An Introduction to the Chemistry Using Industries

Learning Outcomes

 To highlight how chemistry impacts on our everyday lives  To highlight the economic position of the U.K.’s chemistry using industries both at home, in the E.U and within the global economy  To highlight the current and future challenges which face the chemistry using industries  To show where chemistry research is making a difference to solve some of the global challenges which face this industry, contributing to the “

green economy”

Why is Chemistry Important?

Chemistry is an “enabling science” i.e. chemistry facilitates other sciences, research and manufacturing The chemicals industry is at the heart of manufacturing It converts raw materials (e.g. oil and gas) into a host of products and resources for use by both industrial and household consumers

Why is Chemistry Important?

Chemistry impacts on our everyday lives through:       Soaps, shampoos and detergents to keep us clean Disinfectants and pharmaceuticals to safeguard health Additives to foods to keep them fresher longer Paints to protect and extend the life of metal and timber Insulation materials to save energy in buildings The fuel we put in our cars Chemistry is all around us and is involved in everything we need, do and interact with in our everyday lives!

The History of the U.K. Chemistry Using Industries

The U.K. chemicals industry grew up using locally occurring resources such as salt, coal, limestone, vegetable matter and animal fats Today it is part of a global industry primarily using natural gas and oil fractions such as naphtha as its dominant raw materials

The U.K. Chemical Economy

 Chemicals and pharmaceuticals represent

12%

of total U.K. manufacturing output, equivalent to

1.5%

of GDP 8% - Rubber and plastic 8% - Mechanical Engineering 10% - Electrical and optical 4% - Glass, ceramics, etc.

15% - Food, beverages, etc.

12% - Transport equipment 11% - Metals 4% - Paper and printing  11% - Other

12% - Chemicals

Everyday the chemicals industry contributes

£70 million

to the U.K. economy

 The chemicals industry manufactures a diverse range of materials and products

  The chemicals industry in the U.K. invests over

£5 billion

in R&D –

one third

of the total U.K. R&D spend per year This investment in innovation drives sector growth  The U.K. (and E.U.) chemicals industry has shown continued output growth and has out performed other manufacturing businesses, especially in the current economic climate

  The chemicals industry is the U.K.’s

no. 1

manufacturing exporter The U.K. chemicals industry has maintained a surplus in trade  Every working day the U.K.’s chemicals industry adds

£30 million

to our country’s balance of trade. In the same period the rest of manufacturing achieved a

£300 million

daily loss!

 The jobs of

600,000

people in the U.K. depend upon the chemicals industry – these workers are highly skilled and earn on average

40%

more than employees in other areas of manufacturing

These facts demonstrate that the chemicals industry is at the heart of the U.K.’s economy

The Global Chemical Economy

 China was the biggest producer of chemicals in 2010  The U.K. made sales of approximately

€ 45 billion

in 2010

 Between 2000 – 2010, Asia and particularly China have dominated world chemicals sales taking over from the E.U. and North America  During this period, total global chemicals sales have

risen by 60%

 Asia’s dominance in the chemicals market is shown by the output of chemicals produced over the last 5 years  Note that all regions showed negative chemical production growth for 2008/9, but are recovering at present

 This trend can be explained by the significant investment in the chemicals industry that China has received in the last 10 years

 However the E.U. has continued to invest in it’s chemicals industry with the sector receiving the second highest manufacturing investment in 2007

 The U.K. contributed

9%

of the total E.U. chemicals sales in 2010   The total chemicals market value in the E.U. was

€ 491 billion

These sales cover a range of products, with 75% of the E.U. market made up of petrochemicals, polymers and specialities

 The E.U. dominates the world chemicals export market  The majority of these exports are to other E.U. countries

 Other important E.U. chemical trade partners are North America and Asia (inc. China and Japan)

Where does this leave the U.K. in the Global Market?

 Since the chemistry using industries are one of the largest manufacturing sectors in the U.K., it is positioned at the heart of the U.K.’s economy  Asia and China are now dominating the global chemicals market, lead by heavy investment over the last 10 years  The chemicals market is still very strong in the U.K.

