Chlorine Industry Review 2007-2008
Chlorine Industry Review 2007-2008
Chlorine Industry Review 2007-2008
Industry
Review
2007-2008
An energy
intensive industry
with a good story
to tell
Contents
Introduction 1
Industrial paradigm shift driven by climate change
Sustainability 2
Doing all we can to improve
Legislative developments 10
Balanced and workable legislation
Information & education 14
Building credibility through transparency
Science 15
Effective advocacy with sound scientific insight
Industry overview 18
Chlorine production reaches new high
Chlorine production plants 22
Euro Chlor 24
Membership 26
Full members 27
Cover: The power of lightning, electricity, is the same power used in the chlor-alkali electrolysis. It cannot be
substituted and represents up to 60% of the variable cost of production. That fact makes chlor-alkali an
Energy Intensive Industry.
Introduction
Industrial Our subsequent disappointment was shared by all industry. The proposals were
largely indeterminate and left almost all substantial issues open for further dis-
paradigm cussion. This reflects the overall difficulty in reconciling the opposing factions
in the debate. Even now, 8 months later, we are advised not to expect the clar-
shift driven by ity we seek after the Council and Parliamentary debates as this would prejudice
the negotiations on Global Agreements to be finalised late 2009 in Copenhagen.
climate change
Putting this to one side there is a fundamental message here that tends to be
2007 ended with record overshadowed – that the climate change package must bring change to our
industrial model. A paradigm shift in the way we approach our production must
chlorine production be made to happen in order for the CO2 emission target to be met. Carbon foot-
and with heightened prints must be reduced. Energy efficiencies must be improved and act as a cata-
lyst for innovation and technological advancement. A new industry era has
anticipation of what the begun! This is important. To ignore it opens us to criticism from our opponents
Commission’s climate (and our allies) that our pleas to safeguard our competitiveness and the prosper-
ity it brings are based on the status quo which is fundamentally unacceptable.
change policies, finally
due for publication in I am happy to say that we are able to refute such accusations.
January 2008, would
As an energy intensive industry we have a good story to tell. Our energy
bring. The two points consumption has already dropped from over 3.6 MWh per tonne of chlorine in
are linked. Would our 2001 to about 3.3 MWh in 2007, and many member companies are below 3.0.
Various technological improvements were promoted at our Technology
industry, which consumes Conference held earlier in the year in Lyon so we can go further.
36 TWh of electricity
per year be given a A number of Euro Chlor members have corporate sustainability targets which
include energy reduction. One member company has a target to reduce energy
sympathetic treatment in consumption by 25% over the 10 year period ending 2015. This is highly com-
the ETS review or would mendable and I would encourage all members to follow suit.
we be left to suffer the On the political front we have good arguments to present to show why we are
severe cost burden of deserving of performance based carbon allocations to prevent the effects of
carbon leakage. Key of these is that chlorine derivatives like PVC and
carbon after 2012 with polyurethanes enable others to reduce energy consumption in the field of
the consequent impact insulation in buildings and in light weight transportation. This means that
on our competitiveness? across the value chain we are at least carbon neutral!
Our position is clear, legitimate and credible. Given a free allocation of CO2
allowances calculated against a benchmark which accounts for achievable energy
efficiencies we can compete in world markets, be profitable and contribute to
Alistair J Steel energy saving technologies and above all help drive the paradigm shift.
Executive Director
31 July 2008 This is our message to the legislators – go and tell them!!
1
1
Sustainability
3,600
Background: Since electricity is an indispensable raw
material of the chlorine production process, the basic
consumption – corresponding to the electrochemical 3,500
reaction – cannot be significantly reduced. However,
converting one technology into a more efficient one
may save a certain amount of energy. To a lesser extent, 3,400
reducing ancillary energy use does too.
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ducers and based on steam and electricity. Energy is
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mainly used for electrolysis (transformers, rectifiers Actual Target
and cells) and also for illumination and motor power
(pumps, compressors, centrifuges, etc.). Steam is used
mainly for caustic soda concentration to 50% and for Hydrogen utilisation
minor utility purposes. 100
90 Goal:
Hydrogen use 95% use
80 of hydrogen
Target: Increase recycling and re-use of hydrogen gas
Hydrogen used (%)
70 until 2010
from 80% (2001) to 95% by 2010.
