Document QRmgEzZVnrnxdbGpkQ7xvBO5

Copyright 2021 ATC - Additive Technical Committee Introduction to ATC Copyright 2021 ATC - Additive Technical Committee Introduction to ATC - Additive Technical Committee The Technical Committee of Petroleum Additive Manufacturers in Europe (ATC) exists to: discuss topics of a technical and statutory nature which are a concern to our industry develop common industry approaches in response to health, safety and regulatory legislation which are based on scientific and technical principles, to the benefit of end consumers and environmental protection provide its members with a platform to build and share high-level technical expertise cooperate with relevant stakeholders active in the development of petroleum additive specifications and testing Copyright 2021 ATC - Additive Technical Committee Fuel and Lubricant Additive Industry Copyright 2021 ATC - Additive Technical Committee Fuel and Lubricant Additive Industry in Europe The petroleum additive industry is a research and development intensive industry World-wide the industry has a turnover of about 11700 million of which the European market is about 3600 million The industry employs directly about 3800 people in Europe and about 12000 globally The industry operates more than 35 research and development establishments and manufacturing sites in Europe, and more than 100 globally World-wide the industry spends about 600 million/annum on research and development, of which 240 million is spent in Europe All lubricants on the market contain additives to improve their stability and performance Over 95% of road retail fuels are treated with performance additives All European refineries use additives in some capacity The petroleum additive industry in Europe is a major exporter Copyright 2021 ATC - Additive Technical Committee Lubricant Additives as Enablers Lubricant additives have enabled OEMs to achieve the emissions reductions needed in moving from Euro I to Euro VI engines Significant reduction in damaging pollutants As Fuel Economy requirements have increased, lubricant additives have enabled Lower viscosity oils Friction modified oils Engineering changes to lower friction in engines Additives enable longer oil drain intervals by improved oil protection Extending lifetime of engine hardware Significantly reducing oil consumption Generating less waste oil Copyright 2021 ATC - Additive Technical Committee Fuel Additives Fuel additives are essential to meet requirements of latest fuel specifications and standards covering refineries, terminals, all sectors of transportation, heating and power generation Cover a broad spectrum of applications, including improved safety, storage, handling, operation and end use performance of fuels reduced exhaust pollutant levels increased combustion efficiency increased specific power output increased fuel efficiency increased service interval duration greater reliability increased stability, handling and safety Copyright 2021 ATC - Additive Technical Committee Additives R&D cycle Petroleum additive manufacturers develop chemistry and formulate additives with desired performance for fuel and lubricant manufacturers Formulating high-performance fuels and lubricants is very complex Must balance numerous ingredients to maintain optimal performance demands Not possible to simply switch one substance for another without negatively impacting performance of additive and consequently the fuel or lubricant Extensive performance qualification testing required by equipment, vehicle manufacturers and fuel producers The substitution of a single substance can easily take 5-10 years and require very significant investments (R&D costs, tox testing, equipment testing, sourcing new raw materials, OPEX) Copyright 2021 ATC - Additive Technical Committee ATC Position On Essential Uses Copyright 2021 ATC - Additive Technical Committee The EU Chemical Strategy for Sustainability ATC embraces the spirit of the EU Green Deal and the EU Chemical Strategy for Sustainability (CSS) and fully recognises that industry has a role to play in tackling the societal and environmental challenges we face and in achieving the objectives set out by the EU Commission We also believe that regulatory actions should be taken following a holistic approach, balancing the several trade-offs at play and considering the interdependencies that characterise a complex society For example, a restriction of a chemical based on hazard properties alone could lead to the adoption of different chemistry with potential sustainability deficits, when the whole lifecycle of the chemical is taken into account Copyright 2021 ATC - Additive Technical Committee ATC Concerns A potential shift of focus towards hazard-based regulatory processes under the "generic approach to risk management" In order to invest, industry needs regulations and process that are predictable, science-based and guided by the proportionality principle enshrined in the EU treaties Hazardous substances should not be restricted or banned without due consideration of the societal benefits derived and the availability of technically/economically viable alternatives An acceleration of substitution of hazardous substances purely on the basis of "nonessentiality" as judged against overly simplistic criteria should be avoided This could lead to "regrettable substitution". A holistic approach should instead be adopted, considering the environmental and societal impact of products (positive and negative) as a whole The lubricant and fuel additives sector is a perfect example to illustrate this Copyright 2021 ATC - Additive Technical Committee Essentiality of Fuel and Lubricant Additives Lubricant and Fuel Additives are used in multiple applications, such as: transportation, renewable energy systems, transmission systems, hydraulic systems, metal working, power generation and other industrial processes They are essential for: Emissions reduction (CO2, NOx, particulates) that enable to achieve EU emissions targets Increasing fuel efficiency & equipment durability Enhancing technical performance of lubricants and fuels in engines and machinery Increasing drain intervals for lubricants, thus reducing use of mineral oils and other chemicals Improving safety, storage and handling properties Enabling use of biofuels and renewable base oils Supporting the electrification and decarbonisation of transportation Therefore significantly contributing to the EU sustainability goals of the Green Deal and CSS Copyright 2021 ATC - Additive Technical Committee ATC Proposals Lubricant and Fuel additives are Essential for society and contribute to the goals of the CSS An assessment of Essentiality should be the last step in decision-making processes Essentiality should not form the basis of screening to fast-track the restriction of hazardous substances that may otherwise be beneficial to society and whose risks are well managed Essentiality should be a holistic concept which should not focus solely on the hazard of a substance but consider its overall impact on the environment, human health and society The Essential Use concept must be applied in a transparent and predictable way, with decision- making involving all interested stakeholders Copyright 2021 ATC - Additive Technical Committee Permissions Permission is given for ATC members to store the material in electronic means for reference purposes. Further reproduction and distribution of any material is prohibited without prior written consent of ATC, Additive Technical Committee. The information contained in this document is based upon data believed to be reliable at the time of going to press and relates only to the matters specifically mentioned in this document. Although ATC has used reasonable skill and care in the preparation of this information, in the absence of any overriding obligations arising under a specific contract, no representation, warranty (express or implied), or guarantee is made as to the suitability, accuracy, reliability or completeness of the information; nothing in this document shall reduce the user's responsibility to satisfy itself as to the suitability, accuracy, reliability, and completeness of such information for its particular use; there is no warranty against intellectual property infringement; and ATC shall not be liable for any loss, damage or injury that may occur from the use of this information other than death or personal injury caused by its negligence. Links to third party websites from this document are provided solely for your convenience. ATC does not control and is not responsible for the content of those third party websites. If you decide to access any of those websites, you do so entirely at your own risk. 2021 Technical Committee of Petroleum Additive Manufacturers in Europe AISBL (ATC). All rights reserved. Copyright 2021 ATC - Technical Committee of Petroleum Additive Manufacturers in Europe AISBL