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To Make the World a
Brighter Place:
How Data Drives
Sustainability
Dr. Felix Hanisch
Covestro Deutschland AG @
“Internet of Things - Industrie 4.0”,
Cologne, Germany, 2015-09-101
Agenda
2
Chapter 1 At a glance
Chapter 2 Global trends
Chapter 3 Challenges for the Chemical Industry in Europe
Chapter 4 What is “Chemicals 4.0”?
Chapter 5 Sustainability
Chapter 6 If…
ONE OF THE
WORLD'S LEADING
POLYMER
PRODUCERS
Covestro – who we are
3
At a glance
Structure
4
At a glance
Polyurethanes
Raw materials
for rigid and
flexible foams
Polycarbonates
Granules and
sheets for a
wide variety of
applications
Coatings
Raw materials
for coatings,
adhesives and
specialties
Basic Chemicals
Chlorine
production
as the backbone
for product
manufacture
5
Profile
At a glance
6
Profile
At a glance
Serving
key industries
Technologically
leading
Products and solutions
for a diverse range of
end-markets
Present
around the globe
Major sites in Europe,
Asia and the Americas,
close to the customers
Highly efficient,
environmentally
compatible processes
7
Strategy
At a glance
Highly
innovative
Experienced
workforce
Focused research and
development for current
and future needs
Sustainable
All activities targeting
People, Planet, Profit
Around 17,150
dedicated employees
worldwide
covestro.com
Chapter 2
Global trends
8
THE WORLD IS
FACING BIG
CHALLENGES.
9
10
NATURAL
RESOURCES ARE
BEING DEPLETED,
GLOBAL ENERGY
DEMAND IS RISING.
11
12
13
SOMEONE
BORN IN 2030 CAN
POTENTIALLY
REACH THE AGE
OF 130.Source: Knowledge and innovation network
14
THE NUMBER OF
CARS WILL
QUADRUPLE BY
2050 – AND SO WILL
CO2 EMISSIONS.
15
Source: Environmental NEWS.de
16
IN 2030, COMPUTERS
WILL BE MILLIONS OF
TIMES MORE
POWERFUL THAN
TODAY.
Source: The world
17
covestro.com
Chapter 3
Challenges for the Chemical
Industry in Europe
18
% of global sales in Europe to drop from
33% in 2000 to just 13% in 2035
19
Europe‘s chemical industry in a squeeze:
33%
19%
13%
0% 20% 40% 60% 80% 100%
2000
2015e
2035e
Europe
Asia
North America
Latin America
Rest of World
source: Roland Berger, Chemicals 2035, 05/2015
End
Use
Challenges to Europe‘s chemical industry
along the value chain
20
The „Big Five“:
source: Roland Berger, Chemicals 2035, 05/2015
Feedstock
Chemical
Production
Application
Manufactrg.
1
Feedstock
disadvantage
2
Chemical
clusters
outside EU
56%
is the amount by which EU regulations for the chemical industry have increased since 2008 –
driving up costs in Europe and creating an uneven international playing field.
3
4
EU’s shrinking
manufacturing
base
5
Demand shift
Focus on higher-value engineering
polymers and active specialties
• Active only in higher-value, smaller-volume engineering polymer markets
• Relatively consolidated markets with stable structures, largely unchanged over the last 5 years
• Product differentiation from close customer interaction and solution development
21
How to get out of the squeeze:
Notes: (a) Average selling price is based on 2014 published prices in Europe
(b) Proxy for CAS business unit; based on aliphatic isocyanate derivatives (derived from HDI, IPDI and H12MDI monomers)
(c) Sales value defined as: global demand (t) x average selling price (US$/t); bubble in the legend reflects c. US$2.0bn sales value
Source: Nexant
Leverkusen
Brunsbüttel
Dormagen
Antwerp
Baytown
Shanghai
Map Ta Phut
Krefeld-Uerdingen
Covestro‘s global production network
22
How to get out of the squeeze:
Proportion of sales/worldwide & regions, profit
23
How to get out of the squeeze:
North America
22%
Europe
38%
Asia/Pacific
28%
SALES
worldwide
€ 11.7 bn
America, Africa,
Middle East
12%
SALES
worldwide
€ 11.7 bn
PROFIT
€ 1.19 bn*
Earnings before interest, taxes, depreciation and amortization (EBITDA) excluding non-recurring items
Is “Chemicals 4.0” the life vest in a rising tide?
