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Asahi Kasei and Honda Form Joint Venture in Canada

CID Editorial Team
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Asahi Kasei and Honda Form Joint Venture in Canada

New Partnership Focused on Battery Separators

Asahi Kasei and Honda Motor Co. finalized an agreement to create a joint venture in Canada. The venture will involve converting Asahi Kasei’s subsidiary, E-Materials Canada Corporation, into a collaborative business. The new entity, tentatively named Asahi Kasei and Honda Battery Separator Corporation, will focus on producing lithium-ion battery separators. These components are crucial for electric vehicle (EV) batteries.

Honda’s Investment and Partnership Details

Honda will acquire a 25% stake in E-Materials through a third-party share allotment. The company will invest C$417 million (approximately US$300 million) in the venture. Asahi Kasei and Honda collaboration will combine Asahi Kasei’s material technology expertise with Honda’s electrification efforts. The aim is to enhance battery durability and performance, supporting Honda’s EV production.

Expected Launch and Regulatory Process

The joint venture plans to begin operations in early 2025. This timeline is subject to regulatory approval. The new business will support Honda’s strategy to establish an EV supply chain in North America. This is a crucial part of Honda’s goal to achieve carbon neutrality by 2050.

Key Leaders and Industry Impact

Ryu Taniguchi, President of Asahi Kasei Battery Separator Corporation, emphasized the importance of this partnership. He stated that the venture will leverage both companies’ technological strengths. This collaboration aims to enhance North America’s battery separator supply and support sustainable EV production.

Contribution to Honda’s Electrification Strategy

This move aligns with Honda’s long-term electrification goals. The joint venture will strengthen the EV battery material supply chain and foster innovation. The stable supply of high-quality separators will aid in the region’s energy transition and support the growing EV market.

LanzaTech Plans Carbon Recycling Facility in Norway

CID Editorial Team
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LanzaTech Plans Carbon Recycling Facility in Norway

LanzaTech Global, Inc. announced plans to build a commercial-scale Carbon Capture and Utilization (CCU) facility. The plant will be located at Herøya Industrial Park in Porsgrunn, Norway. It will produce ethanol and is expected to begin operations in 2028.

Collaboration with Eramet

Eramet will supply furnace gas from its Porsgrunn Manganese Alloys smelter to the facility. However, Eramet will not finance the project. Both companies aim to enhance emissions reductions by integrating Carbon Capture and Storage (CCS) technology in a second phase, pending feasibility studies.

Innovative Carbon Management Solutions

The integrated facility will combine LanzaTech’s CCU technology with CCS. This combination is expected to deliver significant carbon abatement metrics. The new plant at Herøya will complement LanzaTech’s six existing commercial plants that utilize similar carbon recycling technology.

Engineering and Design Support

LanzaTech has completed the Front-end Engineering Design (FEED) phase in partnership with Fluor Corporation. Fluor brings extensive expertise in project scope, ensuring a baseline plant design that can be replicated globally. The project also receives support from Sweco Group for sustainability expertise.

Financing and Production Capacity

Brookfield Asset Management will have the right of first refusal for financing and ownership. A Final Investment Decision (FID) is expected within the next six months. The facility will produce up to 24 kilotons of fuel-grade ethanol annually.

Expanding Market Demand

LanzaTech’s ethanol will serve various markets, including sustainable aviation fuel and chemicals. The company plans to market the produced ethanol through existing and new sales channels.

Contribution to Decarbonization Goals

Eramet’s Porsgrunn smelter has two closed furnaces that produce manganese alloys. Manganese smelting is considered hard to abate, as carbon is essential for reducing manganese ore. Eramet aims to reduce its scope 1 and 2 emissions by 40% by 2035.

Community Impact and Job Creation

The collaboration will create new jobs in the Grenland industrial region and enhance the local community’s reputation for innovation. Dr. Jennifer Holmgren, CEO of LanzaTech, emphasized the importance of responsibly managing carbon resources.

Future Prospects

As per the press release, Geoff Streeton, Chief Development Officer at Eramet, expressed enthusiasm for this pioneering decarbonization project. He noted that the combined CCU and CCS projects could reduce Eramet’s CO2 emissions by approximately 200 kilotons. This initiative supports Eramet’s goal of producing zero CO2 manganese alloys, advancing the decarbonization of the steel value chain.

Rely Bags Contract from AM Green for Ammonia Complex in Kakinada

CID Editorial Team
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Rely Bags Contract from AM Green for Ammonia Complex in Kakinada

Rely has bags an EPC contract from AM Green India Pvt Ltd for its Green Ammonia Complex. This facility, located in Kakinada, Andhra Pradesh, will produce 2 x 1500 tons per day (TPD) of green ammonia. The project reached its final investment decision (FID) in August 2024.

