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THE MAGAZINE OF CANADA’S CHEMISTRY INDUSTRY
SUMMER 2010 | www.canadianchemistry.ca
Catalyst
OPPORTUNITIES
IN THE
CHEMISTRY INDUSTRY
INSIDE
EDIFICATIONS
The Importance of an Evolutionary
Approach to New Clean Energy
Sources for Ontario
RESPONSIBLE CARE®
How the New Operations Code
Reaches Beyond the Plant Gate
MEMBER PROFILE
Steve Griffiths, Imperial Oil,
Products and Chemicals Division
everything
everyday focus on sustainability
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And that’s everything EG.
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VOLUME 7, NUMBER 2, SUMMER 2010
Contents
THE MAGAZINE OF CANADA’S CHEMISTRY INDUSTRY
SUMMER 2010 | www.canadianchemistry.ca
COLUMNS
Catalyst
4 Edifications
OPPORTUNITIES
IN THE
CHEMISTRY INDUSTRY
The Importance of an Evolutionary Approach to New Clean Energy Sources for
Ontario.
BY MICHAEL BOURQUE
5 Responsible Care®
INSIDE
EDIFICATIONS
The Importance of an Evolutionary
Approach to New Clean Energy
Sources for Ontario
Speaking in Code—How the New Operations Code Reaches Beyond the Plant Gate
RESPONSIBLE CARE®
How the New Operations Code
Reaches Beyond the Plant Gate
BY SARAH MAYES
FEATURES
6 Alberta’s Chemical Sector Opportunity:
Adding Value to the Natural Resource Base
Alberta’s petrochemical industry is at an important crossroads, with the potential
for significant growth. The province’s petrochemical facilities have the capacity
to upgrade about 250,000 barrels of ethane per day (bbl/day). However, to reach
that level of productivity, progress must be made to address Alberta’s declining gas
production and to tap into the unharnessed potential of other sources of supply.
BY SARAH MAYES
8 A Rare Opportunity to Grow
Chemical Manufacturing in Ontario:
Marcellus Shale Liquids
MEMBER PROFILE
Steve Griffiths, Imperial Oil,
Products and Chemicals Division
Chemistry Industry Association of Canada
Editor
Michael Bourque
Vice President, External Relations
Assistant Editor
Nancy Marchi
Public Affairs Co-ordinator
President & CEO
Richard Paton
Association Office
Chemistry Industry Association of Canada
805-350 Sparks Street
Ottawa, ON K1R 7S8
Tel.: (613) 237-6215
Fax: (613) 237-4061
www.canadianchemistry.ca
Chemistry Industry Association of Canada members are making great progress in
reducing their emissions. The latest Reducing Emissions report, which tracks the
environmental performance of our member companies’ chemical manufacturing
operations and their adherence to the Responsible Care® ethic and principles, shows
that our members have reduced their emissions by 87 per cent since 1992.
NAYLOR
Publisher
Robert Phillips
Editor
Suzy Richardson
Sales Manager/Project Manager
Bill McDougall
Book Leader
Wayne Jury
Sales Representatives
John Byrne, Anook Commandeur
Research
Amanda Niklaus
Sales Admin
Jennifer Lemay
Layout & Design
Brenda Nowosad
Advertising Art
Gregg Paris
BY DR. SMITA BHATIA, M.SC., PH.D.
Editorial Office
The Marcellus Shale is an immense geological formation containing natural gas
and associated liquids spreading under Pennsylvania, West Virginia, New York and
Ohio. Arguably one of the largest unconventional natural gas deposits in the world,
these shale formations in some areas are rich in natural gas liquids such as ethane,
propane, butane and pentanes – key building blocks for chemicals and plastics.
BY HARVEY F. CHARTRAND
12 Chemistry Industry Reduces
Emissions Footprint by 87 Per Cent
SOLUTIONS
13 Modernizing Canada’s Currency through Chemistry
How would you like to pay – cash or plastic? By next year, that could be a redundant
question. That’s because the federal government plans to modernize Canada’s
currency by introducing polymer banknotes into circulation. As outlined in the 2010
federal budget, the Bank of Canada will begin issuing the new bills in 2011.
BY DR. SMITA BHATIA, M.SE., PH.D.
DEPARTMENTS
10 Member Profile: Steve Griffiths
Naylor (Canada), Inc.
2 Bloor Street West, Suite 2001
Toronto, ON M4W 3E2
Tel: (416) 961-1028
Fax: (416) 924-4408
www.naylor.com
Catalyst is published four times per year by Naylor (Canada), Inc. for
the Chemistry Industry Association of Canada. Responsible Care®, an
initiative of the Chemistry Industry Association of Canada, is an ethic
for the safe and environmentally sound management of chemicals
throughout their life cycle. Invented in Canada, Responsible Care is
now practiced in 53 countries.
Copyright by the Chemistry Industry Association of Canada. All rights
reserved. The views expressed in this magazine do not necessarily
reflect those of the publisher or the association. The contents of this
publication may not be reproduced by any means, in whole or in part,
without the prior consent of the association.
PUBLISHED JUNE 2010/CDC-Q0210/4187
Steve Griffiths is Vice-President and General Manager, Petrochemicals,
Imperial Oil, Products and Chemicals Division.
14 Buyers’ Guide and Index to Advertisers
Canadian Publications
Mail Agreement #40064978
Postage Paid at Winnipeg
Catalyst Summer 2010 • 3
Edifications
By Michael Bourque
THE IMPORTANCE OF AN
EVOLUTIONARY APPROACH TO
NEW CLEAN ENERGY SOURCES
FOR ONTARIO
A RECENT STORY in The Globe and Mail quotes ERCO Worldwide
President Paul Timmons as saying that he is pleased with his
company’s decision to shut down its Thunder Bay chemical facility because of the high cost of electricity in the province. Now,
Mr. Timmons is worried about the impact of higher prices for electricity in Ontario on manufacturers, and especially on his customers in the
pulp and paper industry.