24
Evolution of the chemical industry:
source: Roland Berger, Chemicals 2035, 05/2015
Age of Feedstock
Making the most
out of feedstock
< 1980
Age of Value
Chain Focus
Focus on core
businesses
1980 - 2000
Age of
Life Sciences
Focus on value-added
specialties and profitable growth
2000 - 2015
Age of Application:
Chemicals 4.0
> 2015
covestro.com
Chapter 4
What is “Chemicals 4.0”?
25
Industry 4.0 Buzzword Bingo
IoT
internet of
things
smart
city
PAAS
platform as
a service
Big
Data
Google cloud
CPS
cyber-
physical
systems
M2M
machine-to-
machine
embedded
systems
AutoPnP
auto plug
and play
mobile
social
machine
sensor data-
driven
operations
analytics
SoA
service
oriented
architecture
(no)milk
in fridge
I40
industry 4.0
26
+1 bonus point for “next gen” + bingo phrase
+1 bonus point for
bingo phrase + “visualization”
• Industry 4.0 focuses on the
production of intelligent products,
methods and processes
• Cyber-physical systems enable
the intelligent factory
• Intelligent products actively
support the production process
• At its interfaces, the factory
becomes part of an intelligent
infrastructure
• Pushed by German government
in “Plattform Industrie 4.0”
What is Industry 4.0?
Are we different?
27
What is Chemicals 4.0?
chemical plant
20-30 years in
operation
operating system
~7 years
car lease
cell phone dev cycle
Are we different?
28
What is Chemicals 4.0?
safe
+
secure!
high fixed capital complex production networks
long
asset
lifetime
Leveraging data, technology & customer
intimacy
29
What is Chemicals 4.0?
Material Energy
digitization
and data
customers‘
needs
New
products
2.translating customers‘
needs into applications
Raw
materials
Use
Application
Products
Production
Processing
1.adjusting portfolios
3.digitizing industry set-up
Chemicals 4.0
Use of
CO2
Energy
recovery
oil-based bio-based fossil renewable
4.achieving feedstock flexibility
Thermical
recycling
Chemical
recycling
Highly interconnected production networks
30
What is Chemicals 4.0?
• all devices connected in layered
production network
• 20+ years of experience
• use of features + integration is a challenge
• common information model
required for the future
• device + manufacturer
independent!
Field devices with ever increasing capabilities
Each device of a plant today delivers and requires complex set of data. A typical
chemical plant has 100‘s – 1000‘s of these.
31
What is Chemicals 4.0?
e.g. flowmeter
• 4 main measured variables (cont.)
• ~a dozen additional cont. variables
• complex configuration parameters
• 200+ pages manual
• can be connected to deliver only
4-20mA analog signal or fully digital
via bus systems
How to capture “the configuration” of a plant?
How to monetize this data?
(Process) data has history @ Covestro
2003 start of global organization „Process Control Technology“
2004 standardization of systems & devices
2007 enterprise roll-out of OSIsoft‘s PI as plant historian
~ 50 systems globally, 1.5 million tags
enterprise roll-out of Matrikon Alarm Manager
& Controller Performance Monitor ~20 – 30 systems globally
32
What is Chemicals 4.0?
7 years of data
available offline
3 years of
data
online
+3TB/a
• How “ready to use” is this
data?
• How to relate different data
sources to get the full
picture?
Condition monitoring – putting data to action
33
What is Chemicals 4.0?
device 1
fault prediction
actual prognosis
device x
fault prediction
actual
device 2
fault prediction
actual
- report
- control
device y
fault prediction
actual
Learn from the
history of all
devices
factory
Enter-
prise
prognosis
prognosis
prognosis
- report
- control
- report
- control
- report
- control
PuMon – Plant Unit Monitoring
• prediction quality improves with # of
detected events
challenges:
• false positives are as bad as
real negatives
• configuration & continous support
“fool”
“smart”
“wise man”
source: Thorsten Pötter, Bayer Technology Services, 2014
Vision for the Process Industry by
Plant design, construction,
commissioning and operation (Life
Cycle) is a transparent, consistent
overall process:
• Training Simulator by fingertip
• Single Point of Change
• Interfaces that simply work
• Condition-based maintenance
• No unplanned shutdowns
• …
34
What is Chemicals 4.0?