Project Overview

The complex will include 2 x 640 MW Pressured Alkaline Electrolysers for green hydrogen production. This makes it one of the largest green hydrogen facilities in execution. The project will convert an existing grey ammonia facility, previously known as NFCL, to a green ammonia facility.

Strategic Location and Production Goals

Situated at the Kakinada seaport on India’s east coast, the facility aims to produce 1 million tons per annum (Mtpa) of RED3 RFNBO compliant green ammonia. Most of this production will be exported to the European market. The facility will utilize carbon-free power generated from wind, solar, and a pumped hydro storage system.

Certification and Services

The project has received CertifHY pre-certification for green ammonia, making it the first of its kind in India. Rely will provide design, engineering, procurement, construction management, and commissioning services for the facility. This includes electrolyzers for green hydrogen production, nitrogen air separation units, two ammonia synthesis trains, ammonia storage, and loading facilities.

Technical Collaboration

John Cockerill Hydrogen will supply the Pressured Alkaline Electrolysers. The execution will leverage the long-standing track record of Rely’s parent companies, Technip Energies and John Cockerill, in India.

Future Expansion Plans

As reported by hydrogen-central.com, in addition to the Kakinada project, AM Green plans to produce green ammonia at multiple sites across India. The goal is to achieve a total capacity of 5 MTPA by 2030. This initiative is expected to accelerate India’s net-zero targets and contribute to OECD markets.

It will also account for about 1 MTPA of green hydrogen, which represents 20% of India’s National Green Hydrogen Mission and 10% of Europe’s 2030 hydrogen import targets.

Leadership Insights

Rely CEO Damien Eyriès stated, “We are honored to be selected by AM Green for this flagship project. It will significantly aid decarbonization in hard-to-abate industries.” He emphasized that this award marks a major milestone for Rely, just a year after its establishment.

AM Green Group President Mahesh Kolli added, “We are excited to partner with Rely. Their technical expertise will enhance our capabilities in transforming our facility.” He noted that this collaboration positions AM Green as a leader in the energy transition and supports India’s green hydrogen mission.

Grace Announces Launch of Polypropylene Plant by Nayara Energy

CID Editorial Team
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Grace Announces Launch of Polypropylene Plant by Nayara Energy

Nayara Energy’s New Polypropylene Plant in Gujarat

W.R. Grace & Co. (Grace), based in Columbia, Md., announced that Nayara Energy Limited successfully started its new 4,50,000-ton/yr UNIPOL PP technology plant. The plant, located in Vadinar, Gujarat, marks Nayara Energy’s significant step into the polypropylene (PP) market.

Use of Advanced Catalysts and Control Software

Nayara Energy uses Grace’s non-phthalate CONSISTA catalysts with the UNIPOL PP technology. This enables the production of PP grades for pharmaceutical, health, and hygiene applications. The company also relies on Grace’s UNIPOL UNIPPAC process control software for efficient plant operations.

Nayara Energy’s Leadership Perspective

Sergey Denisov, Chief Development Officer at Nayara Energy, said, “We are pleased to work with Grace for our first PP unit. This is a key milestone in our growth. We aim to produce high-quality, non-phthalate homopolymer, random copolymer, and impact copolymer PP for both domestic and international markets”.

Strategic Focus on Petrochemical Growth

CEO Alessandro des Dorides added, “India’s petrochemical industry is growing fast. Demand for innovative products is increasing. We aim to set new quality benchmarks through strong partnerships. Our goal is to capture 8% of the market and support India’s energy security”.

Grace’s Support for Nayara’s Expansion

Thomas Deman, President of Specialty Catalysts, Supply Chain, and Procurement at Grace, mentioned, “We are proud to support Nayara Energy’s growth with our technology, catalysts, and process control software. This combination optimizes reactor performance and helps meet the growing demand for PP”.

Grace’s Global Reach in Polypropylene Technology

As reported by chemengonline.com, Grace holds more than thirty-four million tons of licensed global production capacity, with over 5,000 KTA in India. High-performance PP resins made with UNIPOL PP technology are widely used in automotive, packaging, and consumer products.

Indorama Ventures and Partners Launch World’s First Bio-PET Bottles

CID Editorial Team
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Indorama Ventures and Partners Launch World’s First Bio-PET Bottles

Introduction to the Collaboration

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, has partnered with Suntory, ENEOS Corporation, Mitsubishi Corporation, Iwatani, and Neste. Together, they will launch the world’s first commercial bio-PET bottles using ISCC+ certified bio-paraxylene.