These apprehensions emanate from the province’s new Green Energy
Act, which has sparked deep concerns among manufacturers, small businesses and individual ratepayers alike. With each announcement made
by the government about a new agreement under the feed-in tariff program (FIT Program), such as the $7-billion deal reached with Samsung
earlier this year, questions over rising electricity rates are raised.
The FIT Program is designed to encourage new technologies and
alternative clean energy sources for the province. It is being used to create a whole new manufacturing industry in Ontario, which is striving
to be a North American centre for manufacturing in wind, solar and
related technologies. Some have compared the opportunity to the automobile industry 100 years ago. It is a laudable goal and at the same time,
a huge gamble.
For the business of chemistry, alternative energy is an ideal challenge. Current technologies such as solar panels, lightweight but robust
windmills and lithium batteries, to name a few, would not be possible
without the magic of chemistry. Many companies, such as DuPont
and Dow, have been involved in solar energy since its inception. In the
future, innovations in coatings, micro-processing, advanced materials
and energy storage will continue to transform these alternatives into
viable, economic and mainstream sources of energy.
But getting there is an evolution, not a revolution. Today, Ontario
accounts for $22.3 billion, or 45%, of Canada’s $49.5-billion chemistry sector. However, there have been some problems, such as the
closing of ERCO’s facility and more recently, recessionary pressures.
Manufacturing, the value chain that this sector depends on as a key
customer, has been struggling for some time in Ontario. The current economic downturn has further weakened the chemistry sector
and the drop in demand from key customers in the automotive and
housing sectors has been dramatic. The opportunity to take advantage
of new business, such as alternative energy, is critically important.
However, to get there, Ontario needs to recover sufficient
competitive advantage to attract the attention of international investors in the global chemistry sector to replace the closures of older facilities and update technologies. And while the FIT Program has helped
primary manufacturers, it is not designed to help supplier companies
4 • Catalyst Summer 2010
whose solutions are critical to success. Investment can be attracted
in two ways—through direct subsidy or by creating competitive
economic conditions through regulatory and tax policy. Programs like
FIT can have such a dramatic impact on the cost of electricity that the
balance swings in favour of other jurisdictions for many producers. If
we lose a single manufacturer in Ontario because of the high cost of
electricity, much of the anticipated impact of the new program is
dampened.
Ontario needs to map out a strategy to attract new investment in
value-added manufacturing and resource upgrading. This includes
measures to ensure that the already significant business of chemistry
can benefit from the Green Energy Act. There are a number of areas
where improved federal/provincial strategy and policy cohesiveness
could significantly enhance manufacturing competitiveness. On the tax
front, we are pleased to see the partnership approach that Ontario and
the federal government adopted to harmonize the retail sales tax and
reduce corporate tax rates. However, taxation is only one variable in our
overall competitiveness.
Energy is obviously critical and because our sector consumes and
converts energy products, it plays a critical role in our ability to remain
competitive. The issues for us here are supply, reliability and pricing.
High and volatile energy costs are key factors in investment decisions,
affecting current operations and future expansion.
Ontario accounts for less than one per cent of the world’s $3.2
trillion business of chemistry. The potential available investment
for Ontario is considerable and many of the established global
companies are already established here, including NOVA, BASF,
DuPont and Dow. Alternative energy companies will need the
innovation of our chemists, chemical engineers and researchers. They
will need our established supply chains and expertise. For industry, the
way to take advantage of this opportunity is to work with government in
partnership. Industry must tell government what it needs to make this
gamble pay off. For government, it is to understand how the business of
chemistry can become a critical player in the success of this significant
undertaking and to respond to the concerns voiced by industry leaders
like Paul Timmons.
It is vital that all parties work together. Government must work
toward a viable competitiveness framework and industry must help government understand what it needs to win new investment.
A
Michael Bourque is Vice-President, External Relations for the Chemistry
Industry Association of Canada. He can be reached at [email protected].
Responsible Care®
SPEAKING IN CODE
HOW THE NEW OPERATIONS CODE
REACHES BEYOND THE PLANT GATE
By Sarah Mayes
IN THE LAST few editions of Catalyst, we’ve outlined the rationale for
moving from the six existing Responsible Care® codes to a streamlined
three: Operations, Stewardship and Accountability. We’ve explored
two of the codes—Stewardship and Accountability—and what they
will mean for the next generation of Responsible Care practitioners.
This article will address the final one, the Operations Code. At the
time of writing, the final draft of the Operations Code was pending approval by the Chemistry Industry Association of Canada’s
Board of Directors.
According to Brian Wastle, Vice-President of Responsible Care
for the Association, the new Operations Code—unlike its two
sister codes—addresses those aspects of a company’s operations
that are under its direct control. It integrates the old Responsible
Care codes for manufacturing, transportation, hazardous waste
management and emergency-response.
“When our Responsible Care code builders started overhauling
the codes, they decided that ‘operations’ should reach beyond the
chemical manufacturing plant, to touch on how companies manage not only their manufacturing, but their transportation, warehousing and waste-management,” Wastle says.
This inclusive redesign of the Operations Code will allow the
Association to expand its influence to a broader range of members and partners through the Responsible Care ethic and principles, Wastle observes. Companies like the Association’s newest
member, Newalta (an industrial waste management and environmental services company profiled in the last issue of Catalyst),
now fit under this expanded Responsible Care umbrella.
