Environmental technologies for a global market

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Environmental technologies for a global
market A (precious) metal perspective Thomas
Leysen CEO Umicore ETAP4th European Forum on
Eco-innovation, Vienna 31 January 2007
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Sustainable Development Definition Sustainability
may be best defined as the capacity for
continuance into the long term future. Anything
that can go on being done on an indefinite basis
is sustainable. Anything that cannot go on being
done on an indefinite basis is unsustainable. In
that respect, sustainability is the end goal or
desired destination for the human species. By
contrast, sustainable development is the process
by which we move towards sustainability (Jonathan
Porrit Capitalism as if the world matters)
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• The world is full of unsustainable trends
• Climate change
• Resource depletion ( ? energy metals)
• Reduction of biodiversity
• Deterioration of ecosystems
• Excessive income disparity ...
• There is a need to correct the course sooner
  rather than later
• Business cannot be the only driver, and not even
  the prime driver, but should be part of the
  process and part of the solution

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Environmental technologies need to address these
issues
societal benefit social context
resource use energy efficiency waste
generation impact on ecology climate
eco-efficiency more value with less impact
Social dimension of sustainability

• Environmental technology from a large companys
  perspective
• innovatively using a companys core competencies
• economically viable, attractive for shareholders
  and other stakeholders

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Our core competencies a material technology
company
metals are a pass-through cost in most of our
businessesbut a sensitive issue for our customers
application-dedicated materials, allowing for
technologicaldifferentiation
roughly half ofrequired metals can be sourced
from internalrefining capacity
main part of metals refined are from secondary
resources such as end-of-life materials or
industrial by-products
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Umicores clean technologies

• automotive catalysts diesel particulate
  filters
• fuel cells (electro-catalysts, MEAs, auxiliary
  equipment)
• photovoltaic applications semiconductor
  substrates, thin film technology, PV-metals
  (indium, selenium, tellurium, solar grade
  silicon)
• key materials for rechargeable batteries
• recycling services for precious special metals
  (20 metals in total!)

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Less is more Automotive Catalysts

• From 1995 to 2005 thrifting in PGMs for
  automotive catalysts of more than 50
• Virtuous circle
• Reduced loadings mean benefits for the customer
• New technology meets ever more stringent emission
  standards and also enables system cost savings
  for the customer
• Catalyst recycling provides more PGMs improves
  eco-balance
• Umicore a world leader in both automotive
  catalysts as well as PGM recycling

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• Less is more rechargeable batteries
• Umicore leadership in compounds for lithium ion
  (Li-ion) batteries
• Need for increased energy density is key driver
• Need to reduce materials use (and cost) for
  customers
• These more resource / cost effective materials
  will be the enabler for Li-ion in new
  applications e.g. Hybrid Electric Vehicles
• Battery recycling provides more raw materials
  improves eco-balance

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• Metals Recycling
• unlimited recycling
• however challenge of recycling dissipated metals
  (open vs closed loops)
• 85 of PGM use of mankind after 1980 (catalysts,
  electronics)
• ? similar for cobalt, germanium, indium,
  tellurium other special metals
• ? extended use of  smart metals  is a young
  phenomenon a booming segment
• need to maintain  metallic diversity 

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Umicores  high-tech  recovery of precious and
special metals

• Unique flowsheet
• Recovering 17 metals Au, Ag, Pd, Pt, Rh, Ir,
  Ru, Cu, Pb, Ni, Sn, Bi, Se, Te, Sb, As, In
• Recovered metal value (2006)
• PM 2,000 M, others 300 M
• Global supply base
• World class environ-mental standards (BAT)ISO
  14001 9001
• gt 1 billion investment

Umicores integrated metals smelter at Hoboken
(Antwerp)
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Meanwhile, at the competition
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More is less - CO2 benefit of recycling

• Example
• Umicore Precious Metals Refining, Hoboken/Belgium
  (UPMR)
• recovered metals 2006 75,000 t
• total CO2 impact of UPMR in 2006 0.28 Mt
• total CO2 impact primary production 1.28 Mt
• ?CO2 saved due to recycling 1.00 Mt

Output 1100 t Ag, 32 t Au, 32 t PGM, 70,000 t
Cu/Pb/Ni, 4100 t Sn/Se/Te/In/Sb/Bi/As calculated
with ecoinvent 2.0, ETH Zürich
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Substantial resources required

• Investment is long-haul effort
• e.g. Automotive Catalysts
• e.g. Fuel Cells
• and requires continuous improvement

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 Best of all ... Would be an evolutionary
transformation of the primary producers from an
extract, refine and sell industry to a true
service industry which treats each of the metals
as a capital asset rather than as a
commodity.  Robert Ayres Umicore as a provider
of innovative environmental technology is
increasingly offering dedicated services
along the lifecycle of our products
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Environmental technologies key interdependencies
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• Lessons learnt
• realise the multi-dimensions of an issue, go
  beyond the obvious
• think holistically, use a system approach,
  combine your expertise in related fields
• team up with others where appropriate
• address global markets but regard local needs
  frame conditions
• dont overlook interdependencies feed back
  effects
• thinking holistically requires significant
  financial and intellectual investment from
  companies and authorities

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• Conclusion
• Enterprises can be frontrunners in environmental
  technologies
• creatively make use of new emerging business
  opportunities (pioneer approach)
• form early alliances with relevant stakeholders
  (incl. Research NGOs) to push new developments
  (instead of trying to retard things)
• early impact and stimulate legislation to set up
  the necessary framework in a supportive way
  (instead of ex-post trying to change burdensome
  regulations developed without appropriate
  industry participation)

However, enterprises rely on a constructive,
science based dialogue with regulators, NGOs and
other stakeholders, in a holistic approach that
reflects the complex interdependencies
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