Download Environmental and clean technology opportunities for the Scottish

ENVIRONMENTAL AND CLEAN TECHNOLOGY OPPORTUNITIES FOR THE
SCOTTISH CHEMICAL SCIENCES SECTOR
Report for the Chemical Sciences Scotland Sustainability Topic Group
9 December 2011
(minor updates May 2012)
INTRODUCTION
In February 2011 the Scottish Enterprise Boards’ Chairs Forum discussed the ‘low carbon’1economic
transition. They requested that each sector should identify low carbon opportunities and provide
leadership to industry. This paper will help to:


highlight emerging opportunities in the Environmental and Clean Technology sectors; and
further the industry’s understanding of its impact on global GHG emissions.
This more robust understanding of the opportunities and impacts is designed to stimulate thinking
amongst the Chemical Sciences Scotland (CSS) members. It is hoped that the opportunities and
actions identified can be integrated into the planned refresh of the industry strategy, The Formula for
Success.
This report is structured as follows:





background information to understand the sector;
a description of the drivers for sustainability in the chemical sector;
details of the business, innovation and emerging opportunities;
a discussion of the challenges facing the sector; and
conclusions.
1 ‘low carbon’ is defined at section 1.1
CONTENTS
1.0
Background
1.1
Terminology
1.2
Global perspective
1.3
Lifecycle approach
2.0
Policy and Compliance Drivers impacting on ECT
3.0
ECT Business Opportunities
3.1
Overview
3.2
Process improvements
3.3
Resource and energy efficiency
3.4
Critical raw materials
3.5
Sustainable energy
3.6
Transport
3.7
Products that deliver global solutions
4.0
Innovation and Emerging Opportunities
4.1
Innovation trends
4.2
Innovation funding
4.3
Emerging opportunities
5.0
Impact on Employment
6.0
Challenges
7.0
Conclusions
8.0
Recommendations
Annexes
1
Impact on Greenhouse Gas Emissions
2
ECT Product Opportunities (by sector)
3
Scottish universities and Industry Bodies
4
Sector Support
5
Useful Reports
2
1.0
BACKGROUND
1.1
Terminology
‘Green’ chemistry describes the minimisation of environmental impacts and hazards from making and
using chemical products (see the 12 Principles of Green Chemistry). ‘Sustainable’ chemistry is the
application of green chemistry to processes, but these terms are used interchangeably.
There can be multiple, and positively reinforcing benefits, from sustainable chemistry. In addition to
the environmental benefits; there are cost benefits from resource efficiency and from the elimination of
toxic hazards; and reputational benefits are likely to arise for the industry. Many chemical products
can help to reduce CO2e emissions elsewhere in the economy.
The Scottish Government and policy makers use ‘low carbon’ to mean any activity that will help to
reduce carbon dioxide and other greenhouse gas emissions, either absolutely, or to reduce carbon
intensity (CO2e emissions per £ of GVA).
For this report we use the term environmental and clean technologies (ECT) as the best
description of a range of activities (see section 3.1) with environmental benefits. For practical
purposes ECT and ‘low carbon’ are nearly synonymous. Chemicals that are bio-based and
biodegradable are not necessarily synonymous with being environmentally friendly. Sustainable
chemistry can involve a trade-off between cost, raw material extraction, energy requirements and
toxicity. In summary, most, but not all sustainable chemistry fits into the ECT sector that Scottish
Enterprise wishes to encourage.
1.2
Global Perspective
The Scottish Government’s Climate Change Act uses the same principle as the Kyoto Treaty – to
reduce emissions produced within a country. The Government also aims to double exports by 2015
which is likely to increase emissions from manufacturing sectors and in particular the chemicals sector
which has agreed to help the government achieve its export goal.
Scottish energy intensive manufacturers are incentivised to save energy through a number of
regulatory drivers for example the ETS, CRC Energy Efficiency Scheme, Carbon Price Floor and
Electricity Market Reform. However, any UK / Scottish legislation that imposes tighter constraints on
energy consumption and carbon emissions versus competitor regions can lead to offshoring of UK
manufacturing which is likely to increase global GHG emissions.
Although chemical manufacturing is a resource intensive industry (see annex 1), the products that it
produces then act as an enabler across most other industries and society, which can have beneficial
or adverse impacts. Research2 by McKinsey, concluded that every tonne of CO2e emitted by the
chemical industry in producing products enabled over 2.1 to 2.6 tonnes to be saved elsewhere in the
economy. The most significant savings arise from the use of:








insulation materials,
fertilizers,
crop protection,
advanced lighting,
lightweighting components for transport,
low temperature detergents,
biofuels, and
improving the efficiency of renewable energy (eg solar efficiency).
2 Innovations for Greenhouse Gas Emissions, ICCA (industry body), 2009, McKinsey
3
Without chemicals these reductions could either not be achieved, or would be achieved by using other
more GHG intensive techniques. For example, without fertilizers, agriculture would be less efficient
and more land would need to be converted to agriculture.
The chemicals industry can therefore help to provide solutions to global environmental challenges,
including mitigating climate change, food security, energy security and clean water.
Scottish emissions could be reduced by closing Scottish plants, and importing the same products from
overseas; however the the Scottish chemical industry is far more carbon and energy efficient than
most of its competitors, particularly those from developing countries (outwith Kyoto) and this would
have the effect of significantly increasing global emissions. For example, the conversion factors
published by Defra (2011) show that electricity produced in the EU emits 0.44g CO2e per kwh against
0.94 for China and 1.44 for India. More specifically, information received from Ineos, indicates that in
certain cirumstances the manufacture of PVC in China is 4.6 times more carbon intensive than the
equivalent in the UK.
The CSS Industry Advisory Group considers that the Scottish Government Climate Change Act
targets may have adverse unintended consequences. If offshoring of Scottish manufacturing does
occur this will impact on reduced economic growth in Scotland and may increase global GHG
emissions.
1.3
Lifecycle Approach
A lifecycle approach is fundamental to almost all of the ECT chemical opportunities. The CO2e
emissions (and other environmental impacts) should be considered from cradle to grave, including the
extraction of raw materials, transport, manufacture, waste from manufacture, use of products and
disposal. For example, new washing powders enable clothes to be washed at lower temperatures
which significantly reduce the lifecycle emissions.
Only a lifecycle approach allows answers to questions such as “which is better: bio or synthetic raw
material?” A good example of a lifecycle approach to bio-based v petro-chemical based products was
undertaken by the Environment Agency on supermarket carrier bags.3 Various techniques have been
developed to calculate lifecycle emissions, for example, the CCaLC tool4.
The important aspect is to embed sustainable chemistry into research and development and to work
with product designers to ensure products are sustainable – including recyclable. Biomimicry is a
specialist design technique that seeks sustainable solutions by copying nature, for example, studying
human lungs to sequester carbon dioxide from flue stacks.
2.0
POLICY AND COMPLIANCE DRIVERS IMPACTING ON ECT
In addition to the overriding Scottish Climate Change Act, there are many complex, and inter-related
drivers for ECT in the chemicals sector.

The larger chemical firms are incentivised to save energy through a number of regulatory
drivers through the Climate Change Levy, European Emissions Trading Scheme, Climate
Change Agreements, the CRC Energy Efficiency Scheme and the Carbon Price Floor (2013)
for electricity. The ETS is being significantly tightened in 2013 with a lower overall cap and
fewer free allowances being awarded.

The renewable heat incentive (RHI) will subsidise combined heat and power plants, anaerobic
digestion and the burning of waste for heat.
3 Life cycle assessment of supermarket carrier bags, Environment Agency, 2011
4 Carbon Calculations over the Lifecycle of Industrial Activities
4

The Zero Waste Plan and the Landfill Tax escalator are driving waste reduction. Packaging
waste targets and bans on certain materials to landfill are increasing the demand for products
that are recyclable.

The Renewable Transport Fuel Obligation is increasing the demand for biofuels.

Significant cost savings can arise from resource efficiency - reducing the use of virgin raw
materials, water and effluent. The European Resource Efficiency Roadmap highlights
concerns across a range of critical resources, that includes certain chemical elements. It is
likely that further EU policy will be developed in this area.

There are concerns about the security of supply and price volatility of raw materials such as
rare earth minerals, petro-chemicals and platinum.

Legislation, for example, the REACH directive requires all significant chemicals to be tested
for their impact on health and the environment.

The Water Framework Directive is tightening discharge consents.

Many chemical companies have a corporate environmental strategy adopted from their parent
company. These may focus on cost savings and/or perceived reputational and commercial
advantage.
3.
ECT BUSINESS OPPORTUNITIES
3.1
Overview
The chart below summaries the ECT opportunities for the chemical sector, demonstrating that there
are a wide range of opportunities across resource efficiency, new products and risk management.
green marketing
(3.0)
lifecycle approach
(2.3)
New markets
-biotechnology
(4.7,6)
Innovation
(5)
Compliance
with regulations
(3.0)
Sell ECT goods
and services
(4.7, annex 2)
GROWTH
Process
Improvements
(4.2)
RISK
MANAGEMENT
RESOURCE
EFFICIENCY
Reputation/
employees/
CSR (3.0)
Supply chain
(raw materials,
packaging)
(4.4)
Resource security
on-site renewables,
diversification from
oil etc) (4.5)
Sustainable
management of
buildings, energy,
water, waste,
transport (4.3,4.6)
work with
partners and
stakeholders (5)
5
There are many ECT opportunities for the chemicals sector; both in manufacturing chemicals in a
more efficient manner, and in designing products for domestic and global markets with lower
environmental impacts on the economy and wider society.
Case studies and further information on the opportunities for innovation in processes and products for
sustainable chemistry are detailed at section 4.
medium
Alternative
energy
Packaging
low
medium
Transport
high
Buildings
medium
Waste and
recycling
high
(supply chain)
Energy
efficiency
very
high
Materials
Products
very
high
Water and
wastewater
Processes
(reactions)
The table below summarises the overall nature and scale of these opportunities (these rankings may
be different for different sectors / processes dependent on the maturity of the technology and the
nature of the process).
low
low
Lifecycle approach and eco-design (high)
3.2
Process Improvements

Petro-chemical inputs can be substituted for biofeedstocks which have the potential to be less
hazardous and to be more easily recyclable at the end of life, however, these can give rise to
conflicts over land use, especially in developing nations where the land is needed for food.

Chemicals can be used as catalysts to capture CO2, for example from power stations; and
carbon capture and storage technology, once the techology is proven and economically
feasible, could be used to capture CO2 from the chemicals industry.The CO2 can be used as
a feedstock.

Process improvements in manufacturing chemicals can be achieved by lowering the
temperature at which chemical reactions take place, designing catalysts that are more
efficient or by utilising new input raw materials. Microwave technology can induce faster
chemical reactions.
These ‘game changing’ process improvements can, in some cases, dwarf the incremental savings
that can arise from resource efficiency measures.
3.3

The Centre of Crystalisation and Continuous Manufacturing with partner NiTech is developing
a mixing technology that enables companies to replace batch processing with more efficient
continuous processing.

Traditional cement manufacturing emits approximately 1 tonne of CO2 per tonne of product
(60% from calcination and 40% from heating). Using magnesium oxide, to replace calcium
carbonate, allows reactions to take place at lower temperatures, and the reactions absorb
CO2 from the atmosphere.
Resource and Energy Efficiency
The chemicals sector is resource intensive. However, the UK chemicals industry has improved its
energy efficiency by 35% in the last 20 years.
A SE commissioned report for the sector by SJW Ltd in 2008 extrapolated data from the north-east of
England to produce the following figures:
6
Scotland
Raw materials
Energy
Waste
Water
Packaging
Cost
£m
1200-1700
300-600
30-90
30-90
15-30
% of turnover
Potential savings
at 20% £m
35-50%
10-20%
1-3%
1-3%
0.5-3%
240-340
60-120
6-18
6-18
3-6
NB: these figures are indicative - not based on primary Scottish research.
The report estimated that 10-20% savings could be possible at no cost, with a further 10-20% by
adopting best practice.
The chemical sciences sector is taking forward the recommendations of the SJW report by:
 assisting the sector to embed resource, and energy efficiencies;
 supporting the sector to consider energy from sustainable sources; and
 working with the sector to develop and manufacture innovative products, processes and
solutions which reduce GHG emissions over the total product lifecycle; through the use of
sustainable feedstocks.
The Carbon Trust5 states that the most significant energy savings are in the following areas:
process controls, furnaces and boilers, heat exchangers, steam leaks, insulation, variable
speed drive motors, compressed air, process operations, refrigeration.
It is important to optimise existing facilities, before embarking on capital expenditure, for example
ensuring good operator training and maintenance of equipment.
A DEFRA6 report from 2011 estimates (taking 15% share for Scotland) that low cost savings for
chemical companies are £13m from energy, £659m for materials and waste, and £1.6m for water.
This would reduce Scottish emissions by 96,000 t/CO2e from energy and 235,000 tonnes from waste.
Further, even larger financial savings could arise from measures with more that a one year payback of
£22m, £796m and £11m respectively.
The North-west Development Agency undertook an evaluation7 of its support to SMEs through waste
minimisation, resource management and reducing environmental risk. £23.5m savings were
identified of which £3.2m (14%) were with chemical companies - energy £1.5m, materials £0.5m,
waste £1m and water £0.2m.
There are significant discrepancies in the figures between these three studies, so the figures can only
indicate the order of magnitude of the resource savings potential.
It is good practice to use the principles of the waste hierarchy as follows:
Resource Efficiency Hierarchy
Reduce (best option)
Reuse
Recycle
Waste
3.4
Examples
energy efficiency, process intensification
industrial symbiosis, use of waste heat
waste, water, critical raw materials
energy from waste, industrial symbiosis
Critical Raw Materials
There are concerns about the future availability of elements that are currently essential to build a wide
range of ECT products such as solar panels, catalysts and batteries for electric cars (Chemical
5 Chemicals Sector Overview, Carbon Trust, 2006
6 Further Benefits of Business Resource Efficiency, Defra, 2011
7 Evaluation of the ENWORKS Minimisation Project, NWDA, 2008
7
Engineer Magazine, Oct 2011). This includes the rare earth elements. Demand is threatened by a
mix of political instability, geological scarcity, environmental impact of extraction and speed at which
new deposits can be brought into production. However, most of these elements are infinitely
recyclable and part of the solution will lie in better design and closed loop systems, ie establishing
comprehensive recycling infrastructure. Chemical Sciences Scotland is feeding into the work of the
CIKTN and Business Council for Sustainable Development who are working on these issues.
3.5
Sustainable Energy
There is scope to reduce emissions by utilising sustainable energy. The biggest potential is from
burning biomass (from either waste or new materials). Many of the larger companies have combined
heat and power (CHP) plants to increase efficiency.
A number of Scottish sites are pursuing the potential for renewable electricity to be produced on site,
eg biomass, wind turbines or tidal power.
Co-location can provide opportunities for efficiencies by enabling the efficient use of technology to
share or re-use resources, eg CalaCHEM have attracted other users to their site at Grangemouth by
sharing their CHP and effluent treatment plant.
3.6
Transport
The chemicals sector has a direct impact on transport through the HGVs and container ships that are
used to transport raw materials and finished products. Transport costs can be reduced through
efficient logistics and by producing chemicals in concentrated form. The sector has an indirect impact
on transport through the use of materials (eg lightweighting, more fuel efficient cars) and through
transport fuels.
Ve
3.7
Products that Deliver Global Solutions and Mitigate GHG Emissions
As stated earlier, the chemicals industry can help to provide solutions to global environmental
challenges, including mitigating climate change, food security, energy security and clean water.
For example, 145,000 t/CO2 per year could be saved if all Scottish cars and LGV’s were converted to
low rolling resistance tyres (2% fuel saving). Polimeri Europa research and manufacture rubber
polymers for use in low rolling resistance tyres, whilst the Michelin factory in Dundee manufactures low
rolling resistance tyres.
ECT products include fibre-based materials (construction and car industry), bioplastics and other
biopolymers, surfactants, biosolvents, biolubricants (cosmetics, household and industrial detergents,
paints, adhesives, inks, papermaking), ethanol and other chemical building blocks, biodiesel,
pharmaceutical products including vaccines, enzymes (industrial, healthcare and consumer
applications) and cosmetics.
FUJIFILM Imaging Colorants is a world leader in innovative colorants for the digital printing market.
They develop and manufacture colourants for inkjet printers, coloured chemical toners for laser
printers and photocopiers and infrared absorbers for a range of applications.
Many, but not all, of these solutions are within the sphere of industrial biotechnology which overlaps
with Life Sciences. Enzymes, micro-organisms and various forms of biomass can generate base
materials for a wide variety of products including agrochemicals, food and feed, detergents, paper and
pulp and textiles.

Ingenza has expertise in the production, development and application of industrial biocatalysts
(industrially suitable enzymes) and bioprocesses for the manufacture of organic compounds
for the pharmaceutical, fine chemical, food and renewable fuel industries. This includes
microbial strain construction, microbes for use in biofuels, pharmaceutical proteins and small
molecule pharmaceutical intermediates.
8

Fungi can be used for food production, production of chemical feedstocks, waste treatment
and genome sequencing. Algae have the potential as a fast-growing source of marine crops
to be harvested for chemicals and fuels.

Companies, such as Ecover, specialise in designing cleaning products for consumers that are
based on plant and mineral based ingredients and are fully degradable.
Further details of ECT product opportunities, and their links to the Government’s key sectors, can be
found at annex 2.
4.
INNOVATION AND EMERGING OPPORTUNITIES
4.1
Innovation Trends
EuCheMS published ‘Chemistry – Funding solutions in a Changing World – a Roadmap for Chemical
Science in Europe’. This summarises the innovation priorities and opportunities in energy, resource
efficiency, health and food productio, including:





catalysts that use less rare earth elements;
better design for recycling;
collection of low concentrated elements eg phosphates in water;
clean up nuclear and other contaminants; and
resource substitution (eg reduce lithium in batteries).
The Chemistry innovation KTN produced a roadmap describing the trends, drivers, needs and
available technology for sustainable chemistry and sustainable products. There is an excellent series
of case studies listed:


4.2
by application (adhesives, energy, lubricants etc); and
by problems (durability, energy efficiency, human toxicity etc).
Innovation Funding
Sus Chem is the EU Technology Platform for sustainable chemistry. Its current priorities are research
and innovation on industrial biotechnology, materials technology and reaction and process design.
The Technology Strategy Board is investing £2.5m in feasibility studies and collaborative research and
development projects in the field of high-value chemicals.
The Research Council runs an Integrated Biorefining Research and Technology Club aimed at
developing biological processes and feedstocks to reduce our current dependence on fossil fuels as a
source of chemicals, materials and fuel.
SE is participating in an EU funded project, the BIOCHEM toolbox, to improve the innovation capacity
of bio-based SMEs with the aim of reducing dependence on petro-chemicals. It encourages use of
the CCAlc life-cycle tool. Three Scottish companies are involved in the pilot: Aquapharm for
bioactives from natural sources; Aboleo producing biosurfactants and Giltech for silver based
biocides.
Game changing technology?
Edinburgh Universtity is developing dyes that can trap sunlight and convert it to electricity.
This low cost solar solution can work in low light levels and can be incorporated into textiles
(clothing) or into building materials (walls). It could revolutionise portable energy needs, and
for example, make the AA battery redundant.
Renewable hydrogen, make from wind power, can be used in a fuel cell to produce
electricity, heat and fuel for transport. Hydrogen could be pumped through the existing gas
mains network into residential homes to create a zero carbon energy solution.
9
Scottish Universities are also actively involved in world leading research into industrial biotechnology
and sustainable chemistry. Some examples are listed at annex 3.
4.3
Emerging Opportunities
Scottish Enterprise is currently working with Chemical Sciences Scotland and other partners on a
number of proposals for transformational projects, some of which will bring sustainability benefits.

INEOS are considering a partial transition of the refinery to a fully integrated biorefinery, whilst
retaining the value of the fossil fuel based refinery, resulting in sustainable fuels and chemical
feedstocks and a potential Centre of Excellence in CO2 utilisation as a renewable feedstock;

A biotechnology Centre of Excellence is being considered that would bring together academic
expertise with company R&D to promote biotechnology opportunities.
These are both within the wider ‘Grangemouth project’ proposals that would realise co-location
benefits for participants, including water competitiveness. Creating a critical mass of biotechnology
expertise is crucial in enabling further downstream product development opportunities using biofeedstocks.
Other emerging opportunities include:

Developing and manufacturing innovative products, processes and solutions which reduce
GHG emissions over the total product lifecycle; and through use of white (industrial)
biotechnology;

Develop carbon dioxide as a synthetic feedstock for polycarbonates and fuels (albeit this is at
an early research stage);

Oil molecule efficiency. Further analysis is required to more fully characterise the opportunity
and clarify the specific exploitable potential for Scotland;

The Rowett Institute and Ingenza are examining how enzymes from the microbes that live in
the stomachs of cattle and other ruminants could be used industrially to break down the tough
internal structures of plant and tree matter to create sustainable alternatives to petrochemical
derived products such as fuel, commodity chemicals and fine chemicals.
A recent Optimat report commissioned by Scottish Enterprise has identified the following market led
opportunities based on the Scottish sector’s strengths:







5.
bio-based chemicals and fuels,
speciality dyes and pigments,
catalysis,
fuel cell materials,
white (industrial) biotechnology.
food additives, and
nanoscale chemical processing.
IMPACT ON EMPLOYMENT
There is no good data on the scale of the ECT opportunity for the Scottish chemical sector – primarily
because it is not well defined.
10
Industrial biotechnology is forecast to grow in the UK to £4 to £12bn by 20258 (dependent on the
scenario selected). In addition biofuels, to displace petrol, diesel and jet fuel, could grow to between
£1 to £7bn.
No information could be found on the impact of ECT opportunities on jobs in the chemicals industry.
The Opportunities and Challenges workshop hosted by Scottish Enterprise in 2010 concluded that the
status quo was not economically sustainable, as global competition requires continuous investment in
process improvements and resource efficiency to safeguard existing jobs. Additional jobs could be
created if companies invest in ECT processes and products, specifically if first mover competitive
advantage can be obtained.
Industrial biotechnology may offer Scotland a sector for new high-value manufacturing roles, helping
to fill the gap from the loss of traditional manufacturing.
On the downside, some in the chemicals sector fear that the ‘low carbon’ policy agenda may have an
adverse effect on investment and jobs in the Scottish chemicals sector (see section 1.2).
6.
CHALLENGES
6.1
Much of the Scottish chemical industry is clustered around the North Sea Oil refinery at
Grangemouth. By-products from the refining process are used in the chemical industry. This
readily available source of carbon intensive feedstock could disencourage firms to look for
‘low carbon’ alternatives (however, companies are interested in security and diversity of
supply).
6.2
Technical issues, for example, business ‘pioneers’ in sustainable heat have experienced
planning delays; and policy and regulatory changes can change the economics of these longterm investment decisions.
6.3
There are significant sunk costs in production plant with a long lifespan, which can be difficult
to retrofit and hard to justify new, more efficient, capital investment.
6.4
Capital investment paybacks for energy efficiency investments are typically longer than the
industry demands. Bids are often competing against global competition within the same firm.
One multi-national has ring fenced capital expenditure for energy efficiency which helps to
overcome this.
6.5
There may be a skills issue that is slowing the rate of innovation and implementation of
sustainable chemistry and ECT technologies. Most designers and chemists were not taught
the principles of sustainable chemistry (it did not feature in relevant degrees in the past).
Lifestyle assessments are complex, and multi-disciplinary, and a degree of risk taking is
necessary to shift the focus to sustainability.
6.6
Lack of evidence of firm commercial benefits of demonstrating a low carbon approach to
customers.
8 Maximising UK Opportunities from Industrial Biotechnology in a Low Carbon Economy, BERR, 2009
11
7.
CONCLUSIONS
7.1
The chemical industry has an important role in the transition to an economy that minimises
GHG emissions. Interfering with atmospheric chemistry is causing climate change, and
maximising chemical efficiency when producing heat, power, food and chemicals is required
to solve climate change. Chemicals can be produced more efficiently, some inputs can be
replaced by bio-based materials, and priority could be given to developing innovative products
that reduce GHG emissions elsewhere in the economy.
7.2
A lifecycle approach to decision making is essential for optimal economic and GHG decisions
to be reached.
7.3
A number of factors, not least of which is the increasing price of its raw materials, are driving
this. Reputational benefits could also accrue to the chemicals industry if it is seen to embrace
sustainable solutions.
8.
RECOMMENDATIONS (for the Chemical Sciences Scotland IAG)
8.1
Chemical Sciences Scotland should embed a sustainable and ECT approach into their
refreshed industry strategy.
8.2
Foresighting research should be commissioned to identify the top ECT areas to take forward
where Scotland may have competitive advantage (biotechnology has already been the subject
of detailed research). ‘Process improvements’ could be a topic.
8.3
Chemical Sciences Scotland should continue to support the sector to:

Utilise the services of the SE Sustainability specialists and SMAS to develop a programme
of improvement for the sector to promote and co-ordinate resource efficiency, energy fuel
type and efficiency and process efficiency through sharing best practice;

Utilise the services of the Knowledge Transfer Networks(KTNs) especially the
Environmental Sustainability KTN to adopt a lifecycle analysis approach (eg raw materials
in the supply chain and sustainable design).
8.4
Chemical Sciences Scotland should highlight to the Scottish Government that the sector’s
products can contribute to mitigating global GHG emissions; and highlight the potential
unintended consequences of meeting the Scottish GHG targets. Increased costs in Scotland
could lead to Scottish manufacturing moving overseas making it harder to meet the Scottish
Government’s export ambitions and potentially having an adverse impact on global GHG
emissions.
8.5
The CSS Sustainability topic group should use this paper to facilitate a discussion at a wider
CSS event. The aims would be to identify the various opportunities individual companies and
academia are already engaged in; to engage with the sector to discuss and expand upon the
emerging opportunities already identified; and to provide a platform to take forward the
recommendations in this report and to identify any further actions.
Neil Kitching
Strategy and Economics Team, Scottish Enterprise
Amended version May 2012
12
ANNEX 1: IMPACT ON GREENHOUSE GAS EMISSIONS (GHG)
The chemicals sector is perhaps unique in its multiple impacts on GHG emissions. It is a resource
intensive industry that requires significant energy during manufacture. In addition, certain processes
emit GHGs from the chemical reactions required to produce chemicals.
The McKinsay report estimated the lifecycle emissions from the chemicals industry as follows:
Global
UK
Scotland
Emissions (2005)
000t *
000t **
000t **
Extraction feedstock
300,000
4,000
600
Direct (mainly gas on site)
640,000
8,500
1,275
Indirect (electricity)
800,000
12,000
1,800
Process emissions (CO2 etc)
670,000
9,000
1,350
Disposal
500,000
7,000
1,050
Disposal – HFC, PFC, SF6
400,000
6,000
900
Chemicals total
3,310,000
46,000
7,100
All UK/ Scottish emissions
564,000
60,600
* from the McKinsey report
** In the absence of good data for the Scottish Chemical sector, we have used
proportionate figures (15% of the UK’s chemical emissions). In addition, an estimated 41
(000t) is emitted within Scotland from the transport of chemicals (2% of HGV journeys).
A UK Government report9, estimated that the UK chemical industry uses 22% of industrial energy
consumption, costing £4bn, emitting 22m tonnes of CO2e (presumably direct, indirect and process
emissions in the table above).
Industrial process emissions total 1.7m tonnes, approximately 3% of Scotland’s emissions, or 10%
of emissions from industry (source: Scottish GHG inventory). Emissions arise from the manufacture
of chemicals and from losses in use. Emissions from the import of manufactured goods are excluded.
Gas
‘000 tonnes CO2e
Main sources
CO2
677
falling
cement manufacture, glass making and aluminium
HFC
919
increasing
Refridgeration, air conditioning, metered dose
inhalers, halocarbons, foams, firefighting
PFC
53
falling
electronics
SF6
51
increasing
electrical insulation, electronics, sport shoes
total
1,700
By way of comparison, a recent report by Optimat for Scottish Enterprise estimated direct (on site)
GHG emissions using two different methodologies:

Taking a Scottish 10.9% share of UK GHG emissions, 2007, by sector:
3.19m tonnes (compared to (1.3+1.3 =2.6m tonnes in the table above).

Using SEPA’s Scottish Pollutant Inventory Release Inventory Database, 2009:
4.3m tonnes, incl 3.3mt from the Ineos refinery (excl. from table above) and
chemical
plant.
9 Enabling the Transition to a Green Economy – Chemicals Industry, Defra/BIS/DECC, 2011
13
ANNEX 2: ECT PRODUCT OPPORTUNITIES (by sector)
Aerospace, Defence and Marine
Antifouling paints on ships improve streamlining and reduce fuel usage.
lightweighting aeroplane components eg nano-materials for industrial paints
Construction
Low carbon cement
Advanced insulation materials
Environmental and Clean Technologies – transport and waste
lightweight polymers for vehicles
lubricant additives for engine efficiency
low rolling resistance tyres (Polimeri Europa)
lithium-ion batteries – prolong life
bioethanol from waste
reverse osmosis membranes for water desalination
Surfactant cleaning product to clean oil based sludges
Water treatment to remove algae and bioslime
carbon cloth filters – remove contaminants from gas and water streams
improved sewage treatment
Biodegradeable plastics (for compost waste)
Energy
lightweight and advanced solar cells eg thin film, speciality chemicals
stronger wind turbine blades using impact modifiers, advanced polymers, resins, fire composites
coatings and lubricants for marine energy
organic and nanoparticle solar cells
Carbon capture and storage – catalysts
Hydrogen fuel cells
Electrochemistry – inter-converting electrical and chemical energy (battery strorage, solar cells)
algae – seaweed for fine chemicals (nutrachemicals, cosmetics) or fuel
storage of nuclear waste, and clear up of contamination
Food and Drink
Chemicals that slow down the ripening of fruit eg SmartFresh
Smart packaging (smart inks) – colour changes as food decays
ammonium-nitrate fertilisers. CO2 captured and used to grow tomatoes.
improved fungicides eg Syngenta’s AmistarTM protects crops and increases yields
biosensors to measure nutrient and water availability
Substitute HFCs in refridgeration, eg with CO2
Forest and Timber Technologies
Biofuels – Ist generation wheat or sugar cane to bioethanol; 2nd cellulostic material, 3rd algae.
Life Sciences
Inextricably linked to the chemicals sector. Industrial biotechnology, biofuels, bioremediation etc
Textiles
synthetic textiles (replace cotton)
cellulose based fire retardants
low temperature detergents/ enzymes
Miscellaneous
aqueous paints (no VOCs) using encapsulated additive technology
bio-based chemicals/ bioplastics – PLA (polylactic acid), biolubricants
Print adhesives from bio-based materials. CFL land LED ight bulbs.
14
ANNEX 3: SCOTTISH UNIVERSITIES AND INDUSTRY BODIES
some examples
Biofuels Research Centre at Napier University
Scottish Hydrogen and Fuel Cell Association
James Hutton Institute (crop research)
Abertay Centre for the Environment – research on soil and climate change
University of Glasgow – research into organocatalysis for the synthesis of fine chemicals and
synthetic methodologies to generate building blocks in a more energy efficient way.
Scotchem (joint project beween Heriot Watt, Aberdeen and St Andrews) – continuous gas
pahas hydrogenation for treatment of halogenated waste streams.
ANNEX 4:
SECTOR SUPPORT
In addition to the EU and UK innovation support noted at section 4.2, there is a range of support
available to chemical companies in Scotland:

Scottish Enterprise offers a range of support; including account management services,
innovation grants, SMAS, lean management and sustainability specialist support.

Scottish Enterprise is currently suporting an ambitious project to develop port, logistics and
distribution facitilities in the Grangemouth area aligned to a proposal to establish a biorefinery, and potentially a biotechnologies zone.

There is a significant repository of information on the Business Gateway site.

Zero Waste Scotland have on-line support for waste issues and can provide assistance for
waste innovation projects.

The Carbon Trust can help with energy matters. They published a Chemical Sector Overview
report, 2006.

The European Chemical Industries Body (CEFIC) published CARE+ and an Energy Efficiency
Handbook for SMEs.

Many companies are supported through obtaining formal environmental accredication and
auditing, for example, ISO 14001.
15
ANNEX 5: USEFUL REPORTS
Report
UK Expertise for
Exploitation of Bio-based
Chemicals
Maximising UK
Opportunities from
Industrial Biotechnology in
a Low Carbon Economy
Chemicals Sector Overview
Innovations for Greenhouse
Gas Reductions
Potential Energy and GHG
Savings of Renewable
Chemicals and Biocatalysts
Sustainable Technologies
Roadmap
Plant Biotechnology – an
environmental scan
Summary
Produced by
Markets and expertise
FROPTOP Group
Market opportunities of move to bio-based
chemicals, materials and energy. £4to
£12bn in UK by 2025.
BERR, 2009
Energy efficiency advice. Better controls
can reduce energy by 5-15%
Use of chemicals in insulation, fertilizers,
lighting etc saved 2x to 2.6x carbon
elsewhere in the economy (compared with
non chemical substitutes)
Lifecycle analysis of chemicals made from
bio-based materials v oil based.
Website listing trends etc for sustainable
chemicals
A wide review of the opportunities
Next Generation Crops
A wide review of the opportunities
Sustainable Transport Fuels
A wide review of the opportunities
Biofuels mapping across
Scottish Enterprise’s
Priority Industries
Opportunities, and current provision.
Sustainability – an Overview
The Transition for the
Chemicals Industry
UK Expertise for
Exploitation of Bio-based
Chemicals
A Vison for Sustainable
Growth
The chemical industry:
delivering a low carbon future
24 hours a day
Chemistry – finding solutions
in a changing world
Greenhouse Gas Emission
Benchmark Exercise
Summary for Life Sciences (industrial
biotechnology). Full report available on
request.
Summary of the opportunities for a green
economy
Carbon Trust, 2006
McKinsey for the
ICCA, 2009
BERR, 2008
Chemical Innovation
KTN,
Scottish Enterprise
(foresighting), 2008
Scottish Enterprise
(foresighting), 2008
Scottish Enterprise
(foresighting), 2008
Scottish Enterprise
(foresighting), 2009
Scottish Enterprise
(foresighting), 2011
Defra/ BiS/ DECC,
2011
Markets and expertise
FROPTOP Group
Analysis of China’s chemical industry
KPMG
Analysis of GHG and low carbon
opportunities.
UK Chemical
Industries
Association, 2010
A roadmap of innovation in chemistry in
Europe
A report to advise Scottish Enterprise on the
refresh of the Industry Strategy
16
EUCheMS
Optimat, 2011
(unpublished)