CHLOR-ALKALI TECHNOLOGY

A Partnership for Life

Philip See (Business Development Manager)

• Chartered Mechanical Engineer

• 26 Years in Chlor-Alkali with ICI/INEOS

• Engineering Manager for

- 40 kte KOH Plant (ICI FM21 membrane electrolysers)

- 600 kte Chlorine Plant (ICI amalgam electrolysers)

• Plant Design and Commissioning

- 430 kte Chlorine Plant (BICHLORTM Electrolysers)

- Technology benchmarking and operability studies

TURNOVER

$47BILLION

EMPLOYEES

15,000

PRODUCTION HERITAGE

AMOCO, BASF, BAYER,

BOREALIS, BP, DEGUSSA,

DOW, ENICHEM,

ERDOLCHEMIE, HOECHST,

ICI, INNOVENE, LANXESS,

MONSANTO,NORSK

HYDRO, SOLVAY

SITES

51 MANUFACTURING

PLANTS IN 11 COUNTRIES

GROWTH

• 15 Petrochemical/Chemical Businesses

• Growth by acquisition since 1998

• World’s 4th largest independent chemical company

HISTORY

INEOS Overview

INEOS Technologies Portfolio and Heritage

ChlorineEDCVCMPVC

•Polypropylene•Maleic Anhydride

•LL/HD swingPolyethylene•Acrylonitrile•Maleic Anhydride•ExpandedPolystyrene

•HD bi-modal slurryPolyethylene

Brussels, Belgium

PO and

Performance

Chemicals

Green Lake, TX

Nitriles

Lima, OH

Nitriles Catalyst

Lisle, IL

Nitriles/PP Catalyst Naperville, IL

Nitriles/PO/Olefins

Lyndhurst, UK

PO

Runcorn, UK

Vinyls &

Electrochemical

Tech

Grangemouth, Scotland

Olefins

Lavera, France

PO/PS

Venice, Italy

Vinyls

Chocolate Bayou, TX

PP and OlefinsRolle, Switzerland

Board

Commercial Centres - Rolle (Switzerland), Lyndhurst and Runcorn (UK), Lisle (USA), and Shanghai (China)

R&D/ Technical/ Manufacturing Centres~400 people World-wide.Extensive Intellectual Property and 6000 patents

Shanghai, China

Technologies

General

INEOS Technologies – Locations

BICHLOR™ Cell rooms

Monopolar Cell rooms

117 chlor-alkali projects over 30 years

Americas – Strong and Growing Presence

Company Location Year

HF Chlor-Alkali USA 2014

Skymine USA 2013

Fluoders Paraguay 2013

Kuehne USA 2001 / 2011

Olin USA 2011 / 2014

FSTI/CSP USA 2008

Allied USA 2009

Lapsolite Mexico 2006

Proquimsa Ecuador 2005 / 2009

Proctor + Gamble Guatemala 2003 / 2006

Successful Plant Lifespan – Vital to INEOS ChlorVinyls

• A designer and operator of chlorine plants for over 110 years

• 7 cell-rooms across Europe, total capacity 1,600,000 MTPA Cl2

• A major European Chlor-Vinyls Manufacturer

0

200

400

600

800

1000

1200

1400

1600

1800

2000

10

00

's m

etr

ic t

on

ne

s o

f C

hlo

rin

e p

er

an

nu

m

Dow

INEO

S

Akz

o

Bay

er

Ark

ema

Sol

vin

Sol

vay

Vin

olit

BAS

F

Successful Plant Lifespan – Key Factors

SuccessfulLifespan

SafeOperation

Reliability Efficiency

INEOS Runcorn – Driving Continuous Improvement

• 430kte/yr chlorine

• 20 BiChlor electrolysers

• Designed to Lifecycle Principles

• INEOS Know-How applied

• World Class Performance

Techniques – A Structured Way of Working

1. Process

Description/

Purpose

2. Potential

Failure

Mode

3. Potential

effect of

failure

4.

Sev

.

5. Potential cause of

failure

6.

Occ

.

7. Current

Controls

8.

Det

.

9.

RPN

10. Recommended

actions

11.

Responsibility/

start date

12. Action Results

Performance

of O Ring

carriers

Wrong

material

used in

manufacture

Splits/cracks

Dissolves/

Wear away

Chemical

Degrades

Thermal

Expansion

effect on

seal

Porous

Sticks to tup

tube

Cause

reaction

with other

materials/

products

10

10

10

10

9

10

Supplier changes RM

without informing ICL

Supplier changes RM

informs ICL

Change of supplier

Raw materials to

supplier changes

without their

knowledge

Lack of detailed

agreed specification

Shelf Life:

- Components

2

1

2

4/5

10

1

None

Change of BOM

Process – Agreed

BOM integrating

into ETB systems

Specification – QA

systems &

registration

Specification –

maybe not detailed

enough QA

systems &

registrations

Operator inspection

& operational

experience

None

- shelf life

not known

- no stock

rotation

10

3

3

9

9

10

200

30

60

450

900

100

Generate approved

supplier list

Review

specification &

produce audit trial

& review

Specifications

agreed with

supplier.

