Innovation and Green Chemistry in Oxiteno

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 Final remarks Sustainability Philosophy and facts Technologies for development Opportunities in integrating green raw materals 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 laboratories Physical-Chemistry 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. 7

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. Fonte: NATURE, vol. 469, 2011 12

Sustainability Philosophy Renewable resources Raw materials from vegetable origin replacing synthetic and petrochemical components. Environmental care Concentrated and biodegradable products that help reduce energy use, water consumption and packaging. Health and wellness High performance formulations, minimal by-products, non irritant, mild and safe. 14

Green Chemistry at Oxiteno 20% OF RAW MATERIALS FROM RENEWABLE SOURCES 35% OF PRODUCTS WITH RENEWABLE INGREDIENTS RAW MATERIALS 100% renewable carbon surfactants Green Surfactants Specialty fatty esters Oloechemicals Fatty alchols Fatty acids Glycerin ALKONAT Solvents Isoamilic alcohol Isobutilic alcohol 15

Life Cycle Assessment (partnership with GP2 / USP New concept on balanced systems for flexographic print inks. Reduction on solvent losses to the atmosphere and exposition of workers Certifications ECOCERT - Personal Care - Glycerin - Surfactants: Sorbitan esters Projects in progress Evaluation of manufacturing processes for detergents made of surfactants form natural and synthetic sources Use of ethanol in diesel engines DfE (Design for the Environment) Detergents Products under certification - Alkoxylated alcohols - Sodium lauryl ether sulphates - Co-surfactants RSPO: - Certification of production chain under evaluation 16

Technology Vision Personal Care Mild and specialty Surfactants, multitasking ingredients and new formulations Shampoo, liquid soap/shower gel Conditioning / pos treatment Skin Care / Body lotion Functional Cosmetics (Sun and anti winkle) Solution and dispersion Chemist Interaction with hair and skin Advanced formulation (delivery/sensorial) Green concepts Multitasking ingredient Co-surfactants Conditioning Green concepts Long lasting moisturization Emollients line Green concepts Nanostructures Lipid Carriers Beauty, Wellness. and. Safe, Natural and environmentally friend 17

Innovation Personal Care Green emollients Green chemical processes Green Surfactants Hydrophobic Hydrophilic Specialty Co-Surfactants Green building blocks New synthesis routes 18

Technology Vision Coatings Oxigenated solvents, surfactants e green coalescing aids Lower toxicity e less pollutants (VOCs and HAPs) Solvent born paints Thinners Car O&M / Refinishing Print Inks Architectural paints Solvent born paints Solvent born paints Lower ecotoxicity Waterborn paints HAPs / aromatic solvents replacement New oxigenated solvents Surfactants and new 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 fuels Improve renewable fuels New renewable fuel alternatives Improve Energy use of fossil fuels / hybrid vehicles / additives Lower emissions of greenhouse gases and pollutants Blends with biofuels Engine improvements Lubricity Chemical stability Reduce deposit formation Amplify applications possibilities Change in inherent biofuel properties Biomass use Cellulosic ethanol Algae sources Fermentation Pyrolysis 21

Ethanol Innovation Fuels Sugar cane Distilleries Ethanol Urban Buses Operator Safe handling Ignition and lubricity Amplification in Biofuels use Fuel Distributors Trucks Ultrafluid ECO 22

Roadmap Biobased Building blocks Challenges: Who wins the game? Technology proof / Demonstration Economical feasibility Downstream Integration of new building blocks 23

Oxiteno: Models for development in house Initiatives for development Applied Research and product development Cooperation with Research Centers Fundamental and applied research Partnership for scaling up new technologies Technology development Opportunities for Industry and Academy Interaction To reinforce research in the chemistry of renewables, from fundamental to applied research; Development of chemical processes; To create scientific interest and Research groups for new technological approaches; People qualification 25

Innovation Process and important connections Fundamental Research Applied Research Technology Development (Pilot to full scale) Market Development Commercial scales Funding intensity Pre IPO Gap Special Policies Banks Government Industrial R&D Death valley Venture Capital Industry Academy Angel Source: Adapted from The funding gap 2012 Sustainable Development Technology Canada 26

Thank you! andre.conde@oxiteno.com