Chemical Today Magazine PDF March 2022 by worldofchemicals.com

March 2022 | Volume VI | Issue XIV

Sustainability Reducing Waste Textiles Industry

Insights

Renewable Power Plastics & Polymers US Outlook

IT In Chemicals Back-office Smart Cosmetics AI In Cosmetics

CLEAN BEAUTY

In search of the perfect ‘Cleanicals’ I

n a new age set up, consumers require that the brands they are associated with are clean, safe, sustainable and environmentfriendly. Preference for brands having greater transparency ranks higher during customer purchase decision-making. Specific to the cosmetics industry for skin treatment, customers are searching for transparent skincare options. People want to make informed choices after knowing regarding the ingredients and organic solutions provided for various skincare products. The cosmetic brands too should cater to the health and hygiene requirements for customers. On application the cosmetics should have a medicinal effect and act towards solving the health issues of

consumers. Other than transparent, cosmetics are also becoming smarter by the day. Many cosmetic majors are using a data and technology based approach to determine the changing consumer preferences. Here artificial intelligence (AI) appears to be a solution to deal with this complex environment, prompting beauty companies to make data-driven decisions on their strategies to remain competitive. Further, the beauty sector has rigorously been incorporating digital transformation into its business models to give consumers individualized skin regimens and beauty products tailored to their specific needs. A major cosmetic firm is providing a device that uses face color, structure, and environment data to come up with the perfect foundation and lipstick color & texture. Using technology for personalization in creating the right product at the consumer end itself becomes a big boon for skincare regime in the long run. Looking at the macro economic indicators the Russia-Ukraine crisis has gotten the global stock markets plummeting and major markets have already crashed by significant margins. To avoid further destruction, various countries are uniting in their efforts and levying sanctions against Russia. These sanctions are in turn impacting the varied industries and have sent shivers down the global oil & gas and chemical industries too. With proper assessment of the conflict in Ukraine and seeing the humanitarian crisis major oil & gas and chemical companies have announced the decision to suspend their operations in Russia and even exit their partnerships with Russian entities in the country. Some of these companies have even gone a step further and announced halting of operations in Belarus, who is supporting Russia in its fight against Ukraine. Moreover, these companies have even made statements suggesting that they will put on hold any strategies & plans for new investments and collaborations in Russia. Globally efforts are going on to end the Russia-Ukraine crisis, as with the Covid-19 pandemic impact and the threat of war, the worldwide economic and financial burden is a big concern for all the countries. For suggestions or feedback write to editorial@worldofchemicals.com

Chemical Today Magazine | March 2022

Chemical Today

is a monthly magazine focused on chemistry & the chemical industry.

CONTENTS SECTOR VIEW

QUOTES COSMETIC INDUSTRY

NEWS

RUSSIA UKRAINE CONFLICT NATIONAL INTERNATIONAL NEWS MOVERS & SHAKERS NEWS MAKE A DIFFERENCE

CHEMICAL SECTORS

FOOD TRENDS ALTERNATIVE PROTEIN MARKET CIRCULAR ECONOMY - CLIMATE NEUTRAL MDI PLASTICS MEDICAL & HEALTHCARE METAL PIPES LINING PROJECTS

SUSTAINABILITY

REDUCTION OF WASTE

03 04 09 10 14 17 20 22 23 24

REDUCTION OF WASTE TEXTILES

27 30

GREEN CHEMISTRY

SECTOR VIEW COSMETIC INDUSTRY

INSIGHTS

PLASTICS & POLYMERS RENEWABLE POWER US CHEMICALS OUTLOOK

44 46 48

AGROCHEMICALS MARKET BIOFERTILIZERS MARKET GLOBAL BIPHENYL MARKET DETERGENTS MARKET FINE CHEMICALS MARKE OLEOCHEMICALS MARKET

53 56 58 60 62 65

ACADEMIC R & D

REPORT Srinivasan Ramabhadran,

Regional Managing Director, Asia Pacific, dss+

SUSTAINABILITY

TEXTILES

IT IN CHEMICALS

GREEN CHEMISTRY FOR SUSTAINABLE TEXTILE INDUSTRIES 2

Chemical Today Magazine | March 2022

AI IN COSMETICS SMART COSMETICS BACK-OFFICE FUNCTIONS

74 76 77

JOBS

PRODUCTS

EQUIPMENT

Published for March 2022.

QUOTES

The rise of e-commerce and access to new technologies has accelerated counterfeiting and other forms of illicit trade. That makes fighting counterfeit medical products an ever-more urgent priority for pharma companies both in terms of patient safety and brand reputation. Yann Ischi Director, New Channels and Partnerships, SICPA

Within the Volkswagen Group, we have a clear strategy for how we want to put battery-electric vehicles into series production across our brands and in many different market segments. However, a major qualification for success in the volume market is more powerful battery concepts. In Volkswagen Group R&D we are focusing on close cooperation, not only with industrial partners but also with the smart minds of the scientific community. Dr Ulrich Eichhorn Head, Group R&D, Volkswagen AG.

India is a very important market for polyurethanes and has a wonderful potential for growth. When leaders of the industry from all over the world get together under one roof, it leads to better production and faster growth of the industry R C Bhargava Former CEO and current Chairman, Maruti Suzuki.

Indian Solar Manufacturers Association (ISMA) members have expressed positive sentiments as manufacturing and Make in India initiative gathered momentum. The phenomenal growth opportunity of Renewal Energy is unparalleled in the world today, looking at current and future energy consumption in India over the next 2-3 decades. All stakeholders have immense opportunities especially those who make and develop products in India. K N Subramaniam CEO, Moserbear Solar Ltd and Treasurer, Indian Solar Manufacturers Association (ISMA)

NEWS RUSSIA UKRAINE CONFLICT

RUSSXIT: THE DEPARTURE OF GLOBAL CHEMICAL COMPANIES FROM RUSSIA BY DEBARATI DAS

he gruesome turn of events as Russia started its invasion of Ukraine has left the world baffled. Cities after cities are falling down in Ukraine while Kyiv, Kharkiv and Kherson have come under heavy shelling in recent days. Many civilians have died and gory images of buildings falling down as house of cards have left the world appalled. Not just the world leaders, but the chemical industry too is retaliating against Russia for this insanity against humanity. Major chemical companies are opposing Russia by pulling out their operations from the country. Like any other nation, the chemical industry is a key part of the national economy and industry of Russia. According to the European Chemical Industry Council (CEFIC), in 2020, the volume of production of chemical and petrochemical products in Russia amounted to more than 4.5 trillion rubles, an increase of 8.6 percent year-on-year and amounting to about 7 percent of gross domestic product (GDP). The Russian chemical industry has over 3,500 large enterprises and SMEs, and 100 scientific and design organisations and experimental plants. Together they employ approximately 580,000 production workers, CEFIC stated.

According to company details, at the end of 2021, Shell had around $3 billion in non-current assets in these ventures in Russia.

TotalEnergies to no longer provide capital for new projects in Russia: Condemning Russia’s military aggression

against Ukraine, TotalEnergies announced that the company will no longer provide capital for new projects in Russia. Expressing its solidarity with the Ukrainian people who are suffering the consequences and with the Russian people who will also suffer the consequences, TotalEnergies said that it has mobilized to provide fuel to the Ukrainian authorities and aid to Ukrainian refugees in Europe. “TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia,” the company said in its statement.

Nynas halts purchase of feedstock of Russian origin:

Nynas has announced that the company has decided to halt purchase of feedstock of Russian origin, and sales to customers in Russia and Belarus have also been stopped.

Russia is also the world’s third-largest producer of petroleum and has many countries dependent on its oil reserves. After the fall of the Soviet Union, major US-based companies including bp, TotalEnergies and Exxon Mobil established their base in Russia and were also instrumental in shaping the Russian oil business. However, today, all these companies have stopped their operations in Russia and are pulling out their investments and businesses from the country despite incurring huge losses.

“We in Nynas, like everyone else, are hoping for an urgent end to the Russian invasion of Ukraine to stop the ongoing humanitarian catastrophe. The decision as communicated is taken even though the export of crude oil and gas from Russia are not today subject to sanctions,” said Bo Askvik, Nynas president & CEO.

Several other chemical companies are joining the bandwagon calling for an end to this violence. Here are some of the major companies and their decision to exit Russia for good:

Equinor stops new investments in Russia: Equinor,

BP quits Russia in up to $25 billion hit after Ukraine invasion: BP said that it is abandoning its stake in Russian oil giant,

Rosneft, in an abrupt and costly end to three decades of operating in the energy-rich country. The exit will result in charges of up to $25 billion as Rosneft accounts for around half of BP’s oil and gas reserves and a third of its production. “I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected. It has caused us to fundamentally rethink bp’s position with Rosneft,” said Bernard Looney, chief executive, BP.

Shell exits equity partnerships held with Gazprom entities: Shell Plc announced its intention to exit its joint ventures

with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project. “We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s chief executive officer, Ben van Beurden. “Our decision to exit is one we take with conviction,” said van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance

with relevant sanctions.”

Chemical Today Magazine | March 2022

Nynas has alternatives to Russian feedstocks, and the company will increase that part of the raw material supply while evaluating new suppliers. the Norwegian energy company, said it would “stop new investments into Russia” and “start the process of exiting” joint ventures there. “In the current situation, we regard our position as untenable,” Anders Opedal, the company’s president and chief executive, said in a statement. Equinor’s investments in Russia are small, producing about 30,000 barrels a day, around 1.5 percent of the company’s total output.

BASF halts new business in Russia, Belarus: BASF, the world’s largest chemicals group, has halted new business in Russia and Belarus following Moscow’s invasion of Ukraine, reported Reuters.

“BASF will not conclude new business in Russia and Belarus, with the exception of those serving food production as part of humanitarian measures,” German magazine WirtschaftsWoche quoted the company as saying. “Effective immediately, BASF will only conduct business in Russia and Belarus that fulfils existing obligations in accordance with applicable laws, regulations and international rules.”

Kemira discontinues deliveries to Russia: Kemira,

a global player in sustainable chemical solutions for water intensive industries, has decided to discontinue deliveries to Russia and Belarus starting 1 March until further notice. The decision to discontinue deliveries will primarily impact pulp and paper customers in Russia, the company said in its statement. In 2021, Russia represented around 3 percent of Kemira’s total revenue. Every day, more and more companies are joining the growing list of companies that are halting business operations in Russia amid the Ukraine crisis. This ‘Russxit’ is going to have huge implications on the global economy and would take years to build back the growth momentum.

NEWS RUSSIA UKRAINE CONFLICT

GLOBAL MARKETS COUNT COST OF RUSSIAN INVASION

Ukrainian servicemen drive a tank during drills at a unknown location training ground in Ukraine. Handout picture released 18 February. Ukrainian Joint Forces Operation Press Service/Handout. (Image © Reuters)

he impact of Russia’s invasion of Ukraine rattled global markets. There will be lasting implications for commodities, energy policy and the energy transition, experts from global natural resources consultancy, a Verisk business said. The world’s dependence on Russia for certain commodities cannot be overstated ? from gas, coal, oil, iron ore, aluminium, platinum group metals and zinc to copper, lead, petrochemicals and fertilisers. Many major international oil & gas companies, utilities and miners are invested in Russia.

European exposure to Russian commodity imports and its monetary value (2021) Wood Mackenzie’s global team has analysed the risks to commodities and corporate exposure, as well as the wider economic fallout.

Gas War in Ukraine is piling pressure onto a European gas market that was already going through its worst crisis on record. Russian pipeline imports account for 38 percent of EU demand, making sanctions on Russian flows prohibitive. But if the EU was to stop all Russian gas flows, the long-term implications could be severe. Russia, too, would lose much. At current prices, it would give up $7.5 billion of revenues a month, possibly more. In the tussle between Russia and the EU over gas imports, business as usual remains the most pragmatic, and likely, outcome. The invasion, though, will push the EU to question its dependency on Russian gas. New supply will take time to materialise and will see higher prices in the medium term. But LNG players in the US, Qatar and beyond are starting to gear up; as are pipe suppliers from Azerbaijan, the East Med and Norway. The crisis will also push the EU to rethink the role of gas in its decarbonisation strategy. Higher gas prices make a stronger case for renewables, as well as alternative gases such as bio-methane and green hydrogen.

Chemical Today Magazine | March 2022

Coal Having to replace Russian coal volumes would result in a price shock to global coal markets and a coal shortage in Europe. Russian coal accounts for roughly 30 percent of European metallurgical coal imports and over 60 percent of European thermal coal imports. The primary issue with replacing Russian coal exports in Europe is its reliance on Russia’s particular quality of coal. Coal-fired power currently accounts for around 14 percent of Europe’s generation mix. The impact on European power markets from a Russian coal shortage would not be as significant as gas. Crucially, though, Europe may not be able to depend on coal plants to make up for gas-fired generation losses.

Crude oil As much as 2.3 million b/d of Russia’s 4.6 million b/d of crude oil exports go to the West. The US has made it clear it does not intend to impose direct sanctions on Russia’s oil exports. We are seeing slowdowns in Russian crude purchases. Until payment terms are clarified, further tightening in the supply and demand balance is expected. Russia and Saudi Arabia are partners in an OPEC+ production restraint agreement. In the case of an actual oil supply cut, OPEC would be more likely to consider using spare capacity to help offset losses, rather than raise output above target levels. Barring a sustained slowdown in exports, the upward momentum in oil prices is likely to ease. In the longer term, we do not expect consuming nations to avoid Russia’s oil, given that its exports move into an open, fungible market that does not require close ties between countries.

Refined products Russian diesel/gas oil is of greater significance to Europe, as the region imports more than 8 percent of its demand from Russia. Fuel oil and residues are traded globally and often consumed as feedstocks by US Gulf Coast refiners or as bunker fuel for commercial shipping in Asia. As with crude oil, we do not expect a turn away from Russia’s refined product exports.

We do not expect a demand surge based on gas-to-oil switching if the crisis affects Russia’s gas exports. Fuel switching demand for heating in Europe is limited to Germany. In the power generation sector, European oil-fired capacity is either idled or shuttered, limiting the upside to oil demand.

Metals Ukraine has few metal extraction and processing production facilities of scale, so the disruption to production will have a relatively small impact globally. Ceasing the output and export of certain commodities, such as aluminium, platinum group metals and iron ore, however, would have a disproportionate impact, as markets are already under supply pressure. Of greater consequence are any limits on the ability of Russian producers to import raw materials to or export finished products from Russia. Another concern is whether counterparties are willing or able to transact with their offshore entities. As sanctions ratchet up, any metals and mining companies whose shareholders have links to the Kremlin are at risk

Petrochemicals The short-term impact of the situation in Ukraine is likely to be felt through two main petrochemical channels: energy prices and sanctions. Any additional premiums will probably have to be absorbed in the form of reduced margins. The precise impact of sanctions will depend on their final form. Russia accounts for just under 16 percent of total European petrochemical production, with its highest exposure in the polyethylene chain. This makes Russia an important – but not critical – contributor to the industry.

Corporate impact: IOC exposure to Russia is concentrated in the hands of a few: BP and TotalEnergies have by far the largest positions of the majors. Wintershall DEA is proportionately the most exposed through its two large upstream JVs with Gazprom and the current crisis could influence the timing of its IPO.

Stricter rules around access to the international financial system could hurt IOCs’ ability to receive dividends and other payments. Targeted sanctions against their Russian partners seem unlikely, but would present a much more profound challenge. In the power sector, only legacy investments remain. They are neither core nor strategic. The Russian metals and mining industry has seen similar diminishing international involvement. Glencore is the last one left, but its exposure accounts for less than 1 percent of its market capitalisation. Economics: Russia’s economy is in a better position to withstand sanctions than it was in 2014 when it annexed Crimea. The conflict hurts Ukraine’s economy most. If energy flows are affected, the global impact could be severe. Neither Russia nor the Western allies will want to disrupt flows, but it cannot be ruled out. Russia has built a reserve cushion that could soften the impact of sanctions short term. Being frozen out of international bond markets means new sovereign debt needs to be financed domestically. Reserves cover the $50 billion due in principal repayments on government debt through 2025. In Ukraine, the conflict risks disrupting economic activity and causing damage to capital stock. Its economy is likely to be back in recession in 2022 unless the situation de-escalates quickly.

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Chemical Today Magazine | March 2022

NEWS RUSSIA UKRAINE CONFLICT

HOW THE RUSSIA-UKRAINE CONFLICT MIGHT HIT GLOBAL MARKETS

A member of the Ukrainian State Border Guard Service patrols the area near the frontier with Russia in the Chernihiv region, Ukraine 16 February 16, 2022. (Image © Reuters)

potential invasion of Ukraine by neighbouring Russia would be felt across a number of markets, from wheat and energy prices and the region’s sovereign dollar bonds to safe-haven assets and stock markets, reported Reuters News. Below are five charts showing where a potential escalation of tensions could be felt across global markets:

1) Safe Havens A major risk event usually sees investors rushing back to bonds, generally seen as the safest assets, and this time may not be different, even if a Russian invasion of Ukraine risks further fanning oil prices -- and therefore inflation. Inflation at multi-decade highs and impending interest rate rises have made for a tetchy start to the year for bond markets, with US 10year rates still hovering close to the key 2 percent level and German 10-year yields above 0 percent for the first time since 2019.

In forex markets, the euro/Swiss franc exchange rate is seen as the biggest indicator of geopolitical risk in the euro zone as the Swiss currency has long been viewed by investors a safe haven. It hit its strongest levels since May 2015 in late January. Gold, also seen as a shelter in times of conflict or economic strife, is clinging to 13 month peaks.

2) Grains and Wheat Any interruption to the flow of grain out of the Black Sea region is likely to have a major impact on prices and further fuel food inflation at a time when affordability is a major concern across the globe following the economic damage caused by the COVID-19 pandemic.

But an outright Russia-Ukraine conflict could change that.

Chemical Today Magazine | March 2022

Four major exporters - Ukraine, Russia, Kazakhstan and Romania -

country.

ship grain from ports in the Black Sea which could face disruptions

In the financial sector, the risk is concentrated in Europe.

from any military action or sanctions. Ukraine is projected to be the world’s third largest exporter of corn in the 2021/22 season and fourth largest exporter of wheat, according to International Grains Council data. Russia is the world’s top wheat exporter.

3) Natural Gas & Oil Energy markets are likely to be hit if tensions turn into conflict. Europe relies on Russia for around 35 percent of its natural gas, mostly coming through pipelines which cross Belarus and Poland to Germany, Nord Stream 1 which goes directly to Germany, and others through Ukraine. In 2020 volumes of gas from Russia to Europe fell after lockdowns suppressed demand and did not recover fully last year when consumption surged, helping to send prices to record highs.

Austria’s Raiffeisen Bank International derived 39 percent of its estimated net profit last year from its Russian subsidiary, Hungary’s OTP and UniCredit around 7 percent from theirs, while Societe Generale was seen generating 6 percent of group net profits through its Rosbank retail operations. Dutch financial company ING also has a footprint in Russia though that accounts for less than 1 percent of net profit, according to calculations by JPMorgan. Looking at loan exposure to Russia, French and Austrian banks have the largest among Western lenders at $24.2 billion and $17.2 billion, respectively. They are followed by US lenders at $16 billion, Japanese at $9.6 billion and German banks at $8.8 billion, data from the Bank for International Settlements (BIS) shows.

As part of possible sanctions should Russia invade Ukraine, Germany has said it could halt the new Nord Stream 2 gas pipeline from Russia. The pipeline is projected to increase gas imports to Europe but also underlines its energy dependence on Moscow. Analysts expect natural gas exports from Russia to Western Europe to be significantly reduced through both Ukraine and Belarus in the event of sanctions, saying gas prices could revisit Q4 levels. Oil markets could also be affected through curbs or disruption. Ukraine moves Russian oil to Slovakia, Hungary and the Czech Republic. Ukraine’s transit of Russian crude for export to the bloc was 11.9 million metric tonnes in 2021, down from 12.3 million metric tonnes in 2020, S&P Global Platts said in a note.

Other sectors also have exposure: Renault generates 8 percent of its EBIT in Russia. Germany’s Metro AG’s 93 Russian stores generate just under 10 percent of its sales and 17 percent of its core profit while Danish brewer Carlsberg owns Baltika, Russia’s largest brewer with market share of almost 40 percent.

5) Regional Dollar Bonds And Currencies Russian and Ukrainian assets will be at the forefront of any markets fallout from potential military action. Both countries’ dollar bonds have underperformed their peers in recent months as investors have trimmed exposure amid escalating tensions between Washington and its allies and Moscow.

JPMorgan said the tensions risked a “material spike” in oil prices and noted that a rise to $150 a barrel would reduce global GDP growth to just 0.9 percent annualised in the first half of the year, while more than doubling inflation to 7.2 percent.

4) Company Exposure Listed western firms could also feel the consequences from a Russian invasion, though for energy firms any blow to revenues or profits might be somewhat offset by a potential oil price jump.

Ukraine’s fixed income markets are chiefly the remit of emerging market investors, while Russia’s overall standing on capital markets has shrunk in recent years amid sanctions and geopolitical tensions, somewhat cushioning any threat of contagion through those channels.

Britain’s BP owns a 19.75 percent stake in Rosneft, which makes up a third of its production, and also has a number of joint ventures with Russia’s largest oil producer.

However, Ukrainian and Russian currencies have also suffered, with

Shell holds a 27.5 percent stake in Russia’s first LNG plant, Sakhalin 2, accounting for a third of the country’s total LNG exports, as well as a number of joint ventures with state energy giant Gazprom .

The Ukraine-Russia situation presents “substantial uncertainties” for

US energy firm Exxon operates through a subsidiary, the Sakhalin-1 oil and gas project, in which India’s state-run explorer Oil and Natural Gas Corp also holds a stake. Norway’s Equinor is also active in the

“The events of late 2014 remind us of the liquidity gaps and US dollar

Chemical Today Magazine | March 2022

the hryvnia the worst-performing emerging markets currency yearto-date and the rouble at number five. foreign currency markets, said Chris Turner, global head of markets at ING. hoarding that led to a substantial drop in the rouble at that time,” said Turner.

NEWS NATIONAL ADANI GROUP PARTNERS WITH BALLARD POWER FOR HYDROGEN FUEL CELLS

HMEDABAD, INDIA/ VANCOUVER, CANADA: The Adani Group said that it has signed a non-binding Memorandum of Understanding with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India. Under the MoU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India. Hydrogen is increasingly viewed as a critical medium for the decarbonization of energy, industry, and mobility. Adani aims to be one of the largest green hydrogen producers in the world through accelerated

investment in renewable energy. Efforts under this MoU will be anchored by Adani New Industries Limited (ANIL), the newly formed subsidiary of Adani Enterprises, focused on generation of green hydrogen, including downstream products, green electricity generation, manufacture of electrolyzers and wind turbines, among others. “Green hydrogen is the fuel of the future and fuel cells will be a game-changer in India’s energy transition,” said Vneet Jaain, director, Adani New Industries Limited (ANIL). “Our ability to build a world-class green hydrogen value chain will be critical in

facilitating the energy transition and we are excited to partner with Ballard, a global leader in fuel cell technology, to create a shared fuel cell ecosystem in India. We will be deploying innovative use cases across our businesses with fuel cell trucks, mining equipment, marine vessels, offroad vehicles, and critical industrial power. We will shape the industry through this strategic collaboration.” “India represents a new growth opportunity for Ballard, and we look forward to working with the Adani group to support and accelerate their energy transition and decarbonization goals,” said Randy MacEwen, Ballard’s president & CEO.

BASF TO EXPAND POLYAMIDE CAPACITY IN PANOLI, GUJARAT

UMBAI, INDIA: BASF India Limited said it will expand the production capacity of its Ultramid® polyamide grades to meet increasing market demand. The increased capacity at BASF’s production site in Panoli, Gujarat, will be available in Q4 2022.

“The additional capacity reaffirms our dedication to being our customers’ supplier of choice for polyamides and will help us meet the rapidly growing demand for our Ultramid polyamide grades in India. It will accordingly shorten local delivery times and help us to better meet the just-in-time

needs of original equipment manufacturers (OEMs),” said Andy Postlethwaite, senior vice president, performance materials Asia Pacific, BASF. Ultramid is used in automotive applications, electrical & electronics sector, industrial products and consumer goods.

BIOCON BIOLOGICS TO ACQUIRE VIATRIS’ BIOSIMILARS BIZ FOR $3.3 BN

ENGALURU, INDIA: Biocon Biologics Ltd, a subsidiary of Biocon Ltd, said it has agreed with its partner Viatris Inc. to acquire Viatris’ biosimilars business and create a unique fully integrated global biosimilars enterprise. Viatris will receive consideration of up to $3.335 billion, including cash up to $2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at $1 billion. BBL will have a comprehensive portfolio comprising its current range of commercialized insulins, oncology and immunology biosimilars as well as several other biosimilar assets currently under development. BBL also has access to the

Chemical Today Magazine | March 2022

vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS). “This acquisition is transformational and will create a unique fully integrated, world leading biosimilars enterprise. Our longstanding global partnership with Viatris has enabled us to achieve many firsts, setting new benchmarks for the global biosimilars industry. This strategic combination brings together the complementary capabilities and strengths of both partners,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon Biologics. “The deal will enable BBL to attain a robust commercial engine in the developed

markets of US & Europe and will fasttrack our journey of building a strong global brand. It will also make us futureready for the next wave of products. This development takes our partnership with Viatris to the next level to realize our shared purpose of impacting global health by providing affordable access to high quality essential and life -saving Biosimilar drugs,” she added. “This transaction will allow Viatris to continue to participate in the global biosimilars space in a more optimized way, while also allowing us to accelerate our own financial priorities,” said Robert Coury, Viatris’ executive chairman.

NEWS INTERNATIONAL TOTALENERGIES BAGS OFFSHORE WIND FARM LEASE PROJECT ON US EAST COAST

ARIS, FRANCE: TotalEnergies said it has successfully been named a winner of maritime lease area OCS-A 0538 by the BOEM (Bureau of Ocean Energy Management) in the New York Bight auction held end of last week. This bid for the development of an offshore wind farm off the US East Coast was won for a consideration of $795 million (100 percent) by both TotalEnergies and EnBW. The project is expected to come online by 2028. Located up to 47 nautical miles (87 kilometers) from the coast, the lease covers a 132 square miles (341 square kilometer) area that could accommodate a generation capacity of at least 3 GW, enough to provide power to about one million homes. In addition, EnBW informed TotalEnergies of its strategic decision to refocus its activity

on Europe. In this context, TotalEnergies and EnBW have agreed that TotalEnergies will acquire EnBW’s interest in this New York Bight concession and will welcome within its own staff the EnBW North America team who has forged strong relationships with local communities in the past few years and will therefore continue to develop this project. In addition, TotalEnergies will acquire from EnBW the predevelopment work undertaken for the upcoming auction off the coast of Central California (Castle Wind project). “This grand entrance into offshore wind in the US is a major step toward our goal of reaching 100 GW of renewable electricity generation capacity worldwide by 2030. This development adds another dimension to our renewable business in the US, currently representing 4 GW of solar farms

under development. This is the largest renewable energy project TotalEnergies has ever undertaken and we now have a portfolio of over 10 GW of offshore wind projects, a technology in which we aim to be a world leader by leveraging our offshore expertise.” said Patrick Pouyanne, chairman and CEO of TotalEnergies. The New York Bight project is part of the US government’s goal to deploy 30 GW of offshore wind in the US by 2030, in response to the global climate challenge. Locally, it provides a concrete answer to the growing demand for clean energy in New York and New Jersey. Furthermore, TotalEnergies is committed to developing the project in a way that creates local jobs and economic benefits for the local communities.