Sustainable Packaging Innovation

This collaboration is a milestone for sustainable packaging. The new PET bottles are made from used cooking oil, helping reduce CO2 emissions. Suntory will start using these bio-PET bottles for selected products in Japan from November. The plan includes producing 45 million bottles, with potential expansion in the future.

Combined Expertise for Success

Each partner contributes unique strengths to the project. Indorama Ventures, the world’s largest PET producer and recycler, played a vital role. It processed bio-paraxylene to create terephthalic acid, which it reacted with monoethylene glycol to produce PET resin.

A Unified Vision for Sustainability

Yash Lohia, Executive President of Petchem Special Projects and Chairman of IVL’s ESG Council, highlighted the shared vision of the partners. He said, “This collaboration shows our collective commitment to a sustainable future. We are proud to work with industry leaders to bring change and see these bottles on shelves as high-quality Suntory products.”

Conclusion

This initiative demonstrates the power of cross-industry collaboration to address global sustainability challenges and transform the packaging industry.

Looming Crisis for India’s Pharma Sector Due to New GMP Regulations

CID Editorial Team
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Looming Crisis for India’s Pharma Sector Due to New GMP Regulations

A significant portion of India’s pharmaceutical manufacturing sector faces a severe crisis as stricter Good Manufacturing Practices (GMP) regulations are set to take effect by year-end. Industry experts warn that about 40% of small and medium-sized pharmaceutical units may shut down when these rules become mandatory for companies with annual revenue below Rs. 250 crore.

Thousands of MSMEs at Risk

Out of India’s 10,500 pharmaceutical manufacturing units, more than 8,000 are classified as medium, small, and micro enterprises (MSMEs). A senior pharmaceutical association executive noted that some facilities have already stopped operations. They anticipate that complying with the new standards would be financially unfeasible.

Plea for Extension

Industry associations have asked for an extension to the deadline, but the government has not yet announced a decision. Viranchi Shah, National President of the Indian Drugs Manufacturers Association (IDMA), confirmed that the Central Drugs Standard Control Organisation (CDSCO) is reviewing the timeline after presentations from stakeholders.

Upgrades Pose Financial Challenges

The government revised GMP regulations earlier this year to align Indian manufacturing with global standards and integrate modern technology. However, smaller manufacturers face significant financial and technical challenges. Jatish Sheth, Secretary General of the Confederation of Indian Pharmaceutical Industry (CIPI), requested a one- to two-year extension. He emphasized the need for substantial infrastructure and system upgrades.

Key Hurdles for Compliance

Industry experts point out two main challenges: the high investment needed for upgrading manufacturing and testing facilities and the extensive documentation required for traceability. The sector also struggles with staffing shortages, compounded by a high attrition rate of 25-30%.

Training and Support Initiatives

Industry associations and government bodies are collaborating to help MSMEs comply with the new regulations. The CDSCO and IDMA are conducting educational sessions in major pharmaceutical hubs like Hyderabad, Indore, Baddi, and Daman.

Financial Support Delays

The government launched the revamped pharmaceuticals technology upgradation assistance scheme (RPTUAS), which offers up to rupees two crore per manufacturer. However, the disbursement of funds has been slower than expected.

Government’s Stance on Extensions

As reported by knnindia.co.in, experts suggest the government hesitates to extend the deadline due to concerns over supporting manufacturers unwilling to upgrade. However, it is considering companies that show commitment but lack immediate resources to comply.

Linde to Supply Industrial Gases to Tata Steel

CID Editorial Team
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Linde to Supply Industrial Gases to Tata Steel

Linde signed agreement with Tata Steel Limited in Odisha, India to de-captivate two air separation units (ASUs) and expand its existing supply of industrial gases.

Linde supplies industrial gases from its existing two on-site plants to Tata Steel’s iron and steel making facility at the Kalinganagar Industrial Complex. It will now acquire two additional large ASUs, more than doubling its on-site capacity.

Both ASUs are currently under construction and the transfer of the plants is expected to take place in 2025. Linde has also signed a long-term agreement with Tata Steel for the supply of oxygen, nitrogen and argon to support the customer’s major capacity expansion project.

As per the press release, in addition to supplying Tata Steel, the new ASUs will meet the demand for industrial gases from the local merchant market. Linde has signed agreements for the supply of renewable energy to the plant, reducing Scope 2 emissions in line with Linde’s 2035 absolute GHG emissions reduction target.

“The new agreements to support Tata Steel’s major capacity expansion build on our existing long-term relationship and further strengthen our position as a supplier of critical industrial gases to the steel industry,” said Moloy Banerjee, President ASEAN & South Asia, Linde.

Banerjee added, “The project meets our strict investment criteria and will deliver sustainable growth for Linde while enhancing our network density in one of India’s most important and fast-growing industrial gas clusters”.

Energy Efficient Manufacturing – Why This Is Important

V. Raju
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Energy Efficient Manufacturing – Why This Is Important

Abstract

This article explores energy efficiency in manufacturing as a vital strategy for reducing costs and environmental impact, highlighting technologies and practices that optimize energy use and enhance sustainability.

Introduction

In an era where climate change is a pressing concern and energy costs are on the rise, energy efficiency in the industrial sector emerges as a critical solution. Industries such as semiconductors, steel, ceramics, and paper are particularly affected by soaring energy prices, which escalate operational expenses and challenge profitability. Energy efficiency, often referred to as the “fifth fuel” alongside coal, gas, nuclear, and renewables, offers a pathway to not only mitigate these costs but also significantly reduce carbon emissions. By optimizing energy use, manufacturers can achieve economic viability while simultaneously addressing environmental responsibilities. This article delves into the various strategies and technologies available to enhance energy efficiency in manufacturing, highlighting the benefits of implementing Energy Management Systems (EMS), leveraging digitalization, and integrating advanced technologies. As organizations navigate the complexities of energy consumption, understanding these practices will empower engineers and manufacturers to contribute to a more sustainable and cost-effective future.

Energy Efficiency

Energy efficiency in the industrial sector has a vital role in reducing fossil fuel utilisation and tackling climate change. Soaring energy costs are leading to a surge in operational expenses, especially in energy-intensive industries like semiconductors, steel, ceramic, and paper. Energy efficiency, considered the fifth fuel after coal, gas, nuclear, and renewables, is the key to keeping energy demands economically and environmentally prudent in manufacturing and the fastest and least expensive way to reduce a plant’s carbon footprint. Let’s have a look at the ways to achieve energy efficiency in manufacturing.Energy Management System (EMS) is a solution to visualise, monitor, and analyse energy consumption. EMSs, with AI and IoT, collect and analyse real-time energy data. With an EMS, the dynamic utilisation of plant machinery can be compared against defined target utilisation to identify deviations, allowing optimisation of operations for energy efficiency. Machines are made up of various energy-consuming parts. These parts generate unique energy profiles when they are in operation. An EMS enables the analysis of energy profiles for variable production levels, generating detailed information about energy consumption to identify problems. ML-based predictive analytics can analyse vast volumes of load, generation, and energy storage data.

Digitalisation

The digitalisation of the plant floor can significantly impact energy efficiency. With IoT and AI, proactive equipment fault detection and diagnosis is possible. Digital technologies provide real-time monitoring of manufacturing machines and processes, analyse system behaviour, detect new fault types, and predict failures based on historical and real-time data. AI-enabled proactive and effective maintenance optimises machine configuration and minimises energy consumption. It also prevents breakdowns and, consequently, avoids energy-intensive restarts. There is considerable room for improving energy efficiency in temperature management for production processes through digitalisation. When temperatures are extreme, even slight variations greatly affect energy utilisation and product quality. Digital technologies can improve energy efficiency through real-time monitoring, effective maintenance management, and optimisation of the manufacturing environment and process through intelligent analytics. With digitalisation in manufacturing, energy efficiency can be genuinely regarded as the fifth fuel. Energy efficiency manufacturing is the practice of using less energy to produce the same amount of goods. This involves optimizing production processes, upgrading equipment, and implementing energy-saving technologies.

Cost Benefit

By reducing energy consumption, manufacturers can lower costs, minimize environmental impact, and improve overall efficiency. This involves integrating advanced technologies, improving process management, and adopting best practices that reduce energy waste. Imagine a factory that produces goods using machinery and equipment. By implementing energy-efficient technologies, such as high-efficiency motors, LED lighting, and automated control systems, the factory can reduce its energy consumption significantly. Additionally, process optimization techniques, like adjusting production schedules to avoid peak energy usage times, contribute to overall energy savings. Energy efficiency manufacturing is not just about cutting costs; it also plays a vital role in reducing the carbon footprint of industrial operations. By using less energy, factories can decrease greenhouse gas emissions, contributing to environmental sustainability.

