akzonobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · leading...

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AkzoNobel’s approach to lower its carbon footprint from energy use The Hague, November 2016 Remko Ybema

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Page 1: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

AkzoNobel’s approach to lower its carbon footprint from energy useThe Hague, November 2016

Remko Ybema

Page 2: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Agenda

1. Introduction to AkzoNobel

2. Sustainability

3. Energy consumption

4. Approach to lower our carbon footprint

5. Conclusions

Page 3: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Paints, coatings and specialty chemicals

3

Leading global paints and coatings company

and a major producer of specialty chemicals

Consistently ranked as one of the leaders

in the area of sustainability

Committed to our customers and society through our

brands and hands-on community projects

Passionate about innovation,

with 4,000 scientists at over 160 laboratories

Page 4: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

4

Our sustainability strategy

Sustainable

business

Resource

efficiency

Capable,

engaged people

Page 5: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Resource efficiency

25-30%more efficient resource and energy use across the entire

value chain by 2020 (measured by cradle to grave carbon

footprint reduction)

We’re increasing our resource efficiency across

the value chain, including our use of renewable

materials, to reduce our environmental footprint

and to create more value from fewer resources

5Company presentation | 2015

Page 6: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Although energy is no core business, it is core to our business

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• Total spend of € 0,7 billion (AkzoNobel 2015)

• Largest cost component in the chemical productionEnergy

• Diversifying our energy mix for steam

• Development of renewable electricity options i.e. wind

• Energy-efficiency

Carbon Footprint

• Dow Jones Sustainability Index (DSJI)

• Worldwide energy use is ~30% renewable

• Strategic aim 45% worldwide renewable energy use in 2020Sustainability

Page 7: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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Energy consumption AkzoNobel in 2015 by region

North America

Latin America

Asia

Netherlands

Germany

Denmark

Sweden

France

Rest of Europe

Page 8: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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Locations in the Netherlands with high energy use

1

2

3

Energy intensive sites NL# Site: Highly Energy

intensive

Products

1. Delfzijl Chlorine

Salt

2. Hengelo Salt

3. Rotterdam Chlorine

Page 9: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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Our path to sustainable energy started years ago…

• In operation

• Wood chip boiler

• On site operation

• Carbon free steam

• In operation

• Delfzijl and Hengelo

• New infrastructure

• Low carbon steam

• In operation

• Wind Sweden and

Finland

• Carbon free power

Biomass steam Mariager Vindin consortiumSteam from waste

Page 10: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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…and continues today…

• New steam source

• Under construction

• First delivery Dec. 2016

• Carbon free steam

• Solar panels and 100%

renewable energy

• In operation

• Carbon free energy

Biomass steam Delfzijl The wind consortiumNew office Amsterdam

• AkzoNobel, DSM,

Google, Philips

• Windpark Krammer

• Announed October 2016

• Carbon free energy

Page 11: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Level of energy integration increases Hengelo situation 2010

Salt production

CHP

steam

gas

Electricity

to grid

Page 12: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Level of energy integration increases Hengelo situation 2016

CHP

Twence

gas

Empyro

Salt production

ste

am

Electricity

to grid

Page 13: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Level of energy integration increases Hengelo situation 2020

CHP

Electricity

to grid

Twence

ste

am

gas

District heatingEmpyro

Salt production

Page 14: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

14Business unit | Footer

Key considerations:

– High level of reliability needs to be maintained

– Economic business case

– Sustainability business case: availability of

carbon free steam

Infrastructure for heat is decisive

Low carbon steam projects

Page 15: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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…what about tomorrow. This is our agenda!

Decarbonization of our

energy portfolio

Developing smart

flexible industry

Decarbonization of our

feedstock

Page 16: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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Regulatory framework and incentives

• Long term investment

certainty

• Incentives for renewable

feedstocks

Innovation

arrangements

Energy market reform

and ETS/carbon pricing

Renewable energy

Page 17: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

Conclusions

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AkzoNobel is taking steps to lower its carbon footprint by 25-30% in 2020

To achieve this we are active, take initiatives, and seek collaboration with other

organisations

More drastic reduction of our carbon footprint is needed and this requires adaptive

regulatory frameworks especially to decarbonize our feedstocks

Page 18: AkzoNobel’s approach to lower its carbon footprint from energy use · 2016-12-01 · Leading global paints and coatings company ... value chain by 2020 (measured by cradle to grave

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Questions ?

Remko Ybema

Manager External Affairs Energy

M +31 6 5123 3082

E [email protected]

AkzoNobel Industrial Chemicals B.V.

Christian Neefestraat 2

1077 WW Amsterdam

P.O. Box 75730

1070 AS Amsterdam

The Netherlands

www.akzonobel.com

Follow AkzoNobel online at

www.akzonobel.com/followus