Document pmzeE8OLvGRxjE0Vp9o9yN6eD

DW Business Review Topic Welcome at Chemours Dordrecht August 25, 2022 Confidential Welcome to Dordrecht Works Safety - alarms Site Alarm in all sectors Gasalarm in red sector (333,444,555) Agenda 10 h: arrival at Chemours Dordrecht Introduction of Chemours - Dordrecht Works (& safety instructions) CRC goals implementation in emissions reduction through BAT Site Tour Discussion on way forward for PFAS: need for a harmonized approach Lunch 13.30 h: wrap up Plant Site Chemours The Dordrecht Site of Chemours Netherlands B.V. (a subsidiary of The Chemours Company) is a production location for fluoropolymers situated on a 55 hectare property in Dordrecht, the Netherlands. Location: Baanhoekweg 22, 3313 LA, Dordrecht, the Netherlands. Internal Use Only Our Values Our Businesses Titanium Technologies Thermal & Specialized Solutions Advanced Performance Materials Chemical Solutions Market Leader Chemours is a global leader in the safe production and manufacture of performance chemicals, combining leading products, applications expertise, and market-shaping chemistry Market Leader in titanium dioxide (TiO2) production Market Leader in manufacturing of thermal management and specialized solutions Market Leader in manufacturing of advanced performance materials Our Global Reach 58 Manufacturing and laboratory sites 130 Countries where we serve customers 6.4K Employees worldwide Chemours in Europe Manufacturing, Technology and Offices Antwerp (Kallo), Belgium Mechelen, Belgium Dordrecht, the Netherlands Villers-Saint-Paul (Oise), France Geneva (Meyrin), Switzerland Gijon, Spain (O) Neu Isenburg, Germany (O) Gijon Spain Antwerp, Belgium Dordrecht Netherlands Mechelen, Belgium Neu Isenburg Germany Oise France Geneva Switzerland Our manufacturing plant in Dordrecht produces fluoropolymers which are then used as a raw material for our coatings production in Mechelen. We manufacture fluorotelomers in France. +900 employees in Europe across all business units Transportation KrytoxTM lubricants TeflonTM coatings and resins VitonTM fluoroelastomer seals Semiconductors TeflonTM PFA, PTFE, and FEP resins TefzelTM ETFE resins Consumer Electronics and Communication TeflonTM resins and foam resins Green Hydrogen NafionTM ion exchange membranes Seizing Opportunities for Secular Growth CRC - Our Pillars & Our Goals Empowered Employees Fill 50% of all positions globally with women Fill 30% of all US positions with ethnically diverse employees Safety Excellence Improve employee, contractor, process, and distribution safety performance by at least 75% Vibrant Communities Invest $50M in our communities to improve lives by increasing access to science, technology, engineering, and math (STEM) skills, safety initiatives, and sustainable environment programs Climate Reduce scope 1 and scope 2 greenhouse gas emissions by an absolute 60% by 2030 Advance our plan to achieve net zero carbon emissions by 2050 Water Reduce air and water process emissions of fluorinated organic chemicals by 99% or more Waste Reduce our landfill volume intensity by 70% Sustainable Offerings Ensure that 50% of our revenue comes from offerings that make a specific contribution to the UN SDGs Sustainable Supply Chain Establish a baseline for the sustainability performance of 80% of suppliers by spend and demonstrate 15% improvement UN SDGs How we translate our goal into actions - responsible manufacturing Chemours supports a framework that leads to safer use and responsible manufacture of chemicals in the EU: By 2030 we aim to reduce air and water process emissions of fluorinated organic chemicals by 99% or greater. At our Dordrecht facility in the Netherlands, we're investing 75 million towards achieving our 2030 goal to reduce all PFAS emissions by more than 99% compared to 2018 baseline levels. In 2020, we successfully deployed our thermal oxidizer at our Fayetteville Works facility which destroys 99.999% of PFAS emissions and represents a $100 million investment in emissions control technology. Overview of Technology - Rev. 7/7/2022 99% Reduction in Fluorinated Organic Emissions August 31, 2022 Recent Advancements Analytical detection capability Sampling - stack testing methods for non-polymer PFAS Significant baseline emissions and abatement technology research with low detection capability. Progress towards our 2030 Corporate Responsibility Commitment Reduce fluorinated organic emissions by 99% Significant technology development has been achieved since establishing the 2018 corporate baseline. (21) Improvement projects at (7) different manufacturing sites have been completed. This has resulted in an approximate 31% reduction in fluorinated organic emissions globally when compared to 2018 baseline. An additional (15) improvement projects are in progress for completion in 20222024. With these projects, it is expected there will be a greater than 50% reduction in fluorinated organic emissions by the end of 2023 when compared to the 2018 baseline. Abatement Technology Typical approach to emission reductions - Eliminate emission point - Recycle / re-use - Destroy F-C bond Available Technology - Vapor Phase & Aqueous Phase Concentrated vs dilute Compound specific attributes Technology Development Abatement Technology - Vapor Concentrated Vapor - Thermal Oxidizer FOC Process Vents To atmosphere Stack CH4, O2, H2O Thermal Oxidizer NaOH Scrubber Calcium Hydroxide CaF2 Unit Water CaF2 Key Points Inputs mixed with oxygen at high temperatures to oxidize fluorinated organic compounds at greater than 99.99% destruction capability. HF Scrubber efficiency also exceeds 99.99% Developed technology that is reliable and effective Control system Materials of construction CaF2 recovery Photo - Fayetteville Works Thermal Oxidizer System Abatement Technology - Vapor Dilute Vapor - Adsorption utilizing granular activated carbon (GAC) for higher molecular weight, higher boiling non-polymer PFAS. FRESH AIR Manufacturing Building CARBON UNIT(S) STACK FRESH AIR Manufacturing Building Aqueous Scrubber CARBON UNIT(S) STACK Abatement Technology - Aqueous Adsorption (GAC) and ion exchange. - Used in both process water and finished product applications. - Have tested several types of adsorbents and ion exchange resins vs non-polymer PFAS compounds Key Operational Considerations - Specific PFAS compounds and concentrations - Non-PFAS organic load/nature - Efