Download Chemical industry

Energy Efficiency Management in the Chemical Industry
02/06/2014, Thessaloniki
Peter Botschek, Cefic
The sole responsibility for the content of this presentation lies with the authors.
It does not necessarily reflect the opinion of the European Union. Neither the EACI
nor the European Commission are responsible for any use that may be made of
the information contained therein.
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The Chemical
Industry in Europe
Background: Industry efforts in energy efficiency
2010: 53.4%
less energy than 1990
* Source Cefic f
acts and figures 2012
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The chemicals industry supplies virtually all
sectors of the economy
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Chemicals sector: Energy matters
5
Sectoral energy consumption mix
1 800
1 600
1,492
1,613
Source: Ecofys
Electricity
1 400
Ren.Heat
Biomass
1 000
Natural Gas
805
800
Oil
600
354
400
Coal
386
246
200
Energy consumption per chemicals industry subsector, 2010-
Energy
Energy
Feedstock
Basic Inorganics
Energy
Petrochemicals
Energy
Feedstock
0
53
Energy
PJ / year
1 200
Polymers
Specialty
Chemicals
Consumer
Chemicals
Source: Ecofys
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Energy costs
16%
Source: Ecofys•
Energy costs as a proportion of sales for the five
subsectors of the chemicals industry subsectors in
2010
8%
Consumer
Chemicals
Specialty
Chemicals
Polymers
0%
Basic
Inorganics
4%
Petrochemicals
[%]
12%
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Greenhouse gas emissions halved
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EU Energy &
Climate policy
2014 Energy/Climate/Industry policy: Challenges
Council requests carbon leakage measures from EC, aims at reindustrialisation and growth
•
EC energy prices and costs report (January 2014) shows high relative energy
costs in Europe compared to other world regions affecting EU’s industrial
competitiveness
•
EC report reveals growing share of national and EU policy costs
•
EC refers to causes for high costs but refrains from proposing legislative action
10
2014 Energy/Climate/Industry policy: Challenges
Re-industrialisation, growth and jobs for Europe will require EU
institutions to change governance
•
EU institutions’ still overly rely in their policy proposals on future growth of hightech, green tech (=cherry-picking); “transition to low-carbon economy” - but
“green” industries are only a (tiny) part of existing EU manufacturing at stake
•
Energy-intensive basic building blocks manufacturing for viability of whole EU
value chains and general economy systematically underrated (rather believing in
“global value chain”, relying on external supplies, biased policy forecasts and
‘equilibrium’ economic modelling)
•
Capping EU’s total primary energy consumption and increasing EU ETS carbon
costs seen as solution – risking growth of EU manufacturing economy
11
2014 Energy/Climate/Industry policy: Challenges
EC governance needed towards comprehensive EU policies reform
•
Reconcile energy and climate policies with industrial policy
•
Governance and coordination, with regular status reviews
•
Climate and energy costs for EU industry must not further increase relative to
our global competitors
•
Adjust EU climate and energy policies to ensure that they do not run counter to
the ambition of an industrial renaissance; EU unilateralism is expensive, not
climate-friendly
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EU Energy prices for industry = competitiveness threat
“High energy prices for EU industries should remain a policy
concern, particularly as the US-EU gap will increase” (DG ECFIN)
Source: EC (ECFIN) ‘Energy Economic Report’

Significant gas price gap between EU and US since 2006 (first due to rise of prices in the EU later
due to shale gas effect from 2007/8)

US reduced its energy dependency (18% in 2011) - EU’s import dependency increase from 46% to
52% (2010)