Flexible Production for volatile Markets
• Adaptive, self-configuring, self-
organizing, flexible production
facilities
• High degree of crosslinked and high
available information services
• Cost, energy and ressource
utilization optimized production –
also across corporate boundaries
• Product quality within specification
(no waste)
"User Association of Automation Technology in Process Industries", is an international association of
user companies (established in 1949) and represents their interests concerning automation technology.
Industrie 4.0 is backwards compatible with 3.0 (2.0)
source: Thorsten Pötter, Bayer Technology Services, 2014
covestro.com
Chapter 5
Sustainability – or how we get
better already today
35
36
To make the world a brighter place
37
Sustainability
Helping
the environment,
conserving
resources
As a technology leader,
Covestro strives for
efficient and environmen-
tally friendly production.
The company's products
and solutions contribute
to the responsible use of
resources and to climate
protection.
Positioning
38
Sustainability
PEOPLE PLANET PROFIT
Serving people Reducing CO2
emissions Creating value
• improve well-being
• enhance safety
• support social progress
• responsible use of
resources
• improve product life
cycles
• close material cycles
• need-based products
and solutions for
customers and markets
• safeguarding growth,
jobs
Renewable energies – Solar Impulse
39
Sustainability: Applications – construction, transportation
SUN IN THE TANK
Covestro sponsors the Solar Impulse
project – flying without fuel.
• ultra-lightweight polyurethane foams for the
cockpit and batteries
• extremely thin polycarbonate sheets for cockpit window
• specialty adhesives for composite material
Eco-friendly production
40
Sustainability
Covestro aims to reduce its specific CO2 emissions by 40% by 2020.
The company is
constantly working
to improve its
production
processes and
increase its energy
efficiency.
Eco-friendly production – processes
41
Sustainability: Production
ECO-FRIENDLY PRODUCTION
Covestro makes use of highly efficient
technologies and processes.
Energy-saving processes
• Oxygen depolarized cathode technology for
chlorine production
• Gas-phase technology for the production of isocyanates
• Melt process for polycarbonate production
Intelligent instrumentation and control
• STRUCTese™ energy management system
Alternative raw materials
42
Sustainability
From pollutant to raw material
Covestro plans to
integrate carbon
dioxide into
the production
chain.
The company is
also working on
the use of bio-
based raw
materials.
Alternative raw materials – carbon dioxide
43
Sustainability
MAKING USE OF CLIMATE GAS
Dream Production – Covestro wants to make
use of CO2 for the production of polyol, a key
precursor for polyurethane foam.
• Carbon dioxide replaces some of the crude oil on which
the polyol is normally entirely based.
• Process proven in test phase for several years
• CO2-based high-quality foam
• Company is building a plant for the production of polyol
with CO2.
Data drives improvement along the life cycle
44
Sustainability
Mechanical
recycling
New
products
Use of
CO2
Energy
recovery
oil-based bio-based fossil renewable
Material Energy Raw
materials
Use
Application
Products
Production
Processing
Thermical
recycling
Chemical
recycling
2.translating customers‘
needs into applications
1.adjusting portfolios
3.digitizing industry set-up
4.achieving feedstock flexibility
Chemicals 4.0
covestro.com
Chapter 6
Chemicals 4.0 – What is missing?
45
Truly understanding plant performance
across multiple metrics.
46
If the fairy came around…
0
2
4
6
8
10
reliability
energy
efficiency
yield
alarm mgmt
controller
perf
variable cost
plant A
plant B
• requires data from different
sources to be analyzed
holistically
• today structural relationship
between data sources requires
manual configuration
 fails over time
1
Optimizing the design of new units over the
entire life cycle of the plant.
Basics
• same data warehouse through all
life cycle phases
• plug and play of all configuration
changes
47
If the fairy came around…
Advanced
• predicting total cost of ownership of
design decisions
• design for reliability
• plant model in sync with all projects
2
concept
phase
enginee
ring
constru
ction
commis
sioning
ope-
ration
optimi-
zation
I wished this presentation was over!