The Nuts and Bolts of the Operations Code
The first big question posed by the Operations Code is: “What
should go into responsible design?” The Code challenges companies
to analyze the thought-process preceding the construction of their
facilities, and to think beyond the life cycle of those facilities – even
so far as to how they will be dismantled once they’ve exhausted their
usefulness.
The Code then addresses the responsible construction of those
facilities, and asks companies to systematically plan how they’ll
operate them, once they’re up and running.
“All of this is to help companies become disciplined in thinking
ahead and predicting consequences, and to have preventative action
built in to their management systems,” Wastle says.
Wastle emphasizes that most elements of the Operations Code are
now par-for-the-course for Responsible Care companies: ensuring
that laboratories operate in a safe way, making certain that regular
maintenance is conducted to prevent incidents from aging equipment (and recognizing that equipment maintenance in-and-of-itself
can create hazards), making sure that products are transported in a
safe and secure way, and developing an emergency management plan
in case of a plant incident. However, Wastle says many elements that
were implied in the previous incarnation of Responsible Care codes
have now been made explicit in the Operations Code. He points to the
section on critical infrastructure and business continuity.
“This element of the Operations Code asks Responsible Care
practitioners to seriously consider the impacts that external forces—
beyond a safety incident—could have on their business and others
that rely on their product further down the value chain. It begs companies to ask the question: ‘What’s critical for us?’”
Wastle uses the example of a plastics manufacturer that produces
a key component for hospital equipment.
“How can that company ensure that production continues if a
third of its workforce becomes ill during a pandemic? How can it preserve its records during an electronic pandemic—the global spread
of a computer virus?”
The new codes also address malicious intent. While this concept
was included when the Responsible Care codes were first written in
the 1980s, Wastle says the contemporary threat of terrorism called
for further action. The Operations Code now requires adherents to
assess all vulnerabilities and potential threats to their operations,
and establish measures to counteract them.
Beyond external threats, Wastle says the new Operations Code
strives to eliminate internal ones by improving process safety.
“We’ve tried to capture the idea of ‘inherent safety’,” Wastle says.
“Up until now, the underlying assumption has been that ‘Yes,
many of our operations are risky, but we are effective managers of
that risk.’ But the new Operations Code says ‘It’s not enough to just
manage the risk. We need to reduce the hazard.’”
Wastle recognizes that some member-companies may not be able
to improve the inherent safety of their operations in the short-term,
however his hope is that the Code will encourage companies to question “why they do what they do the way they do it”, and to look to the
principles of green engineering for potential alternatives.
Our Commitment to Sustainability
Responsible Care companies have always shared a commitment
to environmental protection—going beyond what’s required by the
law to prevent the pollution of air, water and soil. However, Wastle
cont’d on page 7
Catalyst Summer 2010 • 5
Feature
Alberta’s
CHEMICAL SECTOR
Opportunity: ADDING VALUE TO THE
NATURAL RESOURCE BASE
By Sarah Mayes
ALBERTA’S PETROCHEMICAL INDUSTRY
is at an important crossroads, with the
potential for significant growth. The
province’s petrochemical facilities have
the capacity to upgrade about 250,000
barrels of ethane per day (bbl/day).
However, to reach that level of productivity, progress must be made to address
Alberta’s declining gas production and
to tap into the unharnessed potential of
other sources of supply.
Alberta has more than 160 trillion cubic feet (TCF) of recoverable gas remaining. The Horn River and Montney basins
(in northeastern British Columbia and
northwestern Alberta) are around 100
and 50 TCF in size, respectively. These
gas reserves are not all just so-called
“lean” gas, as David Podruzny, Vicepresident of Business and Economics
for the Chemistry Industry Association
of Canada, explains: “Some of these
deposits have large amounts of liquids
entrained in them that can be recovered for feedstock for the petrochemical
industry.”
Horn River has huge deposits of
methane while Montney has pockets
rich in propane, butane and ethane,
Podruzny says.
“Traditionally in Alberta’s natural gas
production, extraction plants captured
those liquids and sent them to petrochemical plants. Gas was consumed as energy,
but ethane – a valuable co-product – was
pulled out and used to build a $15-billiona-year petrochemical industry.”
6 • Catalyst Summer 2010
That potential for valuable feedstock
extraction still exists, and combined
with Alberta’s geographic location between the Mackenzie and Alaskan gas
supply regions, could massively increase
Alberta’s supply. However, Podruzny
says it will take a focused effort to gather ethane cost-effectively so that it can
be upgraded into petrochemicals.
One obstacle in the path of that goal
is the recent discovery of large shale gas
deposits in the U.S., which has curbed
the amount of gas Alberta exports
to American markets. Less exported
gas means less feedstock extraction at
plants located along the Alberta border.
Podruzny estimates that those plants
are currently running at 70 per cent
capacity – Alberta’s once 10 BCF (billion cubic feet) per day gas exports have
dropped to seven BCF per day.
But Podruzny says there is a second,
less obvious opportunity in Alberta for
the chemistry industry: the off-gases
from bitumen upgrading.
“If you move oil sands along the
energy value-chain by converting bitumen to synthetic crude oil, one of the
by-products is off-gases. What they’ve
been doing in the past is burning them
as a fuel. But off-gases are very rich in
petrochemical feedstock. They contain
about 40 per cent petrochemical feedstock and about 40 per cent methane.”1
According to industry figures, the
existing bitumen upgraders in the Fort
Saskatchewan-Fort McMurray area
of Alberta could deliver nearly 60,000
bbl/day of feedstock from off-gases.2 To
put that number into context, a worldscale cracker needs between 75,000
and 80,000 bbl/day of ethane in order
to operate. Bitumen off-gases contain a
number of petrochemical feedstock materials, with the potential of opening up
other chemistry value chains in addition
to ethane, ethylene and polyethylene.
