internet of things cologne 2015: to make the world a brighter place - how data drives sustainability

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

Servingkey industries

Technologicallyleading

Products and solutions

for a diverse range of

end-markets

Presentaround the globe

Major sites in Europe,

Asia and the Americas,

close to the customers

Highly efficient,

environmentally

compatible processes

7

Strategy

At a glance

Highlyinnovative

Experiencedworkforce

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 2Global trends

8

THE WORLD IS

FACING BIG

CHALLENGES.

9

NATURAL

RESOURCES ARE

BEING DEPLETED,

GLOBAL ENERGY

DEMAND IS RISING.11

13

SOMEONE

BORN IN 2030 CAN

POTENTIALLY

REACH THE AGE

OF 130.Source: Knowledge and innovation network

THE NUMBER OF

CARS WILL

QUADRUPLE BY

2050 – AND SO WILL

CO2 EMISSIONS.15

Source: Environmental NEWS.de

IN 2030, COMPUTERS

WILL BE MILLIONS OF

TIMES MORE

POWERFUL THAN

TODAY.Source: The world

17

covestro.com

Chapter 3Challenges 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“:


FeedstockChemical

Production

Application

Manufactrg.

1Feedstock

disadvantage

2Chemical

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

4EU’s shrinking

manufacturing

base

5Demand 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


Proportion of sales/worldwide & regions, profit

23


North America

22%

Europe

38%

Asia/Pacific

28%

SALESworldwide

€ 11.7 bn

America, Africa,

Middle East

12%

SALESworldwide

€ 11.7 bnPROFIT€ 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:


Age of FeedstockMaking the most

out of feedstock

< 1980

Age of Value

Chain FocusFocus on core

businesses

1980 - 2000

Age of

Life SciencesFocus on value-added

specialties and profitable growth

2000 - 2015

Age of Application:

Chemicals 4.0

> 2015

covestro.com

Chapter 4What is “Chemicals 4.0”?

25

Industry 4.0 Buzzword Bingo

IoTinternet of

things

smart

city

PAASplatform as

a service

Big

Data

Google cloud

CPScyber-

physical

systems

M2Mmachine-to-

machine

embedded

systems

AutoPnPauto plug

and play

mobilesocial

machine

sensor data-

driven

operations

analytics

SoAservice

oriented

architecture

(no)milk

in fridgeI40

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


safe

+

secure!

high fixed capital complex production networks

long

asset

lifetime

Leveraging data, technology & customer

intimacy

29


Material Energy

digitization

and data

customers‘

needs

New

products

2.translating customers‘

needs into applications

Rawmaterials

Use

Application

Products

Production

Processing1.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

TWIN MISCHKOPF.MPG

Highly interconnected production networks

30


• 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


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


7 years of data

available offline

3 years of

data

online +3 T

B / 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


device 1fault prediction

actual prognosis

device xfault prediction

actual

device 2fault prediction

actual

- report

- control

device yfault 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


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 5Sustainability – or how we get

better already today

35

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 CO2emissions 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 Rawmaterials

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

TWIN MISCHKOPF.MPG

covestro.com

Chapter 6Chemicals 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

energyefficiency

yield

alarm mgmt

controllerperf

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


Advanced

• predicting total cost of ownership of

design decisions

• design for reliability

• plant model in sync with all projects

2concept

phase

enginee

ring

constru

ction

commis

sioning

ope-

ration

optimi-

zation

I wished this presentation was over!

48


And the moral of this story is…

3

STORE YOUR DATA

TODAY –

YOU DON‘T KNOW

WHAT YOU WILL USE

IT FOR TOMORROW49