AFTON CHEMICAL EXPANDS GASOLINE ADDITIVES BLENDING UNIT IN SINGAPORE

INGAPORE: Afton Chemical Corporation said it has completed its phase 3 expansion to add gasoline performance additives (GPA) blending capabilities at its Singapore chemical additive manufacturing facility. It is the first GPA blending unit in Asia Pacific by Afton and complements our global network of blending and terminal operations in the Americas and Europe. The unit and its capabilities will provide the additional infrastructure required to support the company’s long-term global growth plans and meet the increasing demands for GPA in the region. “The GPA new blending unit is now fully operational, and we completed our first commercial fulfillment to a key customer. We have now connected our manufacturing and blending capacities globally, supporting regional and global business continuity. It will also provide

security of supply and shorter lead times for our customers, said Kevin Keller, VP, global supply, Afton Chemical Corporation. “This is critical during this period where global supply chains are so disrupted and is testament to our ongoing investment strategy around enhanced supply chain solutions.” “We are committed to developing costeffective and differentiated GPA solutions ‘Made For’ the region. This addition to our supply network ensures that the total solution combining “Made For” and “Made In” will help provide our customers with a competitive edge in their markets,” said Sean Spencer, vice president and managing director of Afton Chemical Asia. Afton’s market-leading gasoline performance additive technology provides extended protection for both gasoline direct injection (GDI) and port fuel injection (PFI) systems used in internal combustion

and hybrid engine platforms. “Our additive technology helps ensure these engines are performing at optimal levels to deliver increased fuel economy, reduced emissions whilst also providing performance benefits on power and acceleration for better driving experience,” said Lau Teck Aun, marketing manager, Afton Chemical Asia. This GPA blending unit ensures that Afton is delivering solutions that provide technology benefits, fuel economy improvements, and emissions reduction quicker in Asia Pacific, the biggest growth market in the world. At the forefront of GPA testing, Afton has spent more than 20 years developing industryleading proprietary tests in collaboration with original equipment manufacturer (OEM) partners, fuel injector equipment manufacturers, and oil companies.

Afton Chemical Corporation has completed phase 3 expansion of its gasoline performance additives (GPA) blending capabilities at its Singapore chemical additive manufacturing facility. Shown here is the chemical additive manufacturing facility in Singapore. (File Photo)

Chemical Today Magazine | March 2022

AKZONOBEL TO EXPAND RESINS PRODUCTION CAPACITY AMSTERDAM, NETHERLANDS: AkzoNobel said it plans to invest in the expansion of in-house resin manufacturing as part of the company’s grow & deliver strategy. The scale-up program, which is already underway, will help build resilience against supply disruptions while making an important contribution to achieving the company’s financial and scope 3 (upstream) carbon reduction ambitions. Resins are a key ingredient for making coatings. They’re used as a binder to hold the pigment particles together and provide adhesion to the coated surface. “All of our businesses use resins, and while we produce a good proportion of what we need ourselves, commodity and

other specialty resins need to be sourced from third parties,” said Michael Friede, AkzoNobel’s chief commercial officer for Performance Coatings. “Further investing in our own resin capabilities will help us to secure sustainable business growth, as well as supporting our innovation pipeline and sustainability targets.” The plans include investing in sites, equipment and the people needed to optimally run them. They were developed after an internal resins team was tasked with investigating opportunities to unlock more value and make the company more self-sufficient. “It quickly became apparent that investing

in our own resin capability was the way to go,” said Friede. “It will enable us to secure raw material supply to optimally support our Grow & Deliver ambitions and, at the same time, we’ll look to generate extra value by leveraging and optimizing the volumes we don’t bring in-house with our network of external partners. We’re well aware that demand for resins is only expected to increase.” The investment will specifically contribute to the company’s officially validated science-based sustainability target of reducing carbon emissions across the value chain by 50 percent by 2030. This target is also aligned with the 1.50C pathway of the Paris agreement.

CELANESE TO ACQUIRE DUPONT’S MOBILITY & MATERIALS BIZ FOR $11 BN IN CASH

ALLAS, US: Celanese Corporation announced the acquisition of the mobility & materials (M&M) business of DuPont for $11.0 billion in cash. Celanese will acquire a broad portfolio of engineered thermoplastics and elastomers, industry-renowned brands and intellectual property and global production assets. The transaction is expected to close around the end of 2022. “The acquisition of the M&M business is an important strategic step forward and establishes Celanese as the preeminent global specialty materials company,” said Lori Ryerkerk, chairman and chief executive officer. “For nearly a decade, we have implemented, enhanced, and increasingly extended the Engineered Materials (EM) commercial model to generate shareholder value. M&M will be a high-quality addition to EM.” “The M&M business is a uniquely complementary specialty materials asset to EM, spanning product, geography and end-market,” said Tom Kelly, senior vice president, engineered materials. “This acquisition greatly enhances the EM product portfolio by adding new polymers, industry-renowned brands, leading product technology, and backward integration in critical polymers. We are eager to combine the product and technology leadership of M&M with EM to accelerate our growth in high-value applications including future mobility, connectivity and medical.” The M&M business is a leading global producer of engineering thermoplastics and elastomers serving a variety of enduses including automotive, electrical and electronics, consumer goods and industrial applications. The acquired M&M product portfolio includes numerous specialty

Chemical Today Magazine | March 2022

Celanese Corporation will acquire the mobility & materials (M&M) business of DuPont for $11.0 billion in cash. Celanese will acquire a broad portfolio of engineered thermoplastics & elastomers, renowned brands & IPs and global production assets. (Representative Image/File Photo)

materials with global leadership positions in nylons (PA 66, PA 6), specialty nylons (HPPA, LCPA, filaments), polyesters (PET and PBT), and elastomers (TPC and EAE). As part of the transaction, Celanese will acquire the following: - A global production network of 29 facilities, including compounding and polymerization. - Industry-leading intellectual property portfolio including approximately 850 patents with associated technical and R&D assets. - Approximately 5,000 highly-skilled employees across the manufacturing, technical, and commercial organizations. The acquisition is expected to be immediately accretive to adjusted earnings

per share with anticipated accretion of $4.00 or more per share once full synergies are achieved by 2026. “Robust and growing cash generation and a strong balance sheet enable us to fully finance this acquisition with committed debt financing while maintaining our investment grade credit profile,” said Scott Richardson, executive vice president, chief financial officer. “M&M has historically been a strong generator of cash flow. We are confident in our ability to capture synergies that would allow us to double Celanese total free cash flow within the next five years.” Celanese is advised by Kirkland & Ellis LLP as principal legal counsel, Gibson, Dunn & Crutcher LLP as financing counsel, and BofA Securities as financial advisor.

NEWS INTERNATIONAL COVESTRO, MITSUI CHEMICALS START RENEWABLE RAW MATERIALS DELIVERY IN ASIA

EVERKUSEN, GERMANY: Covestro has entered into an agreement with Mitsui Chemicals on the supply of raw materials phenol and acetone from ISCC Plus certified mass-balanced sources. Both components will be used for the production of polycarbonate at Covestro’s Asian sites in Shanghai, China and Map Ta Phut, Thailand. The high-performance plastic is used, for example, in car headlights, LED lights, electronic and medical devices and automotive glazing. Japan’s Mitsui Chemicals and Mitsui & Co Ltd are already a long-standing supplier to Covestro. “With this agreement, Covestro, Mitsui Chemicals and Mitsui & Co Ltd are taking their partnership to a new level, with the goal of supplying customers along the process chain with more sustainable raw materials from mass-balanced, renewable

sources,” said Sucheta Govil, chief commercial officer of Covestro. “I am very pleased that we are now also gradually converting our production in Asia to products with renewable raw materials. In this way, we are helping customers achieve their sustainability goals.” Recently, the first shipment of massbalanced phenol produced by Mitsui Chemicals Inc, from its Osaka site arrived at the production site of Covestro in Caojing, Shanghai. Further shipments are to follow, also including bio-attributed acetone. Mitsui Chemicals uses bio-feedstock from waste and residues as raw material basis for its bio-attributed phenol and acetone products.

“We’re pursuing not only plastic recycling but also a switch to biomass in aim of realizing a circular economy,” said Yoshino Tadashi, senior managing executive director and president of the Basic Materials Business Sector of Mitsui Chemicals. “Our long-term partnerships with Covestro and Mitsui Chemicals have enabled us to deliver the first renewable phenol in Asia.” said Takashi Furutani, chief operating officer of the Basic Materials Business Unit of Mitsui & Co. In mass balancing, bio-based raw materials are used at an early stage of production and mathematically allocated to finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of mass-balanced products remains the same compared to purely fossil-based ones.

SOLVAY TO EXPAND SULFONE POLYMERS CAPACITY IN US

LPHARETTA, US: Solvay announced an expansion plan for its US-based sulfone business, which focuses on polymer solutions for various critical life science applications, to build capacity to support a growing global customer base. Likewise the production capacity for dichlorodiphenyl sulfone (DCDPS), an important common building block used in all sulfone polymers, will also be expanded by more than 25 percent by 2024, resulting in capacity increases at the company’s Augusta, Georgia site by end of 2022. The full scope of the multi-year expansion plans will ultimately touch all of Solvay’s sulfone polymers including Udel®

Chemical Today Magazine | March 2022

polysulfones (PSU), Veradel® polyether sulfones (PESU) and Radel® polyphenyl sulfones (PPSU). The first major investment steps will include a capacity increase for Udel® PSU of over 25 percent by 2024 at the company’s production site in Marietta, Ohio, with much of this increase expected online by early 2023. “This new multi-year program marks an important step in our strategy for future growth and affirms our number one position in the US sulfone polymers market,” said Carmelo Lo Faro, president of Solvay’s Materials segment. “Essentially, the expansions will address the growth potential of our sulfone products in high-

performance life-saving and life-sustaining areas, such as healthcare, water purification and pharma processing.” Key application market segments to benefit from these investments include hemodialysis, medical instruments and pharmaceuticals — in both development and production, and water purification, where Solvay expects strong doubledigit growth in terms of global demand. Moreover, high-performance sulfone polymers also play a growing role in residential and commercial heating and plumbing systems.

SIKA TO ACQUIRE POLYMERIC SAND, MORTARS MANUFACTURER IN CANADA

AAR, SWITZERLAND: Sika said it will acquire Sable Marco Inc, a manufacturer of cementitious products and mortars in Canada. Headquartered in Pont Rouge, close to Québec City, the complementary acquisition will open up new opportunities for Sika in the Eastern region of Canada and clearly improve Sika’s access to the retail distribution channel. The acquired business generates annual sales of CHF 20 million. Sable Marco has built up a strong presence in the distribution channel and an excellent relationship with major national and

regional building material stores and DYI retail chains. The customer base is highly complementary to Sika. Sable Marco operates one plant in the area of Québec City offering logistic and strategic benefits for Sika Canada. This location will allow Sika to expand the reach and better serve customers in the Eastern part of the country. The product range of Sable Marco includes cementitious products, mortars, polymeric sand and other bagged materials. Synergies will be generated by exploring cross-selling potential for Sika’s target markets waterproofing and building

finishing and also from opportunities opening up in the growing polymeric sand category. “With the acquisition of Sable Marco, Sika Canada will expand its penetration with big boxes, home centers and builders’ merchants which, in line with our strategic plan, will increase sales being generated through the distribution channel. We look forward to successfully developing our business together in the Canadian market,” said Christoph Ganz, regional manager Americas, Sika.

THE COMPOUND COMPANY TO ACQUIRE ESSO DEUTSCHLAND’S POLYMER RESINS BIZ

NSCHEDE, THE NETHERLANDS: The Compound Company announced it has acquired the production site, product portfolio and customer base for Exxelor™ polymer resins from ESSO Deutschland GmbH, ExxonMobil in Cologne, Germany. The acquisition will increase the global production capacity of The Compound Company to about 70 kilotons per year and significantly expand the group’s reach into new markets. “We are very excited to welcome the Exxelor manufacturing force and portfolio in our organization,” said Frans Haafkens, major shareholder of The Compounding Company. “The acquisition adds a new sizeable jewel to our crown and ideally complements our established offering of Yparex® extrudable adhesives and EcoForte® compound families. It provides great synergies to further grow our customer base, with new opportunities in several dynamic application areas such as eg. e?mobility.” Exxelor™ polymer resins are chemically modified polyolefin and elastomers based resins used to enhance the performance of engineering thermoplastics and other polymers. As impact modifiers they improve the toughness of compounds. As compatibilizers, coupling agents and adhesion promoters, they increase the bonding strength of non-polar polymers with polyolefins, fillers and reinforcements

Chemical Today Magazine | March 2022

Exxelor™ functional polymer resins manufactured in Cologne will significantly expand The Compound Company’s global production capacity for functionalized polyolefin-based compounds.

as well as metals, thermoset rubbers and most polar substrates, including glass.

targeting different application areas than

“With The Compound Company, our Exxelor manufacturing operations have found a good home to strengthen the market focus of the product offering and progress from a niche to a core business,” said Ronald van den Berg, plant manager in Cologne. “Our resins fit very well within The Compound Company’s existing range of functionalized and grafted polyolefinbased solutions.”

the sales support by our experienced

“While Exxelor has traditionally been

major changes towards customers.”

Yparex or EcoForte, it will benefit from commercial

team,”

said

Wouter

van

den Berg, commercial director for The Compound Company. “Our strategy is to use the addition of these performance resins as leverage for expanding into a wider range of markets. The production site and the brand will be maintained, and the integration of Exxelor in our business will be as smooth as possible, without any

NEWS MOVERS & SHAKERS BASF ADDS MORE RESPONSIBILITIES FOR TWO EXECUTIVE BOARD MEMBERS

UDWIGSHAFEN, GERMANY: The BASF Board of executive directors has decided on changes to the responsibilities in two board ressorts, effective 1 March. Saori Dubourg (ressort IV) and Michael Heinz (ressort V) will be given additional responsibilities alongside their current roles. Dubourg will assume responsibility for the Monomers, Performance Materials, Petrochemicals and Intermediates divisions. She will continue to be responsible for the region Europe. Heinz, based in Florham Park, New Jersey, will assume responsibility for the Agricultural Solutions, Care Chemicals and Nutrition & Health divisions. He will continue to be responsible for the regions North America and South America.

Michael Heinz

Saori Dubourg

SHELL PROMOTES UPSTREAM BUSINESS EVP FINANCE AS NEW CFO term relocation to the UK is not sustainable, and therefore Uhl will step down from her role. “Sinead combines broad finance, trading, new business development and capital projects experience with a deep knowledge of Shell, and a strong commercial and external focus. I look forward to working with her in the execution of our strategy to accelerate Shell’s transition to a net-zero emissions energy business purposefully and profitably,” said Shell’s chair, sir Andrew Mackenzie. Sinead is currently executive vice president, finance in Shell’s global upstream business. She joined Shell in 1999. Since then, she has held several increasingly senior finance roles in all Shell’s major businesses, in Europe, North America and latterly globally. A British national, she will be based in London.

Sinead Gorman

ONDON, UK: Shell Plc announced it has appointed Sinead Gorman as chief financial officer (CFO), effective 1 April. She will become a member of both Shell’s executive committee and board of directors. After a career of 17 years with Shell, the last five years as CFO, Jessica Uhl will step down from her role on 31 March. She will be available to help with the transition until 30 June, after which she will leave the group. Due to family circumstances a long-

Chemical Today Magazine | March 2022

“The board is immensely grateful to Jessica, particularly as CFO and especially during the past two years as we successfully tackled the many challenges presented by the pandemic. She has been instrumental in strengthening Shell’s financial position, putting in place measures to secure the company’s long-term health while delivering industry leading cash flows year on year,” said Mackenzie. “It has been an immense privilege to contribute to Shell’s leadership as we sought to reposition Shell for the future. Our forward thinking on the energy transition and firm commitment to reflect our principles and values in all we do made each day meaningful,” said Uhl.

DOW NOMINATES FORMER OFFICE DEPOT EVP TO BOARD OF DIRECTORS

IDLAND, US: Dow announced its board of directors has nominated Jerri DeVard, former executive vice president and chief customer officer for Office Depot Inc to stand for election at the company’s annual meeting of stockholders on April 14. All other incumbent directors have also been nominated for election at the annual meeting. DeVard brings extensive governance experience in consumer products, e-commerce, social impact, change management and digital transformation across national and global enterprise. “Jerri brings significant business expertise across all aspects of marketing, digitalization and e-commerce, robust governance experience and a strong passion and commitment to diversity, equity and inclusion,” said Jim Fitterling, Dow chairman and CEO.

Jerri DeVard

DeVard’s nomination to Dow’s board of directors aligns with the company’s focus on board succession planning and refreshment. Dow’s board is also comprised of new and highly experienced directors, with more than half of the independent directors joining in the past three years. The board will announce updates to committee assignments following the annual meeting.

K+S APPOINTS NEW CHIEF FINANCIAL OFFICER Boeckers (46), chief financial officer, to terminate Boeckers’ service agreement at the end of February. Dr. Burkhard Lohr, chairman, board of executive directors, will assume the function of chief financial officer on a transitional basis. Together with Holger Riemensperger, chief operating officer, who will simultaneously take over the duties of Labor Director from Lohr, will continue to constitute the board of executive directors of the company. Furthermore, the supervisory board of K+S has appointed Dr. Christian Meyer (50) as the new chief financial officer. He will take over the management and further development of the finance area at K+S in spring 2023.

Thorsten Boeckers

ASSEL, GERMANY: The supervisory board of K+S Aktiengesellschaft said it has mutually agreed with Thorsten

Chemical Today Magazine | March 2022

“We would like to thank Boeckers for his work over the past years. During his service on the board of executive directors, he successfully contributed to the reduction of debt and the restructuring of the Company,” said Dr. Andreas Kreimeyer, chairman of the company’s supervisory board. “We are looking forward to working with Meyer. He is a renowned financial expert with many years of experience as an auditor and tax advisor,” said Kreimeyer.

NEWS MOVERS & SHAKERS CALUMET SPECIALTY APPOINTS NEW CHIEF EXECUTIVE AND CFO “It’s been a source of tremendous satisfaction for The Heritage Group and for me to see the corporate transformation of Calumet,” said Fehsenfeld. “Heritage continues to encourage and support the vision and actions of Calumet’s leadership and is excited to see them take Calumet to the next level.” Steve Mawer, currently CEO, will assume the role of executive chairman of the board of directors effective 1 May. On that date, Todd Borgmann, currently EVP & CFO, will assume the role of CEO, and Vince Donargo, currently chief accounting officer, will assume the role of EVP & CFO.

Todd Borgmann

“The past two years have been an incredible journey as Steve successfully led Calumet through the depths of the pandemic and originated the vision of Montana Renewables,” said Borgmann. “I am grateful for the opportunity to continue to work closely with Steve in our new roles. With an exceptional team and unchanged vision we will continue to focus on the transformation of Calumet into two best of breed businesses.”

NDIANAPOLIS, US: Calumet Specialty Products Partners LP announced that Calumet co-founder Fred Fehsenfeld, chairman of the board of the general partner of Calumet has elected to retire effective 1 May.

Borgmann has been with Calumet for 15 years in increasingly senior roles. Prior to serving as EVP & CFO, he held leadership roles within supply chain, trading, optimization, sales, and strategy. Donargo has been chief accounting officer of Calumet for two years.

Chemical Today Magazine | March 2022

NEWS MAKE A DIFFERENCE

SWISS AIR TO USE BASF’S RIBLET FILMS FOR BOEING 777 FLEET

UDWIGSHAFEN, GERMANY: Swiss International Air Lines (SWISS) said it will to equip its entire Boeing long-haul fleet with the fuel-saving AeroSHARK surface technology. Starting in the middle of the year, a total of twelve Boeing 777300ERs will gradually be fitted with the riblet films developed jointly by Lufthansa Technik and BASF. The significantly reduced frictional resistance resulting from this modification will make the sub-fleet more than one percent more fuel-efficient and lower in emissions. SWISS is the first passenger airline worldwide to use the innovative surface technology to significantly reduce fuel consumption and emissions of one of its existing fleets, thereby improving both economy and ecology. With approximately 950 square meters of riblet film, the modification of the “long” Boeing 777300ER will be even larger than the 800 square meters on the Boeing 777F of AeroSHARK’s launch customer Lufthansa Cargo. The potential for fuel and CO2 savings on this scale is around 1.1 percent. Converted to the operational profile of the Boeing 777-300ER at SWISS, this means annual savings of more than 4,800 tons of kerosene and roughly 15,200 tons of carbon dioxide, as much as is usually generated on approximately 87 long-haul flights from Zurich to Mumbai.

Chemical Today Magazine | January 2022

“Reducing our environmental footprint is one of the biggest challenges facing the aviation industry, and becoming carbonneutral until 2050 is an important strategic goal for SWISS,” said Dieter Vranckx, chief executive officer of SWISS. “We are pleased to be the world’s first passenger airline to offer the innovative AeroSHARK technology on our Boeing 777 fleet, making another important contribution to more sustainable air travel in the future.” “Due to the long lifecycles in our industry, we cannot only rely on new aircraft generations to reduce our environmental footprint, but also need to specifically optimize existing fleets towards sustainability,” said Dr. Johannes Bussmann, chief executive officer of Lufthansa Technik. “In developing our Novaflex Sharkskin surfaces, the focus was on a robust yet functional solution that meets the stringent requirements of aviation and also helps our customers achieve their sustainability goals,” said Uta Holzenkamp, head of BASF’s Coatings division and in this position also responsible for functional films. “The fact that SWISS is convinced by our solution shows that economic action and sustainability go hand in hand.” SWISS will install AeroSHARK on its Boeing 777-300ER fleet successively from mid-2022 during suitable maintenance layovers. The airline had already supported

Lufthansa Technik and BASF during the development phase of AeroSHARK: In the summer of 2021, a Boeing 777 wing was precisely measured for the entire duration of a regularly scheduled flight between Zurich and San Francisco. With the data collected, Lufthansa Technik was subsequently able to create highly accurate 3D models for flow simulations, on the basis of which the AeroSHARK modification is to be extended to the wings of the Boeing 777 in the near future in order to realize further savings potential. AeroSHARK is a surface technology developed jointly by Lufthansa Technik and BASF that consists of ribs around 50 micrometers in size - known as riblets. It specifically imitates the properties of sharkskin, which has particularly favorable flow characteristics, and thus optimizes aerodynamics at relevant points on the aircraft. As a result, less fuel is needed overall. Lufthansa Technik and BASF intend to systematically develop the new technology further in the direction of additional aircraft types and even larger surfaces, so that in the future they will be able to provide airlines around the world with even more extensive support in achieving their emissions targets. In initial model calculations, the sharkskin technology in its maximum expansion stage could even avoid CO2 emissions to the tune of up to three percent.

ARKEMA, BRUNSWICK TO DEVELOP RECYCLABLE FIBERGLASS BOAT

OLOMBES, FRANCE: Brunswick Corporation announced that it is expanding its partnership with Arkema, to develop a fully recyclable fiberglass boat that integrates Arkema’s Elium® liquid thermoplastic resin on all the vessel’s composite parts, core and adhesives. The project is part of Brunswick’s enterprisewide sustainability program and is expected to allow for hull and structural components to be fully recycled at end of life and reintroduced into production processes, reducing the amount of disposable material and sourcing of virgin raw materials.

Show, and will be developed in conjunction with Boston Whaler, leveraging the brand’s unique construction to validate the technology.

The first prototype is expected to be displayed at the 2022 Fort Lauderdale Boat

Arkema’s Elium® resin is particularly suited to the marine industry and the production

Chemical Today Magazine | March 2022

“We are delighted to expand our partnership with Arkema, marking an exciting milestone in our sustainability journey. By combining next-generation materials with the legendary safety and durability of the Boston Whaler brand, we are ensuring we continue to meet boaters’ diverse and changing needs while reducing our environmental footprint,” said Kris Neff, Boston Whaler president.

of composite watercraft; in addition to being fully recyclable, it is specially adapted to the resin infusion process of large parts with a low viscosity, long reactivity and a low exothermic reaction. “Elium® resin is our solution for the new era of sustainable composites, through our partnership with Brunswick and Boston Whaler, we’re helping to shape a more sustainable future and circular economy for the marine industry. This is fully aligned with Arkema’s commitment to develop innovative solutions tailored to support our customers in their quest for sustainable performance,” said Nicolas Valloir, Arkema business manager.

Chemical Today Magazine | March 2022

E-mail : sales@worldofchemicals.com www.worldofchemicals.com Tel : 08119350001

FOOD TRENDS ALTERNATIVE PROTEIN MARKET

EMERGING TRENDS FUELING ALTERNATIVE PROTEIN MARKET

dive into one of the seven top consumer trends identified by

1. Novel protein sources, from cell-based, to fungi and air - Imagine eating a burger produced from elements found in

the company for 2022. The findings, based on research from the

the air, or a slice of cheese made from fungi with origins in a national

company’s proprietary Outside VoiceSM consumer insights platform,

park. Brands are exploring a wide range of innovative protein sources

reveal what’s next for protein alternatives, which are expected to

to supplement the industry’s continued focus on pea and soy. Cell-

climb to a staggering $125 billion by 2030.

based solutions made from cultivated animal cells are on their way

DM released its alternative protein outlook, which is a deep

“In the last 12 months, the number of plant-based meat, cheese and dairy products available to consumers has more than doubled. Innovation driven by future-forward brands like Air Protein, Future Meat Technologies, Nature’s Fynd, in partnership with larger

Future Meat Technologies are developing more efficient processes for manufacturing meat products at scale. Beyond cell-based options, a number of new and existing players in the space are exploring novel protein sources coming from air particles, volcanic ash, seaweed,

industry players such as ADM, are transforming the way we will feed

insects and more.

a growing global population sustainably. Products aimed at meeting

2. Fermentation-as-a-service

the heightened demand for health-forward solutions that can deliver on evolving consumer taste and texture expectations will continue to come to market over the next decade,” said Leticia Goncalves, president of Global Foods for ADM, who oversees the company’s focus on high-growth business.

to becoming increasingly mainstream as industry leaders such as

- There’s been growing

interest in microbial fermentation as a novel method for developing alternative protein products. Global players, like ADM, that have expansive fermentation capabilities are exploring new ways to serve food, beverage and health and wellness brands that are seeking support with downstream processing, lab services and consulting,

New products will be heavily influenced by the seven emerging trends

among other components essential to food-grade fermentation.

highlighted below, including the continued development of new protein sources, the introduction of varying product formats and a

3. Next-generation, plant-based, whole-muscle solutions – Whole-muscle, plant-based solutions, such as chicken

redoubled commitment to sustainable practices, from ingredient

breast alternatives, are becoming increasingly available to consumers

sourcing to packaging and distribution.

in markets all over the world.