 This is lead by strong chemicals exports mostly to other E.U. nations, North America and Asia

Current Challenges for the Chemistry Using Industries

Chemistry using industries convert energy & raw materials into useful products which impact upon our everyday lives

 

Energy

 The future price and availability of energy resources is a key issue The chemicals industry is one of the most energy intensive sectors It consumes

22% £4 billion

per year of U.K.’s total industrial use of energy at a cost of  It can represent up to

30%

of a businesses total costs

 

Supply of Raw Materials

 The future price and availability of the raw materials used in the manufacturing processes (i.e. gas and oil) is also a key issue Oil and gas supplies are beginning to run low Global competition through the new petrochemical capacity in the Middle East threatens the supply and availability of these raw materials at an affordable price  In addition, the supply of other resources (e.g. metals) is also drying up  This all impacts the future sustainability of the chemistry using industries

Climate change

 Being a highly energy intensive industry, the chemicals industry is in part contributing to the emission of greenhouse gases  This contribution is either direct through burning of raw materials (e.g. oil and gas) or indirect through the use of energy supply and transport of raw materials around the world   However, the industry was an ‘early starter’ in setting aggressive targets for efficiency and reduction of harmful emissions It is also a provider of solutions to this problem and is investing into R&D for many new products and processes aimed at cutting greenhouse gas emissions

Waste management and environmental impact

 For environmental and economic reasons industry strives for efficiency to minimise waste production and emissions into the environment i.e. the less waste you produce the less it costs get rid of/store

….There are many other issues and challenges facing the chemicals industry over the coming years – these are just a few examples….

These

challenges offer opportunities for innovation

to address and solve the key issues. Since chemistry is an enabling science, it is well placed to make a direct impact through investment, innovation and R&D

Where is Chemistry Making a Difference?

Saving energy and reducing environmental impact

 There has been a strong focus on maximising cost effective use of energy resulting in an improved energy efficiency of 2006 (

27%

for E.U. from 1990 – 2009)

35%

from 1990 –  The E.U. is a long way ahead of the U.S.A. on this issue

Reduced emission of greenhouse gases

  Being a highly energy intensive industry, the chemicals industry is contributing to the emission of greenhouse gases However, the industry was an ‘early starter’ in setting aggressive targets for efficiency and reduction of harmful emissions  Greenhouse gas emissions have fallen

49%

since 1990

Can chemistry offer further solutions to these problems?

 Chemistry is a provider of solutions  Since chemistry is an ‘enabling science’ it allows for the development of new processes and technologies to address these issues through R&D  The top products which achieve carbon savings are:  Improved building insulation materials   More efficient lighting Lightweight yet strong plastics for more fuel efficient modes of transport   Development of low-temperature detergents to save energy Improved fuel and engine efficiency….etc….

It has been estimated that for

each 1 unit of greenhouse gas which the chemistry using industry emits

in production processes, the resulting

new products save 2-3 units of greenhouse gas emission

This positions the chemistry using industries at the heart of the

‘green economy’

Conclusions

 Chemistry is an enabling science – it is all around us and is involved in everything we need, do and interact with in our everyday lives  The chemistry using industries are one of the largest manufacturing sectors in the U.K. making a varied range of products  This industry is positioned at the heart of the U.K.’s manufacturing economy  Asia and China are now dominating the global chemicals market, but the chemicals market is still very strong in the U.K. lead by strong exports  There are many challenges which face the chemistry using industries, however this industry is making a difference and is key to the U.K.’s

‘Green Economy’

References & Further Reading

Chemical Industries Association

  www.cia.org.uk

Chemical and Pharmaceutical Businesses in the UK, Our Campaigns, Sept. 2010  Annual Review, 2009

CEFIC – The European Chemical Industry Council

 www.cefic.org



Facts and Figures 2011 – The European chemical industry in a worldwide perspective

Authors

Dr. Trevor Farren, Dr. Simon Mosey, Dr. William Drewe & Prof. Barry Stickings

Organisation

School of Chemistry, University of Nottingham, U.K.

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