A sustainable response
As businesses and consumers around the world become more environmentally conscious, they are demanding that partners and suppliers pay greater attention to reducing energy consumption and adopting "green" practices. In the chemicals industry, this is driving companies to find innovative solutions to improve the sustainability of their operations as well as their products.
Overview
Climate change is seen by many as one of the greatest challenges civilization has ever faced. From changing weather patterns to rising sea levels, there is increasing awareness that the huge and growing amounts of greenhouse gases that are pumped into the atmosphere every day are having a significant impact on planet Earth. The fear that these changes may be both highly detrimental to the environment and irreversible is driving greater awareness of the need to safeguard our environment.
As one of the largest consumers of energy, the chemicals industry has the opportunity to take the lead in efforts to reduce greenhouse gas emissions. A study by the International Council of Chemical Associations estimates that innovations in process efficiency and new technologies have the potential to cut the industry's emissions by two to four times, or even more, by 2030. This in turn is estimated to have a significant impact on the reduction of global greenhouse gas emissions.
At the same time, the chemicals industry also plays a key role as supplier of the basic material building blocks for a wide range of industries. From plastics and rubber to fuels and consumer products, the industry is an important source of the raw materials that are used to create these products. This presents opportunities for the industry to contribute by providing innovative new chemical products that are more environmentally-friendly.
The industry could adopt a two-pronged approach - to innovate and develop new and better solutions to reduce its energy usage, and to develop products that can enable consumers to do their part too. Success will deliver a huge positive impact on the environment. It will also richly reward those that rise to the challenge, but this will not come without a significant investment of resources, time and effort.
Facts on the ground
Unsurprisingly, many chemicals companies could see the commercial case in becoming more environmentally friendly. Reducing energy consumption reduces operating cost, while new products open up potential markets and new revenue streams. There is also value to be found in developing a brand reputation of being a "pro-green" business. Consumers and businesses are increasingly looking for ways to act more sustainably, and buying from or partnering with environmentally-friendly businesses is one way to do this.
The above trends point towards more innovation in the chemicals industry as companies strive to adopt sustainable practices and develop "green" products. There are many examples of such companies operating in Singapore. These include Shell, a global energy and petrochemicals giant; Singapore Oxygen Air Liquide Pte Ltd (SOXAL), Southeast Asia's largest supplier of industrial gas; and Lanxess, the world's largest manufacturer of synthetic rubber, to name but a few.
Shell is an example of how R&D efforts can lead to significant improvements in efficiency and sustainability. Its new 750,000 tonne MEG (mono-ethylene glycol) plant in Singapore is one of the largest in the world, and uses innovative OMEGA process to improve conversion efficiency. Developed by Shell Global Solutions, the company's technology arm, OMEGA requires 20% less steam and produces about 30% less wastewater than conventional processes. This result in a significant reduction in carbon dioxide emissions per tonne of MEG produced. In recognition of its exciting promises, Shell won the Institution of Chemical Engineers (IChemE) award in recognition of the OMEGA technology.
Another path to sustainability is to develop products that could enable others to be more environmentally-friendly. A case study for this would be Lanxess. As the world's leading producer of synthetic rubber, its butyl and halogenated rubber products are an increasingly important component in the production of tires. Their unique properties allow tires to maintain their pressure longer, translating to improved fuel consumption and reduced emissions. Given the growing population of vehicles on the road, there is potential for Lanxess' products to hence contribute positively from an environmental perspective.
In addition, Lanxess has also focussed on making its operations more environmentally-friendly. When the company broke ground on its new US$575 million butyl rubber plant in Singapore in 2010, it allocated some 10% to 15% of the total investment to environmental protection measures. Using cutting-edge technology, Lanxess' manufacturing process will require significantly less steam, thereby lowering the facility's overall energy consumption.
Other companies, such as SOXAL, have worked with energy services companies to develop and implement various energy conservation measures to optimize energy usage in their plants. As a result of its efforts, SOXAL is currently enjoying cost savings of $324,000 per year and avoiding 2,160,000 kWh per year of electricity consumption. These efforts translate to direct cost savings for chemical companies.
The Singapore difference
Today, Singapore is home not only to major production facilities, but also to the R&D and innovation centres of key chemicals companies, making Singapore a global hub for the chemicals industry. A strong pro-business environment and robust infrastructure on Jurong Island have played critical role in attracting the world's largest chemical companies here. Singapore has long recognised the importance of providing an ecosystem that supports and promotes innovation. In addition to a robust legal system and excellent track record in intellectual property (IP) protection, companies can also benefit from tapping on a deep talent pool.
As Singapore steps up our focus on innovation that can contribute to environmental sustainability, there are new opportunities for companies to establish partnerships with research institutes in Singapore. For instance, the Institute of Chemical and Engineering Services (ICES) has been active in supporting companies to drive innovation in the chemicals sector. One of ICES's landmark initiatives has been a partnership with Japan's Mitsui Chemicals to establish the company's first R&D centre outside of Japan in Singapore. The centre focuses on catalysis and asymmetric synthesis, developing new processes and materials that will, among other things, enable companies to operate more efficiently and in a more environmentally-friendly way.
As the chemicals industry rises to the challenge of operating in a more sustainable manner, such partnerships will play a critical role in breaking new ground. Singapore offers many such opportunities which, together with its extensive supporting infrastructure, pro-business policies and growing focus on environmental sustainability, make it the ideal destination for chemicals companies looking to innovate for the future-both their own and the environment's.
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