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Socio-economic assessment of the US Fluoropolymer Industry Final report Wood Environment & Infrastructure Solutions UK Limited - February 2020 @ nem sasoina wood. T_T oeindioasu Tas p hn Sarame:nrsniosn eee SepMatirnoyicornntiriebutors vs Ty i vo | FSimrinmET / eeree Approved by oF S55 _ _.. SA Boiren, s Tanoroteass 610 ot 842M CPHOLACR -- flouropolymersseaclient\final report i341442_fluoropolymers. 00.20200225 docx SSe T mmersnins GeerenBri eae Frnttet ebm ann ntt pb irbiisst r mii leir art eymog apmoit `thepriorwritten agreement osuftWcpoodoa. mDiS smcelomsureooefn thnatts Bo rm r Thid party disci laimer e Artesia py AA a ofandforuseby,our leni t o namel don nth s fronrtts s oaftrhsereport. `Sdamaege howsoeverarisingfra omreifanpcr eop ntihecoony tp entnsof ay ning Ummbornas J Wa ormsmrT e een --------TTTTT Document revisions No. Details Date Tn sa P---- 2nnms oH ana 4 Foner iors 21032020 AR PO Sk -- coe 3 Wood Environment & Infrastructure Solutions UK Limited 3 Executive summary This independent report commissioned by FluoroCouncil, an affiliate of the American Chemistry Council, evaluates the socio-economic contribution to US society and economy of a group of plastics and elastomers known collectively as fluoropolymers, e.g. PTFE, FEP, FEPM, PFA, PVDF, FKM, FFKM, THV, ETFE and ECTFE. This industry differs from others in several ways. The manufacture and sale of fluoropolymers in their basic form generates economic and social effects from revenues, investment and jobs, but larger effects are generated by the downstream use of the fluoropolymers as they are incorporated into a wide range of products in several sectors. While the fluoropolymer content of final products may be tiny, they offer specific unique combinations of properties. These include: non-wetting, light weight, high performance dielectric properties, non-stick, fire resistant, temperature resistant, weather resistant and with near universal resistance to chemicals. Reflecting this, fluoropolymers provide specific functionality in a wide range of products and within complex systems. They improve efficiency, durability and enable innovation while reducing business and consumer cost via extending lifetimes of products. Drawing on publicly available data, a survey of FluoroCouncil members and interviews with a selection of downstream users, the socio-economic analysis (SEA) evaluates effects in seven strategically important sectors. The US fluoropolymer industry The starting point of the US value chain, sales of fluoropolymers in their basic form, is a $2 billion industry and 85,000 tons of product was manufactured in 2018. The US industry is a net exporter of higher value product; the sales value of exports exceeds $1 billion, with imports of around $500 million. A highly innovative sector, some $150 million was invested in research and development (R&D) in 2018. This represented over 6% of revenues, well above the Organization for Economic Co-operation and Development (OECD) average and more than double the average US R&D investment rate. Indirectly, the industry is also estimated to have generated some $150 million in R&D spill over effects, a further $2.4 billion indirect and induced economic activity along with 15,000 direct and indirect US jobs. The location of the fluoropolymer industry in the US has an important role in allowing US-based customers to meet lead times for the various end user sectors. This is necessary in maintaining innovation and R&D, as companies are continually customizing products for their customers. The value chain - sectors dependent on fluoropolymers Fluoropolymers provide vital performance characteristics to products or production processes. Collectively this creates socio-economic value far beyond the direct impact created by the industry itself. While not all of these benefits can be easily quantified, the report analyzes this value in seven strategically important sectors: Electronics: The largest downstream sector by sales, fluoropolymers are critical to the semiconductor manufacturing process. Components of the semiconductor manufacturing process must withstand the aggressive etching chemicals while providing the required purity; any contamination severely affects yield. The US semiconductor industry is a $210 billion sector, employing 250,000 Americans. Semiconductors are used in millions of ever more powerful but smaller products. Fluoropolymers dielectric properties has enabled miniaturization of components and final products, alongside improved fire safety, high transmission speeds, ease of installation and reliability of wires, optical and data transmission cables. These last up to three times longer, enabling a wide range of information and communications technology (ICT) functionality, industrial, automotive, medical imaging and analysis; Transportation: Fluoropolymers are critical for the performance of key components in the automotive and aerospace industries, as they provide them with resistance against heat, cold, fire, smoke, aggressive fluids and fuels, humidity, vibrations and compression. They prolong the useful life of various components, protect corrosion, prevent leaks, improve safety and enable communication. In automobiles, fluoropolymers contribute to improved reliability, engine efficiency, weight reduction and emission control, improving fuel efficiency, reducing CO2, leaks and fugitive emissions. Alongside other technologies they have contributed to a 48% increase in fuel efficiency (based on average miles per January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 4 Wood Environment & Infrastructure Solutions UK Limited 4 gallon, 1980-2016) in US cars. This has been achieved alongside increases in average horsepower, while maintaining weight. A key element of fuel cell technology, they contribute toward further and faster fuel efficiency gains and emission reductions. In aerospace, for example Airbus A320 users experienced a 93% corrosion reduction in cargo bays and the US Army fleet of Apache helicopters benefited from avoided friction damage, from the use of one specific product; Medical and first responder: Fluoropolymers are used in surgically-implantable medical devices; increasing lifetime of implants, reducing the likelihood of infection and invasive surgery. They provide excellent performance and long lifetimes in equipment such as catheters, guide wires, filters and pumps. They reduce medical complications, replacements, cross-infections and clogging of medical equipment, contributing to the reduction/avoidance of pain and discomfort alongside the avoided treatment costs. At the same time, they enable advanced medical imaging (via electronic chips and semiconductors in X-ray, MRI, CT scan and echography) and protect firefighter safety (via waterresistant, abrasion-resistant and insulated clothing); Chemical and industrial processes: Fluoropolymers enable a high level of efficiency and safety in various chemical and industrial manufacturing processes, helping them remain internationally competitive. Fluoropolymers contribute to corrosion and leaching prevention, fewer leaks, lower maintenance and prevention of emissions, particularly in applications involving aggressive chemical fluids. They are used in coatings, linings, piping, vessels, fluid-handling components, filters, vents and cable coatings. Corrosion costs the US economy over $250 billion per year, so even a nominal reduction in corrosion would result in avoided costs of some $2.5 billion per year to US industry; Consumer products: A $1.5 billion industry, fluoropolymer-coated cookware provides easy-clean, nonstick properties, saving time, water and energy. Products last longer and facilitate cooking with less added fat. Consumer survey data shows strong preference both for non-stick properties in cookware and for using less fat in cooking; Energy: Fluoropolymers have contributed to significant technical advances in solar power generation, production efficiencies in wind turbines and to the development of lithium ion batteries. The costs of solar photovoltaic (PV) cells have halved in recent years, with installed capacity enough to power 11.2 million American homes. Production efficiency increases of ETFE modules relative to glass provide a potential yearly saving of up to $4 billion for US PV module manufacturers. Fluoropolymers enable efficiency gains in wind turbine production. Installed capacity of both PV and wind energy is increasing quickly; a pre-requisite is unit cost reductions driven by efficiency gains. Fluoropolymers facilitate advanced energy storage and conversion technologies and are key components of lithium ion batteries; and Building and construction: Fluoropolymers provide durable, thermally stable, easy-to-clean, building materials which can both reduce building cooling costs and energy use, enabling novel "landmark" architectural designs. These include the Mercedes Benz Stadium, Atlanta, GA, and Denver Airport's ETFE and PTFE fiberglass roofs. What about alternatives? Overall, while some alternatives might have a similar performance to fluoropolymers for a parameter or property, it is the combination of properties required for the applications that sets fluoropolymers apart from the alternatives. Implications of a transition could include lower performance, lower durability and reliability, and increased weight (with associated effects on fuel consumption and fuel efficiency). Some applications, like semiconductor manufacturing would be severely impaired, based on current technical knowledge. Economic implications include regression of advanced technologies and the reduced ability of the United States to attract high and medium technology manufacturing investment, efficiency losses, higher capital and maintenance costs. The diversity of fluoropolymer applications would pose major product qualification issues in addition to design implications. Environmental / health and safety implications include potential higher safety risks to medical patients and consumers and increases in emissions from technical regression. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 5 Wood Environment & Infrastructure Solutions UK Limited 5 January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 6 Wood Environment & Infrastructure Solutions UK Limited 6 Contents 1. Introduction and scope 8 1.1 Purpose of this report 8 1.2 What are fluoropolymers? 8 1.3 Structure of this report 9 2. Fluoropolymers - what do they do and how are they used? 11 2.1 Key sector 1: Electronics 12 2.2 Key sector 2: Transportation 14 2.3 Key sector 3: Chemical and industrial processes 19 2.4 Key sector 4: Consumer products 21 2.5 Key sector 5: Energy 23 2.6 Key sector 6: Medical and first responder 26 2.7 Key sector 7: Building and construction 28 3. The socio-economic contribution of the fluoropolymers industry 30 3.1 Introduction 30 3.2 Volume of use (fluoropolymers in basic form) 30 3.3 Revenues (fluoropolymers in basic form) 31 3.4 Research and development (R&D) and innovation 31 3.5 Direct employment (manufacturing of fluoropolymers in basic form) 32 3.6 Sales of fluoropolymers to downstream sectors 36 3.7 Indirect economic contribution 37 Gross Value Added (GVA), Indirect and Induced GVA and employment 37 The fluoropolymer value chain 39 4. Downstream benefits of fluoropolymers 41 4.1 Introduction 41 4.2 Key sector 1: Electronics 41 Enabling characteristics and socio-economic contribution 41 Socio-economic value of the sector 42 4.3 Key sector 2: Transportation 44 Enabling characteristics and socio-economic contribution 44 Socio-economic value of the sector 48 4.4 Key sector 3: Chemical and industrial processes 49 4.5 Key sector 4: Consumer products 53 4.6 Key sector 5: Energy 53 January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 7 Wood Environment & Infrastructure Solutions UK Limited 7 Enabling characteristics and socio-economic contribution 53 Socio-economic value of the sector 55 4.7 Key sector 6: Medical and first responder 59 Enabling characteristics and socio-economic contribution 59 Socio-economic value of the sector 60 4.8 Key sector 7: Building and construction 61 Enabling characteristics and socio-economic contribution 61 Socio-economic value of the sector 64 5. Potential alternatives and implications of their use 65 Technical implications 66 Economic implications 66 Environmental / health and safety implications. 67 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Quantities of fluoropolymers sold in the US per year (2018) 31 Annual sales value of the US fluoropolymer market (2018) 31 Annual research and development expenditure related to fluoropolymers (2018) 32 Total employment in surveyed companies and direct employment associated with US fluoropolymer production (2018) 33 Selected examples of fluoropolymer enabled innovations 34 Downstream applications of fluoropolymers (tons and value, 2018) 36 Summary of results from the multiplier analysis for indirect and induced GVA supported by the fluoropolymers industry per sector in the US. 38 Breakdown of the estimated total US employment in the fluoropolymers industry. 39 Figure 3.1 Figure 3.2 Figure 4.1 Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5 Figure 4.6 Figure 4.7 Figure 4.8 Figure 4.9 Figure 4.10 Figure 4.11 Total quantity sold and total value per key sector (2018) 37 Simplified overview of key stages in the Fluoropolymer value chain 40 Semiconductor sales, global economic output and key technological milestones (1980-2016) 43 Value added selected electronic and telecommunications industries ($ Billions of Dollars), 44 GDP Components of Transportation-Related Final Demand, 1999-2016 (billions, chained 2009 dollars). 49 "Business of Chemistry" establishments by State (2018) 51 The value of Chemistry shipments by State (2018) 51 State economic impacts - value of shipments ($m, 2018) 52 State economic impacts - employment (Thousands, 2018) 52 Estimated petroleum and natural gas production (Quadrillion British thermal units) 56 US Electricity Net Generation: Total (All Sectors) 1983-2017 (Million Kilowatt-hours). 57 Utility scale electricity generating plants planned to come online between Sept 2019 and Aug 2020 58 Capacity weighted average construction costs by installation year ($ per KW installed capacity 2013-2015). 58 Appendix A Appendix B Original survey data Potential alternatives January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 8 Wood Environment & Infrastructure Solutions UK Limited 8 1. Introduction and scope 1.1 Purpose of this report In 2019, Wood Environment and Infrastructure Solutions UK Ltd ("Wood") was commissioned, on behalf of FluoroCouncil, an affiliate of the American Chemistry Council, to identify the socio-economic value of the group of plastics known collectively as fluoropolymers, to United States society and economy. The socio-economic assessment (SEA) focuses on the economic benefits of the industry, in terms of revenues, employment and sales to downstream sectors. It also focuses on the benefits to society that these products then deliver via those downstream sectors. Across the United States this includes a huge variety of applications; it is not practicable to examine them all. As such, this study considers the use of fluoropolymers in seven strategically important sectors: Electronics; transportation; applications in chemical and industrial processing; consumer products; energy; medical and first responder; and building and construction. In each, the various benefits that fluoropolymers deliver to governments, industry and consumers are analyzed, both in terms of functionality within specific products, alongside analysis of the importance of the wider sector in which they are used to the US economy. The SEA draws on publicly available data, alongside a survey undertaken with members of FluoroCouncil. Further consultation was carried out with a selection of downstream users. When discussing monetary values, `m', `b' and `t', refer to million, billion and trillion, respectively. Note that all data on product volumes in chapter three are based on survey data, measured in tons. One ton is equivalent to one short ton or two thousand pounds. 1.2 What are fluoropolymers? For the purposes of this study fluoropolymers are defined as follows. Polymers that have a carbon backbone and contain fluorine atoms directly attached to the carbon. Fluoropolymers are made by polymerization of olefinic monomers at least one of which contains fluorine bound to one or both of the olefinic carbon atoms. This includes fluoroplastics, fluoroelastomers and fluororubber products. Examples of fluoroplastics are polytetrafluoroethylene (PTFE) - including expanded PTFE (ePTFE)polyvinylidene fluoride (PVDF), FKM, copolymers of ethylene and tetrafluoroethylene and ethylene, and copolymer of ethylene and chlorotrifluoroethylene (ECTFE), ethylene tetrafluoroethylene (EFTE), copolymer of tetrafluoroethylene and hexafluoropropylene (FEP), copolymer of tetrafluorothethylene and perfluoropropylvinylether (PFA) and terpolymer of tetrafluoroethylene, hexafluoroethylene and vinylidene fluoride (THV); and Examples of fluoroelastomers are copolymers of vinylidene fluoride and hexafluoropropylene (and at times tetrafluoroethylene, FKM), copolymer of propylene and tetrafluoroethylene (FEPM) and copolymer of tetrafluoroethylene and perfluoromethyl vinylether (FFKM). Fluorotelomers [CnF2n+1(CH2)mH] and fluorotelomer-based side-chain polymers are out of the SEA scope. Fluoropolymers form crucial parts of many components, technologies, industrial processes and products with which we come into contact every day. They provide a wide variety of benefits both essential to high technology products and unobtainable in other materials but are often invisible to the consumer. They are January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 9 Wood Environment & Infrastructure Solutions UK Limited 9 chemically inert, non-wetting, non-stick, highly temperature and fire resistant, and highly weather resistant. It is this specific combination of properties that makes them so unique and valuable. The US Chemical Sector in a global economy Based on International Council of Chemical Associations (ICCA) data, in 2017, the global chemical industry directly added $1.1 trillion to global GDP and directly employed 15 million people1. When direct, supply chain and payroll-induced impacts are included, it contributed $5.7 trillion to 2017 world GDP (7.1% of world GDP total) supporting 120 million jobs across the world2. The US is currently the second-largest global producer of chemicals, behind China3. In 2018, US chemical industry value-added was $210.6 billion, but the total value-added of all US industries depending upon the US chemical industry estimated at over a quarter (25.4%) of US GDP4. The US chemical industry directly provided around 542,000 jobs). Including direct, supply-chain and payroll-induced impacts, it supports a total of over 4.4 million US jobs5. The chemical industry is a major global investor in R&D, with $51 billion spent in 2017. The top three chemical R&D spenders are China ($14.6b), United States ($12.1b) and Japan ($6.9b)6. Over the past 30 years, the US economy has seen a decline in traditional manufacturing employment with productivity growth now driven by advanced manufacturing, including design, with an important role played by creative "knowledge intensive" employment and services7. R&D and commercial innovations in the chemical industry often result in new technologies, products and processes with wider social benefits8. One measure of this is patent generation an indicator of the application of new ideas and knowledge transfer9. The US chemical sector has an above average patent intensity (0.027) compared to the wider US economy (0.018). Chemical products also facilitate patents and innovation in other industries10, Recent research has highlighted the importance of cities for invention and innovation11 highlighting that patents in the US are increasingly being generated in metropolitan areas12. 1.3 Structure of this report Following this introduction: Section 2 provides a summary of how fluoropolymers are used in the seven key sectors and what benefits they confer which make them useful in so many applications. The remainder of the report focuses on these applications and sectors; 1 Source: https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf. Note that this is the chemical industry's direct gross value-added contribution to global GDP in 2017. 2 Source: https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf. Note that this includes the three channels of impact: direct, indirect, and induced economic channels. 3 Source: https://www.americanchemistry.com/GBC2019.pdf. Note this is a 2018 figure. 4 Source: https://www.americanchemistry.com/GBC2019.pdf. Note that the total value-added of all sectors of the economy equals GDP. 5 Source: https://www.americanchemistry.com/GBC2019.pdf. 6 Source: https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf. Note that for the US, 2017 R&D spending has also been published at $9.3 billion. (https://www.americanchemistry.com/GBC2019.pdf). 7 Moretti, E. (2013). The New Geography of Jobs. New York: Mariner. 8 Source: https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf 9 Source: https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf. Note that many innovations are never patented and may not always become commercially valuable (Moretti, E. (2013). The New Geography of Jobs. New York: Mariner). 10 Note that "patent intensity is measured as the number of US patents awarded to an industry relative to total industry sales in the United States. The variable was developed in Hu, A.G.Z., Png, I.P.L., "Patent rights and economic growth: evidence from cross-country panels of manufacturing industries", Oxford Economic Papers, 65 (2013): 675-98." (https://www.icca-chem.org/wpcontent/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf). 11 Rothwell, J., Lobo, J., Strumsky, D. and Muro, M. (2013). Patenting Prosperity: Invention and Economic Performance in the United States and its Metropolitan Areas. Massachusetts: Brookings. (https://www.brookings.edu/wp-content/uploads/2016/06/patenting-prosperityrothwell.pdf). 12 Source: https://www.researchgate.net/publication/333198898_Patent_Generation_in_US_Metropolitan_Areas 2019 research. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 10 Wood Environment & Infrastructure Solutions UK Limited 10 Section 3 contains an analysis of the current socio-economic value of the fluoropolymer industry to the United States. This focuses on direct and indirect employment, revenues, research and development (R&D) investment, product innovation as well as the volume and value of sales to downstream sectors; and Section 4 considers two aspects: First, the benefits to U.S society and economy that the use of fluoropolymers deliver in the various applications are illustrated. These benefits may include characteristics in the final products, efficiency improvements in industrial processes, or their use may enable a product or process that would otherwise not be possible; and Second, given their widespread use across the key sectors, the socio-economic contribution and strategic significance of the eight key sectors themselves is evaluated, in terms of economic output, employment or international trade, for example. Section 5 evaluates potential alternatives to fluoropolymers. This covers the following key criteria: their technical functionality and performance characteristics; their economic feasibility; their health and environmental profile; and whether they are likely to be available in sufficient quantities. Appendix A provides further information on the treatment of survey data and Appendix B sets out additional details on potential alternatives in several applications. The UN Sustainable Development Goals In September 2015, the United Nations adopted the 2030 Agenda for Sustainable Development. This includes 17 Sustainable Development Goals (SDGs). These are widely referred to providing an overall framework toward sustainability. Several of the measures are of relevance to the issues described in this report and which are explored in further detail in later sections. These include: #7: Affordable and clean energy #8: Decent work and economic growth #9: Industry, innovation and infrastructure #11: Sustainable cities and communities #13: Climate action Sources: https://www.un.org/development/desa/disabilities/envision2030.html January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 11 Wood Environment & Infrastructure Solutions UK Limited 11 2. Fluoropolymers - what do they do and how are they used? Fluoropolymers have a unique combination of properties and performance characteristics. They provide specific functionality in a wide range of processes, components and end products essential to many high technology products. Since their use is widespread, it is a challenge to identify and evaluate the full extent of the socio-economic benefits that they create. So, this report has focused on seven "key sectors" where the use of fluoropolymers is particularly important, and which enables specific functionality. Within each key sector, the specific uses ("applications") of fluoropolymers and the benefits that they deliver are explained. In later sections of the report the most important applications are assessed further. These key sectors are: Electronics; Transportation; Chemical and industrial processes; Consumer products; Energy; Medical and first responder; and Building and construction. In the tables below, for each key sector, we set out how fluoropolymers are used, before looking at why - focusing on the characteristics that make them so useful. In the text, we refer to specific examples of fluoropolymer such as PTFE, PVDF (please refer to the definition provided above in Section 1.2). The order of the key sectors is consistent throughout the report and based on the sales volume of fluoropolymers in their basic form - the first stage in the value chain - from the largest to the smallest. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 12 Wood Environment & Infrastructure Solutions UK Limited 12 2.1 Key sector 1: Electronics Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics High purity; Chemical resistance; Low and high temperature resistance (e.g. from - 200 C to +260 C for PTFE and PFA); High abrasion, stress-crack and cut through resistance; Electrical insulation; Low dielectric constant and low variations of conductivity; Non-stick properties; and No flame propagation and low smoke generation. Benefits Taken together these characteristics enable outstanding functionality in electronic equipment on which we rely every day, and which delivers wider societal benefit, including: A. Ever-improving and affordable microchips and LEDs due to higher production yields in semiconductor manufacturing. B. Manufacturing cost savings (component lifetime increase, lower maintenance cost, lower material consumption). C. Reduced environmental risk (leak prevention, lower exposure of workforce to chemicals). D. Improved performance of high-volume data transmission. E. Increased reliability and lifetime of electronics. F. Facilitation of cleaning of electronics. G. Improved reliability of electronic systems that control a majority of safety critical operations in industrial use. H. Improved fire safety. Semiconductor and other electronic manufacturing [Benefits A, B, C]. Fluoropolymers are of critical importance for the manufacturing of semiconductors and other electronics. Semiconductors are made in a fabrication plant - or FAB. These can cost $4-5 billion to equip, measuring resolution up to a billionth of a millimeter..." where even the finest morsel of dust can ruin the entire product and dust on a lens can cause the entire output of a plant to be worthless". Fluoropolymers play a major role in their production, within various piping, vessels, valves and pumps that can withstand the aggressive etching chemicals as well as enabling the high purity required to make semiconductors function. The fluoropolymer components include: o Fluid handling components (e.g. tubing, piping, fittings, valves, pumps, vessels, instrumentation). Fluoropolymers such as PTFE, PFA and PVDF are used as the main material, coating or lining for components handling crucial aggressively reactive and/or high-purity processing fluids. This enables greater integration, reduced/avoided contamination (e.g. ionic contaminants) and very low extractable and leachable levels, providing greater reliability and endurance. These properties are compatible with aggressive chemicals but can also deliver the required purity. They make fluoropolymers crucial in semiconductor and electronics manufacturing. [Source: 1, 2, 3, 4]; o Filters. Fluoropolymers are also used as membranes and casings for filters such as ultra-low penetration air filters. [Source: 3, 4]; and o Semiconductor equipment parts: Such as linings and resins for wafer carriers, made from PTFE, PFA and ETFE for their heat resistance, UV-resistance and chemical /contamination resistance. [Source: 5]. Printed circuit equipment parts and packaging [Benefits A, B, E, J]. Microchips, cables and other electronics components which are manufactured with or contain fluoropolymer components are used in a wide range of other applications, as they provide good mechanical properties and low flammability. These, in turn, enable much of the functionality in a host of other products, such as modern cars, lighting, the internet, medical devices, home appliances and televisions. [Source: 11]: Printed circuit boards: Made from fluoropolymers such as PTFE for achieving a low dielectric constant, high heat and flame resistance as well as low variations of conductivity due to low moisture absorbance. Fluoropolymers also allow reduction in size of boards and components. [Source: 4, 7]; and Cushioning or release films in semiconductor molding and rewiring as well as in printed circuit board laminating: Often made from fluoropolymers such as ETFE for their non-adhesiveness, heat resistance and electrical properties [Source: 4, 5, 7]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 13 Wood Environment & Infrastructure Solutions UK Limited 13 Why are fluoropolymers useful? How are fluoropolymers used in this sector? I. Facilitate/enables/improves wireless communication. J. Miniaturization of components. Appliances and other electronic equipment [Benefits E, F]: Display and touch screen panels and coatings. Fluoropolymers use prevents finger print marks and provide insulation and chemical resistance (e.g. against cleaning agents and detergents) and transparency. They also provide seals for water protection, prolonging lifetimes. [Source: 4, 5]; LED packaging/encapsulants: Fluoropolymer films are used to provide non-adhesiveness, transparency and durability for LED packaging and encapsulants. They are also used as release films in the parts manufacturing process for LEDs. [Source: 5]; and Examples of fluoropolymer use in other electronic equipment include fluoropolymer (e.g. PTFE) additives in computer cases and fluoropolymer tubes (e.g. PFA) in copier rolls and paper feeders for non-adhesiveness and heat resistance properties. [Source: 1, 4]. Wiring and cabling [Benefits D, G, H, J]. Fluoropolymer resins (e.g. FEP, PFA, PTFE, PVDF and ETFE) are used extensively for insulation, shielding and jacketing of wiring and cabling of all kinds of electronic equipment. They are also used in buildings and in transport discussed below) and communication networks (specifically high speed and wireless data transmission). They achieve heat resistance and low flammability, low flame propagation, low smoke, high signal quality with low signal losses, stress-crack and cut through resistance, as well as chemical resistance [Source: 1, 5, 6, 7, 8, 10]. Fluoropolymers also allow the miniaturization of wire and cable. and are used in many data communication cables, such as: Micro and mini coaxial cables for Wi-Fi, 3G, 4G and Bluetooth antennas [Source: 8, 9]; Ethernet shielded twisted pair cables [Source: 8, 9]; Flat cables [Source: 4]; and Plastic optical fibers and fiber optic raceways [Source: 4, 8]. [1] Ebnesajjad, S., 2013. Introduction to fluoropolymers: Materials, technology and applications. PDL Handbook series. Elsevier. [2] https://www.chemours.com/Teflon_Industrial/en_US/uses_apps/semiconductor/purity.html [3] http://americas.kynar.com/en/markets-applications/industrial-applications/semiconductor/ [4] http://www.daikinchem.de/downloads/Daikin_Fluorochemical_Products.pdf [5] http://www.agc-chemicals.com/jp/en/fluorine/products/market/use.html?f_id=3 / https://www.rtpcompany.com/wafer-carrier/ [6] https://www.chemours.com/Cabling_Solutions/en_US/ [7] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Markets/Chemical-and-Electrical-Engineering/ElectronicsElectrical [8] http://americas.kynar.com/en/markets-applications/energy-and-electrical/wire-and-cable-for-ee-applications/ [9] https://www.chemours.com/Cabling_Solutions/en_US/uses_apps/index.html [10] https://www.gore.com/products/smt-emi-gaskets-for-mobile-electronics [11] http://www.microchip.com/technology / https://pubs.acs.org/doi/pdfplus/10.1021/bk-2009-1013.ch017 January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 14 Wood Environment & Infrastructure Solutions UK Limited 14 [12] https://www.forbes.com/sites/jimhandy/2011/12/19/whats-it-like-in-a-semiconductor-fab/#5cd832b845ef 2.2 Key sector 2: Transportation Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics Low permeation, but also manufactured to allow for semipermeable structures; Chemical resistance (protecting components from corrosive fuels and engine oils and fluids); Low and high temperature resistance (from -200 C to +260 C for PTFE and PFA, with other elastomers offering a range of -40 C to +230 C); Non-stick and consequently non-fouling, alongside sufficient bonding in certain multilayer applications; Low friction coefficient; Long-term compression resistance of fluoroelastomers; Excellent dynamic properties; No flame propagation and low smoke generation; and Excellent electrical insulation. Benefits Taken together, these characteristics enable functionality in vehicles, which delivers wider societal benefit, including: A. Lower fuel emissions. Automotive components: Fluoropolymers are used in various engine parts, emission control and hydraulic systems, venting products and in electric vehicles. These include: Engine Parts: Fuel lines, fuel hoses and turbocharger hoses [Benefits A, B, D, E, F, H]. Turbocharger hoses boost cars' performance increasing the air density entering the engine. Fuel lines and hoses move fuel within the vehicle and are typically made of multi-layered structures containing fluoroelastomers or fluoroplastics. More recently, some fuel hoses are made of fiberglass braid and PTFE liner bonds which can resist up to 800 C for periods, preventing leaks and breakdowns [Source: 1, 2, 5, 6, 9]. The range of characteristics (see left hand column) make fluoropolymers ideal for these applications; O-rings [Benefits D, E, J]. O-rings are often made of fluoroelastomers, which are used as seals between two components to prevent leaks. They are widely used in fuel containment systems and fuel injectors [Source: 3]; and Cylinder head gaskets [Benefits A, B, D, E, J]. An estimated 80% of new engines use multilayers of steel gaskets with a sealant coating made of fluoroelastomers between the cylinder heads and the engine block, with further growth expected. These gaskets seal the cylinders and prevent gas and liquid leakages (e.g. engine oil, coolants) [Source: 12]. Hydraulic and emission control systems: Hoses in hydraulic systems [Benefits D, E, F, H, J]. PTFE is used in inner layer hose constructions in hydraulic systems. These are in contact with petroleum, synthetic or water-based hydraulic fluids and need to resist high pressure. Non-stick properties prevent sedimentation, but bonding with other substances, such as silicone may also be possible. As above these avoid leaks and breakdowns [Source: 1, 2, 5, 6, 9]; ABS break lines [Benefit I]. The inner hose of PTFE with loose steel over-braiding allows for better brake efficiency and less aggressive brake pumping when the ABS is activated thanks to the pressure absorption in the PTFE tube. [Source 7, 16]; January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 15 Wood Environment & Infrastructure Solutions UK Limited 15 Why are fluoropolymers useful? How are fluoropolymers used in this sector? B. Better fuel economy from weight saving. C. Lower exhaust emissions (both carbon and NOx gasses). D. Increased lifetime of components. E. Better engine performance. F. Improved reliability and lower maintenance costs. G. Increased comfort (and noise reduction). H. Permits use of alternative fuels (like bio- diesel- see table note 19). I. Increased safety (e.g. through reliable performance of parts). J. Cleaner environment by avoiding leakage (e.g. oil or coolant leaks). Shaft seals, valve stem seals [Benefits E, J]. Shaft seals are used to seal engine or transmission components; here, fluoroelastomers or PTFE are used as a sealing element (lip). These seals are used to protect the transmission system from dust and aggressive lubricants. Valve stem seals - also made of fluoroelastomers - enable adequate lubrication of the valve while being durable and preventing permeability (which prevents evaporative emissions) [Source: 4]; Air intake manifold gaskets [Benefits A, B, D, E, G, J]. Air intake manifolds channel air into the engine. The gasket seals the system to ensure performance and minimize leaks. Fluoroelastomers are used as sealant beads for the gaskets. Here heat and stress resistance are essential as temperature and pressure are constantly changing in the air injection system; failure would lead to higher emissions and lower fuel efficiency. Alternatives are typically less resistant to solvents, oils and chemicals in combination with heat exposure. [Source: 8, 10]; and Greenhouse emission controls [Benefits B, C, D, E, F, J]. Fluoropolymers and fluoroelastomers play an important role in cutting carbon emissions via lambda, NOx or oxygen sensors which contain multiple fluoropolymer applications: wires, form hose, grommet and filter which are all operating in hot engine exhaust gases to optimize engine combustion. They also contribute to nitrous oxide emission reductions with multiple fluoropolymer components in the SCR/AdBlue (Urea) systems to convert toxic mono-nitrogen gases to alternatives that are safer for the environment [Source: 7, 8, 13, 15, 16]. Venting Products: Automotive venting products [Benefits D, E, F]. Used for lighting, electronic control systems, sensors, motors, powertrains, interior electronics, as well as gas powered, hybrid and electric vehicles. Vents block water, automotive fluids and contaminants while effectively reducing condensation, allowing components to vent during rapid temperature/pressure differentials [Source: 11]. Alternative energy vehicles Fluoropolymers are used in battery/fuel cells for electric vehicles: MEAs (Membrane Electrode Assemblies) [Benefits B, D, E, F]. These are key component in proton exchange membrane fuel cells. The MEA facilitates the conversion of hydrogen and oxygen into energy within the fuel stack enabling the car to go. These products also feature in stationary applications [Source: 11, 25, 26]. See also key sector 5; Fuel cells and batteries in electric vehicles [Benefits A, C]. Fluoropolymers are key components for the most novel types of fuel cells and batteries. Examples where fluoropolymers are unavoidable are cathode binders, battery gaskets and fuel cell membranes: in these applications they help achieve high voltage and safety of electrolyte systems, requirements for next-generation batteries [21]; and Lithium ion batteries and electronic systems. Fluoropolymers provide a host of important characteristics in electronic components, used extensively in automobiles (see detail in key sector 5). January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 16 Wood Environment & Infrastructure Solutions UK Limited 16 Why are fluoropolymers useful? How are fluoropolymers used in this sector? Marine sector: Submarines [Benefits D, F]. Submarine hulls can be coated with fluoropolymers to reduce encrustation, which increases drag and maintenance [22]; and Boats [Benefits D, F]. The smoothness and slickness of fluoropolymer coatings repels dirt and contaminants. Their resistance to corrosion also protects components from salt and mineral damage, reducing maintenance time and costs [23]. Aerospace industry. The same characteristics as noted above make fluoropolymers suitable for demanding aerospace applications. This includes but is not limited to aircraft and spacecraft manufacturing: Insulation for cables and wires in aircraft and spacecraft [Benefits D, F, I, J]. Wires and cables insulated with fluoropolymers show improved signal integrity for critical data transmission. They are particularly important in aircraft interiors, because of their broad temperature and UV resistance, flexibility, durability and chemical resistance to solvents and hydraulic fluids, as well as low smoke generation and flame resistance. [Source: 6, 7]; Leaky Feeder Antennas [Benefits B, D, F, I]. Improve in-flight connectivity to wireless networks. Fluoropolymers (e.g. PTFE) are used to ensure low smoke generation, flame resistance and durability and allow more protocols to run through one antenna, reducing the number of antennas required [Source: 17]; Aircraft interior coating [Benefits D, F, I]. Coated with fluoropolymers due to their flame retardancy, non-fouling and ease of cleaning [Source: 6]; January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 17 Wood Environment & Infrastructure Solutions UK Limited 17 Why are fluoropolymers useful? How are fluoropolymers used in this sector? Aerospace materials, tapes and gaskets [Benefits D, F, I]. Fluoropolymers (e.g. PTFE) provide sealing and surface protection against aviation liquids and UV radiation for access panels, engine cowlings, external fuel tanks, fairings, light assembly seals, passenger floorboards and other components [Source: 18]; Rings and seals for hydraulic systems, hoses and tubing [Benefits A, B, D, E, F, J]. Fluoropolymers provide similar functions as described above (automotive) for fuel systems, heating cables, circuit boards, engine wire insulation and jacketing [Source: 7]; and Electronic systems. Fluoropolymers provide a host of important characteristics in electronic components, used extensively in transportation (automobiles, aircraft). This application is covered separately below. One example is for instance the cables for individual inflight entertainment [Source: 20]. It should be noted that several uses in this sector are common to other sectors and are noted elsewhere in this section of the report. For instance, rings, seals, hoses and tubing (see automotive applications in this table above); circuit boards, semiconductors and wire insulation (see Section 2.1).). Table notes [1] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Markets/Automotive/ / https://www.dieselnet.com/tech/air_cool.php [2] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Applications/TubeHosePipe/FluidGasHandling/#box2 [3] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Applications/SealantORing/O-Ring/#box2 [4] http://www.fluorocarbon.co.uk/products/solutions/seals / https://www.3m.com/3M/en_US/design-and-specialty-materials-us/fluoropolymer-applications/sealant-applications/bonded-seals/ [5] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Applications/SealantORing/#box4 [6] Ebnesajjad, S., 2013. Introduction to fluoropolymers: Materials, technology and applications. PDL Handbook series. Elsevier [7] DuPont Fluoropolymers, An Introduction to Fluoropolymers, May 2009. Note that DuPont Fluoropolymers were spun off into a separate stand-alone company "Chemours" in July 2015. [8] https://www.chemours.com/Viton/en_US/applications/automotive_uses.html [9] http://www.kongsbergautomotive.com/products-services/passenger-cars/fluid-transfer/fuel-lines/fluoro-comp/ [10] http://www.enginebuildermag.com/2010/07/closing-the-gap-on-intake-manifold-gaskets [11] https://www.gore.com/products/industries/automotive [12] http://www.dupontelastomers.com/Applications/Automotive/head.asp [13] http://www.sgf.se/wp-content/uploads/Fluoroelastomers-in-Automotive-Applications.pdf [14] https://shop.touratech.nl/ptfe-steel-braided-brake-lines-bmw-r-1150-gs-front-without-abs.html [15] http://densoheavyduty.com/oxygen-af-sensors/oxygen-sensors [16] http://www.bosch-aa.com.cn/media/parts/engine_systems__auto_parts/gasoline__engine_systems/Lambdasensor_Imagefolder.pdf [17] https://www.gore.com/products/gore-tm-leaky-feeder-antennas [18] https://www.gore.com/products/gore-tm-skyflex-tm-aerospace-materials [19] "Alternative" fuels containing additives such as such as FAME and RME are more corrosive than standard fuel. As a result, vehicle manufacturers need particularly chemical resistant materials for the transition to a higher use of biodiesel in vehicles, as mandated by EU legislation (Fuel Quality Directive, Renewable Energy Directive). [See source 2, 8, 12 above]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 18 Wood Environment & Infrastructure Solutions UK Limited 18 [20] http://us.vocuspr.com/Newsroom/MultiQuery.aspx?SiteName=DupontEMEA&Entity=PRAsset&SF_PRAsset_PRAssetID_EQ=127481&XSL=NewsRelease&IncludeChildren=True&Lang=English) [21] https://www.plasticseurope.org/download_file/view/582/1722 / https://www.solvay.com/sites/g/files/srpend221/files/2018-10/High-Performance-Materials-for-Batteries_EN-v1.7_0_0.pdf [22] https://www.defensenews.com/global/europe/2019/07/22/italy-matches-french-naval-tie-up-with-german-sub-partnership/ [23] https://toefco.com/fluoropolymer-coatings-for-your-business/ [24] https://www.azom.com/article.aspx?ArticleID=13133 [25] http://atozplastics.com/upload/literature/Fluoropolymers-application-automotive-fuel-engine-systems.asp [26] https://www.sciencedirect.com/topics/engineering/membrane-electrode-assembly January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 19 Wood Environment & Infrastructure Solutions UK Limited 19 2.3 Key sector 3: Chemical and industrial processes Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics Inertness with an almost universal resistance to chemicals and oil; Low and high temperature resistance (e.g. from -200 C to +260 C for PTFE and PFA); Excellent insulation properties which enable downsizing and an overall reduction in weight; Low vapor and chemical permeability; Non-stick and low friction properties; High abrasion resistance; Formulations can be made conductive, which helps to prevent static electricity build-up; and As polymer processing additives, in small quantities, they prevent raw materials sticking. Benefits Taken together these characteristics enable outstanding functionality, safety and innovation in the chemical and power industries, which delivers wider societal benefit, including: A. Increased lifetime of components. B. Lower maintenance costs through corrosion prevention. C. Increased productivity from reduced failures, improved flow of process substances. D. Higher production yields and quality from improved purity of process substances. E. Material cost savings through downsizing and less waste during production and over life cycle of the product. F. Lower levels and risk of pollutant emission and exposure of workforce to pollutants and chemicals. G. Increased energy efficiency. Table sources Chemical and industrial processing sectors. Fluoropolymers support applications for aggressive chemical fluids. They contribute to corrosion and leaching prevention, lower maintenance and prevention of emissions. Typical applications include: Lining of piping, flowmeters and fittings, fluid-handling components, process vessels, tanks, storage and transport containers and piping [Benefits A, B, C, D, E, F]. Frequently made from steel or reinforced plastic lined with fluoropolymers (e.g. PFA, FEP or PTFE) to prevent corrosion and leakage and to extend service life or for their non-stick and friction properties. Fluoropolymer linings can be made conductive to prevent static electricity build-up (which in turn causes dust pick up and spark generation) by adding conductive compounds. [Source: 1, 2, 6, 9, 16]; Filters [Benefits A, B, D, F]. PTFE is sometimes used as a filter medium and/or casing to ensure high chemical resistance in filtering particulate from fluids [Source: 1, 6.]; Sealants [Benefits A, B, C, F]. Expanded sealants for flange sealing applications are often made of PTFE with a micro-fibrillated internal structure (i.e. a structure characterized by very small fibers) for enhanced stability. [Source: 3]; PTFE packaging vents [Benefits A, B, C, F]. Allow containers for industrial chemicals and cleaners, agricultural products and household chemicals and cleaners to equalize pressure without leaking and rupturing, thereby preventing harm to users and the environment when transported, stored and opened. [Source: 11]; Labware products and medicine packaging [Benefits A, B, D, E, F]. Fluoropolymers are used in sensitive analytical applications in the pharmaceutical sector because of their high purity, temperature and chemical resistance and low surface energy. In medical packaging, for example pills are protected from humidity and to preserve their effectiveness. [Source: 12]; Non-stick surfaces: Fluoropolymers help create nonstick surfaces in applications that require temperature resistance. They're used in lined pipes (see above), valves, pumps, tank and reactor linings, gaskets and seals. They're crucial to the safety of workers and the public, as they keep all kinds of equipment and chemical systems secured. They also benefit businesses by increasing productivity and decreasing the potential for accidents. [Source: 14]; and Polymer Processing Additives: Low use levels of Polymer Processing Additives (100-1000 ppm) in other extrusion resins can reduce common processing issues like die build-up and melt fracture. That results in better surface quality, less waste, increased productivity, and a smoother extrusion process from start to finish. They also allow for thickness reduction in film applications, reduction of clean outs, resulting in longer continuous manufacturing runs. [Source: 15]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 20 Wood Environment & Infrastructure Solutions UK Limited 20 [1] https://www.chemours.com/Teflon_Industrial/en_US/uses_apps/semiconductor/bulk.html Note this refers to filters and sensors as referred to in the text above. [2] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Applications/MetalCoating/IndustrialCoating/#box1 [3] http://solutions.3m.com/wps/portal/3M/en_EU/Dyneon_EU/Dyneon_Fluoropolymers/Applications/SealantORing/#box5 [4] http://www.daikinchem.de/energy_storage.html [5] http://www.agc-chemicals.com/jp/en/fluorine/products/market/use.html?f_id=5 [6] https://www.chemours.com/Teflon_Industrial/en_US/uses_apps/semiconductor/purity.html [7] http://americas.kynar.com/en/markets-applications/energy-and-electrical/battery/ [8] https://www.chemours.com/Teflon_Industrial/en_US/uses_apps/flue_gas_heat_exchanger/flue_gas_heat_exchanger.html [9] http://www.agc-chemicals.com/jp/en/fluorine/products/detail/use/index.html?pCode=JP-EN-F007 [10] https://www.researchgate.net/figure/Fluoropolymer-plastics-are-used-for-protecting-and-insulating-electrical-wiring-and_fig1_273296594 [11] https://www.gore.com/products/categories/venting [12] http://www.fluorocarbon.co.uk/markets/medical-and-pharmaceutical [13] http://www.essentialchemicalindustry.org/chemicals/chlorine.html / https://ec.europa.eu/jrc/sites/jrcsh/files/cak_bref_102014.pdf [14] https://www.thisisplastics.com/plastics-101/fluoropolymers-do-what-other-materials-cant/ [15] Personal communication, industry stakeholder consultation [16] https://www.parker.com/literature/Parflex/CATALOG_4150-55D-Fluoropolymer_Tubing.pdf January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 21 Wood Environment & Infrastructure Solutions UK Limited 21 2.4 Key sector 4: Consumer products Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics Low permeation but allows for semipermeable structure; Chemical resistance; Helps prevent corrosion; Low surface energy, low friction; Low and high temperature resistance (e.g. from -200 C to +260 C for PTFE and PFA); UV resistance and transmittance (e.g. articles can be made translucent); Flexibility; No flame propagation and low smoke generation; Non-stick; and Durability. Cookware [Benefits A, B, C, D]. Fluoropolymers' low surface energy, stability and chemical resistance provides non-stick properties to prevent food sticking/burning, facilitate easy cleaning, provide durability and corrosion prevention, are suitable for use in dishwashers, and reduces the use of fat/oil in cooking. [Source: 1, 2, 4, 5, 6]. PTFE-coated pots and pans have been in commercial use for some 50 years. While some alternative coatings have been developed, studies have found that PTFE coating systems typically last several times longer than these alternatives. In a survey conducted amongst US consumers in 2012, the majority (66%) stated that they use non-stick cookware. Moreover, 65% of those surveyed stated that PTFE delivers the highest quality. [Source: 2, 3]. They are designed to be used safely at high temperatures (up to +260 C) above the smoke point of most cooking oils and fats. [Source: 1, 5]. Textile. Fluoropolymers are employed in various textile applications, where products need to have specific characteristics, such as being water proof or breathable. Benefits Taken together these characteristics enable outstanding functionality, safety and innovation in the chemical and power industries, which delivers wider societal benefit, including: A. Increased lifetime of the product (hence consumer savings from less frequent replacement). B. Non-stick cooking, avoiding marks/burns. C. Easier cleaning, including use in dishwasher. D. Reduction of fat/oil use in cooking. E. Combination of waterproofing, breathability and comfort (thin and light). F. Waterproof properties. G. Fireproof properties. H. Chemical resistance. Raincoats, jackets, trousers [Benefits A, E]. Membranes created from fluoropolymers (for instance ePTFE) have a microporous semipermeable structure to provide waterproof, breathability and other protective properties to clothes for personal and professional uses, including in particularly demanding environments. Thin, lightweight, durable breathable moisture barriers protect against exposure to body fluids, electrical discharge and water. [Source: 7, 8, 9]; Footwear [Benefits A, E]. Fluoropolymer membranes can also be applied to footwear, to manufacture waterproof shoes for consumers and professionals that also allow feet to perspire and protect against chemicals or other liquids. [Source: 7]; and ePTFE sewing thread, fibers and weaving yarn [Benefits A, E]. Used for outdoor applications like awnings, umbrellas and furniture (also used in boat covers and sails, industrial filtration applications in demanding environments and high-performance ropes). [Source: 10]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 22 Wood Environment & Infrastructure Solutions UK Limited 22 Table sources [1] Ebnesajjad, S., 2013. Introduction to fluoropolymers: Materials, technology and applications. PDL Handbook series. Elsevier. [2] https://www.chemours.com/Teflon/en_US/products/nonstick_cookware.html [3] https://www.chemours.com/Teflon/en_US/assets/downloads/pdf/Final_Omnibus_Research_Key_Findings_061812.pdf [4] https://www.chemours.com/Teflon/en_US/products/cookware_myths.html [5] https://www.chemours.com/Teflon/en_US/products/safety/key_questions.html [6] https://www.chemours.com/Teflon/en_US/products/cookware_myths.html#q1 [7] https://www.gore.com/products/categories/consumer-products [8] https://www.gore.com/products/categories/fabrics [9] http://www.gooutdoors.co.uk/expert-advice/guide-to-waterproofing[10] https://www.gore.com/products/categories/fibers January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 23 Wood Environment & Infrastructure Solutions UK Limited 23 2.5 Key sector 5: Energy Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics Excellent chemical resistance (helping to prevent corrosion) and abrasion resistance (providing e.g. weatherability); Low and high temperature resistance (e.g. from -200 C to +260 C for PTFE and PFA); Allow high optical transparency, while removing ultraviolet light (crucial for photovoltaics); Electrical insulation; and Permeability and barrier properties. Benefits Taken together these characteristics enable outstanding functionality in renewable energy, supporting their development and delivering wider societal benefit, including: A. Increased lifetime of components. B. Lower maintenance costs. C. Increased efficiency from improved functionality and reduced failures. D. Increased efficiency in the manufacturing process. E. Indirectly: Enabling sustainable energy and facilitating remote location of installations. F. Design flexibility. G. Corrosion prevention. H. Pollution abatement Alternative Energy Photovoltaics: Front sheets [Benefits A, B, C, E]. Frequently protected by fluoropolymers (e.g. ETFE, FEP and PVDF film), providing weather resistance (heat, water, abrasion, chemical), optical transparency (stable and high light transmittance), low surface energy (non-adhesiveness, easy clean), high barrier performance to oxygen, excellent fire resistance, flexibility and cost-effectiveness. [Source: 1, 2, 5,8, 11]; Backsheets [Benefits 1A B, C, E]. Fluoropolymers (e.g. ETFE and PVDF) are widely used to improve their primary function, such as electrical insulation and protection from humidity and sunlight. The fluoropolymers used are resistant to sunlight degradation and are resistant to most chemicals (including environmental pollutants) and heat, while preventing the permeation of gases and liquids. They exhibit high dielectric strength and volume resistivity as well as low flammability. [Source: 1, 2]; and Vents [Benefits A, B, C, E]. Fluoropolymer-based vents are used in solar applications like junction boxes, concentrating photovoltaics (CPV) modules, inverters and monitors for rapid pressure equalization, contamination protection and condensation reduction. [Source: 10]. Wind turbines: Paints and coatings on the main towers and blades of wind power generators [Benefits A, B, C, E]. Fluoropolymers (e.g. PTFE and PVDF) provide high weather resistance. Their use contributes to increased service life and reliable operation in harsh environments; the extension of maintenance cycles; and a more attractive appearance. [Source: 3, 4]. They also contribute to friction reduction and specific products have been developed to reduce ice build-up on turbine blades. [Source 13]; and Release film [Benefit D]. Fluoropolymers-based (e.g. PVF and ETFE) release films support the production of wind turbine blades. [Source: 12]. Other renewable energy sources [Benefits A, B, C, E]. Fluoropolymers are also used in solar thermal installations and coatings for geothermal plants. [Source: 8, 9]; Cables [Benefits A, B, C, E]. The various characteristics of fluoropolymers mean that they are used for cables, as discussed above. [Source: 4]; and January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 24 Wood Environment & Infrastructure Solutions UK Limited 24 Why are fluoropolymers useful? How are fluoropolymers used in this sector? Energy storage systems: They are a crucial component of energy systems, which comprise an increasing share of renewable energy: Lithium ion batteries [Benefits A, B, C, E, F]. Fluoropolymers (e.g. VDF/TFE copolymer, PVDF) are used as electrode (cathode) binders for active materials in lithium ion batteries. They are used for their chemical resistance and endurance, ease of processing, adhesion and voltage stability. [Source: 4, 6, 7]; and Polymer electrolyte membrane / proton exchange membrane (PEM) fuel cells [Benefits A, C, E]. Various fluoropolymers are used in several components, including the gas diffusion layer (PTFE, FEP), the separator (ETFE, coatings) and drainage piping (PFA). Useful fluoropolymer properties include protonic and electrical conductivity and permeability, as well as resistance to oxidation, chemicals and heat. [Source: 5]. Conventional Energy Power sector generation. Due to their heat, oil and chemical resistance, alongside mechanical properties, fluoropolymers are widely used in thermal and other power generators and a range of further applications in the power sector [Source: 5]. The main applications are: Filters [Benefits A, B, F, H]. Because of the chemical resistance of PTFE, filters for dedusting of highly corrosive flue gases (e.g. humid SOx, HCl, hydrofluoric acid) are often made from woven PTFE. This abates pollution from fossil fuel power plants and waste incineration plants [Source: 10]; Flue gas heat exchangers [Benefits A, B, F, G]. PTFE or PFA tubes are frequently used in flue gas heat exchangers for heat recovery and heat displacement. They help corrosion reduction and aid cleaning. [Source: 17]; Cables [Benefits A, B, C]. The heat, oil, and chemical resistance as well as the mechanical properties of fluoropolymers mean that they are often used for cables and other equipment - including at power generation plants. [Source: 5]; January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 25 Wood Environment & Infrastructure Solutions UK Limited 25 Why are fluoropolymers useful? How are fluoropolymers used in this sector? Fluid handling, filtration and gas sampling in the nuclear industry [Benefits A, B, C, E, F]. Fluoropolymers such as PFA are widely used for tubes, vessels etc. to handle corrosive liquids and provide a low metals background. Gas handling and filter mediums and casings in the nuclear industry are also often made from fluoropolymers [Source: 10]; and Coal fired boilers [Benefits A,B,H). Used in mercury control systems to reduce emissions these simple systems are resistent to fouling, given the non stick characteristics and can last over 10 years, remving up to 2 tons of mercury. [Source: 16]. Oil and gas industry. In this sector, fluoropolymers and fluoroelastomers help achieve outstanding chemical and temperature resistance in processing parts, for example: Rings, valves and pumps [Benefits: A, B, G]. The utilization of fluoropolymers reduces replacement and downtime of these components, which help the extraction and handling processes. Fluoropolymers are wellsuited as they can resist a variety of demanding chemical environments and mechanical stresses [Source: 13]; and Tubes and pipes (Benefits A, B, C, G). Fluoropolymers used in the lining of down hole tubing for oil extraction provides chemical resistance and corrosion resistance to the oil extraction process. They are well suited as they resist the demanding chemical and temperature environment of deep well extractions. [Source: 15]. Table sources [1] http://www.agc-chemicals.com/jp/en/fluorine/products/market/result.html?f_id=5&u_id=49 [2] http://americas.kynar.com/en/markets-applications/energy-and-electrical/Photovoltaic/ [3] http://www.agc-chemicals.com/jp/en/fluorine/products/market/result.html?f_id=5&u_id=48 [4] http://www.agc-chemicals.com/jp/en/fluorine/products/market/use.html?f_id=5 [5] http://www.daikinchem.de/downloads/Daikin_Fluorochemical_Products.pdf [6] http://www.daikinchem.de/energy_storage.html [7] http://americas.kynar.com/en/markets-applications/energy-and-electrical/battery/ [8] https://www.mdpi.com/2071-1050/10/11/3937/htm [9] http://matching-project.eu/media/1343/180525_17nordic-corrosion-congress.pdf [10] https://www.gore.com/products/categories/venting [11] https://www.chemours.com/Teflon_Industrial/en_US/assets/downloads/k23269_Teflon_films.pdf [12] http://www.dupont.com/products-and-services/membranes-films/pvf-films/brands/tedlar-pvf-films/uses-and-applications/tedlar-wind-energy-applications.html [13] https://www.daikinchemicals.com/solutions/industries/oil-and-gas.html [14] https://www.researchgate.net/publication/250613087_Icephobic_PTFE_coatings_for_Wind_Turbines_operating_in_cold_climate_conditions [15] https://www.compositesworld.com/blog/post/thermoplastic-composite-pipe-on-the-rise-in-the-deep-sea, https://www.offshore-mag.com/business-briefs/equipmentengineering/article/16804172/otc-2018-pvdf-polymer-strengthens-risers-flowlines [16] https://www.gore.com/products/gore-mercury-control-systems [17] https://ieaghg.org/docs/General_Docs/PCCC3_PDF/4_PCCC3_4A_Dittmann.pdf January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 26 Wood Environment & Infrastructure Solutions UK Limited 26 2.6 Key sector 6: Medical and first responder Why are fluoropolymers useful? Characteristics Chemical inertness; Biocompatibility; Durability; Corrosion prevention (resistance to chemical attack and low permeation); Low coefficient of friction and low surface energy; Low and high temperature resistance (e.g. from -200 C to +260 C for PTFE and PFA); and Flexibility. Benefits Taken together these characteristics enable outstanding functionality and safety in health care, which delivers wider societal benefit, including: A. Reduced risk of cross-infections and thus medical complications. B. Increased lifetime of implants reducing risk of failure and risk of replacement. C. Allows tissue attachment and cell adhesion without an adverse reaction, reducing risk of complications. D. Higher consistency of dosages, increasing effectiveness and safety of drugs. E. Less frequent clogging and thus less frequent re-application/replacement for the patient (e.g. catheters, tubes). F. Improved functionality of medical equipment (e.g. filtering and venting). G. Facilitates non-invasive surgical procedures with guidewires, reducing risk of complications. How are fluoropolymers used in this sector? Surgically implantable medical devices such as vascular grafts [Benefits A, B, C]. Often made with expanded PTFE, grafts are critical in current surgery technology to replace damaged vessels in various body parts. Minimally invasive medical devices such as stent grafts often used for life-saving operations such as repair of aortic aneurisms or holes in the cardiac septum. Other implantable devices include surgical meshes for hernia repair and sutures for use in vascular, cardiac, and general surgery procedures. [Source: 3, 4, 5, 6]; Heart patches [Benefits A, B, C]. For cardiac reconstructions or repair where it is important that complications associated with tissue attachment to the material be avoided. [Source: 4, 5]. Heart patches made with fluoropolymers usually have three layers. External layers made of expanded PTFE and a middle layer made of an elastomeric fluoropolymer. [Source: 9]; Catheters [Benefits A, C, D, E]. Catheters require the inertness, low coefficient of friction and tissue attachment and cell adhesion that fluoropolymers can provide., avoiding complication or adverse reactions [Source: 1, 2, 4, 10]; Diaphragm pumps [Benefits A, D, F]. These pumps are critical for medical applications (as well as other applications) and are used e.g. for filtration and pumping in dialysis equipment. They are often made of PTFE or PVDF to be durable, inert and resistant to a variety of other substances. [Source: 2]; Membranes for filtering and venting purposes [Benefits F]. PTFE and PVDF are extensively used as the main material of microporous membranes used to filter particles and bacteria in critical fluids. They are hydrophobic and oleophobic, but they can be modified so their surfaces are hydrophilic for removing viral particles. PVDF membranes are also used in "blot tests" (used to detect proteins in blood or tissue). PTFE membrane venting products are designed for high levels of gas permeability which can allow for fast pressure equalization and airflow. [Source: 2, 7, 8]; Further applications [Benefits A, C, D, E, F, G]. Include sterile container filters, needle retrieval systems, tracheostomy tube, catheter guide wire for laparoscopy, valves, fittings, pumps, tubing and medicine inhaler canister coatings. [Source: 11, 12, 13, 15]. They are also used in a wide variation of medical data processing, such as cables for imaging techniques; and First responder protective clothing [Benefits E, F, G, H]. Firefighting clothing is a notable application of fluoropolymers. Their incorporation in fabrics allows the clothing to be able to resist water and abrasion, while also providing insulation against flames alongside breathability [Source: 15]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 27 Wood Environment & Infrastructure Solutions UK Limited 27 Why are fluoropolymers useful? How are fluoropolymers used in this sector? H. Facilitates miniaturization for minimally invasive "keyhole" surgery. Table sources [1] http://cool.conservation-us.org/coolaic/sg/bpg/annual/v11/bp11-33.html [2] https://www.polymersolutions.com/blog/the-impact-of-fluoropolymers-on-the-medical-device-industry/ [3] Ebnesajjad, S, 2005. Fluoropolymers applications in chemical processing industries. William Andrew Publishing. Elsevier [4] Ebnesajjad, S., 2013. Introduction to fluoropolymers: Materials, technology and applications. PDL Handbook series. Elsevier [5] https://www.goremedical.com/na/products?locale=mpd_na [6] http://www.goremedical.com/products/vg?locale=mpd_na [7] https://www.membrane-solutions.com/ptfe_venting_medical.htm [8] https://www.gore.com/products/gore-microfiltration-media-for-medical-devices [9] https://www.goremedical.com/products/acusealvg---featured-downloads?locale=mpd_euro [10] http://www.adtech.co.uk/products/fluoroplastic-tubing-and-rod/ptfe-tubing.php [11] http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4396056/ [12] http://www.teleflex.com/en/usa/productAreas/surgical/documents/Teleflex%20Catalog%20Lo%20Res.pdf [13] https://www.bostonscientific.com/content/dam/bostonscientific/uro-wh/portfolio-group/stone-management/Products-for-Ureteroscopy-Brochure.pdf [14] Modjarrad K. & Ebnesajjad S., 2013. Handbook of Polymer Applications in Medicine and Medical Devices. PDL Handbook series. Elsevier [15] https://toefco.com/the-benefits-of-fluoropolymers/ January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 28 Wood Environment & Infrastructure Solutions UK Limited 28 2.7 Key sector 7: Building and construction Why are fluoropolymers useful? How are fluoropolymers used in this sector? Characteristics Low permeation but allows for semipermeable structure; Chemical resistance; Helps prevent corrosion; Low surface energy and low friction; Low and high temperature resistance (e.g. from -200 C to +260 C for PTFE and PFA); UV resistance and transmittance (e.g. articles can be made translucent); Stability at low weight; Flexibility; and No flame propagation and low smoke generation. Benefits Taken together these characteristics enable outstanding functionality and innovation in textiles and architecture, which delivers wider societal benefit, including: A. Combination of waterproofing and breathability (thin and light). B. Increased lifetime of the product or building component, even in extreme environments. C. Reduced maintenance of building structures. D. Novel architectural designs requiring flexibility and thin materials. E. Weight reduction of building structures. F. Improved fire safety due to thermal stability. G. Improving energy efficiency of buildings. H. Facilitates composting. I. Non-fouling and easy clean. Coating for architectural applications: [Benefits B, C, F]. Includes fluoropolymer-based paints, fluoropolymer coated glass fabric roofs, and laminated coatings. They provide resistance to UV radiation, water, oil, dirt and corrosion and impermeability to gases, which makes them excellent for outdoor applications, especially in roofs in large infrastructure such as airports, stadia and skyscrapers [Source: 1]. In paints, they maintain paint properties (notably color and shine). They prevent mold and moss growth and are fire resistant, an essential property for the safety of the thousands of people who gather inside these buildings [Source: 2]. There is also evidence that specific coating systems can reduce building cooling costs (between around 4% up to 22%, depending on color, geographical location, climate conditions, and substrate type) [Source: 3]; Bridges and off shore bearing pads: [Benefits B, C, E]. PTFE has the lowest friction coefficient of all plastics. Fluorourethane coatings have an effective life exceeding 50 years and can reduce life cycle costs for coatings on steel and concrete bridges [Source: 4]; and Novel design solutions in" signature" buildings: [Benefits A, B, C, D]. ETFE transparent roofs are used in domes and stadia, such as The Mercedes Benz Stadium, Atlanta (see right) and Hard Rock stadium in Miami [Source: 11]. They permit natural light but prevent dampness. Fluoropolymers' excellent insulating properties allow for less material to be used, reducing the weight of the structures [Source: 5]. They can be made translucent, allowing natural light but keeping out heat, improving energy efficiency. Usually shaped as panels or cushions they enable a LED-light system with external color and color changes, such as in the Allianz Arena in Munich [Source: 6]. A steel structure is usually used to sustain the roof, but ETFE is lighter than materials such as glass [Source: 7]. Fluoropolymer-based coating was chosen for prominent projects which include - beyond those above -the Mercedes Superdome in New Orleans, the US Bank Stadium in Minneapolis [Source: 8]. Fluoropolymers can also be found in the Statue of Liberty in New York, where they serve as insulators and lubricators [Source: 9]. Fluoropolymer-coated glass fabric roofs have been used in the Reliant Stadium in Houston (the first retractable roof in the NFL) [Source: 10]. January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 29 Wood Environment & Infrastructure Solutions UK Limited 29 Table sources [1] https://fluorocouncil.com/applications/building-and-construction/ / https://www.arkema.com/en/products/product-finder/range-viewer/Kynar-Fluoropolymer-Family/ [2] https://blocksil.co.uk/solutions/stone-concrete-and-brick-coatings/ [3] https://www.paint.org/article/fluoropolymer-coatings-for-architectural-applications/ [4] http://lumiflonusa.com/wp-content/uploads/InternationalBridgeConference2008.pdf [5] https://www.designbuild-network.com/projects/wimbeldon-roof/ [6] https://www.agc-chemicals.com/jp/en/fluorine/products/detail/use/detail.html?uCode=JP-EN-F018_1 [7] https://www.chemours.com/Teflon_Industrial/en_US/assets/downloads/k23269_Teflon_films.pdf [8] https://www.agc-chemicals.com/jp/en/fluorine/products/detail/index.html?pCode=JP-EN-F002 / https://www.stylepark.com/en/hightex/ptfe-coated-glass-fabric-burj-al-arab / https://www.roofingcontractor.com/articles/90791-superdome-super-roof-iconic-mercedes-benz-superdome-in-new-orleans-sports-its-brightest-look-yet / [9] https://www.fluorotec.com/news/blog/21-fluoropolymer-facts-for-engineers/ [10] http://www.chrjvangeel.nl/SteelStructure/ptfe-fabric-membrane-structure-stadium-sport-court-3018.html / http://www.birdair.com/projects/sony-center [11] https://archpaper.com/2017/01/etfe-facade-engineering-miami/ January 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 30 Wood Environment & Infrastructure Solutions UK Limited 3. The socio-economic contribution of the fluoropolymers industry 3.1 Introduction This section focuses on the socio-economic effects arising from the manufacture and sale of fluoropolymers in the US. This relates to fluoropolymers in basic form, which is only the first stage of the value chain. The data draws from a survey with member companies of FluoroCouncil, an affiliate of the American Chemistry Council undertaken between July and September 2019. This survey sought detailed information on the volume and value of fluoropolymers in basic form manufactured and sold in the US, as well as exports and imports. The members of this group do not represent the entire US fluoropolymer market; therefore, an estimation of the total US market size (tonnage and sales) has been made. This has used publicly available data, alongside original survey data and estimates provided by FluoroCouncil members themselves. Further detail on the process used as well as the original data are in Appendix A. All data in this section relates to 2018 (unless otherwise stated) and is provided in metric tons and US dollars. To protect the commercially confidential information of individual companies, all data is aggregated and rounded. Where fewer than three companies have provided data for any given data point, the results are not shown. The global fluoropolymers market is expected to grow at a CAGR (compound annual growth rate) of almost 6% in the period 2018-2022, driven by an increase in building and construction activities. The Europe, Middle East and Africa (EMEA) region is forecasted to have higher incremental growth than the Americas. But North America dominates the global fluoropolymers market and accounted for 41% of the global demand in 201013. More recent 2018 data noted that PTFE, PVDF and FEP are the most commonly used fluoropolymer types14. 