Podruzny has calculated that if Alberta
continues to upgrade at least one third
of its bitumen, and those off-gases are
captured, the province could double its
petrochemical production.
However, the challenge is that less
and less of Alberta’s bitumen is being
upgraded in the province, because the
economics favour moving the bitumen
to refi ning capacity in the U.S. Until
those economics change, Canada will
continue to see less upgrading, more
bitumen exports and a missed opportunity for value-added manufacturing,
Podruzny concludes.
“If the upgrading takes place, we
can use the off-gases. If only bitumen is
exported, there are no off-gases and no
opportunity. So there is the conundrum.
What will it take to move along the energy value chain at least as far as upgraded
bitumen to synthetic crude oil? We’ll exploit it if it gets that far.”
Podruzny says the Alberta opportunity could be nurtured through measures such as enhancing its ethane-extraction policy, or by using the Bitumen
Royalty in Kind (BRIK) program to specifically advance the provincial government’s value-added vision.
“The oil sands reserves contain about
170 billion barrels of recoverable bitumen and that’s the second largest deposit in the world after Saudi Arabia,”
Podruzny notes.
“By comparison, our conventional
crude oil reserves are about 5.4 billion barrels.3 So this gives a sense of the scale of the
opportunity that exists in the oil sands.”
Much like the export of raw bitumen, Podruzny views a proposal to send
Alberta gas via pipeline out to Kitimat,
B.C. for sale on the open market as a
missed opportunity for value-added upgrading in Canada.
“I’ll use a forestry sector analogy...
Th is is equivalent to exporting logs
rather than solid wood furniture or
high-quality cardstock. In our case, we
would be exporting an ‘energy log’—raw
gas—and not exploiting the value of the
entrained liquids,” Podruzny says.
“Do we want to be exporters of ‘energy logs’, or do we seek something better
where we can still export energy, but in
a form that allows us to do some valueadded manufacturing at the same time?
Why can’t we do both profitably while
opening up new chemistry value chains?
“What we have is an opportunity to
revitalize Alberta’s petrochemical industry and give a shot in the arm to both
Sarnia (Ontario) and Western Canada’s
chemical industries because they provide feedstock, which accounts for
70 per cent of the input costs in the petrochemical industry. So a long-term secure
supply of competitively priced feedstock
wins the day,” Podruzny sums up.
A
1
Off Gas Opportunities from the Oil Sands,
a presentation by Dave Chapell, Regional
Vice-President, Williams Energy Canada,
at the CERI 2009 Petrochemical Conference
(June 2009).
2
Internal document , NOVA Chemicals Ltd., 2010.
3
Conventional Oil Statistics, Government of
Alberta, Department of Energy (2007)
http://www.energy.alberta.ca/Oil/763.asp
SPEAKING IN CODE cont’d from page 5
says the new Responsible Care Ethic and
Principles for Sustainability provided a
fresh lens through which to evaluate—and
rewrite—the old codes.
“There was recognition among the
Responsible Care code builders that the
words ‘waste reduction’, used in the old
codes, missed the mark in striving for sustainability,” Wastle says.
“Under the new Operations Code,
Responsible Care members are going to
strive for ‘waste elimination’ in their operations, and will make choices that further
reduce their environmental footprint.”
Wastle points to a new section within the
Code devoted to resource conservation.
“Companies aren’t just expected to
think about what they’re producing in
terms of their product and potential
waste. Now they have to think about
what they’re consuming. The codes now
require them to find ways to shrink
their footprint in terms of their resource
T
consumption—everything from raw
materials, to water and energy. They’ll be
expected to set goals and make a plan to
achieve them.”
Wastle believes these changes
to the Responsible Care Operations
Code will make it easier for membercompanies to comply with the Code’s final
requirement:
“We want members to practise
evangelism, if you will, to promote the
Responsible Care initiative by name.
By incorporating sustainability principles into the codes, I think we’ve made
Responsible Care more responsive and
more relevant. Why wouldn’t a company
want all aspects of its business to be more
A
sustainable? It just makes sense.”
Sarah Mayes is Manager of Public Affairs
for the Chemistry Industry Association
of Canada. Sarah can be reached at
[email protected].
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Catalyst Summer
2010 • 7
4/9/08 4:54:40 PM
Feature
A Rare Opportunity to Grow
Chemical Manufacturing
in Ontario: MARCELLUS SHALE LIQUIDS
By Harvey F. Chartrand
THE MARCELLUS SHALE is an immense geological formation containing natural gas
and associated liquids spreading under
Pennsylvania, West Virginia, New York
and Ohio. Arguably one of the largest
unconventional natural gas deposits in
the world, these shale formations are rich
in natural gas liquids such as ethane, propane, butane and pentanes – key building
blocks for chemicals and plastics.
These natural gas deposits could be
a major economic opportunity for the
Sarnia, Ontario region, which is within
300 to 400 km of the Marcellus Shale,
because Sarnia has the storage and petrochemical infrastructure to extract
and use liquids such as ethane as a petrochemical feedstock. Th is is a oncein-a-lifetime opportunity for Ontario
to sustain Sarnia’s legacy as a key economic region and to revitalize Chemical
Valley.
Sarnia has suffered in recent years as
feedstock sources have dried up. The loss
of the Cochin Pipeline, which once carried ethylene and ethane from Western
Canada, seriously reduced available
feedstock supply and left the region more
dependent on less competitive feedstock,
resulting in plant closures and loss of
jobs for skilled workers.
Feedstock from natural gas has distinct advantages over oil-based feeds.
Marcellus natural gas deposits in the
Pennsylvania region appear to contain
enough liquids to feed a world-scale
petrochemical cracker for ethylene production – only 300 km to 400 km away.
Local pipeline infrastructure already in
place and underground storage in the
8 • Catalyst Summer 2010
Sarnia region make this petrochemical
complex the closest and least costly to
develop and add value to these gas-liquids assets.
“What is happening in North America
is unique in the world…the discovery
and extraction of huge amounts of natural gas that weren’t on the horizon as
recently as a few years ago,” says David
Podruzny, Vice-President of Business
and Economics with the Chemistry
Industry Association of Canada.
This is a once-in-a-lifetime
opportunity for Ontario to
sustain Sarnia’s legacy as a
key economic region and to
revitalize Chemical Valley.
As of December 2007, the United
States Department of Energy stated that
proven U.S. reserves of natural gas were
in the order of 238 trillion cubic feet
(TCF). A year later, that number ballooned to 1,836 TCF, meaning that proven recoverable reserves had increased
roughly six-fold in one year—a colossal
amount of energy. The latest projections
are over 2,500 TCF. To put this in perspective, the U.S. consumes only 23 TCF
a year. So a 100-year supply of natural
gas has just been made available to the
marketplace. Podruzny believes “it’s a
total game-changer.”
Exploration of the Marcellus Shale
deposits began in 2005. Since then,
new technology has been developed to
exploit shale gas which historically was
not recoverable; it was dispersed in deposits and couldn’t be gathered into one
pool that would allow it to be piped up.
Now a technology exists to “mine” shale
gas deposits at a very competitive price
– the cost to remove shale gas from its
(not very deep) locations has decreased
80 per cent since 2008. Shale reservoirs
can now be tapped and compete with
traditional natural gas wells, with the
new wells producing at 10 times the
rate of traditional gas wells.
“It’s a totally different technology,”
Podruzny explains. “You drill down
vertically, then drill horizontally and
wander around in the gas deposits and
you do something called ‘fracking’
(hydraulic fracturing) to gather the gas
into pools and then you send the gas up.
This started five or six years ago with
the Barnett Shales in Texas. It’s expanded now to Haynesville (Louisiana)
and Fayetteville (northern Arkansas).
These are all shale gases that show enormous potential. This is why I’m calling
it a game-changer and an opportunity
to do something special in Ontario.”
The implication for the Canadian
chemical industry is that North America
is one of the few places (the Middle East
is the other) where natural gas liquids
are used to make petrochemicals. The
rest of the world uses naphtha from
crude oil. Gas-based feedstock now
presents a significant cost advantage
over naphtha-based feedstock to make
petrochemicals. In spite of the recent
recession, North American petrochemical manufacturers that relied on
Clean, available water
Four Billion Litres.
gas as feedstock remained relatively
is the most important
profitable because of the large drop
resource for both
in gas prices. Volumes were down but
human and economic
margins stayed healthy, whereas the
development.
naphtha business was deep in the red.
Working together,
And there have been positive signs
Nalco and Dow save
that Marcellus Shale natural gas liquids
four billion litres
could eventually flow to the Sarnia reof water a year at
gion. In February, Buckeye Partners,
Dow’s plant in
Freeport, Texas.
L.P., one of the largest pipeline operators in the U.S., signed a memoranThat’s enough water
dum of understanding with NOVA
to sustain the
Chemicals Corporation regarding the
population of Freeport
development of its Union Pipeline
for 3 years or for the
Project—a mixed natural gas liquids
daily use of more than
14.4 million people.*
pipeline which would extend from the
Marcellus Basin in Pennsylvania to the
refining and petrochemical complex
in Sarnia. While plans for the pipeline are still in the early stages, Greg
Wilkinson, Vice-President, Public
and Government Affairs for NOVA
Chemicals Corporation, is hopeful that
Dow’s commitment
it will materialize.
to addressing the
“We firmly believe that building the
global water crisis
Union Pipeline to Sarnia represents
includes gamechanging
the best natural gas liquids option for
technologies,
Marcellus producers,” Wilkinson says.
partnerships in
“Sarnia is by far the closest—and
strategic regions,
best equipped—demand centre to the
and collaboration
Marcellus Shale.”
with industry leaders
like Nalco to reduce
Wilkinson points out that, if built,
www.nalco.com/3dtrasar
its environmental
the Union Pipeline could service the
footprint.
for more information.
Detroit-Windsor region, as well as
*Based on average daily water use estimated by the
markets in Chicago and the Midwest.
American Water Works Association.
“We’re talking about building a 300
to 400 km pipeline and a gathering system at the other end,” Podruzny sums
469902_Nalco.indd 1
3/6/10
up. “It’s not a very big pipeline. To take
it to the other markets, you’re looking at a much longer pipeline. That’s
Sarnia’s big advantage. The opportunity is there. The parties have been put
together. Now it’s up to the people who
make a buck on this to bid and we’ll see
where things go. What it boils down to
is we can grow or we can shrink. If we
xxx/gpsutupsbhf/dpn
upgrade into value-added products,
we will be creating jobs for Ontario’s
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highly skilled workforce.”
A
10:10:44 AM
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471232_Fort.indd 1
Catalyst Summer 2010 • 9
4/6/10 7:00:31 PM
Member Profile
A Conversation with
Steve Griffiths
THE VICE-PRESIDENT AND GENERAL MANAGER OF PETROCHEMICALS,
IMPERIAL OIL, PRODUCTS AND CHEMICALS DIVISION IN CALGARY LOOKS
BACK ON 38 YEARS IN THE CHEMISTRY INDUSTRY—AND FORWARD TO
THE CHALLENGES AND OPPORTUNITIES THAT LIE AHEAD.
Catalyst: Could you give us a few highlights of your career history? How did you
fi rst become involved in the chemistry
industry?
Steve: I started my career back in 1972
with Texaco at its Montreal East refinery.
Over the past 38 years, I’ve worked in refining, in distribution and in chemicals. In
1989, when Imperial merged with Texaco,
I came into the Imperial side of the family and continued to enjoy different opportunities, including several opportunities to work in the U.S. with Exxon and
ExxonMobil. I worked in many locations…
lots of different jobs.
The fact that I worked on two mergers—
the Imperial Oil-Texaco merger and the
Exxon-Mobil merger—were great experiences for me. I probably never envisioned when
I started out in this business that I would
have such an exciting career. Working for a
company like Imperial, a big and fully integrated company, provides opportunities to
work in different parts of the business. And
a majority shareholder like ExxonMobil and
its global presence provide all kinds of opportunities as well.
Catalyst: Tell us about your interactions
with the Chemistry Industry Association
of Canada, including specific roles at the
highest levels such as chair of the Public
Affairs Committee, Board Chair and current Board member.
Steve: I joined the Board (of the Canadian Chemical Producers’ Association, CCPA)
when I returned to Canada in September
2001 to take over my current position. I
had been on assignment in the U.S. with
our majority shareholder, the ExxonMobil
Chemical Company in Houston. I joined
10 • Catalyst Summer 2010
the Board at that time, and participated in
Leadership Groups in Ontario. I chaired
the Public Affairs Committee in 2002 and
2003. I joined the Executive Committee
in 2002. I got onto the Board and the
Executive Committee very quickly.
It was a time of great turnover on the
Board and, being from one of the larger
companies, I had the opportunity to move
up the ladder fairly quickly. Then I was
Board Chair for a two-year term from
November 2003 to November 2005. I participated actively in Leadership Groups in
Ontario and now in Alberta. So I was very
active on the Board since coming back to
manage the chemical business for Imperial
Oil. The Public Affairs Committee was
restructuring itself and getting involved
in branding. That was quite exciting. The
Executive Committee of this board is very
active and engaged, even as the people and
companies have changed. The meetings
are very productive and interesting. That’s
what makes it fun and enjoyable and it’s
what makes the Board’s contributions to
the association so very strong.
Catalyst: What would you consider
your most significant achievements during
your years on the Board of Directors of the
association?
Steve: The mix of people is different
and everyone brings their own personal
style, attributes and strengths. I think what
I brought to the Board was a principled
approach to leadership and decisionmaking. I think that is actually a very good
fit with the Chemistry Industry Association
of Canada and Responsible Care, because
Responsible Care itself is based on an ethic
and principles…and bringing that princi-
pled approach and style was something that
I contributed.
Catalyst: So you are quite enthusiastic
about Responsible Care within Imperial Oil,
Products & Chemicals Division?
Steve: It’s just a great contribution that
the association made to the chemistry industry globally. Responsible Care started here in
Canada and we’ve continued to strengthen
and grow it. All members in the association
are very committed to it and the work that
was done through the last year or two to grow
Responsible Care so it would meet the expectations of our stakeholders today.
I think Responsible Care will stand the
test of time going forward. Sustainability
concepts that we’ve formally integrated
into the principles and the ethic will stand
the association in good stead and were
certainly what was required, based on
the growing and ever changing expectations of our stakeholders. So that was an
exciting thing to be a part of. Now we’re all
looking to implement and make sure the
changes—many of which are kind of aspirant—will live up to those expectations. So
it’s an exciting time for Responsible Care
and for our industry.
Catalyst: What are your views on the
industry and how it has changed over the
past decade?
Steve: The industry is always changing. It’s
technology-based and that’s what makes it exciting. With technology, there are always new
products, processes and developments that are
coming along. That’s always been the case, but
certainly in the last 10 years, there has been an
acceleration…when you look at things like biobased chemistry and nanotechnology that are
really coming on at a very fast pace.
These new technologies will help the
chemistry industry continue to be all about
solutions, bringing new solutions to the issues we face and to the needs of society,
which are always changing. Certainly in
this past decade, there has been more commoditization [the making of a product into
a commodity: the process by which a product reaches a point in its development where
one brand has no features that differentiate
it from other brands, and consumers buy on
price alone], globalization, and ever increasing expectations around the growth area of
health and the environment.
Or look at regional growth in the Middle
East and the Asia-Pacific region, where they
have cheap feedstock and want to grow their
industries…they want to move up and down
the food chain. They don’t just want to export the feedstock and raw materials. They
are moving more into petrochemicals and
building huge plants. In the last two years,
we’ve seen a strengthening in the Canadian
dollar. All of these trends put together create
all kinds of challenges and opportunities for
our industry. The industry in Canada has
done very well in dealing with these challenges and turning them into opportunities
and continuing to be a strong contributor to
the Canadian economy.
Catalyst: How is Canada faring during
these so-called economic boom times?