The benefits of energy efficiency in manufacturing are numerous and impactful, affecting both the bottom line and the environment

  •  Cost Savings: One of the most significant advantages is cost savings. By reducing energy consumption, manufacturers can lower their utility bills, which can be a substantial part of operating expenses. These savings can be reinvested into the business, driving further improvements and innovation.
  • Environmental Impact: Energy efficiency contributes to a reduction in greenhouse gas emissions, helping combat climate change. By using less energy, manufacturers can minimize their carbon footprint and promote sustainable practices.
  • Enhanced Competitiveness: Energy-efficient practices can enhance a company’s competitiveness. Lower energy costs mean lower production costs, which can translate into lower prices for customers or higher profit margins. Additionally, companies committed to sustainability can attract environmentally conscious consumers and investors.
  • Improved Operational Efficiency: Implementing energy-efficient technologies often leads to improved operational efficiency. Modern equipment and optimized processes reduce downtime, enhance productivity, and extend the lifespan of machinery.
  • Regulatory Compliance: Adhering to energy efficiency standards helps companies comply with regulations and avoid potential fines. Many regions have stringent energy regulations, and being proactive in energy management can ensure compliance and avoid legal issues.

Several key techniques and technologies are essential for achieving energy efficiency in manufacturing

  •  High-Efficiency Motors: Replacing old, inefficient motors with high-efficiency models can lead to significant energy savings. These motors use less power to perform the same tasks, reducing energy consumption without compromising performance.
  • LED Lighting: Switching to LED lighting is a simple yet effective way to reduce energy usage. LEDs consume less power and have a longer lifespan compared to traditional lighting options, resulting in lower energy bills and maintenance costs.
  • Variable Frequency Drives (VFDs): VFDs adjust the speed of motors to match the actual demand, preventing energy waste. By optimizing motor speed, VFDs can significantly reduce energy consumption, especially in processes with varying load requirements.
  • Energy Management Systems (EMS): EMS monitor, control, and optimize energy usage throughout the manufacturing process. These systems provide real-time data on energy consumption, helping identify areas for improvement and ensuring efficient energy use.
  • Process Optimization: Optimizing manufacturing processes can lead to substantial energy savings. Techniques such as lean manufacturing, which focuses on minimizing waste, and just-in-time production, which reduces excess inventory, contribute to energy efficiency.
  • Renewable Energy Integration: Integrating renewable energy sources, such as solar or wind power, into manufacturing operations can further enhance energy efficiency. On-site renewable energy generation reduces reliance on external energy sources and promotes sustainability.

Conclusion

In conclusion, energy efficiency in manufacturing is a critical strategy for reducing operational costs, minimizing environmental impact, and enhancing overall productivity. For newly joined engineers, understanding and implementing energy-efficient practices is essential for contributing to the success and sustainability of their organizations. By leveraging advanced technologies, optimizing processes, and adopting best practices, manufacturers can achieve significant energy savings and operational improvements. Real-world examples from industry leaders like General Motors, Siemens, Toyota, and Coca-Cola demonstrate the tangible benefits of energy efficiency initiatives.

“Covestro upbeat on India’s market potential in high performance coatings” – Thomas Roemer, Global Head of Coatings & Adhesives Business

Thomas Roemer
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“Covestro upbeat on India’s market potential in high performance coatings” – Thomas Roemer, Global Head of Coatings & Adhesives Business

On his recent visit to India to attend the inauguration of Covestro’s new trimer facility at Ankleshwar, Chemical Industry Digest, caught up with him and had interesting discussions on the prospects of growth of Covestro in India, particularly the scope and future of the market for coatings and adhesives using primary ingredients that Covestro produces.

Excerpts from this interview are reproduced here

Chemical Industry Digest (CID): How did the inauguration of your new facility at Ankleshwar go? Could you give us more details on what it will be producing?

Thomas Roemer (TR): The inauguration of our new trimer manufacturing facility at Ankleshwar went very well. Our team worked hard to set it up in a record time overcoming many challenges once we decided in 2022 to go for it. As you may know the Ankleshwar site was part of Bayer before Covestro took over, where they were producing products for crop science. We introduced many changes including the manufacture of TDI derivatives. Then we foresaw the amazing growth potential in India for trimers and that’s how we decided to put a plant for trimers in Ankleshwar. This is in line with the Indian government’s ‘Make In India’ policy. This facility will serve both the Indian and overseas markets.

CID: Could you please give detail of your other facilities and products manufacturing in India?