3.2 Volume of use (fluoropolymers in basic form) Around 77,500 tons of fluoropolymers are estimated to be sold in the US. Note this figure has been derived by extrapolating the original survey data15. A total of 85,000 tons are estimated to be produced annually in the US. The US is a net exporter; with 27,500 tons exported outside of the US, and annual imports of around 20,000 tons. 13 Source: Fluoroplastics Volume 2 https://books.google.co.uk/books?id=hzCdBAAAQBAJ&pg=PA8&lpg=PA8&dq=North+America+accounted+for+41%25+of+the+glob al+fluoropolymers+demand&source=bl&ots=7LKqzh0WDJ&sig=ACfU3U3Hou7U5CZxyWLmp898HRYSOVmcsw&hl=en&sa=X&ved=2a hUKEwiUz8fj3rLlAhULXsAKHW7KDbYQ6AEwA3oECAgQAQ#v=onepage&q=North%20America%20accounted%20for%2041%25%20of% 20the%20global%20fluoropolymers%20demand&f=false 14 https://ihsmarkit.com/products/fluoropolymers-chemical-economics-handbook.html 15 This figure has been derived by extrapolating the original survey data. It represents an estimation of the US market developed with the methodology set out in Appendix A.2 Volume of use. This estimation was made because FluoroCouncil group members that participated in the survey do not cover the whole US market. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 31 Wood Environment & Infrastructure Solutions UK Limited Table 3.1 Quantities of fluoropolymers sold in the US per year (2018) Quantities Total US market (tons, 2018) Tons produced in the US 85,000 Tons imported into the US 20,000 Tons exported from the US 27,500 Tons sold in the whole US market 77,500 Source: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Note that all data on product volumes are based on survey data, measured in tons. One ton is equivalent to one short ton or two thousand pounds. Notes: The process used to estimate the total market size refers to publicly available data alongside expert estimates from FluoroCouncil members themselves. The numbers are, therefore, subject to a certain level of uncertainty. See Appendix A for detailed calculations. Numbers are rounded to the closest 500. 3.3 Revenues (fluoropolymers in basic form) The volumes above generate revenues of around $2,120m per year, based on sales inside the US market. Of this, some $2,640m relates to fluoropolymers produced in the US. On average fluoropolymer products exported from the US have a higher average value than US imports. The total export value - $1,090m - is twice the import value - $570m. It is important to note that this refers to the sales value of fluoropolymers in their basic form, the first stage of the value chain. The value of the final products made using fluoropolymers will be substantially greater, in the order of several billion US dollars. This is discussed in later chapters. Table 3.2 Annual sales value of the US fluoropolymer market (2018) Quantities Sales value (US$m, 2018) Sales value of product produced in the US 2,640 Sales value of imports into the US 570 Sales value of exports from the US 1,090 Total value sold in the US market 2,120 Source: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Notes: The process used to estimate the total market size refers to publicly available data alongside expert estimates from FluoroCouncil members themselves. The numbers are, therefore, subject to a certain level of uncertainty. See Appendix A for detailed calculations. Some companies did not provide a response for Sales value of product produced in the US, Sales value of imports into the US and Sales value of exports from the US; knowing the Total value sold in the US market, these missing values have been calculated assuming the same ratio between the categories observed in the other companies. Numbers have been rounded to the closest 10 million. 3.4 Research and development (R&D) and innovation Innovation takes many forms, such as direct R&D or informal processes of learning, enabling the development of new products and more efficient production processes. Innovation has played a significant February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 32 Wood Environment & Infrastructure Solutions UK Limited role in driving economic growth through increased productivity, earnings and the standard of living (Rosenberg, 2004, IMF 2004)16, with recent analysis concluding it has played a significant role in overall levels of post war economic growth in the United States17. One relatively simple measure of the extent of innovation at company and sector level is by comparing investment in R&D; this also illustrates the extent of competition within markets as well as expectation of future demand growth. Extensive research has shown a correlation between R&D investment and company performance over time (e.g. sales growth, share price) (Oxford Economics, 201018). Beyond the companies themselves, R&D creates wider societal benefit through "spill overs" as others learn from, adopt and benefit from a new product or process. Examples may include consumers' advantages via better and/or lower cost products, accelerated imitation or learning amongst competitors. Research suggests that R&D spill-overs generate between 50%-100% societal return over and above the direct initial R&D investment (Oxford, Economics, 200819). Companies that participated in the survey for this project reinvested on average 6.4% of their revenue related to fluoropolymers in R&D activities. Based on extrapolating the survey data - and assuming others' in the market invest at a similar level - then up to $150m would be reinvested by the sector as a whole per year (Table 3.3). Applying the estimates on the value of wider spill over effects noted above, this suggests a further $75 million and up to $150 million in further economic impact, up to $300 million in total, accrues to the US economy from this level of investment. Some of the new products that have resulted are set out in Table 3.5. This is a higher rate than the 43m invested by the industry in R&D in Europe in 2015 (equal to $51m in 2018). This represented 5.5% of the turnover related to fluoropolymers20. Similarly, the rate is more than double than the average estimated proportion of GDP spent on R&D in the OECD countries (2.4% in 2017) and in the US itself (2.8% in 2017) 21. Table 3.3 Annual research and development expenditure related to fluoropolymers (2018) % of revenue related to fluoropolymers Upper bound estimate - total market US$m Upper bound - wider spillover effect to US economy US$m Total 6.4% 150 75-150 (225-300 in total) Source: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Notes: The process used to estimate the total market size refers to publicly available data alongside expert estimates from FluoroCouncil members themselves. The numbers are, therefore, subject to a certain level of uncertainty. See Appendix A for detailed calculations. Numbers have been rounded to the nearest 10 million. 3.5 Direct employment (manufacturing of fluoropolymers in basic form) A total of 60,600 people are employed in FluoroCouncil companies in the US (note that this only includes the companies taking part in the survey - no extrapolation has been undertaken in this data). Of these 1,500 16 https://www.oecd.org/cfe/tourism/34267902.pdf / https://www.imf.org/external/pubs/ft/wp/2004/wp04185.pdf 17 Gordon, R, J (2106). The rise and fall of American growth The U.S. Standard of Living since the Civil War (The Princeton Economic History of the Western World) Princeton University Press (12 Jan. 2016) 18 Oxford Economics (2010) The socio-economic impact of silicones in North America, Final Report. 19 Oxford Economics (2008) Study of the impact of the Intermediate Research and Technology Sector on the UK economy 20 https://www.plasticseurope.org/en/resources/publications/373-socio-economic-analysis-european-fluoropolymer-industry-executivesummary. The EU figure indicated in the report has been converted in 2015 US$ first and then inflated to 2018 prices. 21 http://www.oecd-ilibrary.org/industry-and-services/gross-domestic-spending-on-r-d/indicator/english_d8b068b4en?isPartOf=/content/indicatorgroup/09614029-en. 2018 data not available. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 33 Wood Environment & Infrastructure Solutions UK Limited employees are employed directly in the manufacture of fluoropolymers across the US. This number represents all those who manufacture the product, as well as those employed in occupations such as sales and marketing, research and development, that are supported by sales of fluoropolymer products. Together these people earned a gross annual salary of around $57m. This supports indirect economic activity from the expenditure of employees on housing, recreation, and goods and services, for example. These data indicate a high level of productivity, but it is important to note that this is simply the first stage in the value chain, many more employees are sustained from the downstream activities and products that utilities fluoropolymers. Table 3.4 Total employment in surveyed companies and direct employment associated with US fluoropolymer production (2018) Number of employees Total number of employees in FluoroCouncil Member Companies 60,600 Employment directly associated with fluoropolymer manufacture (first stage in value chain only) 1,500 Downstream employment in sectors using fluoropolymers in the US (a) c. 17.6 million (see section 4) Source: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Notes: The process used to estimate the total market size refers to publicly available data alongside expert estimates from FluoroCouncil members themselves. The numbers are, therefore, subject to a certain level of uncertainty. See Appendix A for detailed calculations. Numbers have been rounded to the nearest 500. a: Not all of these will be in companies using fluoropolymers, but they play an important enabling role in these sectors - this is discussed further in section 4. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 34 Wood Environment & Infrastructure Solutions UK Limited Table 3.5 Selected examples of fluoropolymer enabled innovations Key Sector Transportation / Energy Energy Other chemical and industrial processes Electronics Product Description Solar Impulse22 Solar Impulse is a privately funded project aiming to develop solar-powered aircraft technology. Two first experimental prototypes have shown promising results, with the second (Solar Impulse 2) successfully completing a circumnavigation of the Earth between 2015 and 2016. PVDF was used to coat the battery separators to extend cycle life. Flexible electric generators23 Polyvinylidene fluoride (PVDF) is a versatile material, whose properties allow it to generate charges when subjected to mechanical stress (piezoelectric). Recent research has made possible to use this material to create wearable piezoelectric generators (PEGs), mechanisms that can harvest mechanical energy from human movement and convert it into electricity. For instance, PVDF PEGs have been embedded in shoes, allowing the wearer to generate a power and voltage up to 20 mW and 60 V, respectively. Another application is in backpack straps. Here, the mechanical strain of walking with a backpack can be converted into electricity by placing PVDF into the straps. Other kinds of PVDF PEGs are used to harvest mechanical energy from urban and natural environments, such as road deformation under vehicles passing, vibration and water flow. This technology is anticipated to be capable of powering street lamps and nearby buildings, and they could also act as sensors for monitoring traffic density and the condition of the road. Air Filtration for Gas Turbines24 Filters are susceptible to high pressure drop spikes as they reach the end of their service lifetime. This is due to swelling of particles in wet or humid conditions. HEPA filters are highly efficient and capture virtually all particles in an airstream over their lifetime. When the filters start approaching their end of life, trend monitoring begin to show sensitivity to wet and humid conditions. The hydrophobic HEPA filters- a synthetic composite with ePTFE membrane- delays this effect, allowing for longer lifetime even in harsh conditions. `Internet of things'25 The use of fluoropolymers is central to the performance of modern semiconductors and hence of a variety of telecommunication devices. It is estimated that some 6.4 billion items are connected to the internet26. This includes smart TV, smartphones, smartwatches, smart kitchen appliances (e.g. fridges, kettles), and more. The "energy on demand" concept27, where electricity demand is shaped by smart devices at a regional or national level, is one potential way of better managing peak electrical demand and ultimately to reduce energy supply costs. In-flight connectivity28 A relatively recent development enables improved communication and internet access in aircraft without increasing the size/weight of hardware required. This is achieved with cable-based antennas constructed with engineered fluoropolymers and light coaxial cable. The antennas also 22 https://solarimpulse.com/ https://solarimpulse.com/efficient-solutions/solef-pvdf 23 Ibid. 24 https://www.gore.com/search?q=turbine+filters 25 https://www.chemours.com/businesses-and-products/fluoroproducts/ 26 Mintel Group Limited (2016) The connected home - UK 27 http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=6102354&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D6102354 28 http://www.semiconductorpackagingnews.com/press/37362.html February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 35 Wood Environment & Infrastructure Solutions UK Limited Key Sector Building and construction Medical and first responder Product "Cool roof" technology29 Membrane for heart defects30 Microfluidic devices31 Fabric membrane system against heat stress32 Description comply with the demanding vibration, temperature range, durability shock and fire specifications of aircraft. On demand in-flight entertainment systems data processing are run with lightweight fluoropolymer insulated data cables. A group of multidisciplinary scientists developed a new type of PVDF emulsion resin that did not require the use of solvent and high bake temperatures. This resin has been used as the base of reflective white roof coatings, known as "cool roof" technology. This has proven to be successful in the US, through initiatives triggered by new energy efficiency regulations in US States (e.g. California). This PVDF resin allows roofs to have a total solar reflectance of above 65%, enough to obtain an Energy Star rating. A typical white paint based on this new resin has an initial total solar reflectance of 81% and maintains 78% up to five years later (3% reduction). Cool roofs decrease the need for air conditioning and heating, reducing costs and GHG emissions. They provide excellent energy efficiency and have a lower life cycle cost than most traditional coatings. Physicians have been performing catheter-based procedures in the heart to diagnose and treat heart conditions for many years. Catheter-based closure of a hole in the cardiac septum involves the placement of a permanent implant, such as an ePTFE based medical implant, using a minimally invasive procedure. It is a permanent implant consisting of a wire frame covered with a thin ePTFE membrane. The wire frame is made of a platinum-filled nickel-titanium (Nitinol) alloy. The ePTFE material has been used in open-heart surgery with proven safety in medical implants. A new method to fabricate microchannels has been developed with the use of PTFE. Through the use of xurography - a method of digital fabrication to create stencils by cutting films with a motion-controlled razor blade-, films of fluoropolymers are cut and heat-pressed to form microchannels. With this method, in less than an hour these can be designed and assembled. Microchannels can be employed to perform organic synthesis of drugs and materials, as well as to regulate adhesion of biological molecules, bacteria and cells. An `intelligent' material construction using two ePTFE membranes. A highly breathable layer of thermal protection is positioned directly under the outer material of the garment; the membrane attached to the outer side of this layer prevents liquid penetration. This thermal insulation layer is combined with a moisture barrier that faces inwards towards the body. This second membrane transports moisture to the outside. It is a lightweight, breathable and waterproof system that delivers high levels of thermal protection in firefighter gear while reducing the risk of burn injuries and heat stress in wet and dry conditions. 29 http://pmse.sites.acs.org/acsteaminnovationaward.htm 30 https://www.goremedical.com/products/cardioform?locale=mpd_na 31 https://phys.org/news/2019-02-methods-microfluidic-devices-fluoropolymers.html 32 https://www.lanaomo.com/materials/ptfe/ February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 36 Wood Environment & Infrastructure Solutions UK Limited 3.6 Sales of fluoropolymers to downstream sectors The manufacture of fluoropolymers is just the first stage in the value chain. This section provides further information on various fluoropolymer products that are sold into several downstream sectors which are important to the wider US economy and where fluoropolymers provide important enabling characteristics. The FluoroCouncil survey obtained data on the volume and value of these sales, disaggregated into the various sectors. As before these have been extrapolated from survey data. Overall, approximately 77,500 tons of fluoropolymers were sold in 2018, with sales revenue of around $2,100m. The largest sectors in terms of tonnage sold and sales value are Electronics and Transportation. The former accounts for 31% of the tonnage and 26% of the sales value, the latter for 24% of the tonnage and 25% of the sales value. Chemical and industrial processes also figure prominently, with 16% of the US market for both tonnage and sales value (Table 3.6). The data is also shown graphically in Figure 3.1 below. Table 3.6 Downstream applications of fluoropolymers (tons and value, 2018) Sector Typical applications Total quantity sold (tons) Total value (US$m) Share, by value Electronics Semiconductors, printed circuit equipment, wiring, cabling Piping, tubing and fittings, fluid-handling components, vessels, storage tanks, sensors, sealants, binders in energy storage devices (e.g. batteries) 24,000 550 26% Transportation Fuel lines, hoses, hydraulic systems, O-rings, gaskets, electronic systems, coating for a variety of purposes (e.g. cables, wires), fuel cell materials. 19,000 530 25% Chemical and industrial processes Valves, stainless steel piping, tubing, filters, seals, gaskets and other standard fluid handling components, paper tableware, conveyor belts, labware products, packaging 12,500 330 16% Consumer products Non-stick coating for cook and bakeware (e.g. pots, pans, baking trays), textiles (e.g. raincoats, footwear) 7,500 200 10% Energy Front and back sheets for PV, paint and coating for wind turbines, coating for wires and cables, binders in lithiumion batteries, reverse flow batteries 4,000 140 7% Medical and first responder Cardiovascular grafts, heart patches, ligament replacements, catheters, filtering membranes 3,000 100 5% Building and construction Coating for architectural applications, architectural films 2,500 90 4% Other sectors not included above 4,900 170 8% Total 77,500 2,100 100% Source: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Notes: Sales values are rounded to the nearest 10 million, tonnages are rounded to the nearest 500. Note that all data on product volumes are based on survey data, measured in tons. One ton is equivalent to one short ton or two thousand pounds. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 37 Wood Environment & Infrastructure Solutions UK Limited Figure 3.1 Total quantity sold and total value per key sector (2018) Source: Wood survey - July - September 2019 (% of sales volumes and values). Note sales values are rounded to the nearest $10 million and tonnage data is rounded to the nearest 500 tons. Note that all data on product volumes are based on survey data, measured in tons. One ton is equivalent to one short ton or two thousand pounds. 3.7 Indirect economic contribution Gross Value Added (GVA), Indirect and Induced GVA and employment In any industry, the effect of economic activity extends beyond the direct sales of the product. Economic multipliers are used to quantify these further indirect effects, as they are `multiplied' through the economy via several spending rounds. Economic multipliers developed for assessment of the US Chemical Industry developed by Oxford Economics have been used. These were developed using the North American component of a global Input-Output model. The values used were as follows:33 For every $1 of chemical sales in the US, 43 cents Gross Value Added (GVA) 34 is created in the US (note this compares to a global average of 27 cents); For every $1 of GVA in the chemicals industry, $2.70 of indirect and induced GVA is supported; and In employment terms, each employee in the chemicals industry in the US supports a further 9 jobs elsewhere in the supply chain. 33 Oxford Economics (2019) "Report for the ICCA - The Global Chemical Industry: Catalysing Growth and Addressing Our World's Sustainability Challenges." https://www.icca-chem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf 34 This is a sectors contribution to gross domestic product. GVA is based on either the value of output, less the value of all the inputs or the sum of compensation to employees plus gross operating surplus (industry profits). In effect this represents the sectors contribution to the US economy. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 38 Wood Environment & Infrastructure Solutions UK Limited These multipliers enable an estimate of the economic effects of the industry via three channels of effect: Direct impact: This is the industry's activities, such as sales generated, and number of people directly employed from the business of manufacturing fluoropolymers in their basic form. In this study, this was determined from extrapolation of sales data provided by the manufacturers in the survey; Indirect impact: Also called a supply linkage multiplier, this reflects additional purchases made by the fluoropolymer companies themselves (on raw materials, energy etc.) and further purchases with other linked firms along the supply chain (I.e. the purchases made the companies providing fluoropolymer manufacturers with raw material, for example); and Induced impact: Also called a consumption or income multiplier, this reflects expenditure - often local of those who earn income from the direct and indirect effects described above. For example, this would include the purchase of a new car, house or holiday, by one of the employees of the fluoropolymer manufacturers35. In the calculations below, first, the direct revenue (sales) was converted to GVA. The multiplier was then applied to this figure to estimate indirect and induced GVA. It should be noted that the multipliers described above were calculated for the total chemicals industry in the US but are judged as appropriate to use in this case, to illustrate the likely extent of these wider effects. The sector specific estimates are subject to greater margin for error than the overall totals. Table 3.7 summarizes the results. Overall, total fluoropolymers sales in the US was estimated at $US2.1 billion. This equates to some $900 million Gross Value Added (GVA). Taking into account indirect and induced GVA effects, the wider contribution amounts to a further $2.4b of GVA related to this industry in the US - some $3.3 billion direct and indirect GVA in total. In terms of employment, the survey indicates that 1,500 people are directly employed by the fluoropolymers manufacturing industry in the US. When indirect employment is considered, the number increases by 13,100 indirect jobs, with some 130 of these specific jobs in R&D related employment - bringing the estimate of direct and direct employment in the fluoropolymers industry in the US to some 13,500. This is summarized in Table 3.8. Table 3.7 Summary of results from the multiplier analysis for indirect and induced GVA supported by the fluoropolymers industry per sector in the US. Sector Transportation Electronics Energy Building and Construction Medical and First responder Other chemical and industrial processes Consumer Products Fluoropolymer sales (US$ million) 530 550 140 90 100 330 200 Estimated GVA (US$ million) 230 240 60 40 40 140 90 Indirect and Induced GVA (US$ million) 610 640 160 105 115 390 230 35 See for example: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/378177/additionality_guide_2014_ful l.pdf February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 39 Wood Environment & Infrastructure Solutions UK Limited Sector Fluoropolymer sales (US$ million) Estimated GVA (US$ million) Indirect and Induced GVA (US$ million) Other sectors not included 170 above 70 190 Total 2,100 900 2,400 Sources: Wood, based on 2019 FluoroCouncil survey data and multipliers derived from Oxford Economics (2019) "Report for the ICCA - The Global Chemical Industry: Catalysing Growth and Addressing Our World's Sustainability Challenges." https://www.icca-chem.org/wpcontent/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf Note numbers have been rounded. Table 3.8 Breakdown of the estimated total US employment in the fluoropolymers industry. Direct US employment in fluoropolymers industry Indirect employment R&D related employment Total indirect and induced employment 1,500 13,100 130 13,500 Sources: Sources: Wood, based on 2019 FluoroCouncil survey data and multiplier derived from Oxford Economics (2019) "Report for the ICCA - The Global Chemical Industry: Catalysing Growth and Addressing Our World's Sustainability Challenges." https://www.iccachem.org/wp-content/uploads/2019/03/ICCA_EconomicAnalysis_Report_030819.pdf Note numbers have been rounded. The fluoropolymer value chain Figure 3.2 provides a simplified overview of the key stages in the value chain for fluoropolymers within the key sectors. The value chain illustrates the various industrial/manufacturing users of fluoropolymers, based on the survey among downstream users and research on uses summarized in Section 2, as well as the diversity of commercial users and end products in which fluoropolymers are used. It is necessarily a simplification and doesn't cover all uses noted in the report, focusing instead on some of the key stages and where economic value may be created. The final consumers will also differ, and this is discussed further in the next section. The value chain begins with the provision of raw materials and subsequently the production of fluoropolymers. Fluoropolymers are then supplied to the key sectors, via manufacturers of various multi use semi-finished goods36. Within each sector, the key stages in the value chain are shown, up to the use by the end user. Note that the diagram is intended to map out the key stages - there are a large number of individual companies in each stage. 