Steve: Depending on which part of
the chemistry industry you look at, there
are differences, but petrochemicals are a
cyclical business and when I came back
to Canada in 2001, that was “a bottom of
cycle”. Now in 2009 and 2010 we’re in another bottom of cycle. 2006 and 2007 were
probably high points in terms of returns—
very good economic times for the chemical
industry. But now we’re in bottom of cycle
and that’s partly the typical cycle of building new plants and over-supplying markets,
which depresses margins, combined with
the global recession that started in late 2008
that we’re still slowly recovering from. But I
think we are seeing small signs of recovery
as the business is pulling itself back up and
the economy in general improves. We still
have a couple of lean years ahead but are on
an upward vector. We’ll get back to a strong
position again in a few years.
Catalyst: What challenges and opportunities do you see lying ahead for the
chemistry industry in the next 10 years?
Steve: As we see all these big plants
coming on in the Asia-Pacific region and
manufacturing in general in many parts
of the world under stress, I think that
here in Canada, there are some fundamentals we need to go back and refocus
on. We have to improve our productivity. When the dollar was low, we probably
allowed ourselves to slip in productivity.
Some of that was supported by the low
dollar. Th is is no longer the case so we
must improve our productivity.
We have to be more cost-competitive,
especially in the commodity markets
because in the Asia-Pacific and Middle
East regions they’re building large plants
that have cost advantages and we have to
make sure we’re cost-competitive with
those suppliers. We have to invest in
new processes and new products. We
must look for opportunities to be differentiated in the products we make. And
we must do this while becoming more
sustainable and reducing our environmental footprint. It’s not without its challenges, but I think it’s certainly doable
and we can deliver on all of those fronts
and continue to be a strong and vibrant
part of the Canadian economy.
Catalyst: Tell us about your personal
interests.
Steve: I like to do a lot of physical
activity: running is one of my primary
activities. I also consider myself a closet carpenter. I like to build and repair
things…I like to work with wood. I do
renovations. Probably this interest in
carpentry was a factor in why I became
a civil engineer, which is perhaps somewhat unusual for someone running a
chemical business.
I am married and have a teenage daughter. I turned 60 in April and I’m still coming in to work and enjoying what I do. I
work with absolutely fantastic people both
within the company and within the industry and certainly that is true for my continued involvement with the Chemistry
A
Industry Association of Canada.
Blachford
Experience and innovation,
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Over eighty years of developing and
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For more information, visit our
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449941_Blachford.indd 1
Catalyst Summer 2010 • 11
10/8/09 7:17:36 PM
Feature
Chemistry Industry
Reduces Emissions
Footprint by 87 Per Cent
By Dr. Smita Bhatia, M.Sc., Ph.D.
CHEMISTRY INDUSTRY ASSOCIATION of Canada members are making great progress in reducing their emissions. The latest Reducing
Emissions report, which tracks the environmental performance of our
member companies’ chemical manufacturing operations and their
adherence to the Responsible Care® ethic and principles, shows that our
members have reduced their emissions by 87 per cent since 1992.
Released in May, Reducing Emissions 17 marks the seventeenth
consecutive year that the association has transparently published its
emissions. Chemistry Industry Association of Canada members report their emissions via the National Emissions Reduction Masterplan
(NERM) and Environment Canada’s National Pollution Release
Inventory (NPRI). In total, our members reported emissions for 335
substances.
Crunching that data produced some very striking results in areas
such as environmental health, climate change and ozone depletion.
Our members have:
• virtually eliminated emissions to water (a 99.5 per cent reduction
since 1992);
• reduced releases of known and probable carcinogens by 94
per cent;
• eliminated 98 per cent of emissions of 14 high-priority substances
targeted by Canada’s Chemicals Management Plan;
• reduced greenhouse gas emissions by 38 per cent since 2000,
despite increased production;
• decreased ozone-depleting discharges by 66 per cent since 2000.
Of course, these emissions reductions couldn’t have been achieved
without the commitment and innovative efforts of individual member-companies. In particular, Reducing Emissions 17 highlights the
work done by Canexus Chemicals Canada LP, Dow Chemical Canada
ULC, ERCO Worldwide, Marsulex Inc., and MEGlobal Canada to reduce their environmental footprints.
Canexus Chemicals Canada LP
At its chlor-alkali manufacturing facility in North Vancouver, B.C.,
Canexus began using a neighbouring chemical producer’s waste hydrogen as fuel to meet steam demands in its manufacturing process.
Using hydrogen as a fuel source has allowed the Canexus facility to
significantly reduce its natural gas use, resulting in a more than 50 per
cent reduction in greenhouse gas emissions (as CO2) from the combustion process.
12 • Catalyst Summer 2010
Dow Chemical Canada ULC
Dow Chemical has been manufacturing STYROFOAM™ brand
insulation at its Varennes site since 1969. However, the company is
now converting to manufacturing a new foaming agent which has
zero ozone-depleting and VOC emissions. This new STYROFOAM™
insulation will in turn play a major role in the energy-efficient construction of buildings throughout Canada, helping to keep them
warm in the cold winter months and cool in the summer.
ERCO Worldwide
In 2008, ERCO Worldwide’s Grande Prairie site celebrated 10
years without a safety recordable incident and 8 years without an
environmental reportable incident. In addition, the Grande Prairie
facility has been recognized as an Alberta Environment EnviroVista
Leader for the past five years as recognition for excellence in environmental performance.
Marsulex Inc.
Marsulex has gone to great lengths to reduce its SO2 emissions.
After installing more efficient burners on its sulphur recovery unit,
and adding an extra stage to its sodium bisulphite scrubbing process, Marsulex increased its sulphur recovery capacity from 150 to
235 metric tonnes per day, and reduced its annual sulphur dioxide
(SO2) emissions by a remarkable 65 per cent.