60
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3
3
Sustainability
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Lost-time injuries
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Target: To reduce lost-time injuries (LTI) to 1.3 per mil- Companies Contractors Target
lion working hours for all workers - both company
employees and contractors working on production sites.
Process incidents and losses
Update: The 2007 figures for employees remain at the Target: A 75% reduction in the number of process inci-
same level as in 2006, with an LTI rate per million work- dents from 67 (2001) to 15.
ing hours of 8.33 which is still too high. For contractors,
the rate decreased to an LTI rate per million working Update: There were 14 incidents in 2007, slightly down
hours of 9.33 (compared with 10.50 in 2006). on the 16 of 2005 and 2006.
Background: Incidents are classified as events involving The transport of chlorine (excluding pipelines) repre-
a fire, explosion or the release of chlorine, hydrochloric sented 6% of 2007 production (as in the previous year).
acid, sulphuric acid, sodium hypochlorite (bleach) or The average distance chlorine was transported by rail
caustic soda, which cause a fatality, serious injury or was 450 km; by road, 190 km.
property damage exceeding € 100,000. Losses include
any of the above chemical spills in air, water or land, Transportation of chlorine
which impact human health or the environment,
1,500
property or result in evacuation. Goal: zero incidents by 2010
Chlorine transported (kilotonnes)
Process incidents
80 1,000
Goal: >75% reduction by 2010
70
60
Number of incidents
500
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10 Total without pipeline Rail Road
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5
5
Sustainability
The amount of chlorine transported in Europe by rail Update: At end 2007, COC emissions from manufactur-
and road has halved during the past decade. Chlorine ing plants confirmed globally the results of 2006; for the
movement has been decoupled from production water compartment, the value stayed at the level of 69%
through supplier/customer relocations and more use of reduction, but for air the performance slightly
local pipelines. Rail transport dominates; road trans- decreased from 50 to 48% a year earlier.
port for bulk supply is used only in the United Kingdom
and, to a limited extent, in France, Portugal and Spain. Background: The COCs were selected from various
international regulatory priority lists for emissions
Responsible Care ®
50 A global concern
1,000 tonnes/year
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Plant emissions to water WCC’s long-term vision is that the continued global produc-
10 tion and use of chlorine chemistry is sustainable and that
9 there is public recognition of the industry’s benefits and con-
8 tributions. Overall WCC is focused on engaging producers
1,000 tonnes/year
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7
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Sustainability
Chlorinated solvents: Risk management Comment: Open dialogue and listening to societal concerns
will be a key factor if the sector is to obtain operational feed-
With the implementation of the REACH chemicals legislation,
back and recognition for the initiative.
the European Chlorinated Solvent Association (ECSA) has
updated risk management strategies for producers to ensure
Update: A Stakeholder & End-User Perceptions Survey was
long-term sustainable use and optimal end-of-life manage-
carried out by a consultant in May and is currently under ana-
ment for chlorinated solvents.
lysis by ECSA Management.
ECSA members have approved a programme that sets out
short and long-term sustainability objectives and which defines
3. Value chain engagement
key performance indicators:
Objective: By end 2008, ECSA members will develop education
programmes in partnership with trade associations repre-
1. Sustainability actions
senting end-users and recyclers.
Objective: By 2009, ECSA commits itself to analysing and priori-
tising emissions arising from chlorinated solvent applications
Comment: The buy-in and active involvement of distributors
and to defining sustainability improvement actions.
and representative organisations of downstream users will be
essential to the success of the programme. There are more
Comment: To drive long-term industry and product sustain-
than 100 distributors and many thousands of end-users of the
ability, industry needs to identify challenges for each application
three main chlorinated solvents – trichloroethylene, methylene
where emissions can occur; demonstrate continuous improve-
chloride and perchloroethylene.
ment and resolve energy and raw material issues.
Balanced and
workable legislation
in the EU’s energy policy. The chlor-alkali industry clearly is an “energy intensive industry”
(EII). Similar industrial sectors where there are direct CO2 emis-
sions in the process benefit from free CO2-emission allowances
in the proposed European Emission Trading Scheme (ETS).