36 Semi-finished goods include e.g. threads, foils, fibres, sealing material, tubes and membranes and other small parts. These are often generic enough to be used as input to manufacture various products from multiple sectors. However, often they are relatively complex goods. A strict distinction between semi-finished goods and components cannot always be made. Furthermore, in some cases fluoropolymers are applied to specific products in forms other than as semi-finished good, for instance as a coating. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 40 Wood Environment & Infrastructure Solutions UK Limited Figure 3.2 Simplified overview of key stages in the Fluoropolymer value chain February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 41 Wood Environment & Infrastructure Solutions UK Limited 4. Downstream benefits of fluoropolymers 4.1 Introduction The previous section evaluated the direct economic and social impact of the industry to the United States today. But a much larger socio-economic value is created via the characteristics of the products used by downstream users, their "enabling characteristics". For each of the key sectors, this section evaluates three things: First, the specific enabling characteristics that fluoropolymers deliver. This benefit is quantified where possible, described qualitatively where not. The evidence in the section is drawn from an industry survey amongst members of FluoroCouncil and downstream user feedback alongside desktop research. These enabling characteristics includes those with direct economic effects, such as contributions to efficiency, but also to sustainability, including carbon emission savings; Secondly, by evaluating the socio-economic importance of the wider sectors where fluoropolymers are used, the benefits are put in context. So not only do fluoropolymers deliver important benefits, the sectors themselves are strategically important to the US economy and society. We do not claim this economic activity is solely reliant on or derived only from fluoropolymers, but they serve important strategic functions with the sectors concerned, supporting production efficiency and enabling functionality and technology through the various benefits that they deliver; and Third, fluoropolymers contribute to wider sustainability, through supporting weight reductions, avoiding emissions and/or leaks and carbon emission reductions, increasing occupational or consumer safety. 4.2 Key sector 1: Electronics Enabling characteristics and socio-economic contribution The FluoroCouncil survey showed that by volume, fluoropolymer products in electronic application is the largest downstream sector, with the highest average value per ton; Fluoropolymers are critical to semiconductor manufacturing. Semiconductor processing requirements are highly specific. Fluoropolymers used in various piping, vessels, valves and pumps are able to withstand the aggressive etching chemicals and deliver the required high purity in the semiconductor manufacturing process. Semiconductors are "extremely intolerant of particulate and chemical contamination, which, even in trace amounts, can cause severe decrease in electricity yields" in the ultimate product, with significant implications for their downstream use37: Semiconductors, in turn, form part of millions of larger components from electronic equipment, communication devices to components in cars and aircraft. Faster, more affordable and smaller semiconductors have been beneficial to a wide range of industries and services, as well as transforming communications and leading to economic growth and productivity gains.38 Advanced semiconductors are now being manufactured at sizes of 10 nanometer (nm), with some 37 Ebnesajjad, S. (2014). Fluoroplastics, Volume 1: Non-Melt Processible Fluoropolymers-The Definitive User's Guide and Data Book. Elsevier. The use of fluoropolymers to protect semiconductor materials https://www.sciencedirect.com/science/article/abs/pii/S0022113903001039 38 https://www.selectusa.gov/semiconductors-industry-united-states https://www.heateflex.com/wpcontent/uploads/2019/04/Comparing-PTFE-and-PFA-fluoropolymers-as-wetted-parts-in-advanced-semiconductormanufacturing.pdf February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 42 Wood Environment & Infrastructure Solutions UK Limited companies planning for 7 nm technologies. The tiny size means dense circuitry and hence risks of particulate contamination, which can lead to chip failure, is a major concern for manufacturers39. The advantages of the 7nm chip include an estimated 40% power and 37% area reduction40. This means the product is more powerful, while smaller; and Alongside other substances and technological developments, Fluoropolymers have played an important role in achieving the so called "Moore's law" - a remarkably accurate prediction made in 1965 that computing power would dramatically increase in power, while decreasing in relative cost41. This, in turn, is driven by increases in the number of transistors per square inch in a microchip. As above, this is evident in increased processing speeds and greater computing power in physically smaller components42 43. Used in wires and optical fiber cables connecting computers and networks inside buildings in offices, college campuses, banks, financial institutions and hospitals. In the US, their flame resistance and smoke performance properties meet national safety requirements, while also being faster and less expensive to install44 45; and Downstream consultation indicates the fluoropolymer component of the cable allows high transmission speeds (e.g. for internet) in higher category cables. Around 25% of the average unit of cable sold (100ft) is composed of fluoropolymers46. These cables are used in crucial applications in a wide range of sectors, especially where reliability in aggressive environments is key. Examples include various automotive cables, controls for a majority of (often safety critical) operations and sensors in industrial installations as well as high volume data transmission in Information Communication Technology (ICT). Fluoropolymer cables maintain constant operation for at least 20,000h at temperature ranges from between -190 C and +260 C (depending on the fluoropolymer). Downstream consultation has indicated alternatives can have up to a third shorter operational lifetime under these conditions and do not meet the requirements for all higher frequency applications. Socio-economic value of the sector Between 1995 and 2015, innovation in microchips as described by Moore's law has generated an estimated $3tr of additional value to global GDP. Including the indirect economic effects, it may be as much as $11tr.47 39 https://www.heateflex.com/wp-content/uploads/2019/04/Comparing-PTFE-and-PFA-fluoropolymers-as-wetted-partsin-advanced-semiconductor-manufacturing.pdf 40 https://www.heateflex.com/wp-content/uploads/2019/04/Comparing-PTFE-and-PFA-fluoropolymers-as-wetted-partsin-advanced-semiconductor-manufacturing.pdf 41 https://www.intel.co.uk/content/www/uk/en/silicon-innovations/moores-law-technology.html 42 Ebnesajjad, S. (2015). Fluoroplastics, Volume 2: Melt Processible Fluoropolymers-The Definitive User's Guide and Data Book. William Andrew. See also: https://www.howtogeek.com/394267/what-do-7nm-and-10nm-mean-and-why-do-they-matter/ 43 A useful overview of Moore's law, along with supporting data illustrating the exponential increase in transistors per chip is provided in the economist: http://www.economist.com/technology-quarterly/2016-03-12/after-moores-law 44 Smoke and fire performance tests are a safety requirement for cables. PTFE cables have a much lower fire load when compared to other common cable insulating materials. Fire loading is a measurement used by fire-fighters and other fire safety professionals to determine the potential severity of a fire in a given space. When the volume in kilometers and tons of cable insulations which are installed in buildings and projects is considered, the fire load of electric cables becomes very considerable. This is particularly important in high-rise buildings, in tunnels/underground environments, theatres, airports and hospitals. https://www.miccltd.com/cms-files/Electric_Cables_Fire_Performance_White_Paper.pdf 45 These requirements are set out in detail by the National Institute of Standards and Technology (NIST) of the U.S Department of Commerce, document NISTT.IR 8118r1: A guide to United States Electrical and Electronic Equipment Compliance Requirements (February 2017). https://nvlpubs.nist.gov/nistpubs/ir/2017/NIST.IR.8118r1.pdf International standards include IEC 60695-1-10:2016 Fire hazard testing - Part 1-10: Guidance for assessing the fire hazard of electrotechnical products - General guidelines https://webstore.iec.ch/publication/26249 46 Based on the results of the stakeholder interviews with downstream users undertaken as part of the current study. 47 Dale Ford, IHS Technology Thought Leadership: Celebrating the 50th Anniversary of Moore's Law. https://technology.ihs.com/api/binary/532884 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 43 Wood Environment & Infrastructure Solutions UK Limited A host of other sectors indirectly rely on the functionality provided by semiconductors. They are used in millions of components in power devices, optical sensor and light emitters in industrial operations, consumer electronics and healthcare applications. These include PCs (personal computers, laptops, servers and tablets) and communications (broadband internet, mobile phones, smartphones, etc.) and other consumer electronics appliances (television sets, music players, gaming consoles, household appliances and fitness gadgets), amongst others. Figure 4.1 illustrates their wider importance, comparing semiconductor sales with GDP growth in a range of other downstream sectors over the past 35 years. Alongside other substances and technological developments, Fluoropolymers have played an important role in these developments. Figure 4.1 Semiconductor sales, global economic output and key technological milestones (1980-2016) Source: Dale Ford, IHS Technology Thought Leadership: Celebrating the 50th Anniversary of Moore's Law. https://technology.ihs.com/api/binary/532884 According to the US semiconductor industry association, the industry accounted for $209b of sales value in 2017, 45% of the global market. The industry employs 250,000 people directly in the US, supporting a further 1m additional jobs further down the supply chain. Major manufacturing facilities are located in some 19 US States, with clusters in Oregon/Washington (in the vicinity of Portland), California (San Jose), Arizona (Phoenix), Minnesota (Minneapolis), Massachusetts (Boston) and Texas (Dallas and Austin)48. In the electronics and telecommunications sector more generally, the US continues play a leading role. Figure 4.2 illustrates trends in economic value added (I.e. the contribution to national GDP) between 2010 and 2018 for three relevant sectors. In 2018 together, these generated over $900 billion in value added. Growth rates in these sectors varied (from 23% - computers and electronic products to 154% - data processing, internet publishing, and other information services). This compared to growth in national GDP over the same time period of 37%. 48 https://www.semiconductors.org/semiconductors-101/industry-impact/ February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 44 Wood Environment & Infrastructure Solutions UK Limited In terms of employment numbers, as of July 2019, just under 1.1 million Americans were employed in computer and electronic product manufacturing (383,000 of these specifically in semiconductor and electronic components). A further 713,000 were employed in telecommunications, with over 2.2 million Americans employed in computer systems design and related services49. Figure 4.2 Value added selected electronic and telecommunications industries ($ Billions of Dollars), Source: US BEA Interactive Access to Industry Economic Accounts Data: GDP by Industry. https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1 4.3 Key sector 2: Transportation Enabling characteristics and socio-economic contribution Conventional automotive In automotive applications fluoropolymers prolong the useful life of various components critical for performance, emission control and safety. They provide durable and effective protection against heat, aggressive fuels, humidity, vibrations and compression. This contributes to increased reliability and durability of parts, and hence to a reduction in both the cost and extent of maintenance and breakdowns. Fluoropolymers are used because of the resistance to very high temperatures and other chemicals and the increase of under-hood temperatures in vehicles, alongside the need to prevent fuel and other leaks.50 49 Source: Bureau of labor statistics Employment, Hours, and Earnings from the Current Employment Statistics survey (National) https://data.bls.gov/pdq/SurveyOutputServlet 50 https://books.google.jo/books?id=_0t9AwAAQBAJ&pg=PA475&lpg=PA475&dq=fluoropolymers+and+high+temperature+wire+insulati on+in+cars&source=bl&ots=xffI7xDmW&sig=ACfU3U1OffuDrzGuoh_Tdq86bdJ_x_ly1A&hl=en&sa=X&ved=2ahUKEwiBgYSjgo_lAhVynVwKHRyeC1gQ6AEwDnoECAc QAQ#v=onepage&q=fluoropolymers%20and%20high%20temperature%20wire%20insulation%20in%20cars&f=false February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 45 Wood Environment & Infrastructure Solutions UK Limited Case study: Supporting fuel efficiency improvements as part of advanced vehicle systems In autos, Fluoropolymers and fluoroelastomers are used in lambda, NOx or oxygen sensors which optimize engine combustion. They contribute to nitrous oxide emission reductions with multiple fluoropolymer components in the SCR/AdBlue (Urea) systems in diesel engines. ABS break lines permit better brake efficiency and O-rings provide seals in fuel containment systems and fuel injectors. Alongside a range of other advanced components and management systems, these contribute improved fuel efficiency in autos, decreasing operating costs to consumers as well as the associated emissions to the environment. Driven by changing consumer demand amid increasing awareness over climate change, alongside regulatory action, fuel efficiency of US cars has improved over time. The Bureau of Transportation provides statistics showing trends data on the average fuel efficiency of US vehicles. Looking specifically at light duty vehicles, the average miles per gallon (mpg) performance in 1980 was 14.9, by 2016 this had increased to 22 - a 48% increase). In new passenger cars, the equivalent figures in 2016 was 38 mpg, an increase in that category of 55%. With an overall fuel efficiency improvement of some 65% the MPG of domestic cars are now only marginally behind imported cars, which have seen an improvement of MPG rates of 29% over the same period51. The US EPA provide an Automotive trends report looking at greenhouse gas emissions, fuel economy and technology over a longer timeframe - since the 1970s. These also show similar trends with increasing average fuel economy (MPG) alongside decreasing "real world" CO2 emissions with progressive new car models. However, the report recognizes that while fuel economy has improved in SUV vehicles, the ongoing shift towards these vehicles has offset some of the societal benefits that would otherwise have occurred. The figure above compares vehicle weight and horsepower - two key determinants of fuel economy - and CO2 emissions, with average fuel economy. It highlights since c. 2004 the technological focus has been on improving fuel economy as well as power, while maintaining weight and reducing CO2 emissions52. Alternative Energy Transportation Results of the downstream consultation highlighted that fluoropolymer applications are a key element of fuel cell technology. A fuel cell is an electrochemical cell that converts the chemical energy of a fuel and an oxidizing agent into electricity - yielding higher efficiencies than diesel or gas engines, alongside lower emissions and reduced noise.53 Maintenance of fuel cells is also easier due to its few moving parts54. Fuel cells are generally 60% energy efficient while the typical efficiency of a combustion engine car is 25%. Fuel cells also have less emissions than combustion engines - with hydrogen fuel cells emitting only water vapor. As such, there are no carbon dioxide emissions and no air pollutants.55 The consultation results indicate that fluoropolymers components are used in over 90% of the fuel cell industry in the end product, while accounting on average for c. 2% of the total weight of the average fuel cell. The electrochemical cell - which converts chemical energy from fed-in fuel and oxidants into electrical energy - dissipates heat in an isothermal process. Using fluoropolymers in this component of 51 Bureau of Transportation Statistics https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicle 52 Data and figure from US EPA 2018 Automotive trends Report https://www.epa.gov/automotive-trends/download-data-automotivetrends-report 53 http://www.fuelcelltoday.com/about-fuel-cells/benefits 54 http://www.fuelcelltoday.com/about-fuel-cells/benefits 55 https://www.energy.gov/eere/fuelcells/fuel-cells February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 46 Wood Environment & Infrastructure Solutions UK Limited the final product has increased the performance and energy output of the fuel cells due to their ability to withstand a wide range of temperatures56. Improving the emission efficiency of America's transportation sector has been the focus of Federal and State emission standards, particularly in the context of light duty vehicles, including passenger cars and trucks.57 The national program for GHG emissions and fuel economy standards for these vehicles was developed by the EPA and the Traffic Safety Administration. Action has also been taken at State level. For example, California has introduced Low Emission Vehicle (LEV) standards.58 The state of California Clean Vehicle Rebate Project (CVRP) also promotes clean vehicle adoption by offering rebates of up to $5,000 for the purchase or lease of new, eligible zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles.59 The use of fuel cell technology in light duty vehicles in the US will contribute toward progress with further - potentially faster - efficiency gains and emissions reductions. Aircraft Fluoropolymers enhance reliability, safety and communication in aircraft. They help, alongside other advanced materials, to deliver performance under challenging environmental conditions, providing durable and effective protection against heat, UV aggressive fuels, while facilitating weight reductions. Their flame retardance enhances safety for travellers and employees. They are used in various critical components such as in seals, hoses and tubing as well as various electronic data and communication equipment. 56 https://www.3m.co.uk/3M/en_GB/design-and-specialty-materials-uk/resources/news_and_events/news/fullstory/?storyid=bf443152-f1b1-48ec-a90f-d5cc5fd882f3 57 https://www.epa.gov/automotive-trends/highlights-automotive-trends-report 58 https://www.dielinke-europa.eu/kontext/controllers/document.php/695.f/3/fb4e45.pdf 59 https://cafcp.org/benefits February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 47 Wood Environment & Infrastructure Solutions UK Limited Case study: Avoiding corrosion damage - AIRBUS A320 family Airbus A320 operators required cargo protection systems that were durable, cost effective and protected structures from corrosion damage. Traditional foam sealant had not proved effective at preventing cargo (which included seafood and harsh fluids) leaking and soaking through floorboard seams and initiating corrosion, which was identified only when the aircraft was inspected during routine maintenance. Fluoropolymer aerospace tapes made from ePTFE were applied and proved effective. They were resistant to water, thus preventing moisture and debris from leaking and initiating corrosion. Inspections which were undertaken as part of the 24-month maintenance cycle of the Airbus A320 and these showed the ePTFE tapes safeguarded floorboards and the internal structure from corrosion. Operators noted that an A320 airbus installed with ePTFE Aerospace Tape had 93% corrosion reduction after being in service for 2 years. As such, timeconsuming and costly maintenance as well as extended aircraft downtime was limited when these tape sealants were used, compared with the former use of traditional foam sealants. 60 Recent developments in fluoropolymer application in aerospace has also enhanced communication, internet access and telecommunications. For example, cable-based antennas developed with fluoropolymers and light coaxial cable led to a reduction in hardware capital costs, making it more costeffective for in-flight entertainment.61 Case study: Preventing chafing and friction damage - Apache and Black Hawk Helicopters UH-60M Black Hawk helicopter operators in the US Army required a material that would prevent helicopter chafing damage that was occurring during daily operations. The damage was "caused by the abrasion of tail rotor gearbox fairing and access panels against the tail boom structure". An engineered ePTFE tape was installed on the helicopter's gearbox fairing, tail boom and vertical stabilizer structure. The ePTFE tape acted as a protective barrier and absorbed the effects of continuous vibration and prevented damage from chafing which meant that costly structural repair or replacement was avoided62. Operators of the AH-64 Apache Helicopter faced similar challenges, resolved with the same product, noting that traditional anti chafe products have proven ineffective over time in preventing damage63. 