48
If the fairy came around…
And the moral of this story is…
3
STORE YOUR DATA
TODAY –
YOU DON‘T KNOW
WHAT YOU WILL USE
IT FOR TOMORROW
49
50

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Internet of Things Cologne 2015: To Make the World a Brighter Place - How Data Drives Sustainability

  • 1. To Make the World a Brighter Place: How Data Drives Sustainability Dr. Felix Hanisch Covestro Deutschland AG @ “Internet of Things - Industrie 4.0”, Cologne, Germany, 2015-09-101
  • 2. Agenda 2 Chapter 1 At a glance Chapter 2 Global trends Chapter 3 Challenges for the Chemical Industry in Europe Chapter 4 What is “Chemicals 4.0”? Chapter 5 Sustainability Chapter 6 If…
  • 3. ONE OF THE WORLD'S LEADING POLYMER PRODUCERS Covestro – who we are 3 At a glance
  • 4. Structure 4 At a glance Polyurethanes Raw materials for rigid and flexible foams Polycarbonates Granules and sheets for a wide variety of applications Coatings Raw materials for coatings, adhesives and specialties Basic Chemicals Chlorine production as the backbone for product manufacture
  • 6. 6 Profile At a glance Serving key industries Technologically leading Products and solutions for a diverse range of end-markets Present around the globe Major sites in Europe, Asia and the Americas, close to the customers Highly efficient, environmentally compatible processes
  • 7. 7 Strategy At a glance Highly innovative Experienced workforce Focused research and development for current and future needs Sustainable All activities targeting People, Planet, Profit Around 17,150 dedicated employees worldwide
  • 9. THE WORLD IS FACING BIG CHALLENGES. 9
  • 10. 10
  • 11. NATURAL RESOURCES ARE BEING DEPLETED, GLOBAL ENERGY DEMAND IS RISING. 11
  • 12. 12
  • 13. 13 SOMEONE BORN IN 2030 CAN POTENTIALLY REACH THE AGE OF 130.Source: Knowledge and innovation network
  • 14. 14
  • 15. THE NUMBER OF CARS WILL QUADRUPLE BY 2050 – AND SO WILL CO2 EMISSIONS. 15 Source: Environmental NEWS.de
  • 16. 16
  • 17. IN 2030, COMPUTERS WILL BE MILLIONS OF TIMES MORE POWERFUL THAN TODAY. Source: The world 17
  • 18. covestro.com Chapter 3 Challenges for the Chemical Industry in Europe 18
  • 19. % of global sales in Europe to drop from 33% in 2000 to just 13% in 2035 19 Europe‘s chemical industry in a squeeze: 33% 19% 13% 0% 20% 40% 60% 80% 100% 2000 2015e 2035e Europe Asia North America Latin America Rest of World source: Roland Berger, Chemicals 2035, 05/2015
  • 20. End Use Challenges to Europe‘s chemical industry along the value chain 20 The „Big Five“: source: Roland Berger, Chemicals 2035, 05/2015 Feedstock Chemical Production Application Manufactrg. 1 Feedstock disadvantage 2 Chemical clusters outside EU 56% is the amount by which EU regulations for the chemical industry have increased since 2008 – driving up costs in Europe and creating an uneven international playing field. 3 4 EU’s shrinking manufacturing base 5 Demand shift
  • 21. Focus on higher-value engineering polymers and active specialties • Active only in higher-value, smaller-volume engineering polymer markets • Relatively consolidated markets with stable structures, largely unchanged over the last 5 years • Product differentiation from close customer interaction and solution development 21 How to get out of the squeeze: Notes: (a) Average selling price is based on 2014 published prices in Europe (b) Proxy for CAS business unit; based on aliphatic isocyanate derivatives (derived from HDI, IPDI and H12MDI monomers) (c) Sales value defined as: global demand (t) x average selling price (US$/t); bubble in the legend reflects c. US$2.0bn sales value Source: Nexant