Euro Chlor, together with Cefic, established a dossier, which was
submitted to the European Commission, documenting why the
chlor-alkali industry should be recognized as an “exposed” sector.
It demonstrates that the prices of main derivatives (such as PVC
and caustic soda) are subject to global pricing mechanisms and
therefore additional costs for carbon in chlorine production
cannot be passed through to the chlor-alkali industry.
Water policy
The Directive on Environmental Quality Standards
(EQS) and Pollution Control sets limits for concentra-
tions of substances in surface water for 33 priority sub-
stances (PS), of which some are identified as priority
hazardous substances (PHS).
11
11
Legislative developments
By January 1st, 2010 the Commission will propose stor- Expected in 2009 is a review by the Commission,
age acceptance criteria for metallic mercury. Euro Chlor Member States and stakeholders of the BREF (BAT
has informed the Commission about its willingness to Reference document, Best Available Technology) for
provide its expertise in support of this process. chlor-alkali production. Euro Chlor will actively con-
Euro Chlor’s commitment to reporting data to the tribute to this review.
Commission and Member States’ competent author-
ities on e.g. best estimates of the amount of mercury The Solvents Emissions Directive affecting several
still in use and the amount of mercury waste sent to applications of chlorinated solvents will be merged into
storage facilities has been included in the Regulation. the recast of the IPPC.
Building credibility
through transparency
Effective advocacy
with sound scientific
insight
Euro Chlor continues REACH launched
to use its scientific Within the general framework of the REACH legislation on the
environmental safety and health effects of 30,000 chemicals,
expertise to advocate Euro Chlor has been working with its member companies
sound, science-based on the preparation of the preregistration phase, which begun
June 1st, 2008. For most of the concerned chemicals, preliminary
regulatory decision-making. agreements have been signed which express the intention to
Key science-related activities form Consortia. This work is followed up by the preparation of
in 2007-2008 have been built the registration of 17 business-critical chlorine related chemicals,
which should be accomplished before December 2010.
on the major dossiers Discussions have mainly been driven by the need for the har-
of recent years, including monisation and simplification of the registration process.
Information from previous risk assessments (at EU and OECD
the launch of the REACH levels) and biocides registration dossiers will be used. This
pre-consortia, improving risk material has to be updated and streamlined according to the
REACH format.
assessment methodology
for POPs, compiling EU Furthermore, Euro Chlor focused on a number of procedures to
registration dossiers for be fine-tuned and to be discussed together with all the members
of the Consortia. Full agreements will then formalise the
chlorine-based biocides, Consortia’s activities. Finally, all non-members that have con-
investigating possible tacted Euro Chlor to join the REACH work will be admitted to
the Consortia.
links between chlorinated
swimming pools and
childhood asthma and Minimising costs
Varying from one Consortium to another, the re-use of data pre-
updating recommendations viously compiled on a number of chemicals will drastically
on minimising workplace reduce the overall cost of the registration. However, additional
exposure to mercury. costs are generated by the administration and the management
performed by the Lead companies, who agreed to manage the
REACH dossiers. Costs will be equally shared. Should additional
testing be required, the cost will be equally shared but will take
into account the tonnage bands requirements.
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Science
PBT/POP substances
Euro Chlor commissioned a study from the Institute of Chlorinated drinking
Environmental Studies of the Free University of water
Amsterdam, which was accepted for publication in April Chlorine in drinking water regularly arouses controversy when
2008 in IEAM (Integrated Environmental Assessment it comes to safety due to the chlorinated by-products generated
and Management), a peer-reviewed journal. The paper in the chlorination process. A new debate is usually triggered
reviews and illustrates risk assessment methodologies upon the publication of the results of new studies. Two pos-
for PBT/POPs. Key message: although risks of sible health effects come into the picture: cancer and the
PBT/POPs may be higher and more uncertainty is asso- effects on reproduction. The possible correlation between
ciated with their assessment, they can be risk assessed these effects and the presence of chlorine and its by-products
on a scientific basis. A popular version of the paper is not conclusive and thus subject to further research. In the
will be prepared in Euro Chlor’s Focus on Chlorine meantime, many organisations point to the multiple benefits
Science series. of chlorination (The World Health Organisation for example).