60 https://www.gore.com/system/files/2018-12/GORE-SKYFLEX-Materials-Airbus-Case-Study-A320-Family-120618.pdf 61 https://www.plasticseurope.org/download_file/view/580/1722 62 https://www.gore.com/sites/g/files/ypyipe116/files/2017-11/GORE-SKYFLEX-Aerospace-Materials-Data-Sheet031716.pdf; https://www.gore.com/system/files/2018-04/SKY-0369-REF-US-MAR18_SKYFLEX_Black%20Hawk_CaseStudye.pdf 63 https://www.gore.com/system/files/2018-07/SKY-0360-REF-US-MAR18_SKYFLEX_US_Army_CaseStudy-e.pdf February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 48 Wood Environment & Infrastructure Solutions UK Limited Socio-economic value of the sector According to the US Bureau of Transport Statistics, when measured by gross value added (GVA) to domestic product, the transportation sector contributed $1,070 b in 2016 - some 6% of total GDP. When the share of all expenditures on transportation-related final goods and services are considered for the same year, GVA is $1,500 b - accounting for around 9% of US GDP (Figure 4.3). The automotive industry plays a significant role in the US economy. It includes the production, wholesale, retail, and maintenance of motor vehicles. The US is a global leader in this sector, selling 17.2million vehicles in 2018 alone. When total direct and indirect jobs are considered, the automotive and automotive parts industry in the US accounts for over 4m jobs.64 The industry spends $105b a year globally on R&D, with almost 20% of this ($18b) spent in the US. In 2018, 1.8m light vehicles and 131,000 trucks were exported from the US, with sales of $60b, along with $88.5b worth of automotive parts.65 The aircraft industry (which includes a significant defense component) is economically and strategically significant. Total 2018 employment from aircraft and defense accounted for 2.55m jobs (881k direct jobs and a further 1.67m through the supply chain). Aircraft and defense also accounted for $929b in sales revenue and 1.8% of total GDP. Over $208b of the industry's contribution to GDP can be attributed to the supply chain, responsible for supplying the many components which make up the final products. This would include fluoropolymer applications in sealants, hoses etc. Exports of air and defense products from the US accounted for $151b in 2018, an increase of 5.8% from the previous year. The industry's largest export destination is China, which accounts for around 11.5% of total industry exports, followed by France, the United Kingdom, Canada and Germany.66 The resulting positive trade balance indicates the importance of the industry for US trade competitiveness.67 The number of aircraft in the United States has been steadily increasing and 2018 estimates indicate that the general aviation fleet was 213,375 aircraft, with a further 7,397 for hire aircraft.68 Spending on defense is expected to increase as the US encourages NATO countries to increase military spending to 2% of GDP.69 Boeing is the largest private employer in Washington, accounting for 252,800 jobs, anchoring an aerospace cluster around Renton and Seattle. In 2016, Boeing supported $1million worth of R&D grants in Washington State universities alone.70 In 2017, aerospace revenues in the state of Washington alone accounted for $66.8b in gross revenue, with $54.8b (over 80%) from Boeing alone.71 64 https://www.selectusa.gov/automotive-industry-united-states 65 https://www.selectusa.gov/automotive-industry-united-states 66 https://spacenews.com/report-u-s-aerospace-a-trade-winner-but-tariffs-threaten-future-exports/ 67 https://www.aia-aerospace.org/wp-content/uploads/2019/09/2019-Facts-and-Figures.pdf 68 https://www.statista.com/statistics/183513/number-of-aircraft-in-the-united-states-since-1990/ 69 https://www2.deloitte.com/content/dam/Deloitte/us/Documents/manufacturing/us-mfg-2019-global-a-and-d-sectoroutlook.pdf 70 http://www.boeing.com/resources/boeingdotcom/company/about_bca/washington/2016-impact-report-01-0317/impact_report_010317.pdf 71 http://www.boeing.com/resources/boeingdotcom/company/about_bca/washington/2016-impact-report-01-0317/impact_report_010317.pdf February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 49 Wood Environment & Infrastructure Solutions UK Limited Figure 4.3 GDP Components of Transportation-Related Final Demand, 1999-2016 (billions, chained 2009 dollars). Source: US Bureau of Transport statistics. Available at: https://www.bts.gov/transportation-economic-trends/tet-2018-chapter-2contribution-economy. 4.4 Key sector 3: Chemical and industrial processes Enabling characteristics and socio-economic contribution Fluoropolymers are used in a large number of components and production systems in chemical and industrial processing. Their combination of properties supports increased production efficiency and speed, reduced effects of corrosion, avoided unplanned maintenance and longer operational life of production machinery therefore reducing costs and aiding efficiency. This supports reduced total life cycle costs, via less replacement components, waste and unplanned downtime. These are important trends in a sector in competition with lower cost locations outside the US72 and in the context of a declining US share of global chemical sales73. Considering each issue in turn: Corrosion is a significant cost factor in both chemical and industrial processes. A 2002 study estimated that the direct cost of metallic corrosion in the United States to the chemical, petrochemical and pharmaceutical industries as $1.7b annually (0.5% of the gross value added of these sectors in the same year) and the direct cost of metallic corrosion to electricity generating plants as $6.9b (3.8% of the gross value added (GVA) of the utilities sector in the same year)74 75. A more recent 2005 estimate by the same authors, estimated metallic corrosion costs - to all sectors - in the United States could be as much as $276 billion, per year. These costs arise from a combination of: Equipment and/or structural replacement; Loss of product; maintenance and repair; the need for excess capacity and redundant equipment; costs of corrosion control; technical support; design; insurance and parts and equipment inventories76: 72 https://www.bain.com/insights/strategies-for-china-s-increasingly-competitive-chemicals-market/ / https://www.mckinsey.com/industries/chemicals/our-insights/chinas-chemical-industry-new-strategies-for-a-new-era 73 https://cefic.org/app/uploads/2018/12/Cefic_FactsAnd_Figures_2018_Industrial_BROCHURE_TRADE.pdf 74 Gerhardus H. Koch, Michiel P.H. Brongers, Neil G. Thompson, Y. Paul Virmani, J.H. Payer: "Corrosion Costs and Preventive Strategies in the United States (2002). https://www.nace.org/uploadedFiles/Publications/ccsupp.pdf 75 USA gross value added 2002: Petroleum and coal products: $51,176m; Manufacture of chemicals and chemical products: $207,080m; Plastics and rubber products: $63,490m; Utilities: $180,137m. Source: US Department of Commerce, Bureau of Economic Analysis (http://www.bea.gov/industry/gdpbyind_data.htm). 76 Gerhardus H. Koch, Michiel P.H. Brongers, Neil G. Thompson, Y. Paul Virmani, Joe H. Payer. Handbook of Environmental Degradation of Materials (2005). Chapter 1 - Cost of corrosion in the United States. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 50 Wood Environment & Infrastructure Solutions UK Limited o In the absence of detailed statistics on the extent of downstream fluoropolymer use and on the net effect on corrosion prevention compared to other components, taking a conservative estimate that 10% of the industry uses these Fluoropolymer components and these reduce corrosion costs for users by just 1%, then direct and indirect savings in the order of $2.8 billion could be supported by their use, per year. This estimate does not include possible accidents and/or spills of hazardous chemicals due to material fatigue. Polymer Processing Additives (PPA) can reduce the surface roughness of oil pipes, water pipes and tubing. In other applications they allow, in combination with resin, selection to downgauge films while maintaining mechanical properties. This results in better surface quality, less waste, increased productivity and longer continuous manufacturing runs; and Fluoropolymers also prolong the lifetime of plant and equipment and reduce maintenance costs. Maintenance costs in the chemicals industry are typically around 5% of fixed capital costs77. Chemical industry capital spending in the U.S reached $33.0 billion in 2018, with an average of just under $31 billion between 2014 and 2018)78. Durable and reliable fluoropolymer components prevent leaks and facilitate cleaning (via non-stick properties), which reduces the risk of accidents and exposure of the workforce to pollutants and dangerous chemicals. They also enable reliable applications that prevent or alleviate pollution, such as filters, membranes, scrubbers and heat exchangers. Socio-economic value of the sector Chemical industry The US is a global leader in chemical production, accounting for 12% of global production with over one billion tons of shipments valued at $553 billion in 2018. The US is a net exporter, with exports of $140 billion, compared to $109 billion imports79. The chemicals industry in the US operates at over 11,000 establishments which produce over 70,000 products. The industry employed 542,000 people directly in 2018. The American Chemistry Council estimate that indirectly some 7 jobs are supported in other sectors of the economy from each job in the industry, so that a total of over 4.4 million people are employed directly and indirectly80. By enabling efficiency and supporting increased productivity, fluoropolymers play an important role in supporting the US chemical industry and aiding its global competitiveness. Overall, there is a positive outlook for the future of the sector, as U.S. chemicals producers remain relatively advantaged, with access to cheap and abundant feedstocks, domestic energy and new production capacity.81 Much of the production of basic chemicals takes place is relatively few states in the Gulf Coast region, given the proximity to petroleum, natural gas and other feedstocks; some 70% of US petrochemical takes place in Texas and Louisiana. Similarly, most manufactured fiber production takes place in the Southeast. Converting the basic chemicals into a variety of other chemical products is much more dispersed across the US82. Figure 4.4 provides a State level breakdown of the 11,114 individual establishments (I.e. businesses) in each State. Note that these do not cover all downstream users of chemical products. It highlights the largest number in 77 See for instance: Harry Silla: Chemical Process Engineering: Design And Economics. Page 38. CRC Press, 8 Aug 2003. KLM Technology Group: General Process Plant Cost Estimating (Engineering Design Guideline). Page 24. June 2014. http://kolmetz.com/pdf/EDG/ENGINEERING_DESIGN_GUILDLINE_General_Plant_Cost_Estimating_Rev01web.pdf 78 2019 Guide to the Business of Chemistry (2019) https://www.americanchemistry.com/GBC2019.pdf 79 2019 Guide to the Business of Chemistry (2019) https://www.americanchemistry.com/GBC2019.pdf 80 2019 Guide to the Business of Chemistry (2019) https://www.americanchemistry.com/GBC2019.pdf 81 https://www.chemicalprocessing.com/articles/2019/strong-outlook-bolsters-u-s-chemical-industry/ 82 Ibid section 12, page 75. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 51 Wood Environment & Infrastructure Solutions UK Limited any State is California, followed by Texas, Ohio, Illinois, Pennsylvania, Florida and New York. Figure 4.5 shows the value of chemical shipments, with some different patterns ($117 billion in Texas, $49 billion in Louisiana, $29 billion Ohio, $27 billion Illinois, $19 billion in North Carolina, $18 billion Iowa, and $17 billion in California). Further data on state level impacts are in Figure 4.6 and Figure 4.783. Figure 4.4 "Business of Chemistry" establishments by State (2018) Source: American Chemistry Council (2019 Guide to the business of Chemistry), Page 80. Figure 4.5 The value of Chemistry shipments by State (2018) Source: Reproduced from American Chemistry Council (2019 Guide to the business of Chemistry), Page 80. Detailed statistics from Table 12.1 Gray shading denotes No data available. 83 Source for both figures: ACC based on data from the Bureau of the Census, Bureau of Economic Analysis, and Bureau of Labor Statistics. Note shipment data was for 2016 (latest data). February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 52 Wood Environment & Infrastructure Solutions UK Limited Figure 4.6 State economic impacts - value of shipments ($m, 2018) Figure 4.7 State economic impacts - employment (Thousands, 2018) February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 53 Wood Environment & Infrastructure Solutions UK Limited 4.5 Key sector 4: Consumer products Enabling characteristics and socio-economic contribution Fluoropolymer-coated cookware provides durable non-stick properties, withstanding high temperatures and multiple dishwasher cycles while preventing corrosion. This increases the useful life of cookware, avoiding more frequent replacement. Individual products are marketed with guarantees of between 5 and up to 20 years84. While ceramic coatings can fulfil a similar non-stick function, downstream consultation indicated that these coatings can be more easily eroded via washing/scrubbing and high heat; Non-stick cookware enables easier cleaning, avoids food catching and burning and facilities cooking with less fat required for lubrication, alongside a wide range of other lifestyle factors, this can contribute to a healthy diet. The downstream consultation indicated strong consumer preferences for using less oil. Ease of cleaning also saves time, water and energy; and They provide durability, waterproofing and breathability in raincoats, jackets, trousers and footwear and strong durable thread for awnings, umbrellas and furniture (and high-performance ropes). Socio-economic value of the sector It is estimated that the size of the kitchen and cookware market in the US for 2019 is $19.6b and has grown by 2.8% per year on average from 2014-2019.85 In 2018, U.S. retail sales of non-stick cookware alone amounted to approximately $1.41 billion86. This compares to global market value in the same year of $8.9 billion - indicating the US market constitutes around 15%87. While specific employment data on the kitchen and cookware sector alone was not found for the US, data from the Bureau of Labor Statistics indicates a total of 1.5 million US employees producing fabricated metal products, 3.1 million employed in the wholesale trade (durable goods) another 3.1 million working in food and beverage retail stores and a total of 12.5 million employees in food services and drinking places (data as of July 2019)88. The US textiles sector was worth some $30 billion in export shipments alone in 2018. Of this some $6 billion were from apparel and $9 billion fabrics. The supply chain is estimated to employ over half a million people89. 4.6 Key sector 5: Energy Enabling characteristics and socio-economic contribution Alternative energy By increasing operational lifetimes, decreasing maintenance costs and increasing energy generation potential Fluoropolymers have contributed to the technical advances that have enabled US growth in wind and solar photovoltaic (PV) energy generation as well as the 84 https://www.nytimes.com/1993/03/03/garden/the-nonstick-kitchenware-trick.html 85 https://www.ibisworld.com/industry-statistics/market-size/kitchen-cookware-stores-united-states 86 https://www.statista.com/statistics/515115/us-retail-sales-of-non-stick-cookware/ 87 https://www.grandviewresearch.com/industry-analysis/nonstick-cookware-market 88 https://data.bls.gov/pdq/SurveyOutputServlet 89 https://www.textileworld.com/textile-world/features/2019/05/2019-state-of-the-u-s-textile-industry/ February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 54 Wood Environment & Infrastructure Solutions UK Limited development of lithium ion batteries. Increasingly cost effective and efficient energy generation is a prerequisite to progressively increasing the share of US energy needs met from renewable sources; The average cost of PV cells dropped by nearly 50% between 2014 and early 2019, driven by increases in technological efficiency. At the same time, installed PV capacity had increased to 62.5 gigawatts, sufficient to power 12 million American homes90. Fluoropolymers provide optical transparency and electrical insulation to PV panels and protect them from wind, humidity, UV, extreme temperatures and chemicals. This increases the efficiency and lifetime, minimizes failures, maintenance stoppages and associated costs. Failure rates91 are as low as 0.1% in recent designs using fluoropolymer film-based backsheets, compared to 45% in early designs.92; and Fluoropolymers in PV frontsheets and backsheets are lightweight and allow for more efficient panel production, reducing production and distribution costs and easier installation.93 As an example, a worked example of the production efficiency gains from using ETFE instead of glass in PV modules is illustrated below. Here the use of ETFE implies savings in the order of $4 billion for US PV module manufacturers, or approximately $140m for PV module customers in first quarter of 2019 alone. Case study: Potential savings for US manufacturers and consumers from improved production efficiency of PV modules by using ETFE. Production efficiency increase of around 2% can be achieved by ETFE modules relative to glass modules. [Source 1] The average PV module price was around $3.35/watt of capacity in the US. [Source 2] Total US capacity of PV modules is estimated at about 69.1GW, currently. [Source 3] A comparison of the hypothetical situation in which all of these modules are made with ETFE with one where they are made with glass yields the following potential savings for US PV manufacturers: 2% * 3.35$/W * 69.1 GW = $4,000M (Efficiency increase * PV module cost * PV module capacity in US). A total of 2.1 GW of new PV modules were installed in the US, in the first quarter of 2019 alone. [Source 4] Assuming that the savings from increased production efficiency are passed on to customers, and again comparing the situation where all of these modules are made with ETFE and where they are made with glass yields the following potential savings for US PV customers: 2% * 3.35$/W * 2.1 GW = $140M (Efficiency increase * PV module cost * PV module additional installed capacity in US in the first quarter of 2019). Total installed U.S. PV capacity is expected to more than double over the next five years - so that by 2024 more than 15 GW of PV capacity will be installed annually. Sources: [1] Saint-Gobain: http://www.pv.saint-gobain.com/lightswitch-frontsheet.aspx; [2] US Dept. Of Energy https://www.solarreviews.com/solar-panels/solar-panel-cost/ [3] https://www.seia.org/us-solar-market-insight [4] https://www.seia.org/us-solar-market-insight Wind energy manufacturers seek to reduce energy costs and reduce blade manufacturing cycles by producing wind blade structures more efficiently.94 Fluoropolymer based release films enable efficiency 90 https://www.energy.gov/eere/solarpoweringamerica/solar-energy-united-states. Note this is based on average energy use by household. 91 This is electrical current leaking to the frame. This is a safety hazard and a potential ground fault, putting the panels at risk. 92 http://www.dupont.com/content/dam/dupont/products-and-services/solar-photovoltaic-materials/solar-photovoltaic-materialslanding/documents/DPVS-Brochure.pdf 93 http://www.pv-magazine.com/opinion-analysis/blogdetails/beitrag/innovative-etfe-film-technologydiscussed_100001678/#ixzz4K272QzZQ 94 https://www.compositesworld.com/articles/blade-cycle-time-37-percent-faster February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 55 Wood Environment & Infrastructure Solutions UK Limited gains in wind turbine production. PTFE mold linings for wind turbine blades increase the number of blade cycles before replacement up to 10-fold.95; and Fluoropolymers also facilitate advanced energy storage and conversion technologies, such as lithium-ion batteries. Greater use of these technologies is important to meet growing energy demand whilst reducing carbon emissions. These uses of these batteries is growing rapidly, expected to grow at a CAGR of some 11% from 2018 to 2025, worth some $73 billion by 202596. While initial growth was driven by consumer electronics for use in mobile phones, tablets, and power tools, demand increases are expected from electric vehicles. As above, to increase uptake, cost-effectiveness needs to be increased, with decreasing costs alongside improved battery performance.97 Biaxially oriented polyvinylidene fluoride (PVdF) film has unique properties (e.g. abrasion and corrosion resistance) and its potential for use in bilayer films is expected to support the further development of lithium-ion battery technology.98 Similarly, reverse flow batteries (fuel cells) using PFSA are important for the emerging hydrogen economy.99 Conventional energy Fluoropolymers also play an important role in the oil and gas industry. Fluorotechnology provides reliable and durable equipment which improves the safety and affordability of oil and pipe operations. Because of their ability to resist extreme heat and a variety of harsh chemicals, fluoroelastomers improve the reliability and safety of fuel system sealants, O-rings and field equipment. Furthermore, fluoropolymers provide acid resistant properties for crude oil transfer which improves safety in pipeline operations.100 Socio-economic value of the sector Oil and gas The US energy sector is a net exporter of energy and a major contributor to the US economy, both in terms of direct production and downstream use of its product. In 2018, domestic energy production comprised 95% of US energy consumption. While renewable energy sources account for a growing share, fossil fuels (petroleum, natural gas and coal) accounted for 79% of total US energy production.101 The US is the largest producer of both petroleum and natural gas, with production volumes growing strongly over much of the last decade (Figure 4.8). US labor statistics suggests direct employment in oil and gas extraction stood at 161,600 with a further 119,000 employed in petroleum and coal products, in July 2019102. However, the 2019 US energy and employment report estimated 625,369 Americans are currently employed in natural gas, 197,418 in coal and 799,531 in petroleum, based on jobs in extraction, wholesale trade, distribution and downstream manufacturing.103 Total investment in the U.S. energy sector stood at $350 billion in 2018, the second largest investment of any nation.104 95 http://www.norton-films.com/detailimg.aspx?id=246406 96 https://www.marketwatch.com/press-release/us-lithium-ion-battery-market-share-2019-by-application-component-and-forecast2019-07-25 See also https://www.globenewswire.com/news-release/2019/07/18/1884703/0/en/Sales-of-Lithium-ion-Battery-CathodeWitness-a-Spectacular-Rise-in-Line-with-the-Persistent-Quest-for-Improved-Battery-Life-Finds-Fact-MR.html 97 https://www.extremematerials-arkema.com/en/markets-and-applications/renewable-energy/lithium-ion-battery/ 98 https://www.designnews.com/materials-assembly/fluoropolymer-film-boosts-lithium-ion-batteries/6672076332230 99 https://physicstoday.scitation.org/doi/full/10.1063/1.1878333 100 https://fluorocouncil.com/applications/oil-and-gas/ 101 https://www.eia.gov/energyexplained/us-energy-facts/ 102 https://data.bls.gov/pdq/SurveyOutputServlet 103 https://www.usenergyjobs.org/ 104 https://www.selectusa.gov/energy-industry-united-states February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 56 Wood Environment & Infrastructure Solutions UK Limited Figure 4.8 Estimated petroleum and natural gas production (Quadrillion British thermal units) Source: US Energy Information Administration https://www.eia.gov/todayinenergy/detail.php?id=40973 Renewable energy The US is home to globally competitive firms in all sub-sectors of renewable energy including wind, solar, geothermal, hydropower, biomass and biofuels. The US has the highest geothermal capacity of any country in the world (3.7GW), the third largest bioenergy capacity (14.2 GW); second-largest wind capacity (97.2 GW); second-largest hydropower capacity (102.1 GW); and second-largest solar capacity (67 GW). The International Renewable Energy Agency (IRENA) recorded renewable energy employment in the United States, both directly and indirectly at 855,000 jobs in 2018.105 The opportunity across the US is illustrated overleaf. Figure 4.10 shows the distribution of new energy capacity by the size of energy generating potential, source and location. It highlights new solar capacity in Virginia, across the Carolinas, Georgia and Florida, with some of the largest scale solar plants in Texas, Southern California as well as Nevada and Arizona; New wind capacity has also been focused in Texas, along with Iowa, Illinois, Oklahoma, Michigan, Kansas, North and South Dakota and Minnesota; and New natural gas capacity had focused on a smaller number of larger scale plants, again in Texas and in Louisiana, Pennsylvania, Upstate New York and Southern California. Data from the EAI shown in Figure 4.9 illustrates long term trends in US electricity production from selected energy sources between the early 1980s and 2018. The share generated from coal peaked in 207, decreasing some 43% to 2018. Most of that reduction was accounted for growth in natural gas (63% increase in Million KwH produced in the same time period). However more recently the energy generation of - particularly solar - but also wind, has been increasing significantly (10,000% and 700% respectively between 2007 and 2018). Despite representing only around 20% of the energy mix today, the Department of Energy has estimated that renewables have potential to generate 80% of US electricity by 2050.106 The US is judged an attractive destination for renewable energy investment, reflecting increases in cost-effectiveness and utilities are continuing to take advantage of record low power costs from renewables in the country107. For example, in 105 https://www.eesi.org/papers/view/fact-sheet-jobs-in-renewable-energy-energy-efficiency-and-resilience-2019 106 https://www.selectusa.gov/energy-industry-united-states 107 https://www.ey.com/uk/en/industries/power---utilities/ey-renewable-energy-country-attractiveness-index February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 57 Wood Environment & Infrastructure Solutions UK Limited 2018, New Braunfels Utilities in Texas purchased part of the output from a 255MW solar plant for less than US$0.025/kWh in a 15-year contract. Around one-third of the state's energy mix is now low carbon.108 Increased efficiency and cost-effectiveness of renewable technologies will continue to attract investment and increase renewables in the energy mix at a national level. EIA data from 2013-2015 illustrates consistent efficiency gains across several renewable energy sources, with decreasing construction costs in recent years (Figure 4.11 ). Figure 4.9 US Electricity Net Generation: Total (All Sectors) 1983-2017 (Million Kilowatt-hours). Source: https://www.eia.gov/electricity/data.php#generation Note data from solar available from 1984 108 https://www.ey.com/uk/en/industries/power---utilities/ey-recai-may-2019-key-country-developments February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 58 Wood Environment & Infrastructure Solutions UK Limited Figure 4.10 Utility scale electricity generating plants planned to come online between Sept 2019 and Aug 2020 Source: https://www.eia.gov/electricity/monthly/ Figure 4.11 Capacity weighted average construction costs by installation year ($ per KW installed capacity 2013-2015). Source: U.S. Energy Information Administration, Form EIA-860, Electric Generator Construction Costs https://www.eia.gov/todayinenergy/detail.php?id=31912 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 59 Wood Environment & Infrastructure Solutions UK Limited 4.7 Key sector 6: Medical and first responder Enabling characteristics and socio-economic contribution Fluoropolymers enable excellent performance and long lifetimes in a wide range of medical equipment. This reduces the risks of failures, replacements, cross-infections and clogging of medical equipment. They provide clear benefits to society via contributing to the reduction/ avoidance of medical complications and additional or repeated medical care, hence contributing to avoided pain and the public cost of medical care: Guide wires lined with PTFE facilitate surgical procedures, helping to shorten their duration reducing patient risk and facilitating complicated procedures; and On average, every minute a surgery is reduced implies savings of about $15-20109. A more recent study using data from hospitals in California estimates the cost of operating room time to be $36 to $37 per minute110. Based on the latest data available from 2010, around 48 million surgical procedures are performed in the US annually111 so reductions in surgeries by just one minute on average across the US could save at least $720m, per year112: The durability and bio-compatibility of implants made with fluoropolymers reduces the risk or frequency of the implant having to be replaced. While the duration of surgery differs considerably (and the time is only one factor in the coverall cost), a 2017 cross sectional study estimated the average duration of a US surgery at some 3 hours113 and that each one avoided would save $2,700114; In 2000, it was estimated that adverse drug events, infections caught in the hospital and surgical complications, all of which can be reduced using fluoropolymers (alongside other procedures and substances) affected approximately 2 million patients per year in the USA, resulting in estimated $4.5-5.7b per year in additional costs for patient care, as well as 90,000 deaths115; and Fluoropolymers facilitates miniaturization for minimally invasive "keyhole" surgery. This is used increasingly as an alternative to open surgery with many patient benefits including shorter hospital stays, lower rates of readmission and infections116. Minimally invasive 109 Estimate based on literature. Macario 2010 suggests a cost of surgery of USD15 or USD20 per minute as ballpark figure. Note that charges for surgery, which reflect other factors than the bare cost of the procedure itself can be much higher (compare Macario 2010). Macario, A. (2010). What does one minute of operating room time cost? .Journal of clinical anesthesia, 22(4), 233-236. 