TR: Covestro has three production centers in India. In Greater Noida, we produce polycarbonate compounds. We have the thermoplastic polyurethanes (TPU) manufactur­ing in Cuddalore and in Ankleshwar raw materials for coatings are produced. We also have a strategic market development centre (SMDC) in Mumbai for coatings and adhe­sives, a color competence & design center for Polycarbonate and a Polyurethane system house in Noida. We are a customer centric company, to be closest to our customers so that we understand our customers’ needs and challenges. Then in our SMDC we develop solutions that exactly meet our customers’ requirements. So, all these facilities help us in demonstrating the product capa­bilities needed by our customers.

CID: In 2021 you had acquired the resins and functional mate­rials business (RFM) from DSM. Do you have plans for more such acquisitions?

TR: The acquisition of the RFM business was the largest acquisition of Covestro. We were historically strong in the PU arena. This DSM-RFM acquisition has brought in more know-how in acrylics. We are still in the process of evaluating and understanding the vast potential this acquisition has brought to us. We are studying this from our cus­tomers’ perspective in terms of the additional solu­tions we can provide. And very recently, Covestro signs an Investment Agreement with Abu Dhabi National Oil Company, who has voiced its interest to acquire a majority in Covestro.

CID: How do you see the overall growth and opportunities for coatings and adhesives in India?

TR: I find that the potential for growth for coatings as well as adhesives in India is tremendous consider­ing that the per capita consumption of each is far be­low the figures for developed countries. With India’s GDP growth steadily going up, the growth potential is simply fascinating. Our products are most suited to the needs of various sectors. We produce high quality PU raw materials and acrylic raw materials for high performance coatings that provide many functional benefits such as weatherability, durability, scratch resistance and aesthetics. The PU penetration in the paint industry in India is only 5% compared to the 20% and more in Western Europe and the US. So, if paint consumption goes up in India, our addressable market will be even faster growing, up to a tenfold increase in the near future. There are few other countries in the world where we see the potential of such growth.

CID: In terms of market segments, which are the most promising areas of growth in India and where do you see newer opportunities arising?

TR: In India our products find lot of applications in the mobility field including the automotive sector. Another very prospective area of growth, fast coming up is in the huge infrastructure area of construction involving roads, flyovers bridges, airports etc. Here I feel the use of polyurethane based products should go up. Take airports for instance, our Polyaspartic PU system can provide both protection and beautification as they provide both weather resistance as well as aesthetics. Most of these constructions use a lot of steel which also need coatings for protection. Another developing area is in furniture and wood working.

While all these areas are prospective, the fastest growth I would presume would be the mobility sector. PU based coatings can be used to paint and protect train compartments. These should not be solvent based as they release VOCs which are harmful. This is where we come in as our products are water based and thus environment friendly.
Another area is in packaging where it is enough to use monolayer films employing our PU based adhesive , which have good barrier properties. Also more brand owners are looking for the coated paper packaging solution to ensure the limits using of “plastic material “ which could enable the mechanical recycling whenever possible.

CID: We understand that high performance adhesives can also do metal to metal bonding avoiding welding or use of nut and bolts? Could you comment on such developments?

TR: Yes, metal to metal bonding is a very specialized area where high performance adhesives play a role. It all depends on what the specific use is for, whether it is metal to same metal or to different metal and whether the need for welding or bolts need to be avoided. There are also applications for adhesives for metal to rubber or metal to textiles or other surfaces where solutions based on our products are effective. There are other applications also for high perfor­mance adhesives like for shoes, particularly sports shoes, for flexibility and water resistance.

CID: What are the main directions of your technology develop­ment and R&D?

TR: There are always continuous efforts going on in R&D for enhancing the performance of our coatings and adhesives. This is an ongoing process. More im­portantly, efforts are on to become fully circular and sustainable in our processes and products. For example, we are ensuring that in packaging, our products enable better recyclability. For example, by using our adhesives for flexible film packaging, it can easily debond thus to enable the recyclability.

Meanwhile, there is a strong push for mono-material solutions in flexible packaging & paper packaging. Covestro could offer water-based barrier coating solutions in paper packaging to enable the recyclability. We also offer a board solution of primer, top coat , functional coating in flexible packaging for mono-material flexibles. Then what I mentioned ear­lier using water based PU coatings in train compart­ments and elsewhere enables sustainability avoiding generation of harmful VOCs.

To be fully circular, we are shifting to biobased content in our raw materials and here we are making big strides. Our DSM-RFM acquisition is also helping in this transition, with the Decovery® product line, containing high bio-based content. We are trying to replace fossil based raw materials with bio based ingredients and we trademark it as CQ for circular product. There is encouraging response from the market towards our bio based products and we will be moving faster in this direction. However, at this point of time, these bio based products come with additional cost and so we need both regulatory support as well as customer awareness and cooperation to take this forward faster.

