Innovation and Green Chemistry in Oxiteno

Workshop for Sustainable Production of Biopolymers and other Bio‐based Products

August/12

Agenda

Oxiteno – Profile / Research and Development Context – Green Chemistry Oxiteno’s Initiatives in Green Chemistry Sustainability Philosophy and facts Technologies for development Opportunities in integrating green raw materals Final remarks

2 Oxiteno

. Brazilian Company, part of Ultra Group . Major Producer of surfactants in Latin America . Integration in key raw materials (Ethylene Oxide and Oleochemicals) . 11 Industrial sites: Brazil, Mexico, Venezuela and United States . Commercial offices: Sao Paulo, Buenos Aires, Caracas, Bogota, Mexico City, Chicago, Brussels e Shanghai . Permanent investments in Innovation – R&D Centers in Brazil and Mexico – 10% of total employees 3 Oxiteno – R&D Strategy

Priority Sectors for specialization in competences and applications

Coatings Crop Protection Home Care Oil & Gas Personal Care

Renewable Sources / Focus on sustainability Cooperation with Research Centers and Universities Partnership with Customers: Innovation in the value chain

Chemical Specialties Surfactants Oxygenated solvents Oleochemicals

4 R&D Infrastructure

Application Physical-Chemistry laboratories Characterization

5 R&D Infrastructure

Analytical Research Laboratory Pilot plant

6 Science & Technology Board

Since 2004/focus on surfactants; Advisors with great recognition in science, technology, applications and market.

Update and discussion on global technology trends; State of the art technologies and next frontiers in Research & Development; Context for innovation/ interaction with R&D team; Business opportunities; R&D strategies and innovation models.

Agenda

8 MEGATRENDS | LONG TERM: + 50 YEARS

Urbanization

Globalization

Womenomics

Elderly Population Increase

Green/Sustainability

Alternative Energy Sources

Technology Trends: Mobility, communication, biology, genetics.

9 MEGATRENDS | CONSUMER TRENDS

Consumers and their behavior

. Increase in offers and easy access . BRICS: Impressive growth in consumer market

. Consumer interest in products, impacts, . information is key . Brazil – 89%: “recycle is an obligation” . Brazil – 63%: prone to change its habits to benefit the environment . Brazil – 71%: prone to choose a product considering sustainability impacts

Source: Ibope (http://www.ibope.com.br/consumidor/)

10 Megatrends in the Chemical Sector

. Transparency: Increase in public information about chemicals / requirements of scientific based data and conclusions;

. Safer technologies and “Green components” are an obligation: Direct Effect on Market Life Cycle of questioned chemicals;

. Increase in volunteer restrictions from Consumers and Corporations

. New regulations for products of high toxicity and potential for pollution: Restrictive policies; Supervision; philosophy "polluter pays“;

. Preventive labeling: Global systems for classification; higher level of information on safety and risks;

. Global effect analysis are required: Life Cycle Assessment

. Efficacy proof are required for specialty chemicals

Green chemistry Game Changer for Chemical Sector 11 Green Chemistry

Concept from 20 years – Growing Relevance

Paul Anastas

Ainda há muito a ser feito na indústria. Necessário praticar o conceito.

12 Fonte: NATURE, vol. 469, 2011

Agenda

13 Sustainability Philosophy

Renewable resources Environmental care Health and wellness Raw materials from Concentrated and High performance vegetable origin biodegradable products formulations, minimal replacing synthetic that help reduce energy by-products, non irritant, and petrochemical use, water consumption mild and safe. components. and packaging.

14 Green Chemistry at Oxiteno

20% OF RAW MATERIALS FROM RENEWABLE SOURCES 35% OF PRODUCTS WITH RENEWABLE INGREDIENTS

RAW MATERIALS 100% renewable carbon

Green Surfactants surfactants Specialty fatty esters

Fatty alchols Oloechemicals Fatty acids ALKONAT ® Glycerin

Isoamilic alcohol Solvents Isobutilic alcohol

15 Life Cycle Assessment (partnership with GP2 / USP Certifications New concept on balanced systems for flexographic print inks. ECOCERT - Personal Care - Glycerin Reduction on solvent losses to the - Surfactants: Sorbitan esters atmosphere and exposition of workers

DfE (Design for the Environment) – Detergents Products under certification - Alkoxylated alcohols - Sodium lauryl ether sulphates Projects in progress - Co-surfactants

Evaluation of manufacturing processes for detergents made of surfactants form natural RSPO: and synthetic sources - Certification of production chain under evaluation Use of ethanol in diesel engines

16 Technology Vision – Personal Care

Mild and specialty Surfactants, multitasking ingredients and new formulations

Shampoo, liquid Conditioning / pos Skin Care / Body Functional Cosmetics soap/shower gel treatment lotion (Sun and anti winkle)

Solution and Interaction with hair Advanced formulation dispersion Chemist and skin (delivery/sensorial)

Green concepts Green concepts Green concepts Multitasking ingredient Long lasting moisturization Nanostructures Co-surfactants Emollients line Lipid Carriers Conditioning

Beauty, Wellness …. and…. Safe, Natural and environmentally friend 17 Innovation – Personal Care

Green emollients Green chemical processes Green Surfactants

Hydrophobic Hydrophilic

Green building blocks New synthesis routes Specialty Co-Surfactants

18 Technology Vision – Coatings

Oxigenated solvents, surfactants e green coalescing aids Lower toxicity e less pollutants (VOCs and HAPs)

Solvent born paints Car O&M / Architectural Thinners Print Inks Refinishing paints

Solvent born paints Solvent born paints Waterborn paints Lower ecotoxicity

HAPs / aromatic solvents New oxigenated Surfactants and new replacement solvents coalescing aids

19 Innovation – Coatings

Toluene free adhesives Green coalescing aids Architectural paints

ULTRAFILM ECO

Printing inks for flexography

20 Fuels – Drivers for Innovation

Improve fossil Improve New renewable fuels renewable fuels fuel alternatives

. Improve Energy use of . Lubricity . Biomass use fossil fuels / hybrid . Cellulosic ethanol vehicles / additives . Chemical stability . Algae sources . Lower emissions of . Reduce deposit formation greenhouse gases and . Fermentation pollutants . Amplify applications . Pyrolysis . Blends with biofuels possibilities – Change in inherent biofuel . Engine improvements properties

21 Innovation – Fuels

Sugar cane Distilleries Urban Buses Operator Ethanol

Fuel Distributors • Safe handling

• Ignition and lubricity Trucks Ethanol • Amplification in Biofuels use

Ultrafluid ECO®

22 Roadmap – Biobased Building blocks

Who wins the game? Challenges:

. Technology proof / Demonstration . Economical feasibility . Downstream Integration of new building blocks

Agenda

24 Oxiteno: Models for development

“in house” Initiatives for Opportunities for Industry and development Academy Interaction Applied Research and product development . To reinforce research in the chemistry of renewables, from Cooperation with Research fundamental to applied research; Centers Fundamental and applied research . Development of chemical processes; . To create scientific interest and Research groups for new Partnership for scaling up new technological approaches; technologies . People qualification

Technology development

25 Innovation Process and important connections

Technology Market Commercial Fundamental Applied Development Development scales Research Research (Pilot to full scale)

Funding intensity Pre–IPO Gap

Special Policies Banks Government Venture Capital Death valley Industrial R&D Industry

Academy Angel

Source: Adapted from “The funding gap – 2012 Sustainable Development Technology Canada” 26 Thank you!

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