Establish if there is

Shelf life

Develop Stock

rotation process

Performance

of O Ring

carriers

Dimensional

ly wrong

Too Narrow

– Can’t

Assemble

Too Wide –

Leaks in

service

2

10

Supplier delivers

outside of spec

Supplier delivers

outside of spec

8

8

Drawings

Operator

Drawings

Operator

Cell room

measurements

3

9

48

720

Develop robust spec

Carry out QC Check

on tolerances

Sample test

Lifecycle Value Analysis

Critical Items Analysis

Loss Elimination - FMECA

Risk Based Inspection

INEOS Technologies Team – Chlorine Experienced

ProjectCommissioning

Managers

Technical Managers

Plant Managers

Plant Engineers

Scientists

DesignEngineers

INEOSTEAM

Safe Operation

SuccessfulLifespan

SafeOperation

Reliability Efficiency

Safe Operation – Built In

• Modular Technology Avoids…..– Interaction with live electrolysers

– Leaks – modules are bolted, sealed & pressure tested

• Fully Wetted Membrane– Gas/Liquor interface above the membrane

– Avoids damage and pin-holing of membrane

– Prevents mixing of Cl2 / H2 to avoid explosions

• Safety in Plant Design– Inherently safe design features

– HAZOP

Reliability

SuccessfulLifespan

SafeOperation

Reliability Efficiency

Reliability – INEOS has the Knowledge

Layout analysis

Optioneering

Dynamic Modelling

Materials of Construction

Stray Currents

Accessible Headers

Rapid ModuleChange

High Integrity Design

Robust electrodecoatings

Reliability – Avoiding Damaging Pressure Excursions

V01

(10 BiChlor

Electrolysers)

V02

(Headers

and coolers)

V03

(Headers,

dryer, filter)

PIC

01B

PIC

01A

dP02

(Headers and

coolers)

dP03

(Headers,

dryer,filter)

P03

(xxx barg)

P02(-20

mbarg)

PC

V 0

1B

PCV 01A

V11

(10 BiChlor

Electrolysers)

V12

(Headersand cooler)

V13

(Headers,filter)

dPIC11B

dPIC11A

dP12

(Headers andcooler)

dP13

(Headers,

filter)

P13

(165mbarg)

P12

(0 mbarg)d

PC

V 1

1B

dPCV 11A PV 12

SD1

185 mbarg

205 mbargSD1

SD1

dP = +15 mbar

dP = + 25 mbar

Stream 02 Stream 03Stream 01

Stream 11 Stream 12 Stream 13

Chlorine

Hydrogen

• Dynamic model of the gas section downstream of electrolyser• Simulate transient events – cellroom trip, electrolyser trip, load

changes

• Model validated by comparing DP predicted by model with plant data

• Large negative DP excursion –improvement required

• Model used to develop control scheme to avoid reverse DP• Excellent system response

Efficiency

SuccessfulLifespan

SafeOperation

Reliability Efficiency

Power Efficiency – At the Heart of BiChlor

� Module low voltage dimple design

• Max use of nickel post in cathode pan

• Min use of titanium post in anode pan

� Explosion bonded Ti/Ni discs for

excellent inter-module connection

� Zero gap electrodes

� Self aligning modules

Efficiency – 30 Years of Coatings Development

• Anode Coating– Lower power consumption

– Greater resistance to Alkaline wear

• Cathode Coating– Highly resistant to upset

conditions

– 16 year warranty

• Modern coating plant and extensive refurbishment centre

voltage

0 70 70 0

1 70 70 0

2 70 72 2

3 70 74 4

4 70 77 7

5 70 80 10

6 70 95 25

7 70 135 65

8 70 320 250 8 70

9 70 70 0 9 70

10 70 72 2 10 72

11 71 74 3 11 74

12 72 77 5 12 77

13 73 80 7 13 80

14 75 95 20 14 95

15 82 135 53 15 135

16 100 320 220 16 320

0

Comparision of Coating Performance

0

50

100

150

200

250

300

350

0 2 4 6 8 10 12 14 16

Years on line

Po

ten

tia

l (m

V)

INEOS COATING COMPETITOR COATING

Efficiency – Accessing our Operations Expertise

• Designated Technical Service Manager– Experienced chlor-alkali specialist

– Usually member of original commissioning team

– Regular visits and contact

• Getting the most from your plant– Performance evaluation

– Operating and Technical support

– Electrolyser maintenance planning

• Customer forum every 2 years– Technical and Social content

– Highly valued by clients

Efficiency – Evolution not Revolution

BICHLOR™ Start-up Power Consumption vs Current Density

1650

1750

1850

1950

2050

2150

2250

2350

2450

0 1 2 3 4 5 6 7

current density (KA/sq.m.)

Po

wer

Co

nsu

mp

tio

n (

KW

h/t

e

NaO

H)

2003

2007

2010

2012

2014

Incremental improvement

INEOS – A Partnership for Life

• Unrivalled knowledge of chlor-alkali technology and operations

• Technology built to perform over the long term

• A partnership for the long-term