CID: How are some of today’s major drivers: sustainability, circularity, energy transitions impacting your business? What initiatives have you taken to reduce the carbon footprint in your manufacturing?

TR: Covestro products are huge enablers for sustainability and recyclability. If you take polycarbon-ates which is another major area for Covestro, for instance it is easier to get an automotive headlamp made of polycarbonate, mechanically recycled as it is a thermoplastic material, whereas recycling is challenging for thermosets.

Our adhesives solutions are good for bonding as well as debonding. That’s why, I mentioned how our adhesives solutions promote monolayer film packaging that enables better recycling than multilayer pack-aging.

I can also state confidently that without Covestro products, coatings and adhesives which are enablers in energy transition, whether for solar or wind based electricity production, it would not be possible to get the performance and yield that are currently achieved. We are witnessing a huge market for us for such renewable energy projects in China where huge production of solar and wind energy products are taking place. I know that India also wants to develop, not only green hydrogen, but also solar in a big way and so Covestro will be happy to contribute in these areas in India. The other point mentioned earlier is in replacing fossil-based building blocks in our raw materials with bio based building blocks. In PU, we have already starting using bio-based building blocks like benzene.We are transiting to using more and more alternative raw materials with an ever-lower carbon footprint in our products.

Covestro has also given itself very strict timelines to move towards carbon neutrality. We want our operations (meaning scope 1 and 2) to be carbon neutral by 2035, and reduce our scope 3 greenhouse gas emissions to net zero tons of CO2 by 2050.”

One of the major shifts taking place is in us­ing green source of power (electricity) or green en­ergy. We have a couple of sites globally which are 100% based on green power. Covestro is sourcing green hydrogen and green am­monia. If India comes up with competitively priced green hydrogen/ ammonia, Covestro will be very much interested in purchasing from India as in our energy intensive industry we can reduce the carbon footprint in our manufacturing.

CID: How is your company deploying digital technologies such llOT, AI etc and integrating it with your business processes?

TR: Though I am not an expert here, I know that in our production we employ digital technologies particularly for predictive maintenance. We have also employed this in making smart laboratories which are fully digitalized. We have one of the most advanced digitalized laboratories in Leverkusen, Germany. The output from here is simply amazing. We are also training 100 experts, for AI for a variety of functions in various departments, in house. Here too, Covestro will ensure that we are ahead.

CID: So how do you look to the future growth, geographically in which regions and particularly in India?

TR: The trend today is that two thirds of chemical demand currently is in Asia and therefore, we see our future in Asia. Our strategy is to be as local as possible in the markets we are in. India with 1.4 billion people will be a huge growth market and we are strategizing on how to cater and be part of this growth in India. We are here to stay and grow.

Chemingineering – Certifying Hydrogen’s Greenness

K Sahasranaman
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Chemingineering – Certifying Hydrogen’s Greenness

Green hydrogen is set to become a cornerstone of the global energy transition, but the industry must be rigorously regulated to ensure that hydrogen production is truly green. A certifying agency, either at the national or global level, will be crucial for ensuring that the electricity powering electrolysers comes from renewable sources and for overseeing the cross-border trade of hydrogen.

Certifying Hydrogen’s Greenness

green hydrogen is rapidly gaining traction as a critical tool for decarbonising various sectors of the global economy. Produced through electrolysis, where water is split into hydrogen and oxygen using electricity, hydrogen is considered “green” only if the electricity used in the process comes from renewable energy sources like wind, solar, or hydropower. This distinction is crucial because hydrogen can also be produced using fossil fuels, which does not align with global climate goals.

Green Certification

The push for green hydrogen comes as industries and governments worldwide face increasing pressure to reduce greenhouse gas emissions in line with international climate agreements. With countries committing to net-zero emissions targets and transitioning away from fossil fuels, green hydrogen is expected to play a key role in sectors like transportation, heavy industry, and energy storage.

As this nascent industry grows, several questions arise around regulation and certification to ensure that the hydrogen being produced is genuinely “green.” Key issues include how to verify that the electricity powering electrolysers comes from renewable sources and whether an international certifying agency is needed to oversee the cross-border trade of green hydrogen.

Certification Challenges

One of the biggest regulatory challenges is ensuring that hydrogen produced through electrolysis qualifies as “green.” Simply put, for hydrogen to be labelled green, the electricity used must come exclusively from renewable energy sources. However, verifying this on a large scale and across different regions can be complex. This challenge is compounded by varying definitions of renewable energy and green hydrogen across countries.