  • 23. Proportion of sales/worldwide & regions, profit 23 How to get out of the squeeze: North America 22% Europe 38% Asia/Pacific 28% SALES worldwide € 11.7 bn America, Africa, Middle East 12% SALES worldwide € 11.7 bn PROFIT € 1.19 bn* Earnings before interest, taxes, depreciation and amortization (EBITDA) excluding non-recurring items
  • 24. Is “Chemicals 4.0” the life vest in a rising tide? 24 Evolution of the chemical industry: source: Roland Berger, Chemicals 2035, 05/2015 Age of Feedstock Making the most out of feedstock < 1980 Age of Value Chain Focus Focus on core businesses 1980 - 2000 Age of Life Sciences Focus on value-added specialties and profitable growth 2000 - 2015 Age of Application: Chemicals 4.0 > 2015
  • 25. covestro.com Chapter 4 What is “Chemicals 4.0”? 25
  • 26. Industry 4.0 Buzzword Bingo IoT internet of things smart city PAAS platform as a service Big Data Google cloud CPS cyber- physical systems M2M machine-to- machine embedded systems AutoPnP auto plug and play mobile social machine sensor data- driven operations analytics SoA service oriented architecture (no)milk in fridge I40 industry 4.0 26 +1 bonus point for “next gen” + bingo phrase +1 bonus point for bingo phrase + “visualization” • Industry 4.0 focuses on the production of intelligent products, methods and processes • Cyber-physical systems enable the intelligent factory • Intelligent products actively support the production process • At its interfaces, the factory becomes part of an intelligent infrastructure • Pushed by German government in “Plattform Industrie 4.0” What is Industry 4.0?
  • 27. Are we different? 27 What is Chemicals 4.0? chemical plant 20-30 years in operation operating system ~7 years car lease cell phone dev cycle
  • 28. Are we different? 28 What is Chemicals 4.0? safe + secure! high fixed capital complex production networks long asset lifetime
  • 29. Leveraging data, technology & customer intimacy 29 What is Chemicals 4.0? Material Energy digitization and data customers‘ needs New products 2.translating customers‘ needs into applications Raw materials Use Application Products Production Processing 1.adjusting portfolios 3.digitizing industry set-up Chemicals 4.0 Use of CO2 Energy recovery oil-based bio-based fossil renewable 4.achieving feedstock flexibility Thermical recycling Chemical recycling
  • 30. Highly interconnected production networks 30 What is Chemicals 4.0? • all devices connected in layered production network • 20+ years of experience • use of features + integration is a challenge • common information model required for the future • device + manufacturer independent!
  • 31. Field devices with ever increasing capabilities Each device of a plant today delivers and requires complex set of data. A typical chemical plant has 100‘s – 1000‘s of these. 31 What is Chemicals 4.0? e.g. flowmeter • 4 main measured variables (cont.) • ~a dozen additional cont. variables • complex configuration parameters • 200+ pages manual • can be connected to deliver only 4-20mA analog signal or fully digital via bus systems How to capture “the configuration” of a plant? How to monetize this data?
  • 32. (Process) data has history @ Covestro 2003 start of global organization „Process Control Technology“ 2004 standardization of systems & devices 2007 enterprise roll-out of OSIsoft‘s PI as plant historian ~ 50 systems globally, 1.5 million tags enterprise roll-out of Matrikon Alarm Manager & Controller Performance Monitor ~20 – 30 systems globally 32 What is Chemicals 4.0? 7 years of data available offline 3 years of data online +3TB/a • How “ready to use” is this data? • How to relate different data sources to get the full picture?
