Chemical Industry Needs New Methods to Go Green
09-02-2024
The Netherlands has an international reputation to uphold in chemical manufacturing. However, to remain at the forefront, it will need to become greener. Technically, this means adopting circular processes and bio-based materials. But how do we get there? "Collaboration" is at the heart of the eight approaches identified by TNO Vector as potential keys to success. "It’s not a recipe book yet, but rather a bucket list," says lead author Tamara Oukes.
“The chemical sector has only been working on this for about five years,” notes Oukes. “At the same time, it is crucial to 'go green'. The manufacturing chemical industry must meet high environmental and climate demands in the coming decades to maintain its 'license to operate.'”
Different Mindset
This highlights the necessity of the report 'Emergence of Green Manufacturing Chemistry.' “Old linear processes can still be managed well individually by companies. However, circular processes require collaboration with other stakeholders: other companies, suppliers, customers, financiers, knowledge institutions, and governments. This demands a different mindset, which is new and does not happen automatically.”
For the report, TNO Vector asked seven experts from businesses, knowledge institutions, and governments in the field of circular and biobased manufacturing chemistry: ‘What are emerging practices for creating successful sustainable value chains?’ The practices have been unraveled per party and across different themes such as globalization, legislation and regulation, partnerships, and financing. Additionally, the report provides several good practice examples.
Eight Practices
In conclusion, the researchers identified eight practices important for all parties:
- Balance: create a balance between demand, production, and supply.
- Collaboration: orchestrate cooperation between parties.
- Globalization: map the global playing field of manufacturing chemistry.
- Scaling: scale through large-scale cooperation projects.
- Conflict resolution: resolve mutual interest conflicts.
- Goal orientation: centralize a common goal.
- Clustering: collaborate within chemical clusters.
- Business model: develop a joint business model.
Oukes: “There are still things that a company can continue to do individually. However, cooperation is central to these overarching practices. This is not easy, as there is a significant tension between the individual interests of stakeholders and the collective interest—namely, to green and close value loops. Knowledge sharing between companies, with financiers, knowledge institutions, and governments is necessary. Patents and the ‘not invented here’ syndrome can pose significant barriers.”
Collaborative Business Model
Oukes sees a driving role primarily for new, relatively small entrepreneurs developing and bringing green innovations to market.
“New entrepreneurs cannot grow without partners. They particularly benefit from collaborative business models, or joint plans. We also need established companies. They have already invested heavily in their position, strive to maintain that, but simultaneously possess the resources and capabilities to further develop green initiatives. This is also true abroad, but fortunately, we can negotiate well in the Netherlands.”
At the same time, there are risks in such new 'communities,' according to Oukes: “Because collaboration raises the question: who is the owner of the problem, who leads the process? That question must not remain unresolved. I see a role for coordinating organizations like Green Chemistry New Economy (GCNE), for whom we prepared this report.”
Creating Demand
To close 'value loops', Oukes sees a significant challenge in creating demand for green plastics and other products from process chemistry. “The difficulty remains that the price of a circular, biobased product is often higher, and the quality is adequate but sometimes not as good as it once was. We will need to further develop these markets. I also see an important role for governments here. They often underestimate their importance as buyers.”
Starting Point
What do industry, governments, and financiers gain from the eight practices? “It will not be a checklist for the average Business Development Manager of a chemical company,” the TNO researcher acknowledges.
Success is not guaranteed. “There might even be some obvious points, but not all of them are universally recognized. The overview is also not exhaustive; it provides an important starting point. Changes in chemistry occur slowly because production line depreciation periods, which can sometimes last twenty years, must be considered. The tips are already practically usable on a micro scale.”
For the manufacturing chemistry sector, this serves as a starting point, an inspiration. For us, it is the beginning of further research, workshops, and discussions with stakeholders. In this way, we elevate manufacturing chemistry to a higher green level.”
This is an article from TNO Vector. The report can be downloaded here.