Rise in EU wholesale gas prices despite slump in demand (economic crisis) and lower gas spot
prices shows EU’s high import dependency
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It’s time for a change – Industrial policy is the key!
But, such impressive
past improvements
cannot be easily
continued in future.
Higher energy efficiency
in Europe becomes a
more difficult task while
completely new
installations with a
higher energy efficiency
grade are built in the US
or other world regions.
Chemical Industry for the EU includes Chemicals and chemical products and Basic pharmaceutical
products and pharmaceutical preparations. For the US: Chemicals, Pharmaceuticals and Medicines.
Source: Eurostat, Energy Information Administration and US Bureau of Economic Analysis.
Improvements of the EU
industry in terms of
energy intensity have
helped to offset the
increase in real energy
prices’ in comparison to
the US and Asia.
Source: EC (ECFIN) ‘Energy Economic Report’
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Main recommendation: Keep investments flowing!
• Europe must remain and become an even more attractive, efficient market for
manufacturing also energy-intensive goods to the benefit of EU growth and
employment!
• Companies become more energy efficient through new installations and
economically feasible investment in existing installations. Europe has a
precious, highly efficient chemical industry.
• Positive and growth-oriented energy and industry policies would foster a
sustainable, energy-efficient EU investment climate.
The European Chemical Industry ultimate goal is to create partnerships to:
 strengthen the manufacturing value chain
 maintain R&D capability in Europe
 sustain high quality jobs
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SPiCE³ - the project
But… What about energy efficiency potential in SMEs?
• Most EU chemical companies are small- or medium-sized
• SMEs account for 30% of sales and 37% of jobs
• CARE+ showed: there is energy efficiency improvement
potential of 10–20% in many SMEs across Europe
Challenges:
•
•
•
•
Lack of knowledge
Administrative burdens
Limited staff resources
Financial limitations (payback
time for investments)
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SPiCE³ – Objectives
Facilitate access to
energy efficiency
information, tools
and support schemes
Enable
companies to
take up tools and
participate in
existing initiatives
Promote best
practices and
success stories
Establish and
strengthen
contacts
between energy
efficiency actors
to create a
network for
learning
and exchange
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SPiCE³ closes knowledge gaps and links bottom-up with top-down through our
national federations and companies at international and local level
Online
platform
• One-stop shop for
energy efficiency
information
Workshops
• Knowledge sharing
between SMEs,
large companies
and energy expert
organisations
On-site
training
EU awards and
events
• Site visits to SMEs
by energy experts
to assess potential
measures and give
recommendations
• Promoting good
practices
– joining up with
Responsible Care
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SPiCE³ - the online
platform
SPiCE³ = explore, learn, share, join, update, discuss
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Curious what your neighbour is doing?
13 countries
12 languages
17 partners
Let’s
get started -
choose your
country!
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Join events and learn about show cases and tools all over Europe
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So what is going on in Greece?
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Or do you want to learn about BG energy efficiency regulation?
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We have only started….
There is a lot more to do –
get involved!
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Backup
European chemicals industry: diverse products
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2014 Energy/Climate/Industry policy: Challenges
Achieve effective EU policies shift towards competitiveness and growth
Improve EU industry access to competitive energy
•
Enable energy markets functioning and competition (‘Internal Energy
Market’, 3rd package)
•
Diversify market-based EU energy supply; opportunities for unconventional
sources
•
Scale down, harmonise renewables subsidy schemes, state interventions
•
Safeguard industrial consumer rules, exemptions
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2014 Energy/Climate/Industry policy: Challenges
Council to drive new EC governance:
Free companies that meet benchmarks from any CO2 costs
(=ETS structural reform) in absence of global level playing field
•
No mandatory linear emission reduction for industry beyond benchmark
performance: allocation below benchmark performance levels prevents EU
growth and investment, pushes production and jobs out of Europe
•
Dynamic allocation, indirect free allocation
Industry cannot finance power sector low-carbon transition
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22 Jan 2014: EC 2030 package proposals
Use input provided by sectors; shield EU manufacturing from costs of
decarbonising power sector
 -40% ghg emission reductions target 2021-2030: EC wants
ETS sectors to reduce their emissions by 43% compared to
2005 (linear reduction -2,2% annually)
 Chemical industry: ECI delivered -50% already in 2011
-43% based on 2005 means for us -70% based on 1990; is
unrealistic, exceeds most optimistic technology forecasts
(Cefic roadmap)
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EC 2030 package EU ETS reform
Keep ETS as tool to achieve agreed emission reductions at lowest
cost
Legislative proposal “market stability reserve” (MSR) for
the EU Emissions Trading Scheme changes ETS from a
price-finding market tool with variable demand and a given
allowances volume (cap) into a high CO2 price tool!
Competitiveness & growth:
Rather use reserve as dynamic free allocation pool for
industrial growth
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SPiCE³ – background
June 2014: Joint RC-SPiCE³ Forum in London (hosted by CIA)
April 2014: 1st SPiCE³ anniversary
December 2013: Launch of the SPiCE³ online platform at the first joint RCSPiCE³ conference in Amsterdam (hosted by VNCI)
April 2013: Take-off of the SPiCE³ Project (“Sectoral Platform in Chemicals
for Energy Efficiency Excellence”)
Coordinated by Cefic – with 13 partner countries joining the project, covering
more than 80% of the chemical industry activities across the EU
November 2012: SPiCE³ is selected as an eligible project under the Intelligent
Energy Europe programme (co-funded by the European Commission)
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And remember – we’re doing this for 13 countries and in 12 languages!
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Cefic (BE)
Erik
Mike
Patrick
Anna
Hans
Françoise
Nick
Jaroslav
Reinier
Kristiina
Mikael
Giuseppe
Linnea
Sami
Elena
Simon
Liliana
Martina
Paolo
Challoch
Energy
(BE)
FEIQUE( E)
ExtraMile
Communica
tions Ltd
(UK)
UIC (F)
NL Agency
(NL)
HACI (GR)
Essenscia
(BE)
IKEM (SE)
BCCICHEM (BG)
SC
Sviluppo –
Federchimi
ca (IT)
Chemind
(FI)
SCHP (CZ)
Peter
Ari
Yves
Sebastian
PCCI (PL)
Ilse
VNCI (NL)
Nick
CIA (UK)
Iria
VCI (D)
Laura
You are not alone in this!
Project coordinator:
Martina Beitke
Energy Manager, Cefic
+32 (0)2 676 7367
[email protected]
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