  • 33. Condition monitoring – putting data to action 33 What is Chemicals 4.0? device 1 fault prediction actual prognosis device x fault prediction actual device 2 fault prediction actual - report - control device y fault prediction actual Learn from the history of all devices factory Enter- prise prognosis prognosis prognosis - report - control - report - control - report - control PuMon – Plant Unit Monitoring • prediction quality improves with # of detected events challenges: • false positives are as bad as real negatives • configuration & continous support “fool” “smart” “wise man” source: Thorsten Pötter, Bayer Technology Services, 2014
  • 34. Vision for the Process Industry by Plant design, construction, commissioning and operation (Life Cycle) is a transparent, consistent overall process: • Training Simulator by fingertip • Single Point of Change • Interfaces that simply work • Condition-based maintenance • No unplanned shutdowns • … 34 What is Chemicals 4.0? Flexible Production for volatile Markets • Adaptive, self-configuring, self- organizing, flexible production facilities • High degree of crosslinked and high available information services • Cost, energy and ressource utilization optimized production – also across corporate boundaries • Product quality within specification (no waste) "User Association of Automation Technology in Process Industries", is an international association of user companies (established in 1949) and represents their interests concerning automation technology. Industrie 4.0 is backwards compatible with 3.0 (2.0) source: Thorsten Pötter, Bayer Technology Services, 2014
  • 35. covestro.com Chapter 5 Sustainability – or how we get better already today 35
  • 36. 36
  • 37. To make the world a brighter place 37 Sustainability Helping the environment, conserving resources As a technology leader, Covestro strives for efficient and environmen- tally friendly production. The company's products and solutions contribute to the responsible use of resources and to climate protection.
  • 38. Positioning 38 Sustainability PEOPLE PLANET PROFIT Serving people Reducing CO2 emissions Creating value • improve well-being • enhance safety • support social progress • responsible use of resources • improve product life cycles • close material cycles • need-based products and solutions for customers and markets • safeguarding growth, jobs
  • 39. Renewable energies – Solar Impulse 39 Sustainability: Applications – construction, transportation SUN IN THE TANK Covestro sponsors the Solar Impulse project – flying without fuel. • ultra-lightweight polyurethane foams for the cockpit and batteries • extremely thin polycarbonate sheets for cockpit window • specialty adhesives for composite material
  • 40. Eco-friendly production 40 Sustainability Covestro aims to reduce its specific CO2 emissions by 40% by 2020. The company is constantly working to improve its production processes and increase its energy efficiency.
  • 41. Eco-friendly production – processes 41 Sustainability: Production ECO-FRIENDLY PRODUCTION Covestro makes use of highly efficient technologies and processes. Energy-saving processes • Oxygen depolarized cathode technology for chlorine production • Gas-phase technology for the production of isocyanates • Melt process for polycarbonate production Intelligent instrumentation and control • STRUCTese™ energy management system
  • 42. Alternative raw materials 42 Sustainability From pollutant to raw material Covestro plans to integrate carbon dioxide into the production chain. The company is also working on the use of bio- based raw materials.
  • 43. Alternative raw materials – carbon dioxide 43 Sustainability MAKING USE OF CLIMATE GAS Dream Production – Covestro wants to make use of CO2 for the production of polyol, a key precursor for polyurethane foam. • Carbon dioxide replaces some of the crude oil on which the polyol is normally entirely based. • Process proven in test phase for several years • CO2-based high-quality foam • Company is building a plant for the production of polyol with CO2.
  • 44. Data drives improvement along the life cycle 44 Sustainability Mechanical recycling New products Use of CO2 Energy recovery oil-based bio-based fossil renewable Material Energy Raw materials Use Application Products Production Processing Thermical recycling Chemical recycling 2.translating customers‘ needs into applications 1.adjusting portfolios 3.digitizing industry set-up 4.achieving feedstock flexibility Chemicals 4.0
  • 45. covestro.com Chapter 6 Chemicals 4.0 – What is missing? 45
  • 46. Truly understanding plant performance across multiple metrics. 46 If the fairy came around… 0 2 4 6 8 10 reliability energy efficiency yield alarm mgmt controller perf variable cost plant A plant B • requires data from different sources to be analyzed holistically • today structural relationship between data sources requires manual configuration  fails over time 1
  • 47. Optimizing the design of new units over the entire life cycle of the plant. Basics • same data warehouse through all life cycle phases • plug and play of all configuration changes 47 If the fairy came around… Advanced • predicting total cost of ownership of design decisions • design for reliability • plant model in sync with all projects 2 concept phase enginee ring constru ction commis sioning ope- ration optimi- zation
  • 48. I wished this presentation was over! 48 If the fairy came around… And the moral of this story is… 3
  • 49. STORE YOUR DATA TODAY – YOU DON‘T KNOW WHAT YOU WILL USE IT FOR TOMORROW 49
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