110 Estimate obtained from literature. Note that some costs are not included in the estimated cost. Childers CP, Maggard-Gibbons M. (2018). Understanding Costs of Care in the Operating Room. JAMA Surg. doi:10.1001/jamasurg.2017.6233. Available from: https://jamanetwork.com/journals/jamasurgery/fullarticle/2673385 111 Source: https://stanfordhealthcare.org/medical-clinics/surgery-clinic/patient-resources/surgery-statistics.html 112 Calculated as: $15/min * 48 million. 113 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5609617/ 114 Calculated as: 3h * $15/min = $2,700. 115 Kohn LT, Corrigan JM, Donaldson MS, editors (2000). To err is human: building a safer health system A report of the Committee on Quality of Health Care in America, Institute of Medicine. Washington, DC: National Academy Press. Reference obtained from: Collins AS. 2008. Preventing Health Care-Associated Infections. In: Hughes RG, editor. Patient Safety and Quality: An Evidence-Based Handbook for Nurses. Rockville (MD): Agency for Healthcare Research and Quality (US); Chapter 41. Available from: https://www.ncbi.nlm.nih.gov/books/NBK2683/. This remains the latest such estimate found. 116 Fitch, K, Engel, T and Bochner, A. 2015. Cost Differences Between Open and Minimally Invasive Surgery. Managed Care, pp. 40-48. Source: https://www.ncbi.nlm.nih.gov/pubmed/26521339 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 60 Wood Environment & Infrastructure Solutions UK Limited surgical procedure costs (professional and facility costs) have been found to be lower than open surgery by up to $12,278 for some procedures117. Fluoropolymers play an essential role in enabling medical imaging and analysis (via electronic chips and semiconductors in X-ray, MRI, CT scan and echography) as well as medical analysis (blood, tissue, urine analysis). This is covered under "key market 4 - electronics" more generally; and Fluoropolymers help protect firefighters from injury and death in fire emergencies by being incorporated into clothing to provide resistance to water and abrasion as well as insulation118. It is estimated that in 2017, there were 1,056,200 firefighters in the US119. The National Fire Protection Association (NFPA) produce standards for protective ensembles and clothing for firefighting120 and employers must comply with Occupational Safety and Health Administration Standards (OSHA). Standard 1910.156 requires that coats and trousers used in firefighting must at least meet the requirements of NFPA No. 1971-1975121. 122. Stakeholder consultation indicates that fluoropolymer-based turnout gear are the only products that currently meet these requirements and PTFE laminated to a woven aramid fabric is mentioned in a technical submission as part of regular updates of these regulations123. Socio-economic value of the sector In May 2018, the total number of people recorded as being employed in the US health care sector was almost 16.8 million124. Health care employment represents 12% of total employment in the US and 10% of total employment in California, 14% in Massachusetts and 10% in Washington, for example125. The US dominates the medical device market and in 2017 represented 40% of the global medical device market with an estimated value of around $156b. This is expected to grow to $208b by 2023126. The 2012 Economic Census reported more than 356,000 people to be employed in US medical device industry127 and the Department of Commerce identified 2015 medical device exports to be worth $43b128. Obtained from a 117 Fitch, K, Engel, T and Bochner, A. 2015. Cost Differences Between Open and Minimally Invasive Surgery. Managed Care, pp. 40-48. Note that only four surgeries were analyzed and the statistic refers to only one surgery type (Thoracic Resection). Results derived from 2011 and 2012 data and 2012 costs (https://www.ncbi.nlm.nih.gov/pubmed/26521339) 118 Jin, L., Cao, M.L., Yu, W., Yoon, K.J., Park, P.K. and Li, Y. 2018. New Approaches to Evaluate the Performance of Firefighter Protective Clothing Materials. Fire Technology, 54(5), pp.1283-1307. (https://link.springer.com/content/pdf/10.1007%2Fs10694-018-0730-2.pdf); https://toefco.com/the-benefits-of-fluoropolymers/ 119 U.S. Fire Department Profile 2017. https://www.nfpa.org/-/media/Files/News-and-Research/Fire-statistics-and-reports/Emergencyresponders/osfdprofile.pdf 120 List of NFPA Codes and Standards https://www.nfpa.org/Codes-and-Standards/All-Codes-and-Standards/List-of-Codes-andStandards 121 Occupational Safety and Health Administration Standard 1910.156. Note that there are some "permissible variations from those requirements". (https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_id=9810&p_table=STANDARDS) 122 Occupational Safety and Health Administration Standard 1910.156. Note that there are some "permissible variations from those requirements". (https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_id=9810&p_table=STANDARDS) 123 https://www.nfpa.org/assets/files/aboutthecodes/1971/1971_f2011_rop_ballot.pdf See top page 55. 124 Source: https://www.kff.org/other/state-indicator/total-health-care-employment and sourced from the Bureau of Labor Statistics, State of Occupational Employment Statistics Survey, May 2018. Available at: https://www.bls.gov/oes/tables.htm Note that some subsectors are included in the definition of health care employment. 125 Source: https://www.kff.org/other/state-indicator/health-care-employment-as-total and sourced from the Bureau of Labor Statistics, State of Occupational Employment Statistics Survey, May 2018. Available at: https://www.bls.gov/oes/tables.htm Note that some subsectors are included in the definition of health care employment. 126 Source: https://www.selectusa.gov/medical-technology-industry-united-states 127 Department of Commerce - 2016 Top Markets Report: Medical Devices. https://www.trade.gov/topmarkets/pdf/Medical_Devices_Top_Markets_Report.pdf 128 Department of Commerce - 2016 Top Markets Report: Medical Devices. https://www.trade.gov/topmarkets/pdf/Medical_Devices_Top_Markets_Report.pdf February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 61 Wood Environment & Infrastructure Solutions UK Limited 2016 report, the prominent medical device companies in the US include Baxter, GE Healthcare Technologies, Johnson & Johnson, Medtronic and St. Jude129. 4.8 Key sector 7: Building and construction Enabling characteristics and socio-economic contribution Fluoropolymers provide durable, fire-safe, easy-to-clean building materials whose mechanical attributes enable innovative architectural designs not feasible with other materials. Specialized designs and construction activities at airports, stadia, domes and skyscrapers across the US have been enabled by fluoropolymer-based materials. Examples include: major new sports stadiums such as the Mercedes Benz Stadium in Atlanta, which features a retractable PTFE fiberglass roof130 the Allegiant Stadium, Las Vegas, with a large clear ETFE dome roof131 the NRG stadium in Houston132 and civil engineering projects, such as the terminal building at Denver International Airport133; Fluoropolymers are flame resistant, with low smoke generation - enhancing spectator safety at major events. For example, UEFA134 published a guide to the construction and operation of "Quality Stadiums", focusing on fire risk in the context of several historic stadium fires. It notes "It is now widely accepted that all spectators should be able to exit the stadium bowl to a point of safety within a maximum of eight minutes [...] However, there may be some scope for variation based on the size and design of the venue and, in particular, its level of fire resistance"135; Innovative architectural designs and "iconic or signature buildings" facilitate leisure activities such as sports, music and tourism events. These in turn support a wider range of ancillary services such as hotels, bars and restaurants, which are supported by the large -regular - visitor numbers, yielding significant economic impacts and raising the profile of an attraction, city or State. Academic research has also observed spillover effects arising from "iconic" buildings, increasing the value of real estate in surrounding areas136; The specific combination of properties delivers a range of specific benefits. Their use prevents mold and moss growth, reducing cleaning and maintenance costs during extended lifetimes, avoiding the risks to staff of working at height; and Specific coating systems can also reduce building cooling costs and associated energy use. Quantitative estimates indicate the range to be between 4% up to 22%, depending on color, geographical location, climate conditions, and substrate type.137 This could result in significant savings to US consumer energy costs, alongside the wider energy efficiency benefits (see case study "the costs of cool air?). 129 Department of Commerce - 2016 Top Markets Report: Medical Devices. Source: https://www.trade.gov/topmarkets/pdf/Medical_Devices_Top_Markets_Report.pdf 130 http://www.birdair.com/projects/mercedes-benz-stadium 131 https://www.stadiumsofprofootball.com/stadiums/allegiant-stadium/ 132 http://www.birdair.com/projects/nrg-stadium 133 http://rci-online.org/wp-content/uploads/2006-cts-barden.pdf https://www.nrgpark.com/nrg-park-facilities-2/nrg-stadium/ 134 Union of European Football Associations 135 Uefa (2011) https://www.uefa.com/MultimediaFiles/Download/EuroExperience/competitions/General/01/74/38/69/1743869_DOWNLOAD.pdf 136 Economics of iconic architecture "A LITERATURE STUDY ON SPILLOVER EFFECTS OF ICONIC ARCHITECTURE ON REAL ESTATE PRICES IN URBAN AREAS" https://thesis.eur.nl/pub/14325/BA-thesis-328936ev-Erik-Visser.pdf See also: https://constructii.utcluj.ro/ActaCivilEng/download/special/36_PATACHILaura_The%20impact%20of%20iconic%20buildings%20and%20star%20architecture%20on%20the%20sustainable%20development%20o f%20cities%20REVISED%20+FOTO.pdf 137 Based on a study conducted by the U.S. Department of Energy's Oak Ridge National Laboratory, referenced in an article by the American Coatings Association: http://www.paint.org/article/fluoropolymer-coatings-for-architectural-applications/ February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 62 Wood Environment & Infrastructure Solutions UK Limited The cost of cool air? Specific fluoropolymer coating systems reduce building cooling costs and associated energy use, including in cool roof technology. This is attributed to the very low surface energy of fluoropolymer coatings. This results in excellent dirt pickup resistance, crucial for maintaining solar reflectance (see also the case study on Denver International Airport below). This case study explores potential air conditioning savings associated with this. The US Department of Energy estimates that air conditioning accounts for 6% of all energy used in the US, at an annual cost of $29 billion to US homeowners, and is associated with 117 million tons of CO2 released into the atmosphere138. A 2018 International Energy Agency (IEA report) noted that growing use of air conditioning was expected to be "one of the top drivers of global electricity demand, noting urgent needs for policy action to improve cooling efficiency139. A 2015 analysis from the US Energy Information Administration (EIA), noted that air conditioning equipment is used in 87% of homes, with an average home air conditioning costs of $265 (from between $60 in parts of the West Coast, up to $525 in the Southeast. At a national level this comprised an average 12% of home energy expenditure, but again in hotter and humid regions the figure was estimated at up to 27%, with 95% of household using them. Taking just one "climate region" of the US the "Hot-Humid" Southwest, this contained a total of 22.8 million households in 2015140. On average, each payed $525 per year (where households used central air condition units), and $425 (where they used individual units), or $425 based on a simple average, then average costs could reduce by between 4% ($20) and 22% ($105) for each household, per year. The market share of the specific coating system is not known - however it is likely to be a specialist system. Assuming, in the absence of this detailed information, that it could be applied to just 5% of homes in this one region, indicates overall regional saving of over $20 million per year and up to $120 million per year in air condition costs borne by the consumer141. Their use helps maintain color and shine in paints - saving consumer costs from more frequent repainting along with the associated reduction of waste. The US EPA have established a paint product stewardship scheme - the first scheme has been established in Oregon. It estimates that some 750 million gallons of sold architectural paint is left unused in the US each year. Paint, regulated as a hazardous waste when disposed, is the most common in local household hazardous waste collection programs142; and Fluoropolymers enable cables for the plenum space above and below the flooring to be installed without metal conduits. In case of a fire in the plenum space fluoropolymer coated cables allow for reduced smoke and fire propagation (see also the "wire and cabling application in key sector 2 electronics). 138 https://www.energy.gov/energysaver/home-cooling-systems/air-conditioning 139 https://www.iea.org/newsroom/news/2018/may/air-conditioning-use-emerges-as-one-of-the-key-drivers-of-globalelectricity-dema.html 140 Source: https://www.eia.gov/consumption/residential/data/2015/c&e/pdf/ce1.1.pdf 141 Source: https://www.eia.gov/todayinenergy/detail.php?id=36692h. Calculation based on an average household cost of $475 per year, with a reduction of between 4% and up to 22% per year, applied to 22.8 million households, assuming only 5% of households could use this system. 142 https://www.epa.gov/evaluate/paint-products-stewardship-initiative February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 63 Wood Environment & Infrastructure Solutions UK Limited Mercedes Benz Stadium, Atlanta, GA Fluoropolymers enable innovative designs, supporting iconic architecture. One such example is the Mercedes Benz Stadium in Atlanta Georgia. The 300,000 square foot arena was completed in 2017 at a cost of some $1.5 billion143. The contractor responsible notes the design involved several large roof sections with some 135,000 sq. ft of "triple layered ETFE roof pillows" that form a retracting roof like a camera lens or flower petal. The stadium faade also contains some 165,000 sq. ft of ETFE skin with a cable net system behind it. The roof, particularly, creates an outdoor feel allowing natural light. The annual direct and indirect economic impact of the new stadium was estimated at between $80 and $100 million per year - over and above the effect arising from the previous stadium at Georgia Dome144. Anecdotal evidence suggests that accommodating the Major League Soccer team in the new stadium has increased attendances - which average some 53,000 - significantly higher than average attendances for MLS, while also playing a role in the redevelopment of the surrounding area of downtown Atlanta145. Denver International Airport - Gateway to the Rockies Fluoropolymers enable innovative designs, supporting iconic architecture. They also aid energy efficiency from heating and air conditioning. One such example is at Denver International Airport. Opened in 1995 at a cost of $4.5 billion, Denver International Airport (DIA) is the fifth-busiest airport in the United States. The striking Elrey B. Jeppesen Terminal roof comprises a series of fabric peaks emulating the Rocky Mountains. The design goal, to develop a "memorable and significant piece of civic architecture" was in part necessitated by the need for cost savings, and to speed up construction, due to unrelated delays and cost overruns from a previous design. The roof comprises 660,000 sq. ft of lightweight PTFE-coated fiberglass which allows larger spans than conventional roofs while decreasing construction and maintenance costs, along with durability and energy efficiency, particularly important given Denver's climate. The entire roof was constructed in around nine months. A paper exploring the design notes the materials allows more natural light and warmth to enter the terminal buildings, reducing electricity costs from lighting and reducing the need to year-round heating. At the same time the PTFE fiberglass membrane reflects solar radiation landing on its surface, this reduces daytime heat gain so saving air conditioning costs. This was estimated to save - in 1991 prices - some $0.20 per square meter in annual energy costs - some $270,000 per year, compared to a conventional terminal. This suggest cumulative savings, again in 1991 prices, of some $6 million since its opening in 1995 to 2018. In total, some 60 million sq. ft of the fabric is estimated to have been installed on roofs for a wide range of arenas, terminal and convention centers - using the same cost saving across the entire square footage, suggests savings in the order of $12 million per year. 143 http://stadiumdb.com/designs/usa/new_falcons_stadium2 144 https://www.bisnow.com/atlanta/news/construction-development/experts-economic-impact-doesnt-hinge-onfalcons-braves-performance-70604 145 https://www.bisnow.com/atlanta/news/economic-development/atlanta-united-may-have-more-economic-impactlong-term-than-super-bowl-97136 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 64 Wood Environment & Infrastructure Solutions UK Limited Denver International Airport - Gateway to the Rockies Moreover, the lifetime of the roof is anticipated to be in excess of 30 years, compared to typical replacement periods using conventional materials of 20 to 25 years. The PFTE specifically provides long term weather protection, stability at different temperatures, fire resistance and low maintenance. The Colorado Department of Transportation estimated, in 2004, that the airport then generated some $17 billion to the regional economy. Since that estimate, passenger numbers have increased by around 50% - some 22.5 million more passengers per year. In 2018, the airport served a total of 64.5 million passengers146.147 In November 2018, the Wall Street Journal voted DIA as the #1 large airport in the US, based on a survey of some 5,000 readers148. Socio-economic value of the sector The use of fluoropolymer enabled designs contribute to economic activity in both the construction sector as well as architectural design. Both play an important role in the US economy. In 2018, 7.2 million Americans were directly employed in the US construction sector, an increase of over 20% since 2009149. In terms of GDP, quarterly data from the Bureau of Economic Analysis indicates the US construction sector created some $840 billion of added value in 2018150, just over 4% of value added as a percentage of US GDP (2018), having steadily increased its share, from 3.5% in 2010151. The sector has grown significantly in recent years; GDP has increased at US level by some 60% between 2010 and 2018. At state level, the sector grew at the fastest rate in Colorado (128%); Utah (112%); Idaho (111%) Oregon (105%); and Washington (100%)152. Architectural design plays an important role in the US "creative industry" with some 115,000 jobs (registered architects) in the US as of 2019, with numbers growing year on year and over 10% in the last decade. The largest numbers in any one state are in California (over 20,000)153. Demand is driven largely by (nonresidential) new buildings and the sector generated total revenue in 2019 of some $46 billion, from over 70,000 businesses employing a total of over 230,000 people154. Specialized construction activities and signature architecture, which are of interest in the context of fluoropolymers, often create significant economic value in terms of output and jobs along the value chain. Additionally, they can help raise the profile of the site or region, generate economic activity from tourism and other recreational activities and attract other ancillary investment. 