MEGlobal Canada
MEGlobal’s Prentiss facilities have reduced their volatile organic
compound emissions by more than 75 per cent since 2004. This was
achieved by eliminating ethylene oxide emissions from one of the
facility’s vents, and by recovering and selling CO2 byproduct from
two of its ethylene oxide/ethylene glycol facilities to a local oil and
gas company (where the CO2 is used for enhanced oil recovery).
I invite you to visit www.canadianchemistry.ca to read the complete version of Reducing Emissions 17, to learn more about our
collective achievements, and the work that remains to be done to
reduce the chemistry industry’s emissions.
A
Dr. Smita Bhatia is Senior Analyst, Business & Economics for the
Chemistry Industry Association of Canada. She can be reached at
[email protected]
Solutions
Modernizing
Canada’s Currency
through Chemistry
By Dr. Smita Bhatia, M.Sc., Ph.D.
HOW WOULD YOU like to pay – cash or plastic? By next year, that could
be a redundant question. That’s because the federal government plans
to modernize Canada’s currency by introducing polymer banknotes
into circulation. As outlined in the 2010 federal budget, the Bank of
Canada will begin issuing the new bills in 2011. The polymer banknotes are expected to last much longer, and provide more security, than
the cotton-based money currently in circulation.
Canada won’t be the first country to use chemistry-inspired
cash. Australia was the first to issue polymer bills, and the currency has been in circulation since 1988. The country’s primary
purpose in developing the polymer note technology was to protect
its banknotes against counterfeiting. The bills were developed by
the Reserve Bank of Australia (RBA), the Commonwealth Scientific
and Industrial Research Organization (CSIRO) and the University
of Melbourne.
The polymer used in the bills is a plastic, technically known
as Biaxially-Oriented Polypropylene or BOPP, which is a nonfibrous and non-porous polymer. Its advantage is that it can
incorporate all of the security features of paper banknotes, as
well as additional technologies that reduce the possibility of
counterfeiting:
• a transparent window
• optically variable devices
• shadow images
• embossed printing
• use of metallic, metameric or metachromic inks
Unlike paper banknotes, which counterfeiters can easily
reproduce using digital printing technology, polymer bills are
very hard to counterfeit because many of their unique security
features cannot be reproduced by scanning and photocopying.
In Australia’s experience, only six counterfeits were detected
each year for every million banknotes in circulation.
While the main advantage of polymer banknotes is their
security, they also provide improved durability; polymer bills
are proven to have a life at least four times that of conventional paper bills. Their extended life cycle means that fewer
banknotes have to be printed in the long term, which not only
improves the quality of the bills in circulation, but also provides cost-savings in production and issuance processes. For
instance, Australia and Vietnam have found that the use of
polymer banknotes has helped to improve productivity and
efficiency in note counting, quality sorting and processing
throughout the banking system, and in society as a whole. In
Vietnam, where a great deal of cash is placed in high humidity environments, the durability aspect of polymer banknotes
has been deemed particularly valuable.
In addition to their superior security features and durability, polymer banknotes also address society’s increasing concern with environmental protection. The banknotes are 100 per
cent recyclable and can be converted into other plastic products
after they are removed from circulation. When compared with
traditional paper banknotes, which are made from farm-grown
cotton and are disposed of through incineration or landfi lls,
polymer bills clearly present a greener option.
In conclusion, polymer banknotes are a clear example of how
chemistry is making our lives safer, healthier and more prosperous. Currently, there are more than three billion polymer banknotes in use in 22 countries worldwide.
A
Catalyst Summer 2010 • 13
Buyers’ Guide and
Index to Advertisers
BLENDING BLADES & MIXING EQUIPMENT
Conn & Company, LLC ..................................7
CHEMICAL & SERVICE PROVIDERS
H.L. Blachford Ltd....................................... 11
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
CHEMICAL PRODUCERS
Imperial Oil Ltd,
Chemicals .................... Outside Back Cover
MEGlobal
International FZE ............Inside Front Cover
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
DANGEROUS GOODS COMPLIANCE
ICC The Compliance
Center............................. Inside Back Cover
CHEMICALS – FORMULATING &
PACKAGING
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
DISTRIBUTION & WAREHOUSING
Fort Storage .................................................9
CUSTOM COMPOUNDS & CHEMICAL
ADDITIVES
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
PLASTICS
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
PROCESS AIDS – PLASTIC
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
PROCESS CONTROL EQUIPMENT
NOVA Chemicals
(Mktg Communications)...Inside Back Cover
RAIL TRANSPORTATION
GATX Rail Canada....................................... 14
TRANSPORTATION
Benson Tank Lines ..................................... 14
Harold Marcus Ltd. ..................................... 14
TRANSPORTATION/HAZMAT HANDLING
Benson Tank Lines ..................................... 14
WASTE TREATMENT
Nalco Canada Co. .........................................9
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Canada V4N 3P1
1-800-665-8060
call us
or visit our website at www.bensontank.com
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14 • Catalyst Summer 2010
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12/4/08 11:26:38 AM
Life is a delicate balance…
Imperial opened land on a former refinery site in Mississauga, Ontario, to help complete a
public trail along the shore of Lake Ontario.
When we manufacture and sell our products, we work to avoid
upsetting that balance. It’s part of the Responsible Care® initiative. It
includes our commitment to develop products that minimize risk to
people and to educate them on their use. Energy and petrochemicals
are essential to economic growth; however their production and
consumption need not conflict with protecting health and safety or with
safeguarding the environment.
CHEMICAL
ISO 9000/14000
ISO 9000/14000
Responsible Care®
Beyond what’s required.
*Trademarks of Imperial Oil Limited. Imperial Oil, licensee. ®Trademark of the Chemistry Industry Association of Canada. Used under license by Imperial Oil.