Moreover, hydrogen production facilities often connect to national grids, where electricity from multiple sources (renewable and non-renewable) is pooled. Unless these facilities are directly connected to renewable energy sources like wind farms or solar panels, ensuring that the electricity used is green becomes difficult. Electrolysers connected to the national grid may draw from non-renewable sources during periods of low renewable energy supply, complicating the process of certifying hydrogen as green.

Certifying Agencies

Given these challenges, establishing a certifying agency to oversee the production and trade of green hydrogen is crucial. Such an agency would be responsible for establishing standards, tracking and verification, certification and cross-border trade.

The certifying agency must set clear and universally accepted standards for what qualifies as green hydrogen. These standards would define the acceptable sources of renewable electricity, the percentage of renewable energy required, and the emissions associated with hydrogen production.

The agency must develop robust systems for tracking the source of electricity used in electrolysers. This could involve real-time monitoring of energy inputs and the creation of traceability systems, such as renewable energy certificates (RECs), to verify the origin of the electricity.

Hydrogen producers must be certified to demonstrate that their production processes meet green hydrogen standards. The certifying agency would issue certificates or labels to hydrogen producers whose operations comply with the established criteria.

With hydrogen expected to become a globally traded commodity, the certifying agency would need to regulate the cross-border trade of green hydrogen. This would require harmonising regulations across different countries and creating systems to ensure that exported and imported hydrogen adheres to the same green standards.

Cross-Border Regulation

Green hydrogen will likely play a critical role in international trade, especially for countries rich in renewable energy resources that may export surplus hydrogen. However, certifying the green credentials of hydrogen across borders presents several challenges.

Countries may have differing standards for renewable energy and varying levels of grid integration with renewables. For example, a hydrogen producer in Country A may be connected to a grid with 90% renewable energy, while a producer in Country B may only have access to a grid with 50% renewable energy. Ensuring that hydrogen exported from one country and imported by another adheres to the same standards will require international cooperation and harmonisation.

One approach to regulating cross-border trade is to establish a global certifying body, akin to the International Renewable Energy Agency (IRENA) but focused specifically on green hydrogen. This agency could collaborate with national regulators and industry stakeholders to create global standards for certifying green hydrogen. Alternatively, regional certification bodies could work in collaboration with each other, with mutual recognition agreements ensuring that hydrogen certified in one region is recognised as green in another.

Current Status

Many countries have already taken significant steps toward developing green hydrogen certification frameworks, but approaches vary widely.

The EU is at the forefront of establishing a regulatory framework for green hydrogen. Its Clean Hydrogen Alliance and the Renewable Energy Directive (RED II) set out clear guidelines for hydrogen production using renewable energy. The EU is also developing a certification scheme known as the “CertifHy” system, which aims to provide a pan-Europe guarantee of origin for hydrogen produced from renewable energy sources.

In the U.S., the government is making large investments in green hydrogen through initiatives like the Department of Energy’s Hydrogen Energy Earthshot. While there is no formal federal certification scheme yet, individual states like California are working on regulations to certify hydrogen as renewable, largely driven by their ambitious decarbonisation goals.

Australia, with its abundance of renewable energy resources, is positioning itself as a major exporter of green hydrogen. The country’s government is developing a Hydrogen Guarantee of Origin scheme, which will provide internationally recognised certification for the hydrogen produced using renewable energy.

The development of green hydrogen certification is currently underway in India.The Ministry of New and Renewable Energy (MNRE) has released a draft proposal for the Green Hydrogen Certification Scheme. The Bureau of Energy Efficiency (BEE) would be the nodal authority to accredit agencies for monitoring, verifying, and certifying green hydrogen projects, as per the draft.

Global Certification

A global certifying agency for green hydrogen could play a critical role in the future of this industry. Much like how organisations like the International Energy Agency (IEA) or World Trade Organisation (WTO) set standards and facilitate international cooperation, a global certifying body could ensure uniformity in standards, facilitate cross-border trade, and prevent disputes over green hydrogen’s legitimacy.

This agency would need to work closely with national governments and industry groups to develop and enforce standards. It would also need to stay adaptable as the technology and market for green hydrogen evolve.

Epilogue

Green hydrogen is set to become a cornerstone of the global energy transition, but the industry must be rigorously regulated to ensure that hydrogen production is truly green. A certifying agency, either at the national or global level, will be crucial for ensuring that the electricity powering electrolysers comes from renewable sources and for overseeing the cross-border trade of hydrogen. Through global cooperation, harmonised standards, and innovative tracking systems, the green hydrogen industry can thrive while staying true to its sustainability promises.

Readers’ responses may be sent to: k.sahasranaman@gmail.com or chemindigest@gmail.com

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