146 https://www.flydenver.com/about/financials/passenger_traffic 147 Roof Consultants Institute - Proceedings of the RCI 21st International Convention http://rci-online.org/wp-content/uploads/2006-ctsbarden.pdf 148 https://www.denverpost.com/2018/11/14/dia-best-large-airport-wall-street-journal/ 149 Bureau of Labor Statistics https://data.bls.gov/pdq/SurveyOutputServlet 150 https://apps.bea.gov/iTable/iTable.cfm?reqid=70&step=1&isuri=1&acrdn=2#reqid=70&step=1&isuri=1&acrdn=2 151 Bureau of Economic Analysis https://apps.bea.gov/iTable/iTable.cfm?ReqID=51&step=1 152 Bureau of Economic Analysis https://apps.bea.gov/itable/iTable.cfm?ReqID=70&step=1#reqid=70&step=1&isuri=1 153 Source: National Council of Architectural Registration Boards (NCARB) https://www.ncarb.org/press/number-of-us-architectscontinues-to-rise 154 https://www.ibisworld.com/united-states/market-research-reports/architects-industry/ February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 65 Wood Environment & Infrastructure Solutions UK Limited 5. Potential alternatives and implications of their use To draw out the specific socio-economic benefits of a group of chemical substances, this section explores some potential alternatives to fluoropolymers. For each of the key sectors and applications in the previous chapters, a shortlist of potential alternatives to fluoropolymers, whether these were used in the past before the transition to fluoropolymers or are used in other similar applications today, are evaluated. This is a highlevel assessment based on limited consultation with industry conducted in 2019, alongside desktop research. The consultation was conducted among four manufacturers of fluoropolymers and eight downstream users which operate in all the sectors covered by this study. It is recognized that R&D activities within the companies consulted and amongst the large number of downstream users are confidential and that they are ongoing. Alternatives are potentially viable in specific applications and contexts, not all of which can be detailed in this report. Conclusions are drawn at sector and/or application level. Further information is contained in Appendix B. In considering the implications of alternatives, the criteria considered are as follows: Technical feasibility. Could the alternative provide an equivalent technical function to fluoropolymers in the application concerned? Would it provide the final products with the same/similar technical functionality? If not, what are the key differences? Economic feasibility. Could the adoption of the alternative result in additional costs that may arise from higher unit costs, process or production changes requiring new or altered machinery or loss of functionality to the end user. While costs to convert are a consideration, - they are not in scope of this analysis; Availability. Is the alternative likely to be commercially available? Is it likely to be available in the required quantities and without undue delay? and Hazards and risks of the alternative. Are there hazards and risks to human health and the environment associated with the use of alternatives? The information on alternatives contained in Appendix B is based on general feedback. As a result, it does not necessarily cover all applications and/or all products and is not intended to be a detailed assessment of all potential alternatives in all applications. The alternatives mentioned as part of the consultation include: aromatic nylons, high-performance nickel alloys, hydrocarbon elastomers, alternative polymers, mica, silicone rubbers, stainless steel, aluminum, copper, polyolefins, silicon-based polymers, polyether ether ketone (PEEK), mica, ethylene propylene diene monomer (EPDM), polyurethane, metal, sol-gel ceramics, polyethylene (PET), polyolefins, and glass155. Each would be a possible alternative for some of the applications of fluoropolymers. Fluoropolymers are widely used in various specific components and each serves a slightly different purpose, hence requiring different characteristics. Overall, while some alternatives might have a similar, or even superior performance to fluoropolymers for a particular parameter or property, the key characteristic is the combination of properties required for the applications where fluoropolymers are used. The implications of implementing alternatives differ across specific applications, different effects will occur at different stages of the supply chain. While manufacturers would experience major losses, over time these 155 In another study conducted in Europe in 2017 (https://www.plasticseurope.org/en/resources/publications/373-socio-economicanalysis-european-fluoropolymer-industry-executive-summary), also the following alternatives were mentioned: polypropylene, PVC, polyether sulfone, polyimide, nitrile rubber (NBR), hydrogenated nitrile rubber (HNBR), acrylic rubber (ACM), Ethylene-acrylic rubber (AEM rubber), fluorosilicone (FVMQ), graphite, aramid, slip agents. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 66 Wood Environment & Infrastructure Solutions UK Limited may be offset by increased sales of alternatives, where feasible. But downstream users are likely to incur more significant effects, which based on current knowledge, would include the following. Technical implications The evidence in the preceding chapters indicate potentially significant implications for downstream users of fluoropolymer products might be expected. Implications can be grouped into several categories, and for each example applications are noted: Reliability, durability and efficiency of components/systems may be impaired, alongside a reduction in compatibility and versatility in operating condition requirements. While relevant to all applications, in aircraft and autos these components are often hard to reach, require sustained performance in extremes of hot and cold environments and have been integrated into design of larger products and systems over many years. These now operate at high levels of reliability, which industry and consumers have come to expect; Technological uptake: fluoropolymers have played a part in supporting development and uptake of some key technologies. Specific example includes fuel cell technology, lithium ion batteries, wind turbine and solar PV where they have variously helped deliver efficiency gains and improved energy generation efficiency; and At risk applications - where the functionality provided is noted as particularly important - includes semiconductor manufacturing. The available evidence indicates that at best production processes would need to be altered, perhaps entailing major redesign, along with reductions in electricity yields in the semiconductor chips themselves. It is not possible to quantify this potential loss, but minor changes would have material effects on a very large number and range of end products. Moreover, this would constitute a regression in technical capability, while the current trend is a continuation of more powerful and smaller devices. Economic implications The technical implications noted above each pose direct and indirect economic costs to industry and to consumers. Production efficiency, maintenance and replacement costs. Production efficiency losses are a potential risk in several applications, notably in the industrial and chemical processing sectors, where unplanned maintenance from corrosion or component failure can affect productivity, operational and capital spending. Similar effects may be expected in oil and gas and in wind energy production for example. Retrofitting and/or replacing the extensive internal cabling in offices, hospitals, aircraft and autos would be a major undertaking; Switching costs, including component and system redesign. The diversity of applications and the number of products potentially affected would pose major R&D, testing, product qualification issues alongside design implications for both the components themselves and the wider systems of which they are a part. This would include effects on ongoing miniaturization of products; and International trade and economic competitiveness. To varying degrees, all of the downstream sectors compete with products and companies from outside the United States and trade with external markets. In several, the US holds a leading role with significant global market share. Underlying this performance are cost competitive, innovative and high performing products which often form part of advanced and dynamic systems. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 67 Wood Environment & Infrastructure Solutions UK Limited Environmental / health and safety implications. The technical implications noted above each pose direct and indirect economic costs to industry and to consumers. Patient and consumer safety. One of the most significant socio-economic contributions are made via surgically implantable devices such as vascular grafts, minimally invasive stent grafts and surgical meshes. These, reduce the risk of medical complications during and post-surgery, reduce or avoid pain and suffering and facilitate consistent drug dosage across the medical sector. The potential for higher safety risks to consumers may also arise from part failure in autos and aircraft for example; Fire safety. The unique feature is the combination of properties. Among these is an absence of flame propagation, low smoke generation alongside tolerance to high temperature. The features provide obvious advantages in wires, cabling, in stadiums and not least in firefighter gear; and Energy efficiency. Fluoropolymers play a part in supporting weight savings in vehicles with the associated fuel and carbon savings. They continue to support the development of renewable energy and of electrical energy storage technology - a growing and important low carbon energy source. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 A1 Wood Environment & Infrastructure Solutions UK Limited Appendix A Original survey data A.1 Introduction Original survey data in this report draws from a survey with members of FluoroCouncil, which do not represent the entire US fluoropolymer market. Therefore, an estimation of the total US market size (tonnage and sales) has been made, based on publicly available data, alongside the original survey data and estimates of the total market provided by FluoroCouncil members themselves. Further detail on the process used are below. For transparency both the original and extrapolated data are shown throughout this section. A.2 Volume of use Table A.1 Quantities Quantities of fluoropolymers sold in the US per year (2018) Unit Total US market a Original survey results b Tons produced in the US Tons 85,000 46,500 Tons imported into the US Tons 20,000 11,000 Tons exported from the US Tons 27,500 15,000 Tons sold in the whole US market Tons 77,500 42,500 Notes: The original survey results relate to 2018. Import and export data was extrapolated to the total US market using figures from an external market analysis ("Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia). The purpose of the extrapolation was to gauge the total market size, so these values were judged as more likely to be accurate. In 2015, the market analysis stated that the US demand for fluoropolymers in 2019 would reach 81,500 tons, with a growth rate of 5.3%; this coefficient has been applied backwards to estimate the value for 2018, obtaining 77,500 tons. Once obtained this value, the other rows in the Total US market column are calculated following the same proportion as the Original survey results column. An additional source, the ECHA (2014) Annex XV Restriction Report, states that the global demand for fluoropolymers was between 235,000 and 267,000 tons in 2011, projected to reach between 317,000 and 379,000 tons by 2018. The same source states that North America accounted for 41% of the global demand in 2010. Assuming that this share remained constant over the years, the fluoropolymers demand in North America was around 142,700 tons in 2018 (41% of the midpoint of the range 317,000-379,000). Considering that the US do not represent the whole North American market, the US figure is arguably lower and closer to the first source included in the above-mentioned market analysis (it is worth considering that the source used in the 2014 ECHA study dates back to 2013 and is based on 2011 data, which may allow for considerable swings in the projections). These two sources provide an estimate of the total tonnage sold on the US market, but not of the tonnage produced in the US, imports and exports, which have been estimated using the same proportion observed in the original survey results (e.g. tons produced in the US, total US market = (tons produced in the US, original survey results / tons sold in the whole US market, original survey results) * tons sold in the whole US market, total US market). b. Source: Wood Survey with Members of FluoroCouncil, 2018. The tonnages have been rounded to the closest 500 tons. Sources: Wood Survey with members of FluoroCouncil, July - September 2019; "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia; ECHA, 2014. ANNEX XV PROPOSAL FOR A RESTRICTION - Perfluorooctanoic acid (PFOA), PFOA salts and PFOA-related substances, European Chemicals Agency; based on FluoroCouncil, 2013. FluoroCouncil, 2013. Personal communication with ECHA, Jin, 2012. Jin, J., 2012. Chemistry of Aryl Trifluorovinyl Ethers. Chemistry in New Zealand 76, 24-26.; Ebnesajjad, S., 2013. Introduction to Fluoropolymers - Material, Technology, and Applications. pp32, Elsevier. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 A2 Wood Environment & Infrastructure Solutions UK Limited A.3 Revenues (Fluoropolymers in basic form) Table A.2 Annual sales value of the US fluoropolymer market (2018) Quantities Sales value (US$ m) Original survey results (US$ m) Sales value of product produced in the US 2,640 1,260 Sales value of imports into the US 570 270 Sales value of exports from the US 1,090 520 Total value sold on the US market 2,120 1,010 Sources: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015.Notes: The extrapolation of the total market figures follows the same logic outlined in Table A.1 A.4 Research and development (R&D) Table A.3 Research and development expenditure related to fluoropolymers in the US (2018) % of revenue related to fluoropolymers Upper bound estate - total market US$ m a Original survey results (US$ m) Total 6.4% 150 70 Sources: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Notes: a. This value has been calculated applying the same "R&D investments" / "total value sold on the US market value" ratio observed in the original survey data (i.e. 70 / 1,010). Numbers have been rounded to the nearest 10 million. A.5 Direct employment In terms of employment, in total 60,600 people are employed in FluoroCouncil companies in the US. Of these, the survey respondents estimate that some 800 are employed in activities relating directly to fluoropolymers. The figure includes all relevant staff (manufacturing, commercial/sales, research and development). Collectively, the gross annual salaries of those employees directly related to fluoropolymers are estimated to account for around $30m156. Since not all fluoropolymer manufacturers responded to the survey, the total US employment figures related to fluoropolymers below are certainly underestimated. Providing an estimation of the remaining number of employees is more uncertain, as it is not exactly correlated with the volume produced but reflecting a wide range of issues such as spare production capacity. However, by using an average figure of 53.1 tons157 of fluoropolymer produced per US employee, this would lead to the 1,500 employees estimated at US level, along with a gross annual salary of $57m. 156 The salary has conservatively been assumed to be the mean annual salary for the "Production Occupations" category obtained from https://www.bls.gov/oes/current/naics4_441300.htm#51-0000 (i.e. $37,930). 157 This has been obtained dividing the aggregated value of tonnage produced obtained from the survey (42,500 tons) by the number of employees directly related to fluoropolymers (800). February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 A3 Wood Environment & Infrastructure Solutions UK Limited Table A.4 Total employment in surveyed companies and direct employment associated with US fluoropolymer production (2018) Number of employees Total number of employees in FluoroCouncil member companies 60,600 Directly employed in activities related to fluoropolymers 800 Extrapolated to represent total market 1,500 Sources: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Note that all numbers are rounded to the closest hundred. A.6 Sales of fluoropolymers to downstream sectors Table A.5 Downstream applications of fluoropolymers (tons and value, 2018) Sector Typical applications Total quantity sold (t) Total value (US$ m) Original survey results (t) Original survey results (US$ m) Electronics Semiconductors, printed circuit 24,000 550 equipment, wiring, cabling Piping, tubing and fittings, fluid-handling components, vessels, storage tanks, sensors, sealants, binders in energy storage devices (e.g. batteries) 13,500 270 Transportation Fuel lines, hoses, hydraulic systems, O- 19,000 530 rings, gaskets, electronic systems, coating for a variety of purposes (e.g. cables, wires), fuel cell materials. 10,500 250 Chemical and Valves, stainless steel piping, tubing, 12,500 330 7,000 160 industrial processes filters, seals, gaskets and other standard fluid handling components, paper tableware, conveyor belts, labware products, packaging Consumer products Non-stick coating for cook and bakeware 7,500 200 4,000 100 (e.g. pots, pans, baking trays), textiles (e.g. raincoats, footwear) Energy Front and back sheets for PV, paint and 4,000 140 2,000 70 coating for wind turbines, coating for wires and cables, binders in lithium-ion batteries Medical and first Cardiovascular grafts, heart patches, 3,000 100 1,500 50 responder ligament replacements, catheters, filtering membranes, firefighting suits Building and construction Coating for architectural applications, 2,500 90 architectural films 1,500 40 Other 5,000 170 2,500 80 Total 77,500 2,100 42,500 1,010 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 A4 Wood Environment & Infrastructure Solutions UK Limited Sources: Wood Survey with members of FluoroCouncil, July - September 2019, and "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. Note sales values are rounded to the nearest 10 million and tonnages are rounded to the nearest 500. The US market size (volumes and sales) has been obtained from the original survey data in combination with information from "Fluoropolymers - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders", Freedonia, 2015. The proportion of sales and tonnages in each sector are taken from the survey results. It is then assumed that these proportions are mirrored in market participants that did not take part to the survey. For example, the total value for the whole electronics market has been calculated as follows: (`electronics original survey results' / `total original survey results') * `total quantity sold' (i.e. (270 / 1,010) * 2,100 = 550). February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 B1 Wood Environment & Infrastructure Solutions UK Limited Appendix B Potential alternatives Table B.1 Number of interviews with downstream users and sectors covered Transportation Electronics Energy Building and construction Medical and first responder Other chemicals and industrial processes Consumer products Other Total 1 2 6 1 1 2 5 1 8* Notes (*): The sum of downstream users across sector is larger than the overall number as most users are active in more than one sector. Table B.2 Summary of alternatives and their technical, economic, health and environmental implications, where available Key market Possible? Alternatives Example of application Overview of likely technical, economic and environmental implications Transportation Nylons [1] Fuel hoses, tubing The consultation responses suggest lower chemical resistance to fuels, less adequate emission control, and less flexibility. Transportation Highperformance nickel alloys [2] Pipes, tubes, pumps, valves, vessels According to the consultation, these alloys have very high melting points and good resistance to corrosion, but less than fluoropolymers. Nickel alloy products provide less design flexibility in sealing solutions. Transportation Hydrocarbon elastomers [3] Seals, O-rings Hydrocarbon elastomers are a feasible alternative in some applications, but the respondents to the consultation highlighted lower thermal and chemical stability. Transportation Alternative polymers Gaskets, seals, hoses While some present similar properties to fluoropolymers, none provide the combination of properties required for the applications where fluoropolymers are used. Transportation Mica [4] Mica-insulated sensor cables for oxygen and nitrogen sensors High risk of cracking. To achieve a similar performance to fluoropolymers, mica cables would need more copper and heavier insulation, increasing the total weight. Transportation Silicone rubbers [5] Gaskets, seals, Orings, hoses Very good temperature range, but slightly narrower than fluoropolymers (they can perform better than fluoropolymers in low temperatures), with lower chemical resistance. Transportation Electronics Stainless steel [6], aluminum [7], copper [8] Polyolefins [9] Liners, fuel lines, tubing Cables Fuel lines, liners and tubes made entirely of copper or stainless steel are available on the market. However, respondents to the consultation note that these can be more prone to corrosion, and that their high density and mass could be detrimental to sensitive applications. The consultation suggests that data cables insulated with polyolefins are usable in a restricted temperature range, but exhibit a high fuel load, inconsistent electrical properties and flame propagation. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 B2 Wood Environment & Infrastructure Solutions UK Limited Key market Possible? Alternatives Example of application Overview of likely technical, economic and environmental implications Electronics Silicone polymers [10] Touch screens Silicone materials offer a range of properties that are suitable for other applications and are used in various electronics components, but do not have the specific combination of properties required in fluoropolymer applications. Silicones are used in some touch screens. Electronics Polyether ether ketone (PEEK) [11] Chip manufacturing Respondents to consultation pointed out that PEEK grades have similar temperature resistance, but do not have the same low ionic content as fluoropolymers. They currently do not have the same purity and low erosion characteristics. Energy Mica [4] Cables High risk of cracking. To achieve a similar performance to fluoropolymers, mica cables would need more copper and a heavier insulation, increasing the total weight. Energy Ethylene Propylene Diene Monomer (EPDM) [12] Cables EPDM has higher weight and lower chemical resistance and temperature range. Energy Hydrocarbon elastomers [3] Seals (oil and gas) Lower thermal and chemical stability, reducing the range of applications and operational lifetime. Building and construction* Polycarbonate sheets [13] Membranes for architectural applications such as roofing Lightweight, temperature-resistant and durable. PVC/PES membranes for architectural applications are common. However, these are often coated with a protective layer [13] (often made of PVDF, a fluoropolymer) to provide UV-resistance and weatherability. Building and construction Steel Insulation materials, pipes and tubes Heavier and less flexible than fluoropolymers, not as resistant to corrosion and not able to match the design possibilities of fluoropolymers. Medical and first responder Polyurethane [14] Catheters Polyurethane is not suitable for steam sterilization. The consultation highlighted that it produces more clogging and it is less non-stick when removed, generating more patient discomfort and higher risk of infections due to increased level of intervention. Medical and first responder Polyether ether ketone (PEEK) [14] Tubes, catheters This alternative is commercially available. It is resistant to high temperatures and the products made of this alternative can be sterilized with autoclave. It is a suitable solution for disposable hospital goods. It is biocompatible but it is generally not suitable for uses where longer term (30+ day) contact with tissue or blood is required. Other chemicals and industrial processes Highperformance nickel alloys [2] Pipes, vessels, valves, pumps According to the consultation, these alloys have very high melting points and good resistance to corrosion, but less corrosionresistant than fluoropolymers. Nickel alloy products provide less design flexibility. Other chemicals and industrial processes Glass [15] Pipes Glass-lined pipes are feasible for some applications [15]. Installation considerations. Other chemicals and industrial processes Metal [16] Cables Complete installation considerations. Fluoropolymers also allow for smaller and more compact cables. Consumer products Sol-gel ceramic [17, 18] Cooking Ceramics can be used to for non-stick cookware, but some tests indicate their non-stick properties are less durable [17, 18]. February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 B3 Wood Environment & Infrastructure Solutions UK Limited Source: Wood Survey with members of FluoroCouncil, July - September 2019 Notes: [1] http://www.parkhose.co.uk/categories/composite_oil_and_checmical_hose/1.html [2] https://www.finetubes.co.uk/products/materials/nickel-alloy-tubes / https://www.nickelinstitute.org/about-nickel#03-first-use-nickel [3] https://www.sciencedirect.com/topics/engineering/fluoroelastomers [4] https://www.hotdiskinstruments.com/products-services/sensors/mica-sensors/ [5] https://www.martins-rubber.co.uk/blog/silicone-rubber-gaskets/ [6] https://www.nssmc.com/product/catalog_download/pdf/P007en.pdf [7] https://www.speedwaymotors.com/Aluminum-Hard-Fuel-Line-Tubing-3-8-Inch-O-D-,1633.html [8] https://www.carbuilder.com/uk/6mm-copper-fuel-line-per-metre [9] https://www.anixter.com/content/dam/Anixter/Guide/7H0011X0_W&C_Tech_Handbook_Sec_03.pdf [10] https://www.dow.com/documents/en-us/mark-prod-info/30/30-1242-01-silicone-enabled-protectivefilm.pdf?iframe=true&v=82d32f87b89f [11] https://www.piedmontplastics.com/applications/semiconductor-wafer-manufacturing [12] https://www.galaxywire.com/custom-wire-cable/jacket-insulation/epdm-ethylene-propylene-diene-monomer/ [13] http://www.morganasphalte.co.uk/news/the-advantages-and-disadvantages-of-polycarbonate-roofing/ [14] http://www.meddeviceonline.com/doc/an-introduction-to-emerging-polymers-for-medical-devices-0001 [15] https://www.ddpsinc.com/blog-0/why-glass-lined-pipe-is-a-viable-choice-for-your-process [16] https://uk.rs-online.com/web/p/harsh-environment-wire/1373329/ [17] http://www.productknowledge.com/SolGel-performance.html [18] http://www.prweb.com/releases/dupont_teflon_nonstick/cookware_v_ceramic_test/prweb10471794.htm * No alternatives were mentioned for the Building and construction sector in this survey. Those included in this table are taken from a previous study conducted in Europe in 2017 (https://www.plasticseurope.org/download_file/force/524/181). February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02 February 2020 Doc Ref. 41442-WOD-XX-XX-RP-OP-0001_A_C02