1. Chemical Industry Value Chain Partnership for growth
Introduction slide
Accent on the value chain partnering to drive growth
Through our European Technology Platform for Sustainable Technology, the Chemical Industry is communicating its strategic Innovation intend, and ensures a platform to bring the key stakeholders together.
Pierre Joris
Chief Scientific Innovation Officer
SOLVAY S.A.
Cefic – R&I Programme Council Member 1

2. The European Chemical Industry transformation
Shift from technology support on request to proactive demonstration of societal value
Mindset shift to intensifying pre-competitive cooperation and open innovation along value chain
Visible leadership of Chemical Industry in Public-Private Innovation Partnerships addressing societal challenges.
Broaden engagement of companies (big + SME ’s) in Public-Private Innovation Partnerships
Change way we do things (i.e. more with less, renewables, smart materials)
Animated slide :
First part indicates the commitment of the chemical industry to take a leadership role to support growth in EU as an industry sector that is positioned as foundation / roots in the value chain.
This is also an intro in the full presentation.
Our commitment to public - private innovation partnerships, ( both PPP’s in Horizon 2020 as well as EIP’s under the EU 2020 Flagship initiatives ), is based on this open innovation model with precompetitive collaborations and targets to ensure joint demonstration of the new opportunities. 2

3. Why Innovation ? But also
Key for competitiveness of EU Chemical Industry
is loosing ground on production compared to other regions
Critical to disconnect growth from footprint
.. and make our renewed growth sustainable
Essential to feed downstream industry innovation stream
… by bringing enabling material solutions
But also
Instrumental in gaining positive political recognition and support
As innovation driver in and from Europe
Needed to keep attracting younger talents as “high tech” sector
Value chain collaborations important to improve the speed of conversion of knowledge into market opportunities.
Societal challenges are also often too large to be addressed by one party only : public engagement is specifically needed to foster and jointly address the societal challenges – partnering to ensure EU knowledge transition and exporter of sustainable innovations , but also the public incubator role for market introductions : examples incentives / public procurement: EU role needed to prevent fragmentation of market introductions and create a stronger economy of size competence.
This collaborative approach can build on the EU competence of the vicinity of the value chain partners – copying US, China is simply not possible and neither effective, so building from our EU strengths is the best action to improve competitiveness. 3

4. Societal challenges & Innovation
Requirements
Public Policy strategic intent
cooperation along the value chain
Too big for one party: Public Private Innovation Partnering
From research to solutions
Needs EU critical mass
Leverage the vicinity of value chain partners
Employment
Climate change
Health and ageing
Use of natural
resources
Energy security
Clean transport
Powerful drivers of change in economy and society
Major global market opportunities
The societal challenges are a well recognized policy strategic intend, which on itself also will generate new sustainable markets, IF the total value chain is covered in a synchronized framework conditions, based on joint trust from key players who are committed to address the challenges.
The Societal challenges have also a direct interaction with the Quality of Life in EU. The collaborated approach to use build a market opportunity from them, and the related improved competitiveness and rejuvenation of growth in EU, will therefore operate as a continuous improvement model to ensure the quality of life for EU society : Industry cannot succeed in a society that fails.
Quality of Life in EU 4

5. European Competitiveness
The Valley of Death
A major challenge
European Competitiveness
S P E E D
The Innovation Valley of Death. The value chain connection between the key players to cover all three pillars , requires a platform for academia, industry, venture capital and public. Role of public through the new common framework for Research and Innovation – Horizon 2020 – is therefore essential for the first 2 pillars. Sofar EC – public role has stayed in the “safe “ building block of Research, and only on exceptions stepped into the area of pilot / demo’s and totally not engaged in the manufacturing pillar, whereas it has a role in all three : different roles but the public role is needed in all three to boost EU growth, competitiveness and as consequence jobs.
Parallel with this it requires a stronger leadership role of Industry in this collaborative, more open innovation mind set model, and the Chemical industry is committed to play this collaborative role
Demonstration is a key improvement that we expect from the new framework program.
For the third pillar, policy support actions are required to ensure a public incubator role to promote the uptake of new markets, initiated from Europe : we expect the European Innovation Partnerships to play an important role for this.

