Transcript CPR - SET Plan Conference

Driving the Energy Transition Together:
the industrial perspective
Daniele Ferrari, CEO of Versalis
« SET Plan Conference 2014 » Rome, 10th December 2014
Providing innovative products and enabling
technical solutions in virtually all sectors
The European chemical industry is key for
economic development and wealth
€ 527 bln/y
turnover
1.2 mln direct
employees
29.000
companies
18% of world
chemical sales
€ 48.7 bln/y
trade surplus
€ 9.0 bln/y
R&D spending
Sources: Eurostat and Cefic Chemdata International
Eurostat SBS and Cefic analysis June 2014
4% of EU
manufacturing
employment
The example of plastics: a key sector for
European manufacturing growth
GDP multiplier (Italy)
Employment multiplier (Italy)
2.74
2.38
0.3
0.2
Total Impact
Other*
0.62
Transport
Plastics
Total Impact
Other*
Transport
Commerce
1.1
Commerce
0.58
Manufacturing
Plastics
1.13
0.14
Manufacturing
0.17
0.52
0.36
* Non-manufacturing, Agriculture, Construction, Hotel/Restaurant, Financial, Real Estate/services, Public Admin., Education, etc
Source: The excellence of the plastics supply chain in relaunching manufacturing in Italy and Europe – Breakdown of the impact of an
increase in GDP and in annual work unit; The European House – Ambrosetti
Greenhouse gas emissions in chemistry
decoupled from production
Enabling low-carbon solutions to downstream
sectors in Europe
Net avoided GHG emissions for selected applications
Source: Ecofys
6
EU manufacturers losing competitiveness:
the deadly spiral for Europe
3
Reduction in coal prices
and CO2
Emission factor in thermal power generation
2
Drop of gas prices
Henry Hub price (USD/ mmbtu)
6 Dramatic energy gap
in 2013
4 Change in the powergen
mix
2013 vs. 2010
~3x
~2x
EU
1
Boom of shale gas
production
US
EU
Carbone
Gas prices
$/mmbtu
Power prices
€/MWh
7,9
2006
2,2
2008
2011
Gas
US
US shale gas production (tcf)
1,0
+7%
5 Increasing CO2
emissions
Emission factor in thermal power generation
Increasing CO2 emissions despite 60 bn€ annual subsidies to renewable
-34%
In addition to the energy issue other
challenges affect competitiveness
OPPORTUNITIES
 Large integrated domestic markets
 International network and
technology leadership
CHALLENGES
 Endemic low demand for
chemicals in the EU
 High Regulatory Compliance costs
 Skilled workers and scientists
 Raw material availability and cost
 Continued strategic restructuring
efforts
 Lack of a EU-wide Industrial Policy
encompassing energy and
innovation
 Strong innovation focus through
industry clusters
 European society reluctant to see
benefits vs. risks of Innovation
The pillars of competitiveness for Europe:
let us work on them
Competitiveness
“the set of factors,
policies and institutions
that determine the
level of productivity of
a country taking into
account its level of
development”
Innovation
Innovation
Financial market
Goods market
Business quality
The 12 pillars of
Competitiveness
Institutions
Infrastructure
Technology
Labour market
Health
Institutions
Macroeconomics
Market size
Education
Education
Bio-based chemistry:
an opportunity for a “circular economy”
BIOMASS GROWING /
COLLECTION
Performance bio-products
TRANSFORMATION /
COMPOUNDING
Renewable feedstocks
Design out
wastes
(material and
energy
recovery)
Bio-building blocks
BIOMASS
PRE-TREATMENT
Oils/sugars
BIO-REFINERY
An efficient value chain - integrated within the territory - for the complete
exploitation of the biomass
Towards a sustainable energy transition:
a call for Innovation and Competitiveness
Sustainable and
secure energy and
feedstocks
Collaborative
and open
approach in R&D
Adaptability of
skilled workforce
Strong support to
PPP and joint
initiatives
Expected net effect: up to €30 billion GDP and over 500 000 jobs