As it is very effective against most pathogens and an easy-to-
Euro Chlor, supported by WCC funding, was also active apply technique which has a low exploitation cost, it still con-
initiating and organising a SETAC workshop on stitutes major progress in terms of public health. Additionally,
‘Science-based guidance for the evaluation and identifi- in disaster areas where the necessity of finding non-contam-
inated drinking water is a life or death issue, chlorination is of
cation of PBTs and POPs’ in January 2008 in Pensacola,
crucial importance. For more information on chlorination,
Florida. Over 50 experts from academia, industry and
please consult WCC’s brochure on water chlorination at
government developed a consensus view on guidance
www.worldchlorine.org/publications/
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Industry overview
Chlorine production
reaches new high
In 2007, European chlorine European chlorine production climbed to a new high in 2007 with
a total of 10.7 million tonnes. This represents a 2.9% increase on
production reached a record the 10.4 million tonnes produced in 2006. Capacity utilisation
high for the fourth successive rates in 2007 averaged 84.5% compared with 82.8% in 2006.
year with 10.7 million tonnes. Germany remained Europe’s largest chlorine producer in 2007,
Demand for chlorine’s accounting for 43.5% of European production, followed by
essential co-product, caustic Belgium/The Netherlands with 14.4%. France dropped to fourth
position with 11.4%, surrendering their third position to the
soda, remained robust. The UK/Austria/Switzerland/Finland/Sweden/Norway with 12.3%.
situation was less favourable These top four regions accounted together for more than 80%
of total 2007 European chlorine production.
for chlorinated solvents where
market demand was down Demand for caustic soda continued strong for the third consecu-
tive year, resulting in overall average monthly stock levels below
again after one year of
the 300,000 tonnes mark.
stabilisation in 2006.
The chlor-alkali sector’s strong performance further confirms
that chlorine and its co-product caustic soda are key chemical
building blocks for a wide range of products and processes.
60
% of total capacity
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Industry overview
In 2007 and at the beginning of 2008, three mercury Solvents market down again
plants were decommissioned in several countries. In The decline of trichloroethylene (TRI) sales continued
Italy, Solvay converted a mercury plant (125,000 after the more stringent carcinogenicity classification for
tonnes/year) in Rosignano to membrane technology trichloroethylene introduced in 2002. The ECSA Member
and Altair did likewise in Volterra. In Germany, Vestolit companies and the Romanian producer Chimcomplex
also converted a mercury plant (176,000 tonnes/year) Borzeşti have indeed agreed, in a spirit of Responsible
in Marl to membrane technology. Care, to ensure safe use in metal degreasing by stopping
supplies of TRI to companies that are not equipped with
During the past six years more than 2,000 tonnes of closed systems after 2010. The absolute sales of TRI can
liquid mercury from decommissioned plants have been no longer be reported according to Cefic statistics rules
recovered and reused, and less than 9,000 tonnes as there are only two producers left in Western Europe:
remain in 39 mercury-based plants in 14 countries. Dow Europe and INEOS Chlor Vinyls.
North-East
Atlantic
56 9
55 74
57
75
North
Sea
40 82
Baltic
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28
85 52 32
51 29
54 35 30
34 25 59
3 23
5 21 60
19 4 22
17 26 58
31 7
6
33 87
10 20
36
18 27 37 63
39
89 77
1
16 92
68 43 88
72 11/13
50
67 45
12/14 91
65
62
70 49 90
61 66 71 41
69
42
64
48 38
44
Mediterranean
* Number on map
Process: Hg: Mercury M: Membrane Na: Sodium D: Diaphragm HCI: Electolysis of HCI to Cl2
Company names in italics are not Euro Chlor members. 23
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Euro Chlor
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Euro Chlor
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Euro Chlor
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Euro Chlor provides a focal point for the chlor-alkali
industry’s drive to achieve a sustainable future through
economically and environmentally sound manufacture and
use of its products. Based in Brussels, at the heart of the
European Union, the federation works with national,
European and international authorities to ensure that
legislation affecting the industry is workable,
efficient and effective.
Euro Chlor
Avenue E. van Nieuwenhuyse 4, box 2
B - 1160 Brussels, Belgium
tel: +32 2 676 72 11
fax: +32 2 676 72 41
eurochlor@cefic.be
www.eurochlor.org