Chemical Today Magazine | March 2022

These solutions will continue to evolve as brands seek out novel ways

6. Kid-friendly product formats – Plant-based chicken

to reproduce the texturization of animal-based whole-muscle cuts,

nuggets are just the beginning. New products featuring kid-friendly flavors, colors and formats (think fun, familiar and easy to eat and drink) are becoming a focus for brands looking to appeal to flexitarian parents and kids across varying life stages and ages, from yogurt to pizza and mac-and-cheese. In fact, ADM’s Outside VoiceSM research indicates that the largest cohort of flexitarian consumers are parents who are looking for mealtime solutions that delight and nourish all family members.

from T-bone steaks to shellfish. It won’t be long before families are carving whole-muscle plant-based turkeys over the holidays.

4. Innovation and transparency from seed to fork – As concerns about climate change continue to grow, consumers are increasingly demanding greater sustainability in existing food systems. This has led many to seek out brands and products that can provide the plant-based solutions they crave in a way that’s environmentally and ethically sound. Seed-to-fork initiatives, as an example, leverage cutting-edge technology to improve seed breeding, and lessen the cost, time and environmental impact associated with creating consumer-ready protein sources. Active across the entire value chain, ADM is uniquely equipped to drive innovation from seed to fork.

5. Moving toward price parity of cultivated meat products – Companies like Future Meat Technologies are helping power a move toward more price parity of cell-based solutions with more traditional alternatives. In December, the company announced that it is now producing cultivated chicken breast for just $7.70 per pound, down from approximately $18 per pound six months prior. These types of products will be more accessible to consumers in the near future.

Chemical Today Magazine | March 2022

7. Plant-based versions of traditional, authentic cuisines – To meet the growing global demand for traditional dishes, brands are exploring solutions that can provide the regional specificity and appeal that today’s consumers desire, from plantbased shawarma to schnitzel and shrimp dumplings. Through new products featuring an assortment of globalized flavors, textures and product formats, brands are aiming to deliver an array of tasty, satiating comfort food analogues. Each of these emerging trends will have an impact on the plantbased marketplace in the years ahead. With more than 60 innovation centers based around the world, ADM, a leading global food solution provider, is well positioned to support brands with the leadership, insights, technology and science-backed solutions that they need to capitalize on these opportunities, creating a more sustainable, healthier and secure food supply chain for years to come.

CIRCULAR ECONOMY CLIMATE NEUTRAL MDI

NEW CLIMATE NEUTRAL METHYLENE DIPHENYL DIISOCYANATE FOR INDUSTRIES C

ovestro is consistently pursuing its path to a circular economy and is now offering customers a climate neutral methylene diphenyl diisocyanate (MDI). It is climate neutral from the cradle to the factory gate of the company, thanks to the use of alternative raw materials – based on plant waste – that are allocated to the products with the help of certified mass balancing according to ISCC PLUS. The new MDI grades can be used in numerous applications in the construction, cold chain and automotive sectors. According to a common calculation model, on balance no CO2 emissions are generated in the aforementioned part of the value-added cycle. The climate neutral MDI and its precursors are manufactured at the ISCC PLUS-certified Covestro sites in Krefeld-Uerdingen, Antwerp and Shanghai. “With the launch of our climate neutral MDI, we are now further expanding our portfolio of climate neutral products,” said Sucheta Govil, chief commercial officer of Covestro. “I am pleased that this will enable us to even better support our customers in large parts of the world in meeting their own sustainability goals and transitioning to a circular economy.” Last December, the company announced the launch of its climate-neutral polycarbonate. “Climate neutral products are an important factor in achieving our sustainability goals.

Our climate neutral MDI has another major advantage: it is a drop-in solution – so our customers can use it immediately in their production without any changeover and without compromising on quality,” said Hermann-Josef Dorholt, head of the performance materials segment.

Even more sustainable building insulation This is the case, for example, in building insulation. MDI is an indispensable raw material for the production of polyurethane (PU) insulation boards and sandwich panels, among other products. These have proven their value for many years as highly efficient elements in the thermal insulation of buildings. The heating or cooling requirements of buildings can be reduced by up to 70 percent through the use of PU insulation. This saves CO2 emissions and is good for residents’ wallets. Because PU insulation elements can therefore be designed thinner to achieve good insulation performance already, they save resources and make more usable space accessible than other insulation materials.

Chemical Today Magazine | March 2022

In addition to the good thermal insulation properties of PU insulating materials, Covestro’s climate neutral MDI now provides a further sustainability benefit: By practically avoiding emissions during its production, it even helps to reduce embodied carbon over the life cycle of a building. The use of PU insulating materials made from it in new buildings as well as in the renovation of older real estate can thus make an important contribution to the responsible use of primary resources and to significantly reducing CO2 emissions. Carbon neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA, for which an external audit and certification will soon be available, is based on the ISO 14040 and 14044 standards. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain.

PLASTICS MEDICAL & HEALTHCARE

MEDICAL & HEALTHCARE TPES’ ADHESION & PROCESSING CHARACTERISTIC

polypropylene (PP) and polyethylene (PE) resins, allowing for flexibility in product designs.

satisfy the expectations of manufacturers in terms of production and

As such, the compounds can be overmolded to alter the surface feel, improve aesthetics, and cushion against vibrations.

he demand for high-performance engineering plastics such as thermoplastic elastomers (TPEs) has expanded due to recent

advances in healthcare and medical equipment. TPE compounds also cost efficiency. TPEs bond easily when processed either through overmolding or coextrusion with most commonly used structural plastics, eliminating the need for additional adhesives and allowing for faster and more cost-effective processing. One of the main areas of growth for TPEs is overmolding. Many product designers are utilizing TPEs to add a “soft touch” to a rigid material. KRAIBURG TPE provides the THERMOLAST® H series HC/AP, developed specifically for healthcare and medical device applications in Asia Pacific. The HC/AP series compounds have a hardness range of 30-90 Shore A and can be used in a variety of applications due to their wide range of hardness from soft to semirigid. Especially for medical and healthcare applications, KRAIBURG TPE’s HC/AP series of TPE compounds can be overmolded to produce comfortable, non-slip, and abrasion-resistant handles, grips and buttons. Through multi-component injection molding and extrusion, the THERMOLAST® H HC/AP series has good bonding with

Chemical Today Magazine | March 2022

All-round material solutions Good haptics, soft-touch properties and elasticity improve function and design, allowing medical device manufacturer to be more creative with their product applications. The company’s TPE’s HC/AP compounds have a good compression set and are thus fitting for sealing and closure applications. Furthermore, the compounds can be sterilized in an autoclave at 121°C or with ETO (gas); and have good thermoplastics processing and flowability, stretching the possibility for more medical part designs. The HC/AP series compounds are safe for use in medical applications and meet standards such as cytotoxicity ISO 10993-5, GB/T 16886.5, bio-compatibility testing according to ISO 10993-5 and GB/T 16886.5, as well as a number of international food contact and medical standards. Other properties such as good chemical resistance, good sealing and no cytotoxic potential, as well as the ability to be colored into various chromatic effects, present the company’s TPE’s HC/AP compounds as all-round material solutions for the medical and healthcare segments.

METAL PIPES LINING PROJECTS

MATERIALS FOR LARGE METAL PIPE LINING PROJECTS IN SAUDI ARABIA M

etal-pipe lining is a growing trend in the industry for the rehabilitation of old metal pipelines and protection of new ones from corrosion. A polyethylene pipe of a diameter slightly higher than the internal diameter of the metal pipe is compressed and pulled inside the metal pipe creating a tight-fit liner. The polyethylene used in this application must meet stringent application conditions, including resistance to mechanical loads during installation and operation, and withstand high temperatures, corrosive fluids and abrasion for the lifetime of the pipeline. SABIC materials have recently been approved for the implementation of a large metal pipelining tight-fit liner project in Saudi Arabia. United Special Technical Services (USTS) carried out the project over a distance of 37 km, installing 42-inch-diameter pipes liners to a pipeline used in transporting seawater. Applying Titeliner® system, USTS used SABIC’s PE100 pipe grade, HDPE P6006AD, in executing the project.

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The company provides the preferred material solution for regional metal-pipe lining projects in water transportation. SABIC HDPE P6006AD is considered the first material to be pulled inside a 42-inch-diameter metal pipe for 1 km. The company’s material solution was selected due to its excellent processibility, dimensional stability and flexibility. The company material solutions have been qualified in accordance with global standards, such as ISO 4427 and ASTM D 3350, and oil and gas companies. “By utilizing our state-of-art technology & innovation capabilities and engaging with value chain partners who share our desire for innovation, we stretch the limits of what polyolefins can do and create value for everyone in the industry. SABIC, through its pipe & utilities segment, is committed to satisfying market needs and demand by developing valueadded solutions and meeting relevant pipe standards and regulations,” said Abdullah Al-Otaibi, general manager, engineering thermoplastics & market solutions, SABIC.

Chemical Today Magazine | March 2022

SUSTAINABILITY REDUCTION OF WASTE

CHOOSING THE SUSTAINABLE PATH

Srinivasan Ramabhadran, Regional Managing Director, Asia Pacific, dss+ talks at length about successfully implementing sustainability strategies in the chemical industry.

lobal development that is visible in the end-user industries.

The global trends and challenges affecting end-user industries, such as automotive, construction, consumer care and electronics, can be broadly summarized into three areas:

• Sustainably sourced raw materials: In many end-user

industries the challenge is to find and obtain chemical products as raw materials that are sustainably sourced. Suppliers of chemicals to Global players are already asked to fill up questions on sources of energy, social and labour impacts and footprint. This trend is starting to move from just filling up questionnaires to demonstrating with evidence commitments on meeting sustainability goals and objectives.

• Energy transition: Energy transition is a huge challenge globally. Many economies are slowly moving to green energy, but the transition itself seems to be a bigger challenge. Once costs are better balanced between traditional and alternative energies then acceleration in the energy transition will likely be seen.

We saw China shut down chemical factories for 2 weeks a month to reduce energy costs. One reason was for China to show a stronger commitment to reducing green-house gases, but eventually China bought much more coal than before as a result of the shutdown. The issue is how to transition from ‘dirty’ power production to clean production. Solar and wind are increasing tremendously and are starting to have some impact. The high volatility in the power sector could significantly impact the chemical industry.

• Circular economy: The ESG/sustainability requirements are

driving the ‘circular economy’. Governments, particularly in Europe, are trying to influence the product life cycle more directly to be carbon neutral and reduce environmental impact in other areas. So far, most governments and companies are looking at the circular economy from a siloed perspective. That means they look at improving sustainability in verticals and not horizontals across the product value chain. The focus on packaging is significantly increasing globally.

Major trends in sustainability in the chemical industry. Chemical companies have increased their efforts regarding sustainability in recent years. The main areas of focus are reduction of Green House Gases (GHG), circular economy and reduction of waste. This translates

Chemical Today Magazine | March 2022

into actions related to energy transition, alternative raw materials (eg biomass, recycled material, CO2), process optimization (eg energy consumption, waste and emission reduction), supply chain optimization (eg which mode to use, footprint optimization) and management and use of recycled materials. One major impact that can be seen is that some chemical companies are starting to have problems securing financing. Many lenders are now asking for more proof of sustainability improvements as a criteria for financing. There is a clear shift in expectations of “mere reporting” to “action orientation”. Many European companies have started demanding proof of sustainability impacts and this is to starting impact AP and India to some extent. Global companies are starting to look at re/on-shoring their production. This is due to supply chain challenges—especially long and fragile chains. The push will be how to include sustainability considerations in on-shoring decisions and how to better incorporate digital/AI/robotics. The Make in India and the production linked incentive (PLI) schemes are enticing companies to move their production hub to India and could have significant impacts on easing the global supply chain.

Boosting profitability, lowering risk profile for chemical industry in Asia Pacific. There is a lot of potential for boosting profitability in the chemical industry segment based on DSS experience in working with companies across Asia Pacific. Looking across the entire value chain of the company is a good starting point to identify value release opportunities. Usually, companies are arranged by functions such as operations, maintenance, marketing & sales and each function is driven by their own siloed KPIs. Integrated Business excellence is about looking at the entire value chain and ensuring that KPIs are cascaded from the overall organizational goals to the individual functions in an aligned manner. In a similar manner, lowering the risk profile of an organization requires taking a holistic view of risks; technical operations, business operations, talent management, regulatory changes/trends, governance/ management, organizational culture, and critical competencies and capabilities. This needs to combine external enterprise risk management risks (ie, liquidity, currency fluctuations, environmental impacts, social and community issues etc) with internal operational risk management risks. This proactive, holistic approach can contribute to improving profitability, while lowering the overall risk profile of the organization.

Sectors driving growth in Asia Pacific. Specialty chemicals is projected to have major growth driven by growing investment and production in electrical and electronics industry, robust growth in construction, increased demand for adhesives and plastics in packaging and cosmetic products, and increased installations of water treatment plants to name a few. Companies that are innovative and incorporate sustainability requirements into new product and application development are set to reap the benefits of this growth.

gas industry — ExxonMobil was forced to accept sustainability and risk experts on their board, Chevron’s board was forced by shareholders to reduce GHG levels by 2030 to 40 percent of 2015 levels, and Shell was ordered by a Netherlands court to implement carbon reduction actions across their business worldwide. These actions, coupled with pressure on financial investors and private equities on green investing, will increase the pressure felt by the chemical industry year and next. Of course, the chemical industry is more complex and ubiquitous so

Role of digital technology in improving sustainability requirements.

fast change is hard, but the pressure will build just the same.

Digital should be considered from three lenses: digitalizing of processes,

Our purpose in DSS+ is to save lives and create a sustainable future

adoption of digital technologies and data analytics. Many companies are digitalizing processes, adopting some digital technologies and can do better in terms of data analytics to create insights and facilitate

Company’s Asia Pacific business for the region. for our clients. We have been actively engaged by clients across Asia Pacific in the chemical industry. We have drawn on our DuPont owneroperator experience, as well as experience gained as an independent

decision making to achieve business outcomes. Ultimately, the purpose

consulting firm, to focus on outcomes and work in the field, shoulder-

of digitalizing is to improve operational efficiencies, review allocation

shoulder with our clients.

of resources to ensure material risks are addressed and enhance business outcomes.

We acquired an ESG investment impact company, KKS Advisors, to help us better help our clients understand where and how to get more

Systems like digital twins can provide detailed information regarding

green funds and to show their own investors their improvements. We

the operations which can then be used to investigate opportunities

acquired a second sustainability company, Sofies Group, four months

for optimization in multiple ways. Examples are: improving the

later to expand our capability in public sector sustainability policy and

maintenance processes, planning of capital investments, increasing

programs to help address the government challenges to promote and

OEE and looking at options to reduce the environmental impact of

implement meaningful change. Both companies work in the corporate

the operations.

space, along with our traditional DSS business, to also implement

Changing sustainability dynamics post COVID-19.

sustainability improvements on the ground, along the production

Psychologically, COVID has had a tremendous impact on the industry.

other words, we have built an end-to-end sustainability business that

Not only are there serious labor shortages around the world in all

helps clients get the funds, understand how to invest the funds and

companies but many people are seriously re-evaluating if they want to

determine where to spend the funds to make a more positive impact

stay in the work force, further exacerbating the pressure on labor and

on business and society.

talent management. Wages are being driven up and this will increase costs. But the biggest impact is the ESG. Communities, and especially industries, are starting to turn against ‘dirty’ industries and looking for more green products. This is accelerating significantly in 2022.

The last week of May 2021 was a major inflection point for the oil and

line, to realize very tangible and real sustainability outcomes. In

DSS+ has expanded its support in helping clients beyond the traditional operational risk and has supported companies in Asia Pacific in the areas of innovation and sustainable development to achieve market facing business transformation. The increased number of resources in

Interestingly, COVID has increased the focus and attention on

DSS with sustainability expertise and overall global competence allows

sustainability. There is much more interest amongst lenders and

us to diversify our portfolio of services and offer clients tailormade

governments (and asset managers) are taking it much more seriously.

solutions to meet their sustainability objectives.

Chemical Today Magazine | March 2022

Specific to sustainability, KKS Advisors, a dss+ company, developed

implement change

the ESG impact metrics for the Athens Stock Exchange. The team

Spending on sustainability within a company without a practical implementation plan, KPIs, and clear focus on outcomes.

is also currently developing one of the ESG industry’s first ESG/ Sustainability Cultural Surveys, based on our multiyear Safety Culture Survey and dss+ Bradley Curve. The Survey will include over 5000 companies, with a subset of chemical companies. We have teamed with our KKS founder, Dr. George Serafeim, Harvard University Business School professor, to develop various industry-first ESG financing impact models that companies and asset managers are using around the world.

Addressing process complexities that lead to low quality of asset maintenance, unplanned shutdowns, supply chain issues etc. dss+experience with chemical companies indicates that challenges related to functions operating in siloes, driven by their respective targets and KPIs and as a consequence demonstrate behaviours that are not beneficial to the company. Many companies look at asset management and maintenance as a purely engineering activity. Sales & Marketing many times dictate what assets need to be produced and the cost allocation on products is not effectively monitored. Adopting an integrated business approach that considers the product/ portfolio activity, demand management, supply management, integrated reconciliation and executive leadership review helps remove obstacles and drives alignment across the entire value chain. Initially, it may appear to increase the process complexity, but in fact once the process stabilizes, the benefits include ability to have a longer term view (around 18 months) forecast and contributes to improvements in productivity, quality, M&R, safety, footprint reduction and supply chain efficiencies.

Strategies towards safety & sustainability regulations that hinder productivity. A good starting point is to define the markets that the chemical companies want to serve. In addition, chemical companies need to look at the trends in their customers’ needs. Understanding voice of customer and their future strategies will provide insights and foresights that can be integrated into business planning. In addition, depending on the size of the business and the markets the company intends to serve, it may be of value to consider building close relations with relevant regulatory bodies and industry associations so as to understand and contribute to future regulations to ensure that the industry requirements are considered.

Sustainability challenges faced by global chemical manufacturers. The biggest challenge that chemical manufacturers are facing in implementing sustainability strategies is to balance between the short vs long term objectives. In the short term, meeting shareholder objectives in terms of contribution margins is going to be important. At the same time, investing in sustainability strategies now, to meet the medium to long term expectations of customers and agencies, is also critical. The other major challenges include: Quickly evolving regulatory standards in each country and locality Lack of personnel with sustainability capability within the company to

Chemical Today Magazine | March 2022

Addressing cost implications while implementing a sustainable strategy. Presently, the chemical industry is looking at cost implications while implementing a sustainable strategy that addresses process complexities and improves the safety aspect during operations. For the same, the answer is really product and process dependent. Too many companies look at sustainability (and safety) as a cost center. In dss+ experience, integrating safety and sustainability into process design actually contributes to improved margins rather than increased costs. In many companies, safety and sustainability requirements are an after-thought, and as a consequence, are perceived to be costs. A good starting point is to identify a list of sustainability opportunities and prioritize the opportunities based on return on investment so that future projects can be self-funding. For example, if there is an opportunity to improve asset productivity and/or energy efficiency these initiatives could probably help generate savings to invest in future sustainability projects. To manage costs effectively, companies need to change the mindset from viewing sustainability as a cost center to embedding sustainability into daily business and operational activities. Once it is embedded into daily operations, like safety, efficiencies are created and production losses and waste are greatly reduced. In safety, for every dollar invested, typically there is a $7 to $10 return. There is still limited sustainability data but the return could be even higher as waste and energy reduction significantly cut operating costs. The challenge for most chemical companies will be the initial investment and the time frame to see large returns.

Reviving growth momentum in the post pandemic era. The window for companies to take action towards sustainability are closing rapidly. At the same time, there has to be a fair competition. The industry also faces the issue that locally produced and imported materials do not always have the same regulatory sustainability requirements. In that case there should be a cost/trade impact. For the industry itself, it has to look beyond its own boundaries and build cooperation and collaboration along the value chain and with external, competent partners. Specific steps that industry should take in 2022 are: Form government-industry-sustainability workgroups to ideate approaches to embed sustainability into daily business operations. They should look at what is government’s role should be (besides setting static regulations, things like financing, grants, providing expertise, tax breaks etc) as well as the role industry and sustainability workgroups should play to shape the future. Create industry forums where chemical companies and sustainability experts debate and then develop practical sustainability implementation approaches for the shop floor and across the industry value chain. Increase public and social awareness of the industry challenges (we all use plastics and we can’t just get rid of them overnight, circular economy is complex with multi-stakeholders etc). Bring communities into the dialogue. They will be key to recycling, using less energy and influencing buying habits.

SUSTAINABILITY TEXTILES

GREEN CHEMISTRY FOR SUSTAINABLE TEXTILE INDUSTRIES

he textile industry is one of the most environmentally poisonous and contaminating industries in the world, mainly because of the use of ecologically dangerous synthetic chemicals and processing technologies. In the textile industry, the wet processing section, also known as the dyeing and finishing section, is considered the largest contributor to environmental pollution than other processing sections. The wet processing section eliminates wastewaters of great complexity due to a wide range of fibers, inorganic salts, surfactants, finishing products etc. Non-sustainable, non-renewable fossil fuel-based conventional chemical processes have many disadvantages, including excessive use of synthetic chemicals for pre-treatment, coloration, and finishing, which causes severe fiber damage and is highly hazardous to the environment. It is crucial to overcome these obstacles by finding green chemicals and sustainable technologies. Exposing textiles to an irradiative heat source or flame can be hazardous as most of them easily ignite and vigorously burn. This peculiarly restricts the utilization of fibers and various fabrics in many sectors, particularly where fire resistance is strictly required. The possible smoke generation either significantly impacts the environment or impedes breathing. According to the International Association of Fire and Rescue Services (CTIF) statistics, 32 countries from the period between 1993-2017 have documented 92.6 million fires resulting in 1052.9 thousand deaths. In

Chemical Today Magazine | March 2022

UK and the US, fire statistics identify that the main reason for fire death is usually bedding, nightwear, mattresses, and others, hence significantly comprising textile materials. The main objective of applying green chemistry and using sustainable chemicals is to limit poisonous impacts on humans and the environment by reviving traditional processes, toxic chemicals, and auxiliaries from wet processing textile industries. The demand for sustainable processing technologies is rapidly increasing as they are eco-friendly, highly efficient, clean, cost-effective, safe to develop, much easy-to-use, and lessen the use of harmful chemicals. Research has been done to create eco-friendly chemicals, dyes, and auxiliaries for various advancements in achieving environment friendly chemical approaches for wet textile processing, which has advanced the way towards accomplishing sustainability in textile sectors. Recently, several measures have been taken to make textile processing greener, including greener fiber, greener dyes and auxiliaries, greener solvents, bioprocessing, sustainable, optimized, and efficient processing, recycling of textile, water, and chemicals, elimination of hazardous substances, and others. Several innovations for eco-friendly chemical technologies for pre-treatment, coloration, and chemical finishing of fiber, fabric, yarn, and readymade garments have come to light in recent years.

Basic Principles of Green Chemistry:

Green Energy

(1) Waste Management: minimization or elimination of waste.

Saving energy by consuming fewer resources is one of the best ways to

(2) Catalysis: Catalysts are preferred to stoichiometric reagents (whereas catalysts are mostly recovered, recycled, and reused).

attain a greener environment. Processes like heating, cooling, stirring,

(3) Direct and Safer Reactions: Use of minimum reaction steps that possess little or no toxicity to human health and the environment; intermediate steps or derivatives use more reagents and can generate more waste.

obtained by burning fossil fuels, resulting in the release of carbon

(4) Renewable Feedstock: Use of renewable and non-depleting raw materials.

Green power sources produce electricity without causing harm to

(5) Safe and Sustainable Products: Preservation of the efficacy of function while reducing toxicity.

Environmental Protection Agency (EPA) defines green power as

(6) Biodegradability: Use of chemicals that are easily degradable with no accumulation in the environment.

small hydroelectric sources. The demand for green power is high

(7) Green Auxiliaries: Use of auxiliary substances (solvents, separation agents etc.) should be avoided and used, only when necessary.

gas-reduction benefits.

(8) Energy Economy: Energy should be saved by using reactions that take place under ambient temperature and pressure conditions.

The use of fertilizers, pesticides, herbicides, etc., is harmful to the

(9) Safer by-products: Real-time monitoring and reuse of byproducts.

ecotoxicity. A shift to organic cotton can effectively reduce ecotoxicity,

(10) Hazard Control: Hazardous chemicals should be avoided at all costs in order to reduce the chance of explosions, fire, and harmful releases.

lower yield.

Major Drivers in the Indian Textile Industry:

Synthetic fibers like Nylon and acrylic fibers are the most energy-

>Driving force of buyer demand and regulation in export-oriented industries Industries other than textiles, such as pharmaceuticals, and pesticides, that are heavily export-oriented are driving the demand for green chemistry in Indian industries. > Increasing production cost The increasing scarcity of resources is resulting in the increased cost of resources, which is further augmenting the overall cost of production. This is directly affecting the top and bottom lines of several companies. > Need for emerging technologies and market competitiveness Rapidly increasing customer demand for better products at a reasonable cost is another factor driving the need for green chemistry. To remain competitive, players have come with several innovative ideas to provide better products at minimum cost. Currently, the Indian market for green chemistry stood at around $10 billion in 2020 and is expected to boost in the forecast period until 2035. Buyer demand and regulations are likely to further drive the adoption of green chemistry in India.

distillation, compression, and others require electrical energy, usually dioxide into the atmosphere, thereby contributing to global warming. Green energy represents renewable energy resources and technologies that work to benefit the environment. the environment, unlike conventional power technologies. The electricity produced from solar, geothermal, biogas, and low- impact among consumers due to its environmental impact and greenhouse-

Cotton Production environment and largely contributes to energy consumption and but it has a large impact on agricultural land occupation due to its

Synthetic Fiber Production intensive fibers to produce and are technically the most difficult to recycle.

Regenerated Cellulose Fiber Production Viscose is widely known to be the most energy-intensive regenerated cellulose fiber to produce.

Conclusion The sustainable production and consumption of textiles are extremely crucial and can only be achieved if the market players take full responsibility. Industrialists, manufacturers, retailers, and consumers should consider environmental factors in every decisionmaking process. The Wet-processing section in textile industries should be minimized or replaced with ‘green’ processes. Companies need to shift their focus towards sustainable processes and provide products at minimum cost. Introducing the principles of green chemistry will significantly lead to more environmentally compatible manufacturing systems with plant-based feedstock, clay-based reagents, and catalysts.

Source: TechSci Research

Chemical Today Magazine | March 2022

GREEN CHEMISTRY

ELIMINATING VIRGIN FOSSIL-BASED PLASTIC CHIP BAGS

The new bag designs at PepsiCo will contain recyclable plastics like polypropylene.

ollowing the introduction of PepsiCo Positive, the company’s strategic end-to-end transformation with sustainability at the centre, PepsiCo Europe announces that by 2030, it plans to eliminate virgin fossil-based plastic in all its crisp and chip bags. This ambition will apply to brands including Walkers, Doritos and Lay’s and will be delivered by using 100 percent recycled or renewable plastic in its packets. Consumer trials of the packaging will begin in European markets in 2022, starting with renewable plastic in a Lay’s range in France in the first half of the year. Later in the year, a range from the Walkers brand in the UK will trial recycled content. The recycled content in the packs will be derived from previously used plastic and the renewable content will come from by-products of plants such as used cooking oil or waste from paper pulp. PepsiCo estimates it may achieve up to 40 percent greenhouse gas emissions reduction per ton of packaging material by switching to virgin fossil-free material. “Flexible packaging recycling should be the norm across Europe. We see a future where our bags will be free of virgin fossil-based plastic. They will be part of a thriving circular economy where flexible packaging is valued and can be recycled as a new packet. We’re investing with our partners to build technological capacity to do that. We now need an appropriate regulatory landscape in place so that packaging never becomes waste,” said Silviu Popovici, chief executive officer, PepsiCo Europe. Beyond the switch to renewable and recycled content, PepsiCo has developed its “Making Bags Better” program, that will focus on a series of investments and innovations so more flexible plastics will be recycled and reused in Europe.

Chemical Today Magazine | March 2022

The right design PepsiCo Europe is moving all its bags to materials that make them easier to recycle, leveraging innovative design technology to create a simpler bag structure. The new bag designs contain greater proportions of recyclable plastics like polypropylene, commonly referred to as ‘monomaterials’. These meet the design for recycling guidelines developed by the Circular Economy for Flexible Packaging (CEFLEX) which have been agreed by a range of stakeholders active in the flexible packaging value chain. “We are building a future where flexible packaging is part of the circular economy. Together with PepsiCo, we enhanced the material technologies on PepsiCo’s new crisp packet to make it easier to recycle. And we are beginning to integrate renewable and recycled content into PepsiCo’s packaging. To meet the demands of our clients like PepsiCo, we encourage more partners upstream to invest in the supply chains of these new materials,” said Gerald Rebitzer, sustainability director at AMCOR, PepsiCo’s flexible packaging partner in Europe. PepsiCo has also been working to reduce unnecessary packaging across its individual bags and multipacks as part of its commitment to a 50 percent reduction in virgin plastic per serving by 2030. Progress is being made towards this goal, including in markets such as the UK where on some parts of the range, PepsiCo has reduced its multipack outer by up to 30 percent using innovative technology in its manufacturing facilities.

100 PERCENT PLANT-BASED PET BOTTLE PROTOTYPES

The company has successfully created a prototype PET bottle made from 100 percent plant-based materials.

untory Group announced that, as a crucial step toward its aim to use 100 percent sustainable PET bottles globally by 2030 and eliminate all petroleum-based virgin plastic from its global PET supply, the company has successfully created a prototype PET bottle made from 100 percent plantbased materials. The prototype has been produced for the company’s iconic Orangina brand in Europe along with its best-selling bottled mineral water brand in Japan, Suntory Tennensui. This marks a breakthrough after a nearly decade-long partnership with the US-based sustainable technology company Anellotech. PET is produced using two raw materials, 70 percent terephthalic acid (PTA) and 30 percent mono ethylene glycol (MEG). Suntory’s prototype plantbased bottle is made by combining Anellotech’s new technology, a plantbased paraxylene derived from wood chips, which has been converted to plant-based PTA, and pre-existing plant-based MEG made from molasses which Suntory has been using in its Suntory Tennensui brand in Japan since 2013. “We’re delighted with this achievement, as it brings us one step closer to delivering this sustainable PET bottle to the hands of our consumers,” said Tsunehiko Yokoi, executive officer of Suntory MONOZUKURI Expert Ltd. “The significance of this technology is that the PTA is produced from nonfood biomass to avoid competition with the food chain, while MEG is also derived from non-food grade feedstock.”

Chemical Today Magazine | March 2022

The fully recyclable prototype plant-based bottle is estimated to significantly lower carbon emissions compared to petroleum derived virgin bottle. “This achievement is the result of over ten years of thorough and painstaking development work by Anellotech’s dedicated employees, together with Suntory and other partners,” said David Sudolsky, president and CEO of Anellotech. “The competitive advantage of Anellotech’s Bio-TCat generated paraxylene is its process efficiency (it uses a single-step thermal catalytic process by going directly from biomass to aromatics (benzene, toluene and xylene)), as well as the opportunity it creates for a significant reduction in greenhouse gas emissions as compared to its identical fossil-derived paraxylene in the manufacture of PET, especially as it generates required process energy from the biomass feedstock itself.” This technology is one of the latest investments from Suntory. The company for plastic bottles specifically, has used its 2R+B (Reduce/Recycle + Bio) strategy to reduce the weight of containers, including labels and caps, and actively introduce recycled or plant-based materials in its plastic bottles used globally. Most significantly, it has created the lightest bottle cap, the thinnest bottle label, and the lightest PET bottle produced in Japan to date. Suntory aims to commercialize this 100 percent plant-based bottle as soon as possible to meet its 2030 fully sustainable PET bottle goal.

GREEN CHEMISTRY

BIO-BASED SURFACTANTS DRIVING TRANSITION TOWARDS RENEWABLE CARBON

Clariant uses 100 percent bio-ethanol derived from sugar cane or corn to create the ethylene oxide for its surfactants.

lariant unveils its new Vita 100 percent bio-based surfactants and polyethylene glycols (PEGs) to help directly address climate change by helping remove fossil carbon from the value chain. As our climate gives us increasing and alarming signals of change, individuals and industries are looking for ways to reduce their environmental footprints, and the demand for bio-based chemicals is set to grow strongly in the coming years. Clariant is committed to fostering the transition to a more sustainable bioeconomy and has a growing share of bio-based products and processing aids in its portfolio. The introduction of 100 percent bio-based surfactants and PEGs significantly expands Clariant’s Vita designated ingredients. Vita products are based on renewable feedstocks and have at least 98 percent Renewable Carbon Index (RCI). It is just one example of its commitment to provide low carbon footprint solutions to customers and to Greater Chemistry – between people and planet. “From the packaging to the many ingredients, a typical consumer product in coatings, personal care, home care, industrial, and agricultural applications still uses petrochemicals and therefore fossil carbon,” said Christian Vang, global head of business unit Industrial & Consumer Specialties, Clariant. “Switching to bio-based carbon chemistry remains a big challenge for manufacturers and by launching the Vita surfactant and PEG range we are offering them an important new solution to achieve this.” Designed for natural formulations targeting a high Renewable Carbon Index (RCI), the new Vita products support manufacturers in maximizing the bio-based carbon content of consumer goods such as

Chemical Today Magazine | March 2022

detergents, hair and body shampoo, paint, industrial lubricants, and crop formulations. Clariant uses 100 percent bio-ethanol derived from sugar cane or corn to create the ethylene oxide for its innovative new surfactants and PEGs. The bio-based material is fully segregated along the value chain from the field to the final consumer product. Because only bio-based feedstocks are used, the ingredients have significantly lower carbon footprints than their fossil-based counterparts. The Vita surfactants are CO2 emissions savers: they can help save up to 85 percent of CO2 emissions compared to their fossil analogues. Importantly, in addition to setting the standard in a greener production, these new solutions are chemically equivalent to Clariant’s fossil versions, offering the same performance and efficiency to formulators and brand owners. Customers can currently benefit from more than 70 bio-based products, and the range will continue to be expanded to meet evolving market needs. In Q1 2022, double-digit kilotons of the biobased surfactants and PEGs will be available for the worldwide business segments from Clariant IGL Specialty Chemicals (CISC), a Clariant joint venture. As one of the global leader in specialty chemicals, and a member of the UN Global Compact, Clariant is at the forefront of advanced carbon solutions with a unique level of expertise, know-how and industry knowledge. Find out more about the new Vita range of surfactants for natural formulations or discover how Clariant is part of driving change in a changing world through its companywide sustainability strategy.

CIRCULAR SOLUTION FOR COFFEE CAPSULES

These polymers will be used to make coffee capsules creating a circular economy for plastics.

yondellBasell has developed polymers based on advanced recycled post-consumer materials. These polymers, branded under the name CirculenRevive, are made using an advanced recycling process to convert plastic waste into feedstock, which is used to produce new polymers, using a mass balance approach. With the support of Greiner Packaging, these polymers will be used to make coffee capsules for Nestlé’s Nescafé® Dolce Gusto®. This collaboration aims to help advance a circular economy for plastic. These polymers meet the strict requirements of the food industry. Both, LyondellBasell and Greiner Packaging sites involved are ISCC PLUS certified. This well-known global certification provides traceability along the supply chain. With the mass balance method, the company tracks how much advanced recycled material goes into the production process of its CirculenRevive products and can attribute the recycled content to the final polymer via a Sustainability Declaration. “We are extremely pleased that we can support our customer Greiner Packaging and ultimately Nestlé with a circular economy solution from

Chemical Today Magazine | March 2022

our recently launched Circulen product family,” said Richard Roudeix, LyondellBasell senior vice president of Olefins and Polyolefins for Europe, Middle East, Africa and India. “CirculenRevive polymers help to address at scale the challenge of hard-to-recycle plastics. The advanced recycling technology can utilize used mixed plastic, which allows for larger volumes of plastic waste to return back into the value chain that would otherwise be destined for energy recovery or landfill. At the same time, these polymers have the same characteristics and high quality as fossil-based materials. Ultimately, LyondellBasell aims to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030.” “It is our goal to use as much recycled material for our packaging as possible and we believe that we need to explore every opportunity to reach this goal and make our packaging more sustainable. Therefore, we are very pleased to be part of this project which also demonstrates the importance of the whole value chain working closely together. With cooperations like this we are confident that, in the near future, we will succeed in realizing a circular economy, together as an industry,” said Manfred Stanek, CEO of Greiner Packaging.

GREEN CHEMISTRY

PLANT-BASED NYLON FIBER FOR BIOBASED SYNTHETIC POLYMER

Clariant uses 100 percent bio-ethanol derived from sugar cane or corn to create the ethylene oxide for its surfactants.

oray Industries Inc has developed a nylon 510 (N510) fiber that incorporates 100 percent ‘biobased synthetic polymer content’ as defined under section 3.1.5 of ISO 16620-1: 2015, the international standard for the biobased content of plastics. Ecodear™ N510, will be the first 100% plant-based nylon fiber in Toray’s Ecodear™ lineup. The company has created diverse potential applications for Ecodear™ N510 as a sustainable offering for high-end markets. While primarily for sports and outdoor fabrics they extend to lightweights, cut-and-sew fabrics through innerwear lace materials. Toray plans to begin Ecodear™ N510 textiles sales for fall/winter 2023. Initial production volume to be 200,000m by the end of March 2023 and growing to 600,000m in March 2026. Ecodear™ N510 fiber sales are targeted for fall/winter 2024 with an expectation of a monthly supply of 3 metric tons monthly in the year ending March 2024. Apparel and other wide-ranging applications over the years have reflected nylon’s excellent flexibility, durability, wrinkle resistance, and washability. Nylon is typically made from petroleum. In light of rising demand in recent years for environment-conscious products to address such global environmental issues as resource depletion and global warming and address a growing awareness of the need to build a sustainable society. Toray already offers partially plant-based polyester, nylon and other

Chemical Today Magazine | March 2022

polymers. It developed Ecodear™ N510 by polymerizing Sebacic acid from castor-oil plant and Pentamethylenediamine from corn and spinning. Unlike other wholly plant-based nylons, Ecodear™ N510 has a high melting point and outstanding dimensional stability. It is as strong and heat-resistant as Nylon 6. Companies can thus create products that are sustainable without compromising performance. Toray looks to combine various proprietary technologies to drive further fiber advances. These would include making fibers thinner and lighter or adding functionality by changing cross-sectional shapes. The company will develop an array of apparel and other materials applications to help building a sustainable society. Under its sustainability vision, Toray has pledged to offer innovative technologies and advanced materials that provide real solutions to the international community’s myriad challenges in balancing development and sustainability. Ecodear™ N510 represents part of the Toray Group’s efforts to help attain carbon neutrality by 2050, and should contribute to resolving environmental issues all over the world. Through its endeavors, Toray will keep serving increasingly diverse lifestyles while contributing to affluent living and sustainability.

RECYCLABLE PLASTICS BASED ON SUGARS

One of the polymers is stretchable like rubber and another is tough yet ductile like most commercial plastics. The polymers retain their properties following mechanical recycling.

esearchers from the University of Birmingham, UK and Duke University, US, have created a new family of polymers from sustainable sources that retain all of the same qualities as common plastics, but are also degradable and mechanically recyclable. The scientists used sugar-based starting materials rather than petrochemical derivatives to make two new polymers, one which is stretchable like rubber and another which is tough but ductile, like most commercial plastics. The researchers made the new polymers using isoidide and isomannide as building blocks. Both these compounds are made from sugar alcohols and feature a rigid ring of atoms. The researchers found that the isoidide-based polymer, showed a stiffness and malleability similar to common plastics, and a strength that is similar to high grade engineering plastics such as Nylon-6. Despite isoidide and isomannide only differing by the 3D spatial orientation of two bonds, known as stereochemistry, the isomannide-based material had similar strength and toughness but also showed high elasticity, recovering its shape after deformation. Notably, the materials retained their excellent mechanical properties following pulverisation and thermal processing, which is the usual method for mechanically recycling plastics. Cutting edge computational modelling simulated how the polymer chains pack and interact to produce such different polymer properties. The unique 3D shapes of the sugar derivatives facilitate different movements and interaction of the long chains causing the huge difference in physical properties that was observed. By creating copolymers that contain both isoidide and isomannide units, the researchers found that they could control the mechanical properties and degradation rates independently of one another. Hence, this system opens the door to using the unique shapes of sugars to independently tune the

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degradability for a specific use without significantly altering the properties of the material. The chemical similarity of the polymers means that, unlike a lot of current commodity plastics, they can be blended together to yield materials with comparable or improved properties. “The ability to blend these polymers together to create useful materials, offers a distinct advantage in recycling, which often has to deal with mixed feeds,” said Dr Josh Worch, from Birmingham’s School of Chemistry, and a co-author in the research. “Petrol based plastics have had decades of research, so catching up with them is a huge challenge. We can look to the unique structures and shapes that biology have to offer to create far better plastics with the same expanse of properties that current commercial plastics can offer,” said Dr Connor Stubbs, also from Birmingham’s School of Chemistry. “Our findings really demonstrate how stereochemistry can used as a central theme to design sustainable materials with what truly are unprecedented mechanical properties,” said Duke University professor Dr Matthew Becker. “This study really shows what is possible with sustainable plastics. While we need to do more work to reduce costs and study the potential environmental impact of these materials, in the long term it is possible that these sorts of materials could replace petrochemically-sourced plastics that don’t readily degrade in the environment,” said professor Andrew Dove, who led the research team from Birmingham. A joint patent application has been filed by University of Birmingham Enterprise and Duke University. The researchers are now looking for industrial partners who are interested in licensing the technology.

Chemical Today Magazine | March 2022

SECTOR VIEW COSMETIC INDUSTRY

CLEAN BEAUTY

Chemical Today Magazine | March 2022

BY DEBARATI DAS

atural, clean, sustainable …These are the trending words in the cosmetics industry. Globally, most customers

are switching their brand loyalty to alternatives that promise chemical free, paraben free, natural, organic and skin safe experience. The cosmetic industry is shifting from the era of ‘instant beauty’ and moving towards more organic way of cleansing one’s system to have naturally beautiful hair and skin. A recent consumer trends report by data provider Spate found that certain words like “purifying”, “illuminating” which worked as magic while marketing beauty products a decade back, are now losing their charm. Instead, words like “renewing,” “reparative,” and “healing” are on a rise. Customers no longer want to rip off their identity with cosmetic products but want products that can treat their skin with kindness and repair it instead. Brands too are taking note of this change and offering products which can organically heal and recover the lost sheen providing long-term health. The outbreak of COVID-19 too has resulted in changing consumer preferences who are proactively looking for cleanlabelled and functional skin care products. Customers are putting more emphasis on health and wellness within, and hence, beauty brands are evolving from a one-dimensional category to becoming more holistic and inclusive. According to Allied Market Research, the global cosmetics market size which was valued at $380.2 billion in 2019, is projected to reach $463.5 billion by 2027. Whereas Future Market Insights projected that the global natural and organic beauty market will surpass $54 billion by 2027. This might seem like a small piece of the massive cosmetics industry pie, but this jump is an indication that the cosmetics industry needs to rethink the way in which beauty products are made. Awareness about the harmful effects of chemicals and synthetic products is a huge factor augmenting the growth of the organic and natural cosmetics market. “There’s a massive demand for natural personal care brands that have high efficacy. And within this space, for premium products that provide a great experience and are environment friendly – an important attribute for today’s discerning consumer. While there are many nature-based products in the market, there exists a gap at the premium end for high quality sensorial products which are not only natural, but also sustainable,” said Sandeep Kohli, executive director of Beauty & Personal Care at HUL. Green cosmetics, which is a part of the cosmetic industry that uses environmentally-friendly formulations, production practices, and packaging methods to make products is being explored. Many manufacturers are now tapping the potential of Oleochemicals – which are naturally derived chemicals from plant and animal fats as a better substitute for petroleum-based products. Many manufacturers are tapping the potential of natural oils like palm oil, coconut oil, avocado oil, castor oil, from which fatty alcohols are derived which are used as chemical surfactants. Plant products like soybeans, corn, chamomile, and others, are used to derive emulsifiers, surfactants, and biocatalysts in the cosmetic industry. Even the potential of bacteria, is being harnessed to create aromatic ingredients and pigments for the cosmetic industry.

Chemical Today Magazine | March 2022

Here is a look at some of the factors which have led to a major change

and empowerment. Brands have the opportunity to make a real

in the way cosmetics are made are:

impact by integrating different types of beauty diversity in a way,

Paraben free: The word paraben, has become the ‘villan’ of

and at a place and time, that is truly authentic to them,” said Clare

beauty industry. While checking the ingredient list, a consumer may

Hennigan, senior beauty and personal care analyst, at Mintel.

not know all that is in the pack, but the word ‘paraben’ definitely

Beauty from within: Healing the core is becoming a significant

deters them from buying. Synthetic compounds like propylparaben

part of skin care regime and hence, supplements and nutritional

and butylparaben are best being avoided by customers. Most cosmetic

products that support ‘beauty from within’ are becoming a rising

companies are also going ‘paraben free’ to meet the demand of the

category in the industry. Many organic products are entering this

industry.

market.

Microbiome-friendly: Like the gut, the skin has its own

Vegan products: The global trend to go vegan has in many ways

ecosystem which is made up of millions of bacteria, fungi, and viruses.

seeped into the cosmetics industry too. More and more cosmetic

This is called the skin microbiota. Growing understanding of the vital

ranges are now actively promoted as vegan. Vegan however has many

role of the microbiome or the good bacteria is giving rise to a new

definitions - cruelty-free, plant-based, eco-friendly and sustainable

category of prebiotics and probiotic skin care products which nourish

being few of the characteristics.

this microbial ecosystem. “Rich in a trillion bacteria and other kinds of microorganisms, it not only acts as a shield against external aggressions, such as UV rays and pollution, but it also forms a genuine ecosystem with our skin. These bacteria, yeast or viruses play an essential role in our organism, by constantly interacting with our cells. The microbiome is a key player in the health of our skin, so it is essential to take care of it,” said Luc Aguilar, director of clinical and biological research for L’Oreal R&I. Range of products are being made in the microbiome category with the aim to rebalance the microbiome for skin and help it recover faster so as to make the skin appear stronger and visibly younger.

Inclusivity in beauty: Today, the mantra of skin care is not to change the way one looks or to imitate others, but instead to radiate one’s own uniqueness, ethnicity while embracing one’s flaws. Inclusion across gender and race is a powerful trend which is driving the organic and natural cosmetics industry. In short, embracing beauty in all body sizes, facial features, race/ethnicity, skin colour, genders and imperfections like scars, grey hair, wrinkles, are also an important part of formulating new age cosmetics. Hence, products that suit all skin tones, and accentuate one’s individuality is driving the market.

Circular beauty: Consumers today don’t just want to know where their products come from, but also where they end up. Hence, instead of being linear, most companies are opting for circular design models, in which as many materials and ingredients as possible are reused or upcycled at the end of their use.

Sustainability: Many consumers are increasingly conscious of the impact their skin care regime on the world around them. This awareness has led consumers to search for hair care products that are gentle on the skin and the environment. Beauty brands are prioritizing ingredients that are safe, cruelty-free, biodegradable, sustainably-sourced and reduce water usage to meet consumers’ demands for simple and more natural hair and skin care regimens. “Our naturally derived, sustainable ingredients aid formulators in developing hair care solutions that respect consumers’ hair and the environment without sacrificing performance,” said Marie Arzel, business development manager, personal care at Solvay.

Way Forward Great skin will never go out of style. From correction to prevention, skin care range is an essential part of personal care and innovations and developments in the beauty industry will deliver improved

“Beauty marketing is increasingly shifting from ‘aspirational’ to

products which are skin-friendly, organic and sustainable. Organic

‘inspirational.’ Successful brands recognise that demonstrating a

beauty is creating a seismic shift by completely changing the way we

strong commitment to diversity and inclusion helps drive inspiration

purchase, use and dispose cosmetic products.

Chemical Today Magazine | March 2022

INSIGHTS PLASTICS & POLYMERS

PLASTICS & POLYMER INDUSTRY TO EMERGE STRONGER FROM COVID-19

Globally, 3D printing technology has also revolutionized the manufacturing industry, where plastics have gained prominence in different additive manufacturing processes. Shown here is a 3D plastics printed ball. (Representative Image © Pixabay GmbH)

BY ANWESHA BANERJEE

n the modern economy, plastics, with their lightweight, functional properties and low cost, are increasingly replacing conventional materials. The replacement of metals by plastics is a significant trend that will transform several industries in the long run. Manufacturers continuously strive to reduce machinery and vehicle weights to meet regulatory mandates. Additionally, the increasing use of plastics in consumer electronics, construction, and packaging is a major trend. Globally, 3D printing technology has also revolutionized the manufacturing industry, where plastics have gained prominence in different additive manufacturing processes.

The current global plastic demand estimated at approximately 260 MMT will likely grow at around 2.5 percent through 2023. As per the IMF, this would be driven by economic growth forecast at 4.4 percent in 2022 and 3.8 percent in 2023. While the pandemic has negatively impacted major industries, such as automotive and construction, it has driven the growth of packaging, household, and medical applications. By 2030, China and India are expected to account for about twothirds of the world’s middle-class population. Their need for food, water, medicines and other essential items will benefit the plastics industry.

India’s Polymer Consumption Expected to Surge The polymer consumption in India, which totaled 14.8 million metric tons in FY 2020-21, is estimated to reach 16.6 million metric tons in FY 2021-22 and about 30 million tons by 2030, according to Chemicals & Petrochemical Manufacturers’ Association (CPMA). India’s polymer consumption is primarily driven by polyolefins (polypropylene and polyethylene). Polyethylene is the majorly used polymer, followed by polypropylene, and polyvinyl chloride (PVC). Amidst India’s rising demand, the country is also a net importer of polymers. Leading petrochemical companies have planned investments worth approximately $124 billion in the pipeline to meet the growing demand.

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Application Sectors Exhibit 2: Plastics Consumption in India by Sector Packaging is a major sector that the pandemic has strengthened. Online purchases of packaged products and groceries surged because of lockdowns and social distancing requirements. Additionally, the convenience of doorstep delivery cannot be ignored. According to the Packaging Industry Association of India (PIAI), the packaging industry is growing at 22-25 percent CAGR. However, a significant trend in the industry is innovation in smart packaging solutions. Major companies, especially in the FMCG space, use innovative packaging materials to increase biodegradability and recyclability. This also aligns with the government’s goal to ban single-use plastics. Plastic household products include toys, containers and furniture, among other items. With increasing urbanization and the rise of nuclear families, this sector is witnessing moderate growth. Building and construction endured a weak year in 2020 due to multiple lockdowns and migrant labor issues, but 2021 saw shoots of recovery. Governmental policies such as rebates on GST, Real estate investment trusts (REITs), and Real Estate Regulatory Authority (RERA) schemes have been introduced to boost the sector. The analysis indicates that the industry is expected to register a CAGR of 8 percent in the next five years. In the last decade, the penetration of plastics in agriculture has increased at a healthy rate, courtesy of their durability and lightweight properties. For example, plastics in silage make it possible to store for longer durations and transport easily. India’s vast population necessitates the need to produce more food. The increasing use of plastics in food storage, water treatment, and horticulture is inevitable. Additionally, as urban consumers opt for organic produce, there is a possibility to reduce pesticides through plastics usage. According to the National Investment Promotion and Facilitation Agency, the electronics industry contributes to about 2.5 percent of the country’s GDP and employs over 13 million people. Although there are major manufacturing facilities in India, there is a lack of design and R&D capabilities and supply chain issues. The sector has not been able to grow to its fullest potential. Manufacturers in India also face tough competition in terms of price from Southeast Asian countries. In recent years, the sector has attracted government attention. The Government’s National Policy on Electronics (NPE 2019) targets a $400 billion turnover by 2025 from domestic manufacturing. Additionally, the PLI scheme offers production-linked incentives to boost domestic manufacturing and attract significant investments.

With 22,652,108 vehicle units manufactured in FY 2021 (Society of Indian Automobile Manufacturers), India aims to become the thirdlargest automotive manufacturer by 2025. The industry operates in a highly competitive environment, and there is a constant need to reduce manufacturing costs. Moreover, with environmental regulations related to recycling and carbon footprints becoming stricter, product manufacturers are looking at ways to find cheaper material alternates that are environmentally sustainable. Plastics are materials that can be used to replace conventional materials such as metal or wood to lower manufacturing costs. More than 70 percent of the plastic used in automobiles comes from four polymers: polypropylene, polyurethane, polyamides and PVC. Typically, about 30 percent of the parts are made of plastics in an internal combustion engine vehicle. With the emergence of electric vehicles, this share will undoubtedly go up, considering the pressure on manufacturers to incorporate lightweight materials to offset the weight of the batteries.

Steps Towards Sustainable Future A major trend observed across all end-user segments is the increasing focus on recyclability. A signatory to the Paris Agreement on climate change, India is working toward reducing carbon dioxide emissions. According to the analysis, India generates 8.5 million tons of plastic waste annually, with a waste collection rate of 70 percent to 80 percent, as observed in the last four years. India’s regulations on extended producer responsibility (EPR) reflect the government’s strict approach in putting post-consumer plastic waste management on the producers, importers, and brand owners that introduce plastics into the economy. The government’s ban on single-use plastics taking effect in 2022 is another step to promote circularity in the plastic packaging waste recycling ecosystem. EPR regulations will be a significant impetus for industry participants to deploy efficient technologies to improve the recycling of low density polyethylene (LDPE), linear low density polyethylene (LLDPE), high density polyethylene (HDPE) and polypropylene post-consumer waste. In the coming years, waste collection rate growth, advancements in recycling processes, and digital transformation leading to operational efficiencies are expected to contribute to the plastic waste recycling market development. According to our analysis, the total market revenue potential is set to reach $86.78 billion, with a CAGR of 15.7 percent from 2021 to 2030. Opportunities are vast in several areas within the market, including consulting, recycling equipment, technology services, further R&D and other innovative solutions tailored to brand owners’ needs.

Author: Anwesha Banerjee is Senior Consultant, Chemicals, Materials & Nutrition Practice at Frost & Sullivan.

Chemical Today Magazine | March 2022

INSIGHTS RENEWABLE POWER

RENEWABLE POWER IN ASIA PACIFIC GAINS COMPETITIVENESS AMIDST COST INFLATION

By 2030, electricity from renewables (mostly utility PV) will be at a 28 percent discount to coal across Asia Pacific. India, Australia and China remain low cost champions for renewable power. Both onshore wind and solar will be at a discount or at parity with gas and coal power in these markets. (Image © Pixabay GmbH)

Chemical Today Magazine | March 2022

sia Pacific’s levelised cost of electricity (LCOE) for renewable power broke historical trends and rose in 2021 but still gained ground against fossil fuel power. Last year, Asia’s power crisis sent fossil fuels and renewable sources into a frenzy as prices spiked amidst strong demand and supply chain tightness. Spot market fuel prices averaged over the year pushed up costs of coal and gas power by 19 percent and 46 percent respectively, making renewables (utility PV and onshore wind) appear more competitive. However, increased equipment and logistics costs meant that solar and wind power were also hit by cost inflation. “The average LCOE across Asia Pacific for new solar projects increased by 9 percent to $86 per megawatt-hour (MWh) and for onshore wind projects by 2 percent to $103/MWh last year,” said Wood Mackenzie senior analyst Rishab Shrestha. “Renewables’ supply chain bottlenecks are expected to ease in 2022 and beyond, and the respective LCOE will return to a declining trend.” Currently, renewable power costs in Asia Pacific are about 16 percent more expensive on average compared to fossil fuel power costs over the project lifetime. India, China and Australia are the top three leaders with renewable power being between 12 percent and 29 percent cheaper than the lowest-cost fossil fuel, coal. Other major markets still have a significant renewables premium. “Interestingly, China is the only Asia Pacific market which has bucked the renewables premium cost inflation trend in 2021, supported by a mix of factors including rising fossil fuel prices, domestic manufacturing, zero-tolerance Covid policy, and its commitment towards climate change,” Shrestha added The report forecasts that by 2030, electricity from renewables (mostly utility PV) will be at a 28 percent discount to coal across the region. India, Australia and China remain low cost champions for renewable power with LCOE discounts ranging 50 - 55 percent. Both onshore wind and solar will be at a discount or at parity with gas and coal power in these markets. However, offshore wind LCOE in Asia Pacific will not be competitive against gas-fired power (CCGT) until the 2030s, except for China which will hit this milestone in the early 2020s. Looking at other low carbon power technologies, the analysis reveals that nuclear, hydro and geothermal are among the cheapest low carbon dispatchable power options costing between $84/MWh and $93/MWh in 2021. This is already cheaper than gas-fired power, which

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remains flat at around $105/MWh. These conventional technologies are likely to maintain a cost advantage of over 30 percent compared to carbon, capture and storage (CCS) and green fuel blending by 2050.

Renewables integrated with battery storage has a 50 percent premium over gas power today but will be competitive by around 2030, becoming an increasing threat to gas power. CCS is expected to add 70 – 100 percent to generation costs and struggles to compete with firmed renewables and other low carbon options in the longer term. “Economics is a key factor in choosing options to reduce the fossil fuel share of the Asia Pacific power system, which sits at around 70 percent today. Although wind and solar costs are falling, options for reliable and dispatchable power to support decarbonisation are still very expensive,” said research director Alex Whitworth. “Take Japan for example, a fuel mix of 20 percent green or blue ammonia plus 80 percent coal as proposed, will cost around $150/MWh even by 2030. This is more expensive than gas power while still emitting almost twice as much carbon. A combination of offshore wind and distributed solar backed up by storage and gas units would have a similar price tag. Is Japan ready for a potential doubling of the average power generation costs in 2030 compared to recent years?,” said Whitworth. “Japan is a very expensive market but across Asia Pacific there are similar challenges. A ‘firmed’ or dispatchable combination of low cost renewables, gas peakers and batteries costs around $120/MWh today, about 60 percent higher than new coal power projects. It will take time to bridge the gap - the cost of this combination will fall to below $70/MWh by 2050 and will become competitive with gas in the 2020s and coal in the 2030s. “At the end of the day, economics is driving a higher share of wind and solar, but low cost intermittent renewables cannot replace fossil fuel power alone,” said Whitworth.

INSIGHTS US CHEMICALS OUTLOOK

US CHEMICAL INDUSTRY TO SEE STRONG RECOVERY IN 2022

BY DAVID YANKOVITZ, AMY CHRONIS, KATE HARDIN

n track for a strong recovery the US chemical industry has witnessed a strong recovery since the beginning of 2021, with demand increasing from the major end markets such as construction and health & safety. This was driven partly by a rebound in US GDP, which will likely grow between 6.0 percent and 6.5 percent during 2021 after declining by 3.5 percent in 2020. During the first half of 2021, the industry experienced supply chain disruption caused by extreme weather events when significant chemical capacity along the US Gulf Coast went idle. With supply chain challenges easing, idled capacity should come back online and support inventory buildup. In fact, some commodity chemicals have already achieved prepandemic sales levels in Q3 2021 on a year-overyear basis. The year 2022 could mark the full recovery for the US chemical industry postpandemic. As the industry moves into 2022, strong

Chemical Today Magazine | March 2022

demand for both commodity and specialty chemicals should keep prices robust throughout the year. The industry should also experience increased capital expenditure as leading industry players focus on building capacity and expanding into growing end markets through both organic and inorganic routes. However, the industry could face margin pressures amid raw material cost inflation, which will likely remain high through the first half of 2022. Also, industry margins could come under increased pressure toward the end of 2022 as pent-up demand starts to clear out. A key thought on the minds of many chemical leaders in 2022 will be returning employees to work. While the industry quickly implemented the required safety standards, the transformed talent landscape likely requires chemical companies to adapt further. Changing demographics and skills requirements should draw a more diverse workforce to chemical companies than ever before.

One of the critical areas of focus for most US chemical companies in 2022 will likely be sustainability and decarbonization. Many chemical companies are expected to increase investment in research and development (R&D) capabilities and leverage advances in decarbonization and recycling technologies to lower their and their customers’ carbon footprint, as well as reduce plastic waste. 2022 should see more industry players create goals and plans around abatement of emissions and monetization of waste.

during 2021 and by 4.3 percent during 2022. US chemical volumes are expected to grow around 1.5 percent in 2021 and 3.0 percent in 2022, while shipments will likely increase by 8.0 percent in 2021 and 2022, following a 13.5 percent decline in 2020.

End-market growth

a key growth driver for chemical sales; housing starts in the United States are expected to reach 1.6 million in 2021,6 as organizations across industries have migrated to work-from-home, which led to increased investments in homes by consumers as a medium to invest their discretionary income. This trend is expected to continue, with housing starts expected to remain robust at more than 1.5 million in 2022. Low benchmark interest rates and normalizing lumber prices should support housing starts.

Positioning for a strong rebound in key end markets amid rising costs The US chemical industry is poised for a strong recovery in 2022 as economies reopen and restrictions are lifted, which should drive up plant utilization rates that were hit hard by the pandemic. Industrial production in the United States is expected to grow by 5.5 percent

Chemical Today Magazine | March 2022

As 2022 approaches, various end markets should be watched Construction: The strength in the construction industry has been

Strong construction activity will likely keep the demand for chemical products, such as polyvinyl chloride and methanol, strong. For example, methanol producers experienced about 2 percent growth in contract prices between January and July 2021. Moreover, the recently approved Infrastructure Investment and Jobs Act, with investments across health care, public safety, and other public infrastructure, as well as increased industrial spending, bodes well for demand for chemical products from the nonresidential construction segment.

Automotive: The rebound in the automotive industry is another growth driver, as auto sales are expected to cross 17 million in 2021 and 2022 despite the production constraints caused by shortages of key input materials such as semiconductor chips. Growth in the automotive sector should drive the demand for base chemicals and performance plastics in 2022. Our assessment of the quarterly performance of major chemical companies revealed that supplies to the automotive industry clocked strong sales growth during the first two quarters of 2021, and this trend is likely to continue well into 2022, driven strongly by the robust recovery of auto sales globally.

Health and safety: As the threat from coronavirus still looms based on variants, demand for personal protective equipment such as masks, gowns, and gloves should remain high, driving ethylene and propylene sales. The industry could still pivot some of its production capacity toward the products and materials needed to combat the pandemic, such as isopropyl alcohol and ethanol. Industry players are likely to ensure a strong supply of chemicals required to produce antibacterial wipes, disinfectants and surfactants for soaps and hand sanitizers. US chemical exports are also expected to grow significantly as major economies reopen and import demand in partner economies improves, especially with trade between the United States and China returning to business as usual. The rapid recovery in the automotive sector in China is expected to keep chemical imports high in 2022. After declining 7.6 percent in 2020, chemical exports are expected to grow between 5.5 percent and 6.0 percent in 2021 and reach pre– COVID-19 levels by the end of 2022. One of the risks for this strong recovery is inflation. For example, Brent crude oil spot prices rebounded strongly and remained at an average of $74 per barrel in September 2021.In a recent survey, 60 percent of the chemical industry respondents saw volatile costs as the biggest risks facing their respective companies in 2022. The September 2021 inflation figures provide further evidence that the supply of raw materials and labor is struggling to keep up with resurgent demand. Central banks in the United States and Europe expect supply bottlenecks and inflation to ease in 2022 once the global recovery finds firmer footing and government support programs are unwound.

Shifting demand Transforming asset portfolios to help weather volatility Chemical companies are entering 2022 after overcoming challenging market conditions in 2020 and 2021, with COVID-19 adding volatility to an already volatile decade. The pandemic led to divergent demand for plastics and specialty materials, testing the resilience of companies’ asset portfolios. The shifts in chemical spending partially reflect commodity price volatility, but are more driven by longerterm trends, including petrochemical expansion in the US Gulf Coast and the buildout of Asian chemical production capacity. 2022 will likely see similar price and demand volatility, and the chemical sector will need to adapt, particularly as the energy transition accelerates.

Chemical Today Magazine | March 2022

Companies should decide today how to best position themselves for growth despite continued volatility and uncertainty. Chemical companies are likely to focus on repositioning their asset portfolios and balancing trade-offs between different strategic options with critical considerations such as scale, the scope of products, and growth opportunities. To deliver stronger growth and improve financial performance, firms should consider honing their product and services portfolios further, evaluating several areas:

Investing in higher value-added opportunities. Companies need to explore not just divesting noncore assets, but also investing in higher value-added opportunities. This means drilling down into key end markets and products where technical and market know-how can be combined with economies of scale to drive margins higher. As per a recent survey, 45 percent of the chemical industry respondents expect the electronics end market to experience the fastest growth in the United States during 2022.

Anticipating

consumer preferences. Technological progress and consumer preferences may shape how chemical companies evaluate potential higher value-added opportunities and how they will likely invest in them to transform their portfolios over the long term. Those that can balance their future-focused investments with their existing core-focused assets could be better positioned to tackle any potential challenges. To that end, companies should identify how to commercialize new opportunities such as zero-waste technologies while optimizing their existing, more conventional asset portfolio. Specifically, companies should position their existing portfolio to align to higher-growth end markets. Divesting noncore assets. Some chemical companies could pare back investments in traditional products and services to free up capital for more future-oriented projects in 2022. Some companies are shifting investments from gas to liquids and refining projects to developing differentiated applications for performance chemicals. Many other companies will likely face similar decisions in the near future, though the range of opportunities will continue to change as technologies and markets evolve. Over the past two years, the industry’s financial performance had flat-to-declining return on capital. To overcome potential headwinds, companies should identify how they can strengthen their portfolios through mergers and acquisitions (M&A) and organic investment by balancing the trade-offs between scale, scope, and growth. As companies transform their asset portfolios, they should strengthen their existing products and services while expanding into new areas, whether that means new regions, end markets, or technologies. Companies that better leverage their existing competitive positioning, as well as opportunities to innovate, could grow sustainably through 2022 despite volatility and uncertainty.

Sustainability Climate change driving sustainability efforts In 2022, the chemical industry will likely have a sharper focus on decarbonization strategies due to increased attention from stakeholders, regulatory change, and technology innovation. The chemical industry is responding with its commitments to decarbonization, recycling, and resource recovery. For instance, as part of the European Union Green Deal, the European chemical industry has committed to carbon-neutrality by 2050 as a part of its contribution to achieving the COP21 climate resolution. As the global energy industry continues to shift from fossil fuels to renewables and the “Green Deal” gains steam, this momentum is expected to continue into 2022.

Specifically, industry players may show a heightened focus on new and innovative technologies such as carbon capture and utilization (CCU), for which pending government proposals could allocate additional funding and focus. In addition, companies continue to advance work on steam cracker electrification, advanced and chemical recycling, green hydrogen and carbon capture and storage (CCS). In a recent survey, 90 percent of chemical industry respondents said they will focus on improving resource and energy efficiency in the production of chemicals and materials to drive decarbonization and sustainability in 2022. These developments will likely help grow renewables, improve energy efficiency, reduce emissions, and create new markets for carbon and other byproducts as part of an increasingly circular economy. As a result, this could foster collaboration that gives rise to new business models and helps advance the energy transition. For example, largescale waste-to-fuels projects, often undertaken in partnership with others in the value chain, are also becoming commonplace. While carbon emissions are hard to abate in the chemical industry due to reliance on process heat, advances in decarbonizing chemical production could have a profound impact globally. The benefits of decarbonizing chemical companies could spread beyond the industry itself, since chemistry provides the building blocks for many value chains. Given chemicals’ interconnectedness to different end markets and value chains, addressing this complexity will likely require the industry to have a clear road map. However, pathways to decarbonization, such as increased electrification, wide-scale use of renewable energy, and intensifying energy efficiency measures, pose certain unique challenges. While many chemical companies have publicly declared their intention to become carbon-neutral by 2050, the challenge lies in the immediate future. Often, companies may need more clarity on the material impacts that their stated goals will have on their operations, markets, and business valuation. Another issue is whether demand for many conventional plastics and chemicals could wane as the public becomes more educated about the environmental impacts of end products and ready to accept ecofriendly substitutes. As in 2021, the market could show that people are willing to switch to more environmentally friendly substitutes, even if they cost slightly more or function less effectively.

Digital transformation Accelerating business transformation through digital technologies There remains an immense but relatively unexplored potential for advanced data analytics and digital technologies to transform the chemical industry. Today, digital tools and technologies present an economically feasible solution for extracting more efficiencies from incumbent processes and designing novel products and processes. Due to the convergence of accelerating improvements such as advances in sensors, cognitive computing, and analytics, significant progress can be expected in three areas in 2022: data availability, data processing and engineering and materials research. In the past, chemical businesses have typically implemented advanced data analytics and digital initiatives in silos, resulting in slower processes, higher costs, and uncertain benefits. However, chemical firms are now increasingly realizing that digital transformation is about implementing more and better technologies and involves

Chemical Today Magazine | March 2022

aligning culture, people, structure and tasks. To tackle the issues of tomorrow more holistically, researchers believes that advanced data analytics and digital technologies have the potential to create the most impact along five dimensions in 2022:

User experience: Designing and responding to customer interactions to meet or exceed customer expectations and thus increase customer satisfaction, loyalty, and advocacy

Talent enablement: Delivering value through humanmachine pairing, where robots assist humans in manual tasks, and employees use digital technologies to support productivity and effectively complete tasks

Asset reliability and performance: Strengthening asset dependability using advanced digital technologies such as IoT (internet of things) and remote monitoring

Material

system

innovation:

Leveraging

digital

transformations to enhance R&D activities

Ecosystem collaboration: Partnering with multiple entities (such as companies, universities and national labs) to better serve customers and markets through solving complex problems By leveraging advanced data analytics and digital technologies, chemical companies can become more agile, innovative, responsive, and efficient. Per a recent survey, 62 percent of the chemical industry respondents believe that advanced data analytics and digital technologies will potentially create the most impact when it comes to delivering a better user experience in 2022. The journey will likely pose various challenges, but how companies respond to these challenges can determine the winners and losers in 2022 and beyond. A properly designed and optimally deployed data and digital strategy may represent one of the biggest-ever opportunities for the chemical industry in the post–COVID-19 world, primarily when a clear business strategy drives it. In deciding where to play and how to win, industry leaders should ask five important questions in 2022: 1.What are the new growth markets, and how can we best serve them using digital technologies? 2. How can digital tools help strengthen existing customer relationships and build new ones? 3. What new digital capabilities (such as advanced analytics) are needed to increase brand value? 4. How should we leverage digital technologies to accelerate the commercialization of innovation? 5. How can digital tools help attract, recruit, and retain the best talent?

Customer-centricity Embedding customer-centricity differentiation in the marketplace

create

Customer expectations and behaviors have changed dramatically over the past decade, and more so in the wake of COVID-19. Chemical businesses today are expected to meet customers’ needs and expectations at every interaction in return for customer loyalty. The ability to deliver this could depend on the extent to which customer-centricity is embedded within every link in the value chain in the chemical business.

Especially in light of the convergence of many industries that are rebranding and repositioning themselves, customer-centricity should play an instrumental role in staying a step ahead of the competition. Chemical companies are likely to leverage digital technologies to enable automated trend sensing and social media scanning (using text analytics) to identify broader market trends and customer requirements. This customer-centric innovation, which solicits real-time feedback through customer engagement tools, could help improve the scope, scale, and returns of R&D efforts.

3. Empower frontline employees: Many decisions,

Chemical companies could consider changing their approach to innovation to better respond to current, unique disruptions more effectively. As companies from outside the industry enter the fray and compete with established industry leaders and end-market demand shifts due to consumer preferences, businesses should focus on realigning their innovation strategy and efforts. To address the still-prevalent disconnect between the accelerating pace of change in the marketplace and inertia of the innovation process, chemical companies are likely to collaborate with new startups and platforms that can accumulate vast amounts of material knowledge from varied sources into a single, reliable, searchable format and leverage machine learning algorithms to develop innovations quickly and efficiently Chemical companies should consider these five areas when placing the customer at the heart of their business:

5. Use customer feedback to drive real-time improvements: To be a leading-edge, customer-focused

1.Understand customers: Customer profile data allows companies to gain deep insight into the varying needs of different customer segments to tailor product requirements for each segment.

2. Design the customer experience: Understanding what the customer’s journey looks like across the product life cycle allows empowerment of people who are serving customers at each of the key touchpoints along the journey. In our recent survey, 50 percent of the chemical industry respondents said designing the customer experience is their primary focus area to build a customer-centric culture in 2022.

whether queries or customer complaints, require immediate consideration to be resolved promptly. Removing the need to escalate decision-making and empowering the front line to make decisions can improve the customer experience when issues arise.

4. Engage supporting operations: Support functions such as procurement, IT, HR and finance own processes and relationships that directly affect the customer, and it is important they adopt a customer-centric approach in carrying out their duties.

organization, chemical businesses should define a customer insight and feedback strategy that allows them to identify and prioritize customer feedback from social media channels quickly. This will allow feedback to be passed to key leaders to make operational changes in near-real time.

Visibility could be the key to industry resilience For chemical companies, the past two years’ events may be a warning that better systems are needed for navigating disruption. Visibility is likely to become the most critical capability for the industry in the coming year. Increasing visibility (including costs and prices) depends on how a company is experiencing disruption, and digital technologies could be essential enablers. For example, companies experiencing a surge in demand should ensure visibility across their supply network as they ramp up production. As supply shortages could derail production flow, chemical producers in this scenario could consider multisourcing strategies. Moreover, companies experiencing shifts in demand may want to increase visibility into operations to help them focus on cost-cutting opportunities. They can use the visibility gained to create flexibility across their production environment to quickly take down costs to weather suppressed demand and more quickly respond to an eventual uptick in demand.

Authors: David Yankovitz is US Chemicals Consulting Leader at Deloitte Consulting LLP; Amy Chronis is Vice Chair, US Oil, Gas & Chemicals Leader at Deloitte LLP; and Kate Hardin is Executive Director, Deloitte Research Center for Energy & Industrials at Deloitte Services LP.

Chemical Today Magazine | March 2022

REPORTS AGROCHEMICALS MARKET

CROP PROTECTION SECTOR IS IN HUGE DEMAND IN AGROCHEMICALS MARKET

To address the growing food demands, agrochemicals (fertilizers and diverse pesticides) are rigorously used in agriculture, which accomplishes the gap between food production and consumption. (Representative Image © Pixabay GmbH)

he global agrochemicals market size is estimated to grow from $208.6 billion in 2020 and is projected to reach $246.1 billion by 2025, at a CAGR of 3.4 percent during the forecast period. Increasing demand for food supply due to the rapid growth in the human population has triggered agricultural intensification during the last few decades. For addressing the growing food demands, agrochemicals (fertilizers and diverse pesticides) are rigorously used in agriculture, which accomplishes the gap between food production and consumption. However, concurrently unbalanced use of agrochemicals also causes environmental deterioration and poses severe challenges to aquatic and terrestrial ecosystems. Various research studies have indicated that fertilizers and pesticides used in agriculture have been substantially increased in developed and developing countries in recent years for attaining maximum yields of crops.

Chemical Today Magazine | March 2022

Market Dynamics Drivers: Increasing adoption of agrochemicals in developing countries. Continuous advancements in the technology used in agriculture have led to a shift in farming practices. With the increased export and import of agricultural commodities across different geographies, especially in developing regions, new types of harmful organisms have emerged, leading to an increase in the demand for novel active ingredient products to safeguard crops. Globalization of the agrochemical industry has a huge impact on the Asian crop protection markets. With the highest rate of population growth, increasing the need for food production, and economic growth, the demand for various agrochemicals such as herbicides and pesticides are increasing. While the demand for food products is increasing in the developing countries of Asia Pacific, the available landmass for agriculture is shrinking due to the increased effect of urbanization that propels farmers to use various agrochemicals to maintain soil health and increase land productivity.

Restriants: Growth of the organic fertilizer industry. The organic food industry witnessed high growth across the emerging countries, with increasing awareness regarding health, environment protection, food safety, and animal welfare reforms. The demand for organic food products is increasing, and according to the estimates of the Organic Trade Association, nearly 81 percent of American families reported to be purchasing organic food products at least once. The growing market demand for safe and healthy food products and improving per capita income are factors that are estimated to continue driving the organic food industry and increase the usage of biofertilizers, which, in turn, affects the consumption of chemical fertilizers.

Opportunities: Production of sustainable biobased agricultural products. Due to the toxic ingredients contained in the chemicals agricultural products, their pollution levels are so high that they cause serious and, most of the time, fatal effects to the environment. These negative effects can be experienced from the production of the product to the consumption of the plants that these products have been applied on. Most biological products occur naturally, which reduces the cost of production, resulting in relatively cheaper prices compared to chemical pesticides, whose manufacturing cost is high. This results in the consumer footing the bill at a relatively costlier price. Records have shown that pests tend to become resistant to conventional pesticides, thus proving that it is not a long-term solution, something that never happens with the use of organic pesticides and fertilizers. Hence, the agrochemical manufacturing companies are constantly adapting to the changing demands by developing novel products and technologies. Bio-based products are one of the focus areas of agrochemical companies. With the increasing awareness of ecofriendly and sustainable products, bio-based agrochemicals are being increasingly developed as potential alternatives for synthetic chemicals in a variety of applications.

Challenges: Intense competition between players in the market. The market for agrochemicals is highly fragmented, comprising of a large number of big and small players. The majority of players in the market are located in the European region and offer a variety of products. With the growing demand for various agrochemical products, the major players in the market are focusing on

Chemical Today Magazine | March 2022

R&D investments to launch products, which would cater to the requirements of the consumers. For instance, Compass minerals (US), Bayer (Germany), and Syngenta (Switzerland) launched a range of products to cater to the demand for new and effective pesticides to protect crops from various pests. The huge demand has also aided the growth of the distributors in the market who cater to the demand from niche markets.

In nitrogen fertilizer segment of the agrochemicals market is projected to account for the largest share, by fertilizer type Farmers occasionally need to add nitrogen fertilizers to their farms and gardens to make available just the precise nutrients for their plants’ growth. The nitrogenous fertilizer industry includes the production of synthetic ammonia, nitric acid, ammonium nitrate, and urea. Synthetic ammonia and nitric acid are used primarily as intermediates in the production of ammonium nitrate and urea fertilizers. The applications of inorganic nitrogen fertilizers to various crops have been continuously increasing since the last many decades globally. Although nitrogen fertilizer contributes substantially to yield enhancement, but excessive use of this manure has posed serious threats to the environment and human health. The rate of nitrogen fertilizers application has a close relationship with nitrate accumulation in the surrounding environment, groundwater, and leafy and root vegetables.

The market for herbicides in the pesticide type segment is projected to account for the largest share during the forecast period Herbicide use is increasingly being adopted around the world. Many developing countries (India, China, Bangladesh) are facing shortages of workers to hand weed fields as millions of people move from rural to urban areas. In these countries, herbicides are far cheaper and more readily available than labor for hand weeding. History shows that in industrializing countries in the past, including the US, Germany, Japan, and South Korea, the same phenomenon occurredas workers left agriculture, herbicides were adopted. It is inevitable that herbicide use will increase in sub-Saharan Africa, not only because millions of people are leaving rural areas, creating shortages of hand weeders, but also because of the need to increase crop yields. Companies such as Bayer (Germany), UPL (India), Syngenta (Switzerland), and Adama (Israel) manufacture a wide variety of herbicides. The use of agrochemicals is the highest for the cereals and grains segment due to its vast area of cultivaltion across the globe which is driving the growth of agrochemicals market The use of agrochemicals is the highest for the cereals and grains segment as soil nutrient deficiencies can cause decreased yield and less bioavailable nutrients in crops such as rice. Various essential mineral supplementation through fertilizers increases rice crop yield and nutrient content in harvested grains. According to the Food and Agriculture Organization of the United Nations, the production of cereal crops will increase by 60 percent from 2000 to 2050. Corn (Zea mays L.) is the third-most important cereal crop in the world, after wheat and rice. Every part of the corn crop has economic value; the grain, leaves, stalk, tassel, and cob can all be used to manufacture many food and non-food products. Hence, it is a challenging task to increase corn production by implementing innovative biotechnology techniques. The usage of nitrogenous fertilizers increases soil fertility, resulting in higher crop yield.

Increase in population and the consequent rise in demand for food materials to increase the demand for agrochemicals. Agrochemicals play a vital role in crop growth, showing improved performance and noticeable results. Pesticides enable farmers to produce safe, quality foods at affordable prices. They also help farmers provide an abundance of nutritious, all-year-round foods, which are necessary for human health. Fruits and vegetables, which provide essential nutrients, are more abundant and affordable. Grains, milk, and proteins, which are vital to childhood development, are more widely available because of lower costs to produce food and animal feed.

common practice in India, China, and other less-developed countries in the region, leading to growth in areas where there had previously been very little or no pesticide usage. However, the lack of awareness and advanced technology, adverse socio-economic conditions, and fragmented landholdings are the main hurdles for developing the crop protection chemicals market in the Asia Pacific region.

The kind of fertilizer needed depends on the crop grown and the nutrient deficits in each specific soil. Different crops remove different amounts of nutrients from the soil. Many farmers use NPK compound fertilizers that provide a combination of several nutrients at the same time. Nitrogen, phosphate, and potash are essential for the production of crops used for food, feed, fiber, and fuel. Hence, the growth in the agrochemical market is fueled by an increase in population and food requirements across the globe.

Asia Pacific is the fastest-growing market during the forecast period in the global agrochemicals market Being the largest as well as the most populous region in the world, Asia Pacific is one of the key markets for agrochemicals. However, it continues to remain untapped by major market players. The region accounted for almost 30 percent of the land available on Earth and nearly 60 percent of the human population, according to the World Bank. To meet the food requirement of this huge population, the use of pesticides has increased significantly in the region. India, Japan, Australia, and Thailand are the highest pesticide- consuming countries in the world. In addition to this, a decrease in arable land per person in India, China, and Southeast Asia countries is a very serious concern. The increasing need for food crops in the region has fueled the use of pesticides to enhance crop yield. The use of pesticides is becoming a

Key Market Players Key participants in the agrochemicals market are Bayer (Germany), BASF (Germany), Yara International (Norway), Compass Minerals (US), and Syngenta (Switzerland). These players have focused on strategies such as new product launches and expansions to gain a larger market share in the agrochemicals feed market. Some of the other dominant players in the market include Adama Ltd (Israel), Sumitomo Chemicals (Japan), Nufarm Limited (Australia), UPL (India), K+S Group (Germany) and Israel Chemical Company (Israel).

Source: MarketsandMarkets Research Private Ltd

Chemical Today Magazine | March 2022

REPORTS BIOFERTILIZERS MARKET

INCREASE IN CEREALS, GRAINS PRODUCTION TO BE PRIMARY DRIVER FOR GROWTH

Biofertilizers help promote the growth of plants by supplying adequate amount of nutrients, thus improving the quality & yield of crops. (Representative Image © Pixabay GmbH)

Market Outlook Manufacturers in the biofertilizers market are boosting their local production capabilities to reduce dependence on other countries for raw materials amid the ongoing COVID-19 pandemic. However, biofertilizers are linked with a much shorter shelf life in comparison with chemical fertilizers and require specific machinery for its application. Hence, companies in the biofertilizers market should increase awareness about advantages of biofertilizers such as reduced toxicity in the environment and cost efficiency for farmers. Biofertilizers help increase the nutrient absorbing surface area beyond the depletion zone of the root. Benefits of biofertilizers include longer shelf life, less contamination, better survival on seeds & soil, high commercial revenues, and export potentials. The global biofertilizers market was valued over $ 2.9 billion in 2020 and is estimated to expand at a CAGR of 12.2 percent from 2021 to 2031. It is expected to reach the value of $5.2 billion by the end of 2031. The rise in global demand for cereals & grains has led to significant

Chemical Today Magazine | March 2022

growth in the usage of biofertilizers. The increase in production of cereals and grains is expected to be the primary driver for growth of the market. Biofertilizers help promote the growth of plants by supplying adequate amount of nutrients, thus improving the quality & yield of crops.

Biofertlizers an Essential COVID-19 Outbreak

Commodity

amid

Since agriculture is one of the most essential industries similar to healthcare, manufacturers in the biofertilizers market have been working at break-neck speeds to ensure robust supply chains for end-products. The reopening of country borders is helping resolve transport and logistic issues, owing to stringent regulations for transportation of raw materials for the biofertilizers market. The import & export of biofertilizers is projected to rise, owing to increase in shipment and demand for vascular snares. Manufacturers in the biofertilizers market are diversifying their product portfolio since a specific biofertilizer caters to only specific crops instead of all crops in general.

Biofertilizers Suitable for Cultivation of Cereals & Grains In terms of value, the cereals & grains segment is estimated to dominate the global biofertilizers market during the forecast period. Increase in demand for biofertilizers in cereals & grains application is anticipated to drive the segment in the near future.

Use of biofertilizers in cereals & grains dominates the market with more than 40 percent share in terms of application. Azospirillum is known to have a close associative symbiosis with the higher plant system. These bacteria have association with cereals such as sorghum, maize, pearl millet, finger millet, foxtail millet, and other minor millets and also fodder grasses.

Biofertilizers help to fix atmospheric nitrogen in the soil and root nodules of legume crops. Rhizobium is used as a crop enhancer and biofertilizer for increased cereal production. It has been found that rhizobia can make an association with gramineous plants such as rice, wheat, maize, barley, millets, and other cereals without forming any nodule-like structure or causing any disease symptoms.

Increase in awareness about the harmful effects of chemical fertilizers on the environment is a prime factor boosting the global biofertilizers market. Rise in awareness about one’s wellbeing and good eating habits is also augmenting the global biofertilizers market. Thus, surge in demand for biofertilizers in cereals & grains applications is propelling the biofertilizers market

Rise in concerns over declining soil quality due to overuse of chemical fertilizers and their potential ill-effects on human health has encouraged governments across various economies to promote the use of biofertilizers. Governments across several agri-dominant countries are opting for various plans, schemes and other initiatives to encourage the adoption of biofertilizers among farmers.

Nitrogen Fixing Product Segment Dominates Global Biofertilizers Market

Biofertilizers Capable of Increasing Crop Yield whilst Fixing Atmospheric Nitrogen

Based on product, the nitrogen fixing segment dominated the global biofertilizers market in 2020. This can be primarily ascribed to the increase in demand for nitrogen fixing in biofertilizers in various applications, including cereals & grains, fruits & vegetables, oil seeds & pulses, and others.

Biofertilizers contain living microbes that enhance plant nutrition either by mobilizing or increasing nutrient availability in soils. Various microbial taxa, including beneficial bacteria, and fungi are currently being used as biofertilizers, since they successfully colonize the rhizosphere, rhizoplane, or root interior.

Nitrogen fixing biofertilizers contain microorganisms such as rhizobium, actinobacteria, azotobacter, and azospirillum. They help transform nitrogen into organic compounds. Biological nitrogen fixation is one way of converting elemental nitrogen into a usable form for the plants.

Biofertilizers help to fix the atmospheric nitrogen in the soil & root nodules of legume crops and make it available to the plant. When applied to seed or soil, biofertilizers increase the availability of nutrients and improve the yield by 10 percent to 25 percent without adversely affecting the soil & environment. A rise in usage of biofertilizers in cereals & grains is a key factor that is expected to boost the global biofertilizers market during the forecast period.

The phosphate mobilizing product segment also accounted for a large share of the global market in 2020. Phosphate mobilizing includes phosphate-solubilizing bacteria (PSB) and phosphatesolubilizing microorganisms (PSMs) such as bacillus, pseudomonas, and aspergillus. These bacteria do not provide plant nutrients, but they enhance plant growth and performance.

Increase in Usage of Biofertilizers in Cereals and Grains Use of biofertilizers is dominant in the cereals & grains application segment. Demand for organic cereals is increasing in developed and developing economies due to the potential health benefits offered by organic cereals. This is boosting the biofertilizers market.

Major Players Major providers of biofertilizers, such as Novozymes A/S, Rashtriya Chemicals and Fertilizers Limited, Rizobacters Argentina S.A., Symborg S.L, Biomax, Refratechnik Italia S.r.L., and Italpollina SpA, are focusing on research & development, mergers, joint ventures, collaborations and product innovation strategies.

Source: Transparency Market Research

Chemical Today Magazine | March 2022

REPORTS GLOBAL BIPHENYL MARKET

BIPHENYL TO GROW AS FOOD PRESERVATIVE, FLAVORING AGENT IN F&B INDUSTRY

Biphenyl is widely used as food preservative and flavoring agent in the food & beverage industry. Biphenyl and its derivatives are by-products of benzoic acid and sodium benzoate, which is used in the beverage industry. (Representative Image © Pixabay GmbH)

Industry Overview Biphenyl Market size exceeded $225 million in 2020 and is estimated to grow at a CAGR of over 7 percent from 2021 to 2027 owing the growing trend of organic agriculture and sustainable farming along with the adoption of modern agricultural techniques. Biphenyl has widespread usage in various industries such as agriculture, pharmaceuticals, textiles, chemicals and oil & gas.

Biphenyl is widely used as food preservative and flavoring agent in the food & beverage industry. Biphenyl and its derivatives are byproducts of benzoic acid and sodium benzoate, which is used in the beverage industry. Since, sodium benzoate is widely used in the off-flavor soft drink, thus increasing demand for soft drinks by millennials is one of the significant reasons which supports the biphenyl market growth. Moreover, biphenyl is also used as a flavoring agent or adjuvant. Adjuvant can be added to a vaccine to boost the immune response to produce more antibodies and longer-lasting immunity, thus minimizing the dose of antigen needed is one of the significant factors which attribute toward the biphenyl market growth. Also, fruit packaging is impregnated with biphenyl, which evaporates into the air space surrounding the fruit. The outbreak of COVID-19 resulted in shutdown of various manufacturing plants for prolonged period, especially in Europe and Asia Pacific, due to which manufacturers are facing production losses. Also, the awareness regarding worker safety and security norms is posing additional challenges to resume normal operations by manufacturing industries.

Chemical Today Magazine | March 2022

Market Coverage The distributors of biphenyl products rely heavily on transportation rules and face issues in material handling & transport, resulting in supply shortages within a short to medium timeframe. The COVID-19 pandemic has reduced the crude oil prices owing to its low demand, therefore resulted in relative stability in the price of biphenyl during the covid-19 pandemic. Acute exposure to high levels of biphenyl can cause eye & skin irritation and toxic effects on the liver, kidneys, and central & peripheral nervous systems. People are exposed to high levels of biphenyl face symptoms such as headache, gastrointestinal pain, nausea, indigestion, numbness & aching of limbs and general fatigue. Therefore, these adverse health effects of biphenyl will hamper the industry growth. Also, government of different region has imposed various regulation and guideline on the application of biphenyl in different industries.

Additionally, biphenyl is also listed as a hazardous air pollutant under the Clean Air Act imposed by the US EPA. These adverse health & environmental impacts of biphenyl will restrict its market growth to some extent during the forecast period. However, the extensive adoption and benefits of biphenyl should overcome these hindrances and fuel the market growth. Also, players in the market are adopting different strategies to reduce the environment impact and maintain sustainable production.

Growing adoption of coal tar biphenyl to overcome various skin problems to boost its demand Coal tar biphenyl show valued over $85 million in the year 2020 and is anticipated to show highest CAGR over 7.5 percent over the coming years. The rising demand for dyes, drugs, and other compounds is one of the defining factors supporting coal tar biphenyl market growth. Biphenyl naturally occurs in coal tar, which has a wide array of applications in medicine, construction, and other industries. Coal tar is primarily used to produce refined chemicals and coal-tar products such as creosote & coal-tar pitch. Coal tar is also used in medications as it cures many skin issues such as scaling and dryness. Coal tar belongs to a class of drugs known as keratoplastics. It causes the skin to shed dead cells from its top layer and slows down the growth of skin cells. Additionally, it is a topical medication applied to skin to treat psoriasis and seborrheic dermatitis, resulted in growing demand for coal tar biphenyl in the pharmaceutical application and should support the biphenyl market growth.

to show moderate growth and valued over $55 million and projected to reach over $85 million by 2027. Increasing usage of biphenyl as an intermediate to produce emulsifiers is driving the market growth of biphenyl. Additionally, biphenyl is used as a thickener in carriers for printing and as precursors in the manufacture of benzidine. This has led to an increase in the demand for biphenyl as chemicals intermediate in many of the end-use manufacturing industries. Furthermore, biphenyl is used as an intermediate for crop production, supporting market growth. Also, the growing demand for non-agricultural pesticides and preservatives is also attributing toward the biphenyl market from chemical intermediate application and is projected to gain traction across the globe. Therefore, the growing chemical industry should support the growth of chemicals intermediate and drive the demand for biphenyl over the coming years.

Significant growth of the food industry in Asia Pacific Asia Pacific biphenyl market surpassed $34.50 million in 2020 with the CAGR over 11.5 through 2027. In the past few years, biphenyl has witnessed a positive trend as preservatives & flavoring agents in the food industry. Moreover, growth in the agricultural sector is likely to boost the biphenyl demand for its usage as active ingredients to control plant pests. Moreover, In Asia Pacific, especially in China and India, the biphenyl market is anticipated to grow as dye stuff carrier for textiles owing to the increasing demand for apparels, particularly through e-commerce portals. The rising disposable income and changing perceptions of dermatological aspects of skin care are also one of the factors support the biphenyl market growth in the Asia Pacific region.

Expansion of manufacturing units and production capacity are the key business strategies incorporated by major market players Global biphenyl industry is fragmented in nature owing to presence of numerous industrial players. Moreover, there is continuous entering of new players in the market as biphenyl has wide application in different industries. Thermo Fisher Scientific, Lanxess AG, Eastman Chemical Company, LGC Standards and Sigma Aldrich are some of the players in the market holding lucrative share. The top players in the market collectively accounted for over 30 percent of the market share in 2020. Players in the market are engaged in expansion of production capacity and expansion of manufacturing units to cater to the increasing product demand. In December 2020, Merck, the parent company of Sigma Aldrich announced a total investment of $48.69 million at its production facilities in the US (Danvers, Massachusetts, and Jaffrey, New Hampshire). This initiative is aimed at broadening the company’s manufacturing footprint and will also create nearly 700 new manufacturing positions.

Increasing usage of biphenyl as an intermediate in various chemical products such as emulsifiers and leather tanning agents Chemicals Intermediate application of biphenyl market is expected

In February 2021, Biosynth Carbosynth opened a new warehouse in Slovakia, as a part of the European distribution hub. The strategic initiative of the company was aimed to increase the company’s warehousing capabilities, to cater to the growing market demand for specialty chemicals and make it available to a large extend.

Source: Global Market Insights Inc Chemical Today Magazine | March 2022

REPORTS DETERGENTS MARKET

INCREASED DETERGENTS DEMAND IN PERSONAL, LAUNDRY PRODUCTS TO DRIVE MARKET

Market Overview The detergents market is projected to register a CAGR of over 4 percent during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Several countries were forced to go in lockdown owing to the pandemic scenario, which led people to minimize the usage of personal vehicles, thus creating a negative impact on the fuel demand and, in turn, decreasing the demand for fuel additives and detergents. According to the OICA, global automotive production witnessed a decline of approximately 23 percent in Q3 of 2020 compared to Q3 of 2019. However, the consciousness regarding personal hygiene and clean surrounding increased in the current situation, which stimulated the demand for laundry and household cleaning products, thus, enhancing the market growth of detergents. Over the short term, increasing usage of detergents in personal and laundry care products, such as optical brighteners, stain removers, shampoo, and bleach, is expected to drive the market growth. According to Cosmetics Europe, the European cosmetics and personal care industry was valued at about $95.32 billion in 2019, with a growth rate of about 1.5 percent compared to the previous year.

Chemical Today Magazine | March 2022

On the flip side, stringent environmental regulations on the use of detergents and the negative impact of the COVID-19 outbreak on the market are hindering the growth of the market. The Asia-Pacific region is expected to dominate the market across the world, with the largest consumption from countries such as China and India.

Scope of the Report Detergents are sodium salts of long-chain benzene sulphonic acids or alkyl sulfates. The major raw materials required for manufacturing detergents are sodium carbonate, sodium bicarbonate, sodium tripolyphosphate, sodium sulphate etc. Detergents available in the market are in two forms, including liquid and powder detergent. The detergents market is segmented by type, application and geography. By type, the market is segmented into anionic detergents, cationic detergents, non-ionic detergents and zwitterionic detergents. By application, the market is segmented into laundry cleaning products, household cleaning products, dishwashing products, fuel additives, biological reagents and other applications.

Key Market Trends Laundry Cleaning Products Application to Witness Higher Potential Growth 1 Laundry liquids are powerful laundry cleaning products that are applied to stubborn stains before washing. These liquids are formulated using a specified surfactant system of naturally derived alkyl or hydroxyalkyl sulphate or sulphonate surfactant, and midchain branched amine oxide surfactants. 2 In 2019, the laundry care segment accounted for more than 50 percent of the home and laundry care market globally, in terms of revenue, and it is likely to increase in the forecast period, owing to increasing hygiene consciousness among consumers, which, in turn, is expected to boost the market demand. 3 With the technological advancements, the laundry-liquid manufacturers now use a new ingredient known as rapeseed oil (non-GMO) that offers benefits with its low foaming properties. 4 Foam is detrimental to the washing process and may result in about 50% loss of the washing strength. Laundry liquid is formulated for pre-spraying of stubborn stains on garments. It helps in removing even the toughest stains and offers exceptional cleaning results. 5 Liquid laundry detergent is primarily used in cleaning laundry and has two main end-user segments, such as residential and commercial. The commercial applications are in the textile industry, hospitality industry, laundry services, and other industries, whereas residential applications include its use in household cleaning. The demand for liquid laundry detergent is growing, owing to the comfort and ease of application and lesser wastage compared to detergent powders.

are the market leaders, in terms of demand and supply, in the AsiaPacific region. The increasing awareness about the liquid laundry detergent market and the growth in industrial advancements in these emerging economies are expected to drive the growth of the market in Asia-Pacific. 2 China is estimated to continue its dominance during the forecast period, primarily due to the increasing household applications. The country witnessed about 6.1 percent growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. 3 However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to some extent and is expected to witness recovery in 2021. 4 In 2019, retail sales of liquid detergents and liquid tablet detergents in China were valued to be $3,789 million and $73 million, respectively, which is likely to enhance the projected timespan, thereby stimulating the regional market growth. 5 In October 2019, BASF SE positioned to increase the annual production capacity of alkyl polyglucosides (APG), a non-ionic surfactant, from 20 kiloton to 30 kiloton at its Jinshan site in China to reliably fulfill the strong demand for the detergent-based home and personal care regional market, which, in turn, stimulates the market growth. 6 The fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy. India’s household and personal care is the leading segment, accounting for 50 percent of the overall market. The FMCG market was valued at $68.38 billion in 2018 and was estimated to reach $103.70 billion by 2020, registering a CAGR of 23.15 percent, which stimulates the demand in the household and personal care segment, in turn, enhancing the demand in the detergents market. 7 Rapid industrial expansion and urbanization in the country led to the development of synthetic detergents, including laundry and household cleaning detergents. Due to all such factors, the market for detergents in the region is expected to have a steady growth during the forecast period.

North America is currently the leading region in the case of global demand and consumption for laundry liquid detergent. The United States is among the developed markets for household and industrial detergents, and hence, it concentrates on exports. The Middle East is also an emerging market, with increasing industrial growth and a rise in demand. Owing to all these factors, the market for detergents is likely to grow globally during the forecast period

Asia-Pacific Region to Dominate the Market 1 Asia-Pacific is currently the fastest growing market both for household and industrial detergent consumption. India and China

Source: Mordor Intelligence

Chemical Today Magazine | March 2022

REPORTS FINE CHEMICALS MARKET

PHARMACEUTICALS TO SEE FASTEST GROWTH IN FINE CHEMICALS MARKET

An increase in construction, and agricultural activities along with an increase in demand for consumer electronics can act as major drivers for the fine chemicals market. (Representative Image © Pixabay GmbH)

Market Overview Fine chemicals market is forecast to reach $232.3 billion by 2027, after growing at a CAGR of 5.7 percent during the forecast period 2022 to 2027. Fine chemicals refer to pure, single chemical substances that are more often produced in quite small and limited amounts through batch or biotechnological processes followed by synthesis, segregation and purification. Polypeptide, aromatic compounds, monoclonal antibodies, erythropoietin, nucleotides, and plastics additives are some of the common examples of fine chemicals used in various industries. Fine chemicals are widely used in pharmaceuticals, agrochemicals, construction materials, food and beverages, electronics and many more. An increase in construction, and agricultural activities along with an increase in demand for consumer electronics can act as major drivers for the market. Strict rules and regulations regarding the negative effects of the use of fine chemicals on the environment can act as a major constraint for the market.

COVID-19 Impact There is no doubt that the COVID-19 lockdown has significantly reduced construction, and production activities which in turn, has resulted in the country-wise shutdown of construction sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined construction activities in 2020 due to a lack of operations across multiple countries around the world.

Chemical Today Magazine | March 2022

However, a slow recovery in new development and construction contracts has been witnessed across many countries around the world since 2021. For instance, The Iron Bridge Magnetite project that is expected to deliver 22 mtpa of high-grade 67 percent Fe magnetite concentrate product is currently undergoing development. The overall cost of the project is expected to reach around £1.96 billion ($2.35 billion) Mota-Engil. Since the use of fine chemicals plays a major role in the modern construction industry, a slow and steady increase in development, and construction, activities will require the use of fine chemicals for construction materials like adhesives, sealants, inhibitors, heavy reinforcement concrete, protective coating for steel, plastic additives and others. This will eventually lead to an increase in demand for fine chemicals which indicates a slow and steady recovery of the market in the upcoming years. The fine chemicals industry is divided into the following segments: By type: active pharmaceutical ingredients, agrochemicals and speciality chemicals. By application: pharmaceuticals, cosmetics, agriculture, electronics, food and beverages, petrochemicals, plastic, foundry, among others. By geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, and the Rest of Europe), AsiaPacific (China, Japan, India, South Korea, and the Rest of AsiaPacific), South America (Brazil, Argentina, and the Rest of South America), the Rest of the World (the Middle East, and Africa)

Likewise, recent reports published by Kaiser Family Foundation (KFF) show that over 90 million of 246 million US adults fall at a higher risk of serious illness if infected with the coronavirus. Thus, an increased risk of people falling sick or suffering from certain medical illnesses will also increase the demand for medicines or drugs required for the treatment, which can lead to an increase in the demand for fine chemicals required for the production of the medical drugs. This, in turn, will play a major role in leading market growth in the upcoming years.

Key Takeaways 1 Pharmaceuticals in fine chemicals market is expected to see the fastest growth, especially during the forecast period. The major reason behind this is the increasing demand and consumption of various medical drugs across the world. For instance, in 2019, the UNDESA published a report, which showed that the majority of the elderly population (approx. 703 billion) have a weaker immune system, hence, they tend to fall sick quite often. This increases the demand for fine chemicals required for the production of medical drugs and medications, hence, leading to market growth. 2 Asia-Pacific dominated the fine chemicals market in 2021, with countries like China, and India being most likely to drive the market growth. The major reason behind this is the rising requirement of construction materials, cosmetic products, increasing demand for adhesives and plastics from the packaging industry, and more applications that require the use of fine chemicals boost the market growth. 3 New environmental-friendly methods are being employed in order to reduce the negative effects of fine chemicals on the environment.

Market Analysis – By Type The active pharmaceutical ingredients segment held the largest share in the fine chemicals market in 2021 and is expected to grow at a CAGR of 5.5 percent between 2022 and 2027. The major reason behind this is the fact that active ingredients are the most important component of any drug since they are the ones who are responsible for fulfilling the purpose of the medication. According to a report published by IMS Institute for Healthcare Informatics, the overall volume of medicines used across the globe reached around 4.5 trillion doses by 2020 with an approximate cost of around $1.4 trillion. As the demand for medical drug production in the pharmaceutical sectors in countries across the globe increases, the demand for the use of fine chemicals such as polypeptide, erythropoietin, nucleotides, and more are also expected to rise significantly, which can help boost the market growth. Likewise, fine chemicals are also widely used in agriculture. Fine chemical intermediates are mostly used in order to protect the crops from pests and add more nutrients to the soil. The major benefit of using fine chemicals in agriculture is the fact that it protects and increases crop yields that play a vital role in the food chain system.

Market Analysis – By Application The pharmaceuticals held the largest share in fine chemicals in 2021 and is expected to grow at a CAGR of 5.9 percent between 2022 and 2027. According to the data on therapeutic drug use in the US published by National Centre for Health Statistics, the number of drugs that were ordered and provided through physician office visits reached around 2.9 billion, and the number of drugs that were given or prescribed through hospital emergency department visits reached around 336 million in 2020.

Chemical Today Magazine | March 2022

Furthermore, according to the recent reports published by the Food and Agriculture Organization of the United Nations (FAO) and the International Food Policy Research Institute (IFPRI), the global food demand across the world is most likely to increase significantly. The FAO reports estimate that world food demand is most likely to increase by 70 percent by 2050, and most of the global food demand is expected to come from regions such as Asia-Pacific, Eastern Europe, and Latin America. Hence, an increase in food demand will significantly increase the demand for the utilization of agrochemicals, food additives, and preservatives that require the use of fine chemicals during their production, hence, boosting the market growth. Market Analysis – By Geography The Asia Pacific held the largest share in the fine chemicals market in 2021 up to 30 percent. A recent study indicates that the total sales revenue of traditional pharmaceuticals in China amounted to about $28.8 billion in 2019 and is expected to increase in the upcoming years. Likewise, recent reports from India Brand Equity Foundation (IBEF) show that the Indian pharmaceutical sector supplies over 50 percent of the global demand for various vaccines, 40 percent of the generic demand for the US, and 25 percent of all medicines for the UK during the ongoing COVID-19 pandemic. It also states that India holds the second-largest share of the pharmaceutical and biotech workforce in the world. According to the Indian Economic Survey 2021, the domestic pharmaceutical market is estimated to grow 3x in the next decade. Similarly, under Union Budget 2021-22, the Ministry of Health and Family Welfare has been allotted INR 73,932 crore ($10.35 billion) and the Department of Health Research has been allotted INR 2,663 crore ($365.68 billion). The government allotted INR 37,130 crore ($ 5.10 billion) to the ‘National Health Mission’. India plans to allocate nearly INR 1 lakh crore ($1.3 billion) funds to boost companies to manufacture pharmaceutical ingredients domestically by 2023. Hence, in this way, an increase in demand for medicines and drugs from pharmaceutical sectors across multiple countries will eventually lead to an increase in demand for fine chemicals such as polypeptide, erythropoietin, nucleotides, and more required for their production as well. Furthermore, the Middle East also saw significant growth in fine chemicals market in 2021. Fine chemicals are also widely used in the production of construction materials across the world. The FIFA World Cup that is to be held in 2022 in Qatar is expected to generate the huge potential for construction materials used in the country. A company called Larsen and Toubro signed a contract worth $ 360 million along with its joint venture partner in Qatar, in order to build a 40,000 seater stadium. This project required the use of construction materials like adhesives, sealants, inhibitors, heavy reinforcement concrete, protective coating for steel, and other raw materials in order to build such a huge stadium. Likewise, other countries such as Kuwait, Morocco, and Iran are also estimated to have higher growth in the construction sector during the forecast period. All of the above factors will directly result in an increase in demand for fine chemicals required for the production of these raw materials in these regions, thus, boosting the market growth.

Market Drivers An increase in construction and production activities in the AsiaPacific region is most likely to increase market demand Construction and production activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy. According to recent studies, AsiaPacific is expected to be the largest market for fine chemicals in the construction and manufacturing sector. Since 2019, countries like China and India have come up with multiple construction projects. For instance, the Indian government had made an announcement of the World One Tower project which is to be built in Mumbai. World One is a residential skyscraper that also houses two other smaller towers. It consists of 117 floors and is over 440 meters in height. $290 million has been invested so far and the project is still ongoing and under development. Similarly, the Indian government has also invested in another construction project for building Gujarat International Finance Tec-City. The project is valued at a total cost of US$20 billion and is expected to cover a construction area of around 8.5 million square meters which will include 200 skyscrapers. The project also includes the construction of buildings and towers for the powerhouse. Furthermore, the government of China approved 26 infrastructure projects with an estimated total investment of 981.7 billion yuan ($ 142 billion) in 2019. Other countries like Bangladesh also have two ongoing power plant projects estimated at $17.65 billion in total which is due delivery by 2025. In this way, an increase in construction and development activities will most likely increase the demand for raw materials such as adhesives, sealants, inhibitors, heavy reinforcement concrete, protective coating for steel, pigments, and dye, plastic additives, and other raw materials. Since fine chemicals are widely used for the production of these construction materials due to the properties

that it provides like longer durability, higher thermal resistance, high strength, and better resistance to corrosion, this can lead to significant growth in Fine Chemicals Market in the upcoming years. An increase in agricultural activities in the Asia-Pacific region Fine chemicals are widely used in agricultural fertilizers in order to protect the crops from pests and add more nutrients to the soil. Recent insights from “Statistics Times” show that China is the leading contributor to the agricultural economy with 19.49 percent of the total global agricultural output, followed by India with 7.39 percent. An increase in agricultural activities and production also increases the demand for fertilizers that use fine chemicals, thus, resulting in the growth of the fine chemicals market in the upcoming years.

Market Challenges Strict environmental regulations can cause an obstruction to the market growth Strict rules and regulations regarding the negative effects of fine chemicals on the environment can act as a major constraint for the market. These include regulation and initiatives taken by industrial associations in order to set standards for the management of an organization’s environmental impacts, product certification and issuance of licenses to decrease the harmful impact on the environment and adoption of clean technologies, and improvement in management practices under CREP (Corporate Responsibility for Environmental Protection) Programmes formulated by the Central Pollution Control Board. However, several governments are spending and working on research and development in order to reduce environmental pollution associated with the fine chemicals industry. For instance, the Government of China has made investments in high and advanced technology, clean production, manufacturing of equipment or new materials, use of renewable energies, recycling and environmental protection.

Source: Industry ARC

Chemical Today Magazine | March 2022

REPORTS OLEOCHEMICALS MARKET

OLEOCHEMICALS USAGE IN COSMETIC, PHARMA INDUSTRY TO FUEL GROWTH

In the cosmetic industry, oleochemicals such as octyl stearate, a palm derivative is used as an emollient for eyeshadow & lipstick and polyhexanide, a water-based preservative & an antibacterial chemical is used in many makeup products. (Representative Image © Pixabay GmbH)

he global oleochemicals market was valued at $25,815.1 million in 2022 and is projected to reach $39,849.2 Million by the year 2030. The market is expected to register a CAGR of 6.5 percent during the forecast period The global oleochemicals market was valued at $25,815.1 million in 2022 and is projected to reach $39,849.2 million by the year 2030. The market is expected to register a CAGR of 6.5 percent during the forecast period. The volume of oleochemicals in the market was 18,969,803 tonnes in 2022. Oleochemicals are a bunch of a range of fatty acid-containing compounds used for manufacturing paints, surfactants, detergents, soaps, lubricants, varnishes, pharmaceutical aids and copolymers. The market is majorly driven by government regulations regarding the use of environmentally friendly products and the rising usage of oleochemicals in the cosmetic & pharmaceutical industry. Furthermore, the growing demand for sustainable and biodegradable products is also anticipated to drive market growth. In addition, the COVID-19 pandemic positively impacted the oleochemicals market, due to the increase in demand for cleaning products, sanitizers, and disinfectants, for manufacturing of which oleochemicals are used. However, due to travel restrictions, the supply chains were disrupted.

Growth Influencers: Government initiatives regarding the use of environment friendly products Rising awareness regarding the ill effects caused by the harmful chemical-based products on the environment, the government of various countries have initiated many movements and regulations to encourage the use of environment-friendly products. Since oleochemicals are derived from natural oils and fats, they are safe

Chemical Today Magazine | March 2022

for the environment. The US Environmental Protection Agency introduced ecolabels and standards for greener products. These are marked on eco-friendly products so that consumers can identify them easily. Such initiatives are expected to boost the demand for environmentally friendly products, hence boosting the growth of the oleochemicals market.

Rising use in the cosmetic and pharmaceutical industry Oleochemicals find application in the nutraceutical and pharmaceutical industry, as they can be used as thickening agents, preservatives, and as emollients. Isopropyl myristate, a type of oleochemical is used as moisturizers in topical medicinal products and as a thickening agent or emollient in other pharmaceutical applications. In the cosmetic industry, oleochemicals such as octyl stearate, a palm derivative are used as an emollient for eyeshadow & lipstick and polyhexanide, a water-based preservative & an antibacterial chemical is used in many makeup products. Therefore, the rising usage of oleochemicals in the cosmetic, as well as the pharmaceutical industry, is estimated to fuel the market growth.

Growing demand for biodegradable and sustainable products Since non-renewable resources are depleting and the environmental regulations are also getting stringent, demand for oleochemicals as sustainable alternatives is also rising. Oleochemicals are abundantly available, which further makes them the preferred product of choice in many industries. The production of such sustainable chemicals is increasing since consumers are becoming aware of the environment and the cost benefits that oleochemicals can provide. The demand for oleochemicals is increasing more and more as the movement for environmentally-friendly products progresses and as the cost of the oil rises.

Source: MarketWatch Inc

Chemical Today Magazine | March 2022

ACADEMIC R&D

NOVEL CRYSTAL STRUCTURE FOR HYDROGEN UNDER HIGH PRESSURE

A new crystal structure (atomic arrangement pattern) called the P21/c-8 type, which is predicted to be achieved under very high pressure, such as deep inside the Earth.

ydrogen is important for analyzing the distribution of matter in the universe and the behavior of giant gas planets. However, the crystal structures of solid hydrogen formed under high pressure are still under contention owing to the difficulty in conducting experiments involving high-pressure hydrogen. Moreover, the structural pattern is governed by a delicate balance of factors including electric forces on the electrons and fluctuations imposed by quantum mechanics, and for hydrogen, the fluctuations are particularly large, making the predictions of its crystal phases even more difficult. Recently, in a collaborative study published in Physical Review B, a global team of researchers involving professor Ryo Maezono and associate professor Kenta Hongo from Japan Advanced Institute of Science and Technology tackled this problem using an ingenious combination of supercomputer simulations and data science, revealing various crystal structures for hydrogen at low temperatures near 0 K and high pressures. “For crystal structures under high pressure, we have been able to generate several candidate patterns using a recent data science method known such as genetic algorithms etc. But whether these candidates are truly the phases that survive under high pressure can only be determined by high-resolution simulations,” explained Maezono. Accordingly, the team looked for various possible structures that can be formed with 2 to 70 hydrogen atoms at high pressures of 400 to 600 gigapascals (GPa) using a technique called “particle swarm optimization” and density functional theory (DFT) calculations and estimated their relative stability using first-principles quantum Monte Carlo method and DFT zero-point energy corrections.

Chemical Today Magazine | March 2022

The search produced 10 possible crystal structures that were previously not found by experiments, including nine molecular crystals and one mixed structure, Pbam-8 comprising atomic and molecular crystal layers appearing alternatively. However, they found that all the 10 structures showed structural dynamic instabilities. To obtain a stable structure, the team relaxed Pbam-8 in the direction of instability to form a new dynamically stable structurecalled P21/c-8. “The new structure is a promising candidate for the solid hydrogen phase realized under high-pressure conditions such as that found deep within the Earth,” said Hongo. The new structure was found to be more stable than Cmca-12, a structure that was previously found to be a valid candidate in the H2PRE phase, one of the six structural phases identified for solid hydrogen at high pressure (360 to 495 GPa) that is stable at near 0 K. The team further validated their results by comparing the infrared spectrum of the two structures, which revealed a similar pattern typically observed for the H2-PRE phase. While this is an interesting finding, Maezono explained the significance of their results: “The hydrogen crystal problem is one of the most challenging and intractable problems in materials science. Depending on the type of approximation used, the predictions can vary greatly and avoiding approximations is a typical challenge. With our result now verified, we can continue our research on other structure prediction problems, such as that for silicon and magnesium compounds, which have a significant impact on earth and planetary science.”

ONE POT WONDER FOR POLYMER DIVERSITY

KAUST scientists have developed a new catalyst that transforms a mixture of three monomers into diblock dialternating copolymers in a single step.

catalyst developed at KAUST could be the key to structural diversity in polymer materials and industrial-scale polymerizations involving multiple monomers. The catalyst transforms a mixture of three monomers into well-defined, ordered diblock terpolymers in one step. Block copolymers comprise at least two polymer segments, each derived from different monomer species, combining the properties of these segments in the same molecule. This makes them appealing for a wide range of applications, from the development of thermoplastics to biomaterials for drug delivery. Chemists have relied on two-step polymerizations in one or two separate vessels to synthesize block copolymers. A “two-pot/two-step” polymerization requires isolating the first segment before proceeding with the next reaction, which is cumbersome and costly. A “one-pot/two-step” approach bypasses this isolation step, but demands a so-called living polymerization, where, once the first monomer is consumed, the growing chain remains reactive to accept another monomer and both monomers are fully converted. However, this can lead to unwanted side reactions if the second monomer is not added in time. Nikos Hadjichristidis and coworkers devised a “one-pot/one-step” approach to produce diblock terpolymers, in which three monomers form two different alternating copolymer segments. “This is the simplest method,” said postdoc fellow Jiaxi Xu, who co-led the study. Polymerizations involving three monomers usually produce random terpolymers. Therefore, it was crucial to find a smart catalyst to regulate the monomer sequence during the polymerization, Xu explained. The researchers discovered an auto-switchable phosphazene-based catalysts

Chemical Today Magazine | March 2022

that can stimulate the polymerization of one monomer and inhibit that of others. The switchability of the catalyst depends on its ability to exchange protons with the growing chain. “When the first monomer is consumed completely in the alternating copolymerization with the second monomer, the catalyst turns on to promote the alternating copolymerization of the excess of the second monomer with the third one,” Xu said. Selecting cyclic monomers from the nitrogen-containing N-sulfonyl aziridine, the oxygen-containing epoxide and the anhydride families was essential for the terpolymerization. “We had previously synthesized block copolymers consisting of one alternating copolymer and a homopolymer using aziridines and anhydrides,” Xu said. This suggested that three monomers with different reactivity would effectively enable the “one-pot/one-step” preparation of diblock dialternating terpolymers. The researchers found that the catalyst promoted the aziridine/anhydride alternating copolymerization before switching to the epoxide/anhydride alternating copolymerization, demonstrating its high monomer selectivity and kinetic control. The team plans to further tap into aziridine, epoxide and anhydride terpolymers. “These families contain hundreds of monomers, which will provide extremely diverse diblock dialternating terpolymers for many potential industrial applications,” Hadjichristidis said. “This study also opens new horizons for the terpolymerization of other monomer families.”

ACADEMIC R&D

HYPER-EFFICIENT METHOD FOR REMOVING CARBON DIOXIDE FROM AIR

University of Delaware researchers have broken new ground that could bring more environmentally friendly fuel cells closer to commercialization.

niversity of Delaware engineers have demonstrated a way to effectively capture 99 percent of carbon dioxide from air using a novel electrochemical system powered by hydrogen. It is a significant advance for carbon dioxide capture and could bring more environmentally friendly fuel cells closer to market. The research team, led by UD professor Yushan Yan, reported their method in Nature Energy.

this built-in “self-purging” process in a separate device upstream from the fuel cell stack, they could turn it into a carbon dioxide separator.

Game-changing tech for fuel cell efficiency

They found a way to embed the power source for the electrochemical technology inside the separation membrane. The approach involved internally short-circuiting the device.

Fuel cells work by converting fuel chemical energy directly into electricity. They can be used in transportation for things like hybrid or zero-emission vehicles.

“It turns out our approach is very effective. We can capture 99 percent of the carbon dioxide out of the air in one pass if we have the right design and right configuration,” said Yan. So, how did they do it?

Hydroxide exchange membrane (HEM) fuel cells is an economical and environmentally friendly alternative to traditional acid-based fuel cells used today. But HEM fuel cells are extremely sensitive to carbon dioxide in the air.

“It’s risky, but we managed to control this short-circuited fuel cell by hydrogen. And by using this internal electrically shorted membrane, we were able to get rid of the bulky components, such as bipolar plates, current collectors or any electrical wires typically found in a fuel cell stack,” said Lin Shi, a doctoral candidate in the Yan group and the paper’s lead author.

This defect quickly reduces the fuel cell’s performance and efficiency by up to 20 percent, rendering the fuel cell no better than a gasoline engine. Yan’s research group has been searching for a workaround for this carbon dioxide conundrum for over 15 years.

Now, the research team had an electrochemical device that looked like a normal filtration membrane made for separating out gases, but with the capability to continuously pick up minute amounts of carbon dioxide from the air like a more complicated electrochemical system.

A few years back, the researchers realized this disadvantage might actually be a solution - for carbon dioxide removal.

In effect, embedding the device’s wires inside the membrane created a short-cut that made it easier for the carbon dioxide particles to travel from one side to the other. It also enabled the team to construct a compact, spiral module with a large surface area in a small volume. In other words, they now have a smaller package capable of filtering greater quantities of air at a time, making it both effective and costeffective for fuel cell applications. Meanwhile, fewer components mean less cost and, more importantly, provided a way to easily scale up for the market.

“Once we dug into the mechanism, we realized the fuel cells were capturing just about every bit of carbon dioxide that came into them, and they were really good at separating it to the other side,” said Brian Setzler, assistant professor for research in chemical and biomolecular engineering and paper co-author. While this isn’t good for the fuel cell, the team knew if they could leverage

Chemical Today Magazine | March 2022

SELF-TEMPLATING, SOLVENT-FREE SUPRAMOLECULAR POLYMER SYNTHESIS

Wedge-shaped precursor molecules (top left) come together to build a rod-shaped supramolecular polymer composed of their reductively cyclotetramerized disk-shaped monomers, with each new layer of the growing polymer templating the formation of the next.

polymer that catalyzes its own formation in an environmentally friendly solvent-free process has been developed by an all-RIKEN team of chemists. The discovery could lead to the development of inherently recyclable polymer materials that are made using a sustainable process. Polymers are ubiquitous today, but they are detrimental to the environment through the accumulation of plastic waste and the unsustainable nature of conventional polymer manufacture. Polymers are generally made by linking together strings of building blocks, known as monomers, using covalent bonds. But these strong bonds make it difficult to take used, end-of-life plastic items and de-polymerize them to recover the monomers for reuse. Supramolecular polymers, in contrast, consist of arrays of monomers held together by interactions such as hydrogen bonds, which are weaker, and hence more reversible, than covalent bonds. However, the solvents used for manufacturing supramolecular polymers limit their application and sustainability. “Within two decades, solvent-free chemical manufacturing may be the only approved chemical processes, since the large volumes of solvent used in other manufacturing processes are too damaging to the environment,” said Takuzo Aida from the RIKEN Center for Emergent Matter Science (CEMS). Aida’s team has been investigating wedge-shaped molecules called phthalonitriles. Now, he and nine CEMS colleagues have discovered that

Chemical Today Magazine | March 2022

these substances melt when heated and then form multiple thin green crystalline fibers, which are rod-shaped supramolecular polymers. The polymerization process is initiated when four of the wedge-shaped pieces come together to form a flat, circular disk. The disk-shaped assembly—the monomer—can then act as a template surface for the next four wedge-shaped precursor molecules to combine, adding a layer to the structure. This process is repeated, with each new layer of the polymer catalyzing the formation of the next, until long rod-like structures form. The team named their process solvent-free autocatalytic supramolecular polymerization. “The mechanical properties of the crystalline fibers of these supramolecular polymers are analogous to those of poly(alkyl methacrylates),” Aida said. These conventional polymers are used for a range of applications, including plexiglass. The team could create more complex versions of their supramolecular polymers by adding alternate precursor molecules into the mix at certain time points, thereby forming ‘block copolymers’ with bands of different monomers along the length of each rod. Solvent-free autocatalytic supramolecular polymerization could be used to make supramolecular polymers from a range of starting materials. “It may be applicable to the synthesis of polycyclic aromatic hydrocarbons and cyclic peptides,” Aida said.

ACADEMIC R&D

NEW CHEMICAL GLUCOSE SENSING METHOD USES BORONIC ACIDS, GRAPHENE FOAM

The enzyme-free sensor is more robust and not temperature sensitive so could be particularly useful in hot countries or where refrigeration is limited.

esearchers at the University of Bath working in collaboration with industrial partner, Integrated Graphene, have developed a new sensing technique based on graphene foam for the detection of glucose levels in the blood. Since it is a chemical sensor instead of being enzymebased, the new technology is robust, has a long shelf-life and can be tuned to detect lower glucose concentrations than current systems. Diabetes affects around 4.9 million people in the UK and is a chronic condition where the patient cannot naturally regulate their blood sugar levels. Therefore, patient must measure their blood sugar levels several times a day as part of managing their condition.

acid - based glucose sensing, citing the recent Eversense CGM from Sensonics as an example. However, unlike Eversense, their sensor is based upon electrochemical methods rather than fluorescence, thereby enabling new boronic acid – based glucose sensing approaches. Simon Wikeley, who is working on the sensor as part of his Chemistry PhD at the University of Bath, said, “Many current glucose sensing methods rely on biological components such as enzymes, meaning they can be sensitive to temperature and pH changes, which may affect accuracy and reliability’.

Many current biosensors use enzymes that bind glucose and produce an electric current proportional to the concentration of glucose in the blood sample.

“We hope that in the future we might be able to apply our glucose detection method to exciting new technologies, such as wearable or implantable glucose monitoring systems, similar to that used in the Eversense sensor.

The new technique uses a chemical sensor, which is more robust and is not affected by high temperatures or changes in pH. Furthermore, it has the potential to accurately detect a wider range of glucose concentrations above and below current biosensor ranges, which may be useful in neonatal glucose sensing.

“Our system is chemical-based and therefore is robust and reliable. The graphene foam electrode has a high surface area to interact with the blood sample, while the polymer can act as a molecular sieve, filtering out larger molecules in the blood that could interfere with the glucose sensing.

The new sensor is based on the chemical boronic acid, which is attached to a graphene foam surface. An electroactive polymer layer is added on top and binds to the boronic acid. When glucose is present, it competitively binds to the boronic acid, displacing the polymer.

“This sensor has proven to be reusable, which is the first step towards realising a continuous monitoring system.

The sensor produces an electric current proportional to how much polymer is displaced, meaning that the concentration of glucose in the sample can be accurately measured. The researchers anticipate the sensor will expand the scope of boronic

Chemical Today Magazine | March 2022

“Interestingly, this same sensing technique may also be applied to a wide range of other targets, such as lactic acid. This is due to the versatile nature of the boronic acid receptor and gives us a general strategy for a variety of sensing applications. “ The research was supported by the EPSRC and Integrated Graphene and is published in the scientific journal Analyst.

NEW CATALYSTS STEER HYDROGEN FUEL CELLS INTO MAINSTREAM

A future where hydrogen fuel cells efficiently power cars, generators and spacecraft with minimal greenhouse gas emissions is a possibility. (Representative Image © Pixabay GmbH)

ornell chemists have discovered a class of nonprecious metal derivatives that can catalyze fuel cell reactions about as well as platinum, at a fraction of the cost. This finding brings closer a future where hydrogen fuel cells efficiently power cars, generators and even spacecraft with minimal greenhouse gas emissions. “These less expensive metals will enable wider deployment of hydrogen fuel cells,” said Hector Abruna, the Emile M. Chamot professor in the Department of Chemistry and Chemical Biology in the College of Arts and Sciences. “They will push us away from fossil fuels and toward renewable energy sources.” As long as combustion engines rule the streets and fill the skies with smog, it is hard to imagine a sustainable future for transportation. Hydrogen fuel cells, which convert hydrogen directly into electricity with only water and a small amount of heat as byproducts, are promising renewable alternatives. A critical part of the fuel cell is the oxygen reduction reaction (ORR), an infamously sluggish process – Abruna often calls it “God’s collective punishment to electrochemistry” – that is traditionally sped up by platinum and other precious metals. A model catalyst, platinum conducts electricity, catalyzes the most temperamental reactions with aplomb, and is hardy enough to survive the harsh, acidic environment of a fuel cell. But it can be prohibitively expensive. Lately, however, more forgiving alkaline fuel cells have gained prominence, raising the possibility that less expensive metals, once ruled out for their vulnerability to acidic environments, might replace platinum in these gentler, next-generation fuel cells. Abruña and his team set out to engineer

Chemical Today Magazine | March 2022

an inexpensive material, fit for an alkaline fuel cell, that would conduct electricity and catalyze the ORR reaction just as efficiently as platinum. A class of compounds derived from cobalt, manganese, iron and other transition metals, TMNs conduct electricity and, when exposed to air, tend to form a thin oxygen-based outer shell that provides a perfect surface for catalyzing chemical reactions. After synthesizing a family of TMNs with conductive nitride cores and reactive oxide shells, the team tested each candidate catalyst in a model hydrogen fuel cell. Manganese- and iron-based candidates made strong showings. But the cobalt nitride catalyst was “the clear winner,” Abruna said, with near identical efficiency to platinum while costing 475 times less as of Feb. 2. Those savings may help finally brings hydrogen fuel cells out of the laboratory and into the mainstream. If affordable, fuel cells could replace combustion engines and car batteries with a sustainable alternative that, fed a steady diet of hydrogen, never needs to recharge and wastes as little as 10 percent of the energy that goes into making it run. By comparison, a typical car engine wastes about 75 percent of its energy. “Hydrogen fuel cells are enormously powerful, enabling you to run at an efficiency that simply does not exist for more traditional engines,” Abruna said. “People recognize that fuel cells are the way to go. The trick is designing stable and affordable catalysts that make it all possible.” Funding for this research was provided in part by the Center for Alkaline Based Energy Solutions, an Energy Frontier Research Center supported by the US Department of Energy.

Chemical Today Magazine | March 2022

IT IN CHEMICALS AI IN COSMETICS

BEAUTY COMPANIES LOOK TO MAKE DATA-DRIVEN DECISIONS IN A COMPETITIVE MARKET

he beauty and cosmetic sector has witnessed a massive upsurge in Artificial Intelligence (AI) in recent years. Due to advancement in AI technologies and the fact that beauty is characterized as a personalized and engaging market that generates a large amount of data, AI appears to be a solution to deal with this complex environment, prompting beauty companies to make data-driven decisions on their strategies to remain competitive. The beauty market has changed dramatically over the last decade, owing to the introduction of new technology and a shift in customer shopping behaviors. The beauty sector has been incorporating digital transformation into its business models to give consumers individualized skin regimens and beauty products tailored to their specific needs. The global Artificial Intelligence (AI) in Beauty and Cosmetics market size was valued at $2.70 billion in 2021, and it is expected to reach $13.34 billion in 2030, record a promising CAGR of 19.7 percent from 2021 to 2030. The growth of AI In Beauty and Cosmetics market can be attributed to the Integration of advanced technology like AI in the beauty and cosmetic field, providing new ways of engaging with the consumer, bringing efficiency and customized solutions to the beauty client

Chemical Today Magazine | March 2022

such as virtual try-on and personalized products. Increased demand for beauty products and technological advancements is expected to positively impact market growth. The outbreak of Covid-19 has changed consumer purchasing patterns across the beauty and cosmetic industry due to strict lockdown situations and the practice of social distancing across various countries. However, The COVID-19 crisis is likely to create opportunities for beauty and cosmetic brands due to the growing demand for personalized beauty & cosmetic products and the rapidly evolving eCommerce sector. According to one of the fashion-industry trade journals, online sales at Sephora now account for 70-80 percent of total sales after the pandemic.

Competitive Analysis There has been an influx of beauty tech implementations on the global market with the rapid expansion of the beauty and cosmetic industry. Key companies are constantly testing and launching new features with key strategic partners with innovative services, covering the market’s demands. Their focus on serving their clients’ needs, both brands and end-consumers, and the constant technological development are the key factors in boosting market growth.

Companies like L’Oreal, and PROVEN, among others, have already recognized such potential and are applying AI in different ways. For instance, L’Oreal is implementing AI strategies on their business. Followed L’Oreal, by PROVEN has the largest skincare database and, with the input from the consumer, matches their data, creating unique and customized products using AI mechanisms.

Prominent players in the industry Some of the prominent players in the AI in Beauty and Cosmetics market are Beiersdorf (NIVEA SKiN GUiDE), L’Oreal’s (Modiface, Hair Coach), Olay (Skin Care App), CRIXlabs (DBA Quantified Skin), Shiseido (Optune System), Procter & Gamble (Opte Wand), My Beauty Matches, Yours Skincare, EpigenCare Inc, mySkin, Haut.AI, Luna Fofo, Revieve, ANOKAI CA, Pure & Mine, Youth Laboratories, Spruce Beauty, Nioxin, New Kinpo Group, Perfect Corp, Symrise (Philyra), Sephora USA Inc (Virtual Artist), Function of Beauty LLC, Estee Lauder, Coty Inc (Rimmel), Givaudan, Beautystack and Polyfins Technology Inc and other prominent players.

Key industry development from leading players In Dec 2021, Nykaa introduced L’Oreal’s advanced, Al-powered virtual try-on technology, ModiFace. Through the launch of this new technology, the company is expected to create an enhanced beauty experience for makeup enthusiasts while buying beauty products online. ModiFace technology allows photo-realistic results and AIenabled shade calibration. The ModiFace Technology enables virtual try-on on Nykaa’s website and mobile app, helping shoppers purchase their desired beauty products across categories, starting with the L’Oreal range of products. In Oct 2021, PROVEN Skincare launched of $60 Billion Regulation A+ offering. The funds are used to invest in company’s further AI innovation and talent, expand domestic and global marketing strategies for its existing product line, and invest in further research and development of new product lines and categories In Sept 2021, Coty Inc announced a multi-channel partnership agreement with Perfect Corp. Through this partnership, the company plans to strengthen its offering in virtual try-ons, online skin diagnostics and data-driven personalization for brands including CoverGirl, Sally Hansen and philosophy, among others, as well as for Coty’s broad fragrance portfolio

experiment with various beauty products and shades online through

In June 2021, the technology division of L’Oreal, a longtime Google enterprise customer, subscribes to Google Cloud’s Vertex AI platform to speed up the production of its AI models for cosmetic services. Google’s Vertex platform enables customers to accelerate the development, deployment, and maintenance of machine learning models by unifying Google Cloud Services, machine learning systems, and machine learning operations (MLOps) under one user interface and API.

