chemicals segment, which employs minimal workers inside the chemical industry, supplies maqui berries maqui berry farmers and residential gardeners with fertilizers, herbicides, pesticides, as well as other farming chemicals. The segment includes companies mixed up in formulation and preparation of farming and household bug control chemicals.

The paint, coating, and adhesive products segment includes firms making paints, varnishes, putties, paint removers, sealers, glues, glues, and caulking. The event and furniture industries are large customers from the segment. Other clients change from individuals refurbishing their properties to companies requiring anticorrosive paints that could withstand high temperatures.

The cleaning formulations segment could be the only segment through which many of the development is geared directly toward consumers. The segment includes firms making soaps, detergents, and cleaning formulations. Cosmetics and toiletries, including perfume, lotion, and mouthwash, will also be produced in this particular segment. Households and firms start using these products in several ways, cleaning from babies to bridges.

The "other chemical" products segment includes manufacturers of explosives, printing ink, film, toners, matches, as well as other miscellaneous chemicals. These products are employed by consumers or possibly within the creation of other products.

Chemicals generally has taken care of into two groups: fundamental chemicals and niche chemicals. Fundamental chemical manufacturers produce huge amounts of fundamental and relatively affordable compounds in large plants, frequently built particularly to produce one chemical. Most fundamental chemicals are employed to make smarter refined chemicals for creating everyday consumer goods by other industries. However, niche chemical manufacturers produce smaller sized sized quantity of more pricey chemicals that are used less frequently. Niche chemical manufacturers frequently supply bigger chemical companies around the contract basis. Many traditional chemical manufacturers are split up into two separate entities, one dedicated to fundamental but another on niche chemicals.

Caffeine industry segments vary inside the degree their workers be a part of production activities, administration and management, and development and research. Industries which will make products for instance cosmetics or paints that are ready for sale for the final consumer employ more administrative and marketing personnel. Industries that market their items mostly to industrial customers generally make use of a greater proportion of precision production workers plus a lower proportion of unskilled labor.

Recent developments. Nanotechnology continuously benefit all of the manufacturing industries. The advantages of the application form nanotechnology have definately not showed up in their limits, but development and research in nanotechnology are usually pricey and time-consuming. Inside the chemical manufacturing industry, developments in nanotechnology might help conserve energy needed to create chemicals minimizing the amount of waste materials, making the manufacturing process more efficient.

Some localities are imposing or considering limitations on making use of plastic bags, a product in the chemical manufacturing industry. When the result's a ban on plastic bags or possibly a tax on plastic bags, curiosity about such bags will probably be affected negatively. Furthermore, many supermarkets offer multiple-use bag reductions for customers who forgo the plastic bags.