6. SusChem - Value chain & Partnering Platform
Horizon 2020
EIPs
Water
Raw Materials
Smart Cities
National
programmes
For the Chemical Industry, SusChem is a platform that can play an important role in connecting the key players : academia , industry, finance and public, at EU and National levels. We see an important SME reach role at the national levels, where excellent concrete clusters have been created to address growth opportunities, and through the full network, this can be put in a full EU framework, through the EU 2020 / Horizon 2020 initiatives, including EIP and PPP’s
Regional
initiatives
SPIRE
PPP 6 6

7. Vision for the Innovation Landscape
Future
PPP’s
SPIRE
Sustainable Process Industry
REP
Water EIP
Although there is a broad spread of activities, it actually synchronized nicely for this collaborative value chain coverage - approach and for our joint 2020 vision we believe a lot of the tools and initiatives are in place.
The overall EU 2020 growth strategy addresses at the highest political level the needed components for a smart, sustainable and inclusive EU Growth.
The three key flagships for our ambitions are the industrial competitiveness, Innovation Union and Resource Efficiency ones
At the implementation level we have a combination between European Innovation Partnership as well as Public Private Partnership programs that, if supported, can make the expected impacts by 2020
We will address these in more detail, but we commit to a leadership contribution from the chemical sector
Industrial
Competitiveness

8. Chemical Industry Priority areas
Cross Sectorial Public Private Partnership – proposal for Horizon 2020
Sustainable Process Industry through Resource and Energy Efficiency
More than 450 thousand enterprises.
Employ over 6.8 million employees,
Generating more than 1,600 billion € turnover
The founding basis of the European Economy (20%)
Struggling with declining global competitiveness
Addressing :
Advanced process technology and products
Alternative (i.e renewables, waste) feedstock sources
Recycling along the value chain
Ambitions : (from current levels)
Up to 30 % fossil energy intensity
Up to 20 % reduction in non renewable, primary raw material intensity
 Overarching target : up to 40 % efficiency improvement in CO2 equiv. footprints
EU – Innovation Union
Industry engagement
Chemical Industry Priority areas
SPIRE
The chemical industry processes and products are impacted a huge variety of downstream sectors, and its visibility is partly due to that not always clear. However in a number of priority areas are identified by our sector where we believe we have a significant and leadership role to play to impact the full value chain. In all of these cases it requires collaborations with value chain partners. We will discuss these 4 in more detail but in summary these are
Resource and Energy efficiencies In this process industry area the chemical industry has a recognized leadership role and our proposal is here to ensure a multi year Research and Innovation program through a Public Private Partnership within the Horizon 2020.
The other three are examples for a collaboration support to targeted European Innovation Partnerships, under the Innovation Union – Flagship initiative.
Water Efficiency The chemical industry is an intensive user of water, but also delivers many solutions to improve the water efficiencies for industries, urban and agricultural users, incl. waste water treatments. A collaborative approach with the Water Platform – WssTP has been set up to jointly support this EIP. Special emphasize will be given to the significant opportunities of integrated water management between urban, industrial and agricultural to ensure the highest impacts from the investments. This area has not be very strongly addressed sofar in Europe, but good examples can be build from.
Raw materials This European Innovation Partnership will address the efficiency improvement and accessibility to key raw materials for our future societal and growing economies needs. It will cover extraction technologies to improve accessibility but also substitutions to reduce EU import dependencies as well as recycling.
Smart Cities Improved energy efficiencies in housing, sustainable city - mobility's with reduced CO2 impacts are a few key examples of this EIP, and also hear chemical industry products and bizz models will play an key role.
The European Innovation Partnership program as targeted within the EU 2020 Flagship initiative, has an important extra dimension vs the Public Private Partnership that reside within the Horizon 2020 structure : these programs will influence various EU funding instruments, not only Horizon 2020, but in addition drive enabling policy initiatives to ensure societal uptake of new markets to address the societal challenges. This can be in the form of incentives, or sort alike, but we would also like to put extra emphasize to influence the public procurement, which can be a significant trigger for sustainable market introductions, surely if this force has a stronger EU element, vs present fragmentations, and as such it will make an impact to the importance of economy of scale, which is a basic hurdle in every innovation. 8

9. Chemical Industry Priority areas
EU – Innovation Union
Industry engagement
Water Efficient Europe
• Public-Private water management
• Water efficiency : Urban, Industry and Consumer use .
• Water solutions : boost EU Industry competitiveness
• Integrated Water solutions : Symbiosis
• Waste water treatment
Raw Materials for a Modern Society
Ensure reduced EU dependency on global Imports for raw materials for EU growth needs.
Improved accessibility through new Technology and Innovations in Extraction Technologies and Geologic research
Improved recycling
Research and Innovations in substitution
Chemical Industry Priority areas
Smart cities
• Individual mobility in cities
• Refurnishing of housing stock
• Insulation for energy and noise
The chemical industry processes and products are impacted a huge variety of downstream sectors, and its visibility is partly due to that not always clear. However in a number of priority areas are identified by our sector where we believe we have a significant and leadership role to play to impact the full value chain. In all of these cases it requires collaborations with value chain partners. We will discuss these 4 in more detail but in summary these are
Resource and Energy efficiencies In this process industry area the chemical industry has a recognized leadership role and our proposal is here to ensure a multi year Research and Innovation program through a Public Private Partnership within the Horizon 2020.
The other three are examples for a collaboration support to targeted European Innovation Partnerships, under the Innovation Union – Flagship initiative.
Water Efficiency The chemical industry is an intensive user of water, but also delivers many solutions to improve the water efficiencies for industries, urban and agricultural users, incl. waste water treatments. A collaborative approach with the Water Platform – WssTP has been set up to jointly support this EIP. Special emphasize will be given to the significant opportunities of integrated water management between urban, industrial and agricultural to ensure the highest impacts from the investments. This area has not be very strongly addressed sofar in Europe, but good examples can be build from.
Raw materials This European Innovation Partnership will address the efficiency improvement and accessibility to key raw materials for our future societal and growing economies needs. It will cover extraction technologies to improve accessibility but also substitutions to reduce EU import dependencies as well as recycling.
Smart Cities Improved energy efficiencies in housing, sustainable city - mobility's with reduced CO2 impacts are a few key examples of this EIP, and also hear chemical industry products and bizz models will play an key role.
The European Innovation Partnership program as targeted within the EU 2020 Flagship initiative, has an important extra dimension vs the Public Private Partnership that reside within the Horizon 2020 structure : these programs will influence various EU funding instruments, not only Horizon 2020, but in addition drive enabling policy initiatives to ensure societal uptake of new markets to address the societal challenges. This can be in the form of incentives, or sort alike, but we would also like to put extra emphasize to influence the public procurement, which can be a significant trigger for sustainable market introductions, surely if this force has a stronger EU element, vs present fragmentations, and as such it will make an impact to the importance of economy of scale, which is a basic hurdle in every innovation. 9

10. A few examples Recycling Rare Earths from the urban mine First targets
Rare earths are key for high technology markets
Supply is almost totally controlled by China
Solvay Rhodia owns a unique expertise in the purification of rare earths which is key for their recovery and recycling
First targets
Low-energy light bulbs, magnets, rechargeable NiMH batteries

11. H2 A few examples KCl Clean Energy Cement plant Chemical plant
High yield reuse in Industrial Fuel Cell
1MW (Lillo)
Storage through electrolysis
KCl
Cement Kiln Dust
Washed
Filtration Cake
Cement plant
Chemical plant
Enabling recycling of Kilin Dust and Extracting Potassium
Innovative bio-based monomers for Polyamides
Disconnecting performance polymers from fossil route

12. Report
Last but not least, we would like to address the key importance of education, and specifically the skills for innovations. The targeted economic growth will be strongly impacted both by a pure demand vs supply for technical skills, and specifically for the needed skills for innovation, which requires in additional to technical skill, education on entrepreneurship, which is a competence that we lost somewhat in Europe, being more risk averse than some of our global competitors. The Chemical industry, through SusChem, is making a contribution to address this. One of key recommendations is that the collaborative programs shall address this education component as integral element in the projects, as these are key learning's on sustainable markets / economies in the future.

13. Research and Innovation for Growth creation
We hope we have been able to give you insight in the readiness and commitment of the chemical industry to shape and drive in a collaborative approach to jointly target for the rejuvenation of EU Growth : as the EU 2020 policy and Horizon 2020 program is clearly targeting towards a strong Industry engagement, we would like to also underline the important EC – NMP role : with its focus on industrial technologies this directory can make a key contribution to this industry engagement. Also because of this reason Cefic / SusChem therefore strongly supports this Event with a lot of contributions in the coming days, on targeted priority areas of Resource Efficiencies, Water Efficiency, Raw Materials and the Key Enabling Technologies / Materials areas, but also the important education / competence building theme that will be covered on the Thursday morning.
Thank you for your attention