In Dec 2020, Function of Beauty received a $150 million strategic

In Jun 2021, LVMH and Google Cloud collaborated on cloud-based A.I. solutions to create new, personalized customer experiences that foster long-term growth. Through this collaboration, the company is anticipated to augment demand forecasting and inventory optimization, support inclusive upskilling and certification programs for employees, and elevate customer experiences through personalization.

North America is expected to dominate the growth of AI in the beauty

In June 2021, Perfect Corp. announced an integration with Google for the launch of an AR interactive beauty try-ons. AR-powered virtual beauty try-on experiences can help online shoppers discover and

sector across the region. In emerging countries like China, India and

Google search.

minority investment from L Catterton. The funds used to speed up product development, support the company’s continuous global expansion, and expand on the company’s already industry-leading bespoke manufacturing capabilities.

Market Regional Analysis and cosmetic market due to the expansion of the beauty and cosmetic industry and prominent e-commerce companies like Amazon and Sephora. Asia Pacific region is expected to experience the fastest growth in the global AI in beauty and cosmetic market due to rapidly increasing consumer spending and expansion of the e-commerce Japan, the beauty e-commerce space is adapting to multiple models to enhance the e-commerce shopping experience for consumers.

Source: InsightAce Analytic Chemical Today Magazine | March 2022

IT IN CHEMICALS SMART COSMETICS

AI-POWERED AT-HOME SYSTEM FOR SKINCARE AND COSMETICS

’Oreal integrates Perso, an AI-powered at-home system that represents the ultimate in beauty personalization. Developed by the L’Oreal technology incubator, Perso’s sleek device, which stands 6.5 inches high and weighs just over one pound, features a streamlined four-step process to deliver on-the-spot skincare and cosmetic formulas that optimize for increasing levels of personalization over time. “Building on our deep scientific heritage and leadership in innovation, L’Oreal is once again leveraging advanced technology to create smart beauty products and services that answer the needs of our consumers and offer them near-limitless personalization and precision,” said Nicolas Hieronimus, L’Oreal’s deputy chief executive officer. “We are committed to making L’Oreal the leader in beauty tech – and Perso is the next step in that exciting journey.” The device can also create custom formulas for lipstick and foundation — capabilities which will be launched in the future. “L’Oreal is one of the most trusted names in beauty, and with Perso, we are putting personalized technology directly into the hands of our consumers,” said Guive Balooch, head of L’Oreal’s technology incubator. “We know that customization relies on information about your unique skin and personal preferences as well as your environment; this technology accounts for that. Perso uses AI to optimize the formulas and actually gets smarter as you use it.”

Perso’s Smart Skincare System in Four Steps With a patented motorized cartridge system, Perso creates personalized skincare formulas in four steps:

1. Personal skin analysis: The user opens the Perso mobile app and takes a photo with their smartphone camera. Utilizing L’Oreal-owned ModiFace technology, the app uses AI to analyze the user’s overall skin condition—including deep wrinkles, fine lines, the appearance of dark spots, and pore visibility.

Chemical Today Magazine | March 2022

2. Environmental assessment: Using Breezometer geolocation data, Perso assesses local environmental conditions that can influence the state of the user’s skin, including weather, temperature, pollen, UV index, and humidity.

3. Product preference: The user then enters their personal skincare concerns into the Perso app, including fine lines, dark spots, pigmentation, pore size, radiance, and dullness. The user can also input preferred texture and hydration-level to further customize their unique formula of moisturizer, serum and under-eye cream.

4. Custom formulation and dispensing: This collective data informs the creation of a personalized blend of high-performance skincare, dispensed in a perfectly portioned, single dose at the top of the device for easy, clean application. The technology adjusts for morning and evening application, and the device features a detachable mirrored top so consumers have the option of taking a single or larger dose with them on-the-go. With regular use, Perso’s AI platform will be able to assess skin conditions over time, letting the user know what is working and will automatically adapt future formulas based on personal results. Perso’s future makeup offerings will have the capability to incorporate real-time trend information as well as colour-matching technology into its personalized product offerings. Consumers would be able to design a lipstick shade to match their outfit or to opt for a colour that is trending on social media at that moment. Perso also features a seamless automatic refill process that ensures its custom, NFC-tagged cartridges are always stocked and ready for daily use. Users can easily manage shipments from the Perso mobile app. Perso technology builds upon L’Oreal’s years of expertise building innovative, personalized beauty experiences.

IT IN CHEMICALS BACK-OFFICE FUNCTIONS

STEPS TO SUCCESS FOR BACK-OFFICE DIGITALIZATION

BY JAN VONLANTHEN, RALPH KASTEL, DR. BERND ELSER

hemical companies’ net-zero targets, whether driven by government demands or customer preferences, will require new investments across the full chemical value chain. Maximized cost efficiency in back-office functions will be key to freeing up funds to finance those investments while maintaining profitability. With the need to fund net-zero initiatives, rapid back-office transformation at scale and fast results are more important than ever. Of the two principal cost-reduction levers—labor arbitrage and productivity improvement—most chemical companies have already achieved much of the potential benefit of labor arbitrage by shifting service delivery to low-cost countries. That means that looking ahead, the benefits from further labor arbitrage may decline within the existing scope. On the other hand, there is significant room for improvement in productivity through increased digitalization. Indeed, based on research, the chemical industry has barely started to capture these benefits. That is clear from the manual effort, large number of physical documents and extensive human interactions found in their operations. Compared to consumer-focused e-commerce companies, for example, the use of digital technologies by chemical companies has been relatively low. (Figure 1)

Chemical Today Magazine | March 2022

Thus, there is a tremendous opportunity to take advantage of fully digitalized processes and documents with information that’s directly usable in subsequent processing—including no-touch processing, human-machine interactions, self-service capabilities and the use of artificial intelligence (AI) to provide automated insights from these processes.

Figure 1: Digital level vs. average cost per FTE The “what” of the issue—the desired target state for digitalization—is fairly clear. The question then, is “how” to achieve that target state. In general, there are three options:

1. Captive transformation, led and operated by the chemical company itself. 2. Full-fledged partnering, where processes are optimized and operated by a partner, typically under five- to seven-year contracts. 3. “Build, operate, transfer back” arrangements, in which a partner optimizes processes and then transfers them back to the owner— usually after two to four years. 4. The choice of options depends on several factors: the necessary management resources and attention; the desired time to benefit; the required certainty of achieving the targeted outcomes; the sustainability of results; and, finally, critical mass and the availability of expertise. Regardless of the implementation path selected, significant increases in digitalization will always require transformational change and investments across the company, affecting not only the backoffice, but also other functions. 5. What is required for a successful and impactful back-office digitalization program? To answer this, we analyzed 10 back-office digitalization and transformation programs conducted in the last three years.

Success factors for back-office digitalization and transformation Digital winners proactively address several key success factors that allow them to move ahead quickly and effectively.

Success factor #1: Know exactly where the pain and value are coming from by ensuring a transparent view on effort drivers, digital levers and potential solutions. Whether it’s a business unit, division, service or process area, there will be only a limited number of effort drivers. However, to develop a clear understanding of what to solve for, these drivers need to be understood, qualified and quantified in detail.

Figure 2: Sample manual effort drivers

Process or task mining can provide some clarity on effort drivers. However, our experience shows that it is critical to perform a full end-to-end effort-driver assessment and understand from where the pain is emanating. A common misconception is that working along the classical end-to-end processes is sufficient, but a perspective across processes is needed as well, because more than 40 percent of effort might come from other processes and interfaces. For example, the hire-to-retire process requires information about provisions and accruals, which affects the record-to-report process. Thus, effective

Chemical Today Magazine | March 2022

full digitalization requires that view across processes. Solving for pain points is one way to create value, but designing for new capabilities can complement those efforts—a fact that is often lost in digitalization discussions. For example, substantial value can be added by extracting more insights from data or linking the back-office to the front-office to feed insights from buying and price patterns into recommendations for interactions. With a detailed perspective on the pain points and the desired future capabilities, companies can be more effective in applying four digitalization levers:

1. Digitalize documents: Moving from documents to data (digitalizing at the source) using optical character recognition, natural language processing, etc.

2. Automate manual labor: Reduce human effort by using end-to-end automation platforms, system integration layers, robotic process automation (RPA), in-ERP workflows, etc.

3. Extract better insights: Deliver the right insights in an automated fashion to support decision-making by applying AI, machine learning, etc.

4. Improve human-machine interaction: Move to selfservice and portal solutions using enablement platforms as well as digital service and collaboration platforms, etc. As for digital solutions, there are many that might help address back-office pain drivers. But only a few are mature enough and will really ensure full end-to-end scope coverage, provide the necessary flexibility and scalability, and have a proven impact. Our experience shows that companies should not be overwhelmed and instead focus on a few good solutions—on average, four per service area (eg, finance, HR, procurement).

Success factor #2: Scale before scouting new solutions, applying and defining “fit for purpose” criteria and ensuring harmonized architecture. The scalability of existing solutions should be assessed before new solutions are scouted so that companies don’t just end up in pilots. An international chemical company executive recently explained that “we have various customized solutions across business units in place providing the same functionalities that could have been covered by another solution. We missed the opportunity to scale solutions.” In our research, 7 out of 10 of the interviewed chemical companies did not think about scaling existing solutions first or have only partly performed an assessment of existing solution scalability. As a result, many ended up unnecessarily increasing the application list and the associated support and maintenance costs. Typically, just 45 percent to 55 percent of digitalization initiatives are based on the scouting of new solutions. Companies will typically use a pilot or proof of concept for a new solution, but that often results in a solution that does not scale and is quite individualized, which can end up creating increased resistance to digitalization. Based on our experience, “field testing” is more effective—that is, selecting a scalable and basic “fit for purpose” solution using the defined scouting criteria (e.g., definition on what to solve for, size of investment, payoff needed).

It is also important to maximize the scope of the solution in four dimensions: processes (applying solutions across end-to-end processes such as record-to-report, order-to-cash, purchase-to-pay); services/functions (reporting services, document management/ archiving services); technologies (natural language processing, machine learning, RPA); and technology layers (from front-end to back-end). Too often, companies will spend several weeks, if not months, on scouting. However, the use of solution databases that map pain points and desired target states can often reduce this to just one or two weeks, which means that validation by demos and field tests can be started sooner rather than later.

Success factor #3: Build a flexible and seamlessly integrated end-to-end technology architecture. Most chemical companies still operate highly customized legacy architectures with the portion of custom code often reaching 60 to 70 percent. At the same time, there is the foreseeable migration to SAP S/4HANA. As a result, the digital decoupling of legacy architectures and back-office digitalization solutions is critical, so that satellite systems and add-ons can provide flexibility, scalability and agility. This also allows for a top-down project approach—setting a clear standard first and then only asking for grounded business exceptions, rather than extensive and time-consuming bureaucratic design exercises. Our research shows that 70 percent of digital value is enabled by using flexible satellite systems and add-ons while adhering to standards. However, this should not just be about implementing technology: Digital transformation programs need to be strategically driven and interlinked with process optimization and data harmonization efforts. Our experience shows that digital programs that do not consider those factors have a 24 percent higher transformation cost and 12 percent higher support and maintenance cost afterwards. And backoffice digitalization efforts done in concert with process optimization and data harmonization achieve automation levels of more than 80

percent on average—25 to 35 percent higher than efforts that do not include those factors. Furthermore, the awareness of common prerequisites (e.g., reporting structure standardization; reduction and harmonization wage types and bank accounts; application and infrastructure rationalization) needs to be addressed early on and sharpened. In addition, top management needs to act as sponsors and provide guidance—early and often.

The impact of getting it right Chemical companies can add significant value with digitalization that is derived from and incorporates strategic business objectives. On average, cost reductions of approximately 30 to 40 percent can already be achieved today. In addition, digitalization in those cases also helped increase service quality (eg, with guided buying and HR self-service/self-enablement platforms) and had a top-line impact through the enablement of new business models, for example. On average, we see an 18-month payback on most platform-driven digitalization initiatives. The methodology, approach and technical solutioning for back-office digitalization need to be complemented by “people” initiatives covering both the soft and hard sides of change. In the end, line managers need to be incentivized and convinced to handle the same workloads at the same, if not higher, quality with a fraction of the former resources. Our research and experience with digital transformation programs show that companies that don’t achieve the expected results typically lack rigor in setting targets and incentives, speed in decision-making and capability building, and last but not least, an ability to break with established silos, beliefs and ways of working. Given the need to maximize cost efficiency, the massive potential benefit and the speed with which value can be realized, we believe that chemical companies can see substantial benefits from back-office digitalization at scale. It is time to get started now.

Authors: Jan Vonlanthen, Strategy Senior Manager, Chemicals; Ralph Kastel, Managing Director, Enterprise Transformation & Global Business Services, Chemicals; and Dr. Bernd Elser, Managing Director, Global Chemicals Lead And Europe Lead for Chemicals And Natural Resources, all at Accenture.

Chemical Today Magazine | March 2022

JOBS

Sr. Engineer, Production HNO

Job Description: Manage production support engineering for a specific product or group of products after transfer from design to high volume production. Full understanding of the Utilities area (Steam/ Condensate, Water Treatment, Compression, etc.); resolves a wide range of issues in creative ways. Interface with design, process, test and reliability engineering to solve problems. Sustain products with cost reduction and yield improvements.

Research Scientist

Company: Dow Inc. Date Posted: 04-Mar-2022 Country: UNITED STATES City: Midland, MI

Job Description: Develop expertise and maintain excellent knowledge in lubricants and applications. Become expert in Dow’s product lines, lubricants lab testing methods and instruments. Add new capabilities as required. Start developing as thought leader in the space of Dow’s chemistry in the industry technical community including representing Dow in external groups like ASHRAE, STLE, NLGI and ASTM.

Scientist, Protein Biochemistry Company: Regeneron Pharmaceuticals, Inc. Date Posted: 04-Mar-2022 Country: UNITED STATES City: Tarrytown, NY

Job Description: Identify issues and develops solutions in a collaborative multidisciplinary environment. Provide biophysical support and analytical development for both upstream and downstream functional groups; helps solve problems in real-time. Lead efforts to characterize various modalities to support regulatory filings and develop analytical methods within specified timelines. Document experiments, results and findings in electronic laboratory notebook.

Process Engineer Company: TotalEnergies SE Date Posted: 03-Mar-2022 Country: DENMARK City: Esbjerg

Job Description: Provide support and troubleshooting at second level after process engineering check in Smartroom/Production method. This includes research of technical solutions for upsets, shortfalls, instability, bottlenecks. Raise process derogation, or support derogation of others discipline. Long term study / Improvement study. Participate HAZOP/HAZID or other safety study. Review of well service tie-in programme.

Assistant Manager - Production

Company: BASF SE Date Posted: 03-Mar-2022 Country: INDIA City: Dahej, Gujarat

Job Description: Continuous improvement of processes in coordination with the Head–EM plant & Quality control to reduce batch cycle times, increase in yields, increase operational ease and ultimately leading to cost effective production. Monitor process development and implement updated operating methods and procedures to ensure and improve product quality. Participate in annual production budget preparation. Oversee booking of all produced item for smooth production flow. Create & maintaining EM plant maintenance plan within asset register.

Senior Principal Scientist, Process Chemistry Company: Pfizer Inc Date Posted: 03-Mar-2022 Country: UNITED STATES City: Boulder, CO

Job Description: Interface with Medicinal Chemistry to rapidly develop chemistry to support candidate selection and early clinical studies. Individual lab work focused on early development oncology candidates with a focus on enabling and developing scalable processes, use of the state-of-the art equipment, and the use of analytical, computational and predictive tools. Supervision, including oversight and training, of 2-3 colleagues initially and potentially additional scientific staff in the future.

Company: TPC Group Date Posted: 04-Mar-2022 Country: UNITED STATES City: Houston, TX

Chemist

Company: Sasol Limited Date Posted: 22-Feb-2022 Country: UNITED STATES City: Westlake, LA

Job Description: Responsible for safely conducting a broad spectrum of experiments under the direction of senior researchers in the laboratory and pilot facilities, for properly maintaining Sasol equipment, and for the generation and communication of reliable, properly documented data for lead scientists. Provide technical support to lead scientists and research groups within R&D; leads focused technical initiatives within research group. Understand technical requirements and recommends R&D objectives, defines what is needed in terms of equipment, etc. and sets appropriate project goals with supervisor and project teams to meet technical needs.

QC Chemist Company: The Lubrizol Corporation Date Posted: 02-Mar-2022 Country: UNITED STATES City: Bowling Green, OH

Job Description: Work collaboratively and cooperatively with other chemists and plant personnel. Analyze incoming raw materials, in-process batches, as well as finished goods using a variety of instrumental and wet testing methods. Determine and calculate appropriate additions to batches. Approve products for release. Approve raw materials for receiving. Handle multiple tests and products simultaneously.

Resin Engineer Company: Axalta Coating Systems Date Posted: 02-Mar-2022 Country: UNITED STATES City: Fort Madison, IA

Job Description: Design and perform experiments to develop and/or improve manufacturing processes and coatings formulations. Collaborate with product/coating formulators to scale up and align new or modified products. Advance fundamental understanding of coatings product and process technology. Participate in manufacturing cross functional forums to support and/or troubleshoot plant process and quality issues by interacting with personnel at all levels of the organization.

Website: http://www.worldofchemicals.com/chemical-jobs.html

Chemical Today Magazine | March 2022

PRODUCTS

Copolymer resin helps with carbon emission goals for consumer electronics S

ABIC has introduced LNP™ ELCRIN™ EXL7414B copolymer, the company’s first bio-based polycarbonate (PC) copolymer to help advance the consumer electronics industry’s net-zero carbon emissions goals. The new copolymer is the first grade in an expanding portfolio to secure the International Sustainability and Carbon Certification Plus (ISCC+) designation. It is formulated with over 50 percent bio-based content from waste materials, which do not compete with the food chain, according to the mass balance approach. A preliminary SABIC internal assessment indicates that each kilogram of the new bio-based resin provides two kilograms of CO2 reduction as compared to the fossil-based alternative. Contact: SABIC PO Box 5101, Riyadh 11422, Saudi Arabia Tel: +966 (011) 225 8000 Web: www.sabic.com

New cosmetics ingredients inspired by superfoods M

erck introduced two new cosmetic ingredients: RonaCare® Baobab and RonaCare® Hibiscus. These two products are developed from nutrient-rich superfoods - the baobab fruit and the hibiscus flower, whose effects can also be used for the skin. The botanical extracts are ethically sourced, sustainable, and suitable for the use within a wide range of topical products, from daily skin care to dermocosmetics. RonaCare® Baobab provides strong protection of skin matrix components, especially elastin and collagens and reduces skin irritation. RonaCare® Hibiscus also minimizes skin irritation, supports the care of sensitive skin, shields from oxidative stress, protects collagens from degradation and increases skin cells’ vitality.

Contact: Merck KGaA Frankfurter Strasse 250 64293 Darmstadt, Germany Tel: +49 6151 72-5000 Email: annemarie.schreeb@merckgroup.com Web: www.merckgroup.com

Chemical Today Magazine | March 2022

New Sealant featuring breakthrough Anti-Shrink Technology D

AP has expanded its legacy and flagship ALEX line with the introduction of ALEX® Ultra Advanced Anti-Shrink Sealant. Formulated with breakthrough anti-shrink technology, ALEX Ultra is specifically designed to meet the demanding needs of professional paint jobs by solving for traditional latex sealant pain points while still providing unmatched ease of use. ALEX Ultra outperforms the competition as the lowest shrink latex sealant on the market and features silicone additives for greater flexibility and excellent adhesion to a wide variety of substrates, including wood, drywall, plaster, brick, masonry, glass, and most plastics and metals.

Contact: DAP Products Inc. 2400 Boston Street Suite 200 Baltimore, MD 21224, USA Tel: 410-675-2100 Web: www.dap.com

New label adhesives that do not interfere with paper, paperboard recycling B

ASF has achieved a breakthrough in the development of adhesives that do not interfere with the recycling of transport boxes, such as paperboard and cardboard boxes with paper labels coated with Acronal RCF 3705 or Acronal RCF 3706. In addition to the automotive and food industries, logistics is another sector with a high demand for pressuresensitive labels. For several years until today, transport labels have comprised the fastest growing share of the market. These innovative adhesives solve a fundamental problem for paper and cardboard packaging recycling. While most of the adhesives used for paper labels interfere with the paper recycling process, the newly developed adhesives are easy to remove early in the process, making it possible to reuse and print recycled paper or paperboard packaging without any further issues. Contact: BASF SE 67056 Ludwigshafen, Germany Tel: +49 621 60-0 Email: Friederike.stausberg@basf.com Web: www.basf.com

Chemical Today Magazine | March 2022

EQUIPMENT New inert high-performance liquid chromatograph for pharma industry

himadzu Corporation announces the release of the Nexera XS inert high-performance liquid chromatograph globally. The Nexera XS inert incorporates rust-resistant materials and nonmetallic materials that limit the adsorption of molecules to provide stable measurements of biopharmaceuticals and medium molecule pharmaceuticals. sShimadzu aims to expand its business performance in the market for biopharmaceuticals such as antibody drugs and medium molecule pharmaceuticals such as nucleic acid drugs. In the pharmaceutical industry, the development of biopharmaceuticals, such as antibody drugs, as well as medium molecule pharmaceuticals utilizing peptides and oligonucleotides has accelerated.

Contact: Shimadzu Corporation 1 Nishinokyo Kuwabara-cho, Nakagyo-ku, Kyoto 604-8511, Japan Tel: +81-75-823-1111 Web: www.shimadzu.com

New inductively coupled plasma optical emission spectrometer

PECTRO Analytical Instruments has introduced its newest, top-of-the-line SPECTRO ARCOS inductively coupled plasma optical emission spectrometer. The new SPECTRO ARCOS precisely analyzes the elemental composition of metals, chemicals, petrochemicals, and more to deliver the critically accurate measurements that industry and academia can depend on. SPECTRO ARCOS is known for exceptional optical performance, wavelength coverage, sensitivity, and resolution, safeguarding the users’ ability to get the right analytical results, performance, and productivity.

Contact: SPECTRO Analytical Instruments GmbH Boschstr. 10, 47533 Kleve, Germany Tel: +49 2821 8 92-0 Email: spectro.info@ametek.com Web: www.spectro.com

High-pressure reactors for chemical, polymer, pharma industries

upercritical Fluid Technologies Inc has introduced a new and expanded line of high-pressure reactors for the chemical, polymer and pharmaceutical industries. All reactors include variable speed mixing utilizing a high torque, magnetically coupled impeller. HPR Series Reactors are ideal for earlystage research investigation through process development and refinement. Each reactor is custom built for your specific needs and may include a wide variety of options including special ports for sensors, optical windows, reagent introduction and product sampling.

Contact: Supercritical Fluid Technologies, Inc 1 Innovation Way, Newark, Delaware 19711, United States Tel: +1 302-738-3420 Email: sales@supercriticalfluids. com Web: www.supercriticalfluids.com

New instrument helps maximize lab productivity

hermo Fisher Scientific Inc has introduced the Thermo Scientific Nicolet RaptIR FTIR Microscope. This nextgeneration Fourier Transform Infrared (FTIR) spectroscopy microscope is designed to let researchers rapidly locate and identify trace materials, inclusions, impurities and microparticles along with the distribution of these materials within a sample. Enhanced automation makes it possible to identify thousands of particles on a 1cm2 filter quickly and efficiently. With the Nicolet RaptIR FTIR Microscope, researchers in fields as diverse as pharmaceuticals, forensics, art conservation and electronics can obtain diverse quantitative and kinetic information about their samples and identify unknown substances.

Chemical Today Magazine | March 2022

Contact: Thermo Fisher Scientific 5350 NE Dawson Creek Dr Hillsboro, OR 97124, US Tel: (503) 726-7500 Email: laura.glass@thermofisher.com Web: www.thermofisher.com

Safety valves for H2 electrolysers

reen hydrogen, produced by electrolysis using renewable energy, is considered an important building block of the energy transition away from CO2 emissions. For maximum safety, electrolysers need reliable safety valves. Safety valves from WITT provide the required precision and flow capacity for electrolysers. The WITT safety valves AV 619 and AV 919 perfectly match the target pressure and temperature ranges of PEM and Solid Oxide electrolysers. Highly precise and reliable, the valves open when the set pressure is reached and safely protect workers and sensitive equipment from overpressure.

Contact: WITT-Gasetechnik GmbH & Co KG Salinger Feld 4-8 58454 Witten, Germany Tel: +49 (0)2302 8901- 0 Web: www.wittgas.com

Clamp-on flowmeter for water, power plant industry as well as utilities

ltrasonic flow measurement with clamp-on sensors has been used successfully in many industries. But even in basic and standard applications, requirements are growing steadily due to process automation. Prosonic Flow W 400 meets the requirements of plant operators: cost efficiency, comprehensive process monitoring and maximum freedom when planning measuring points. The clamp-on design enables safe measurement of even corrosive, abrasive and toxic fluids – regardless of conductivity or pressure.

Contact: Endress+Hauser AG Kägenstrasse 2, 4153 Reinach BL Switzerland Tel: +41 61 715 7700 Email: info@endress.com Web: www.endress.com

New motorized quarter turn actuator

he valve specialist GEMU has launched new actuator versions of the GEMU 9428 motorized quarter turn actuator. New actuator versions of the GEMU 9428 motorized quarter turn actuator are available with immediate effect. In the new designs, the actuator housing has been revised so that better sealing values and the IP 67 protection class is achieved with immediate effect. The electrical connector plugs are also directly installed and no longer have to be configured as an extra.

Contact: GEMU Gebruder Muller Apparatebau GmbH & Co. KG Fritz-Müller-Straße 6-8 74653 Ingelfingen-Criesbach Phone: +49-79 40 - 123 0 Email: info@gemue.de Web: www.gemu-group.com

New peristaltic pumps with high flexibility for many applications & media

ETZSCH Pumps and Systems expands its product portfolio covering even the most complex applications in diverse areas. In addition to the well-known technologies of NEMO® progressing cavity pumps, TORNADO® rotary lobe pumps and NOTOS® multi screw pumps, the PERIPRO peristaltic pumps complement the product range at NETZSCH. The model is available in an industrial, chemical and food version. Advantages of PERIPRO peristaltic pumps are it has high flexibility for a wide range of applications and media, it has robust construction and further has long service life.

Chemical Today Magazine | March 2022

Contact: NETZSCH Technologies India Pvt. Ltd. No. 39, 2nd Street, Spartan Nagar, Mogappair (East) Chennai - 600 037, India Tel: +91 44 4296 5100 Email: info.nti@netzsch.com Web: https://pumps.netzsch.com

Chemical Today Magazine | March 2022

CHEMICAL TODAY English Monthly RNI: KARENG/2016/71454 Registered/KRNA/BGE -1148/2022-2025 Licensed to Post without prepayment License No. PMG BG/WPP-362/2017-19 Posted at Bangalore PSO 560026 on 7th or 11th or 13th of every month. Total No of pages 78 Date of Publication: 7th of every month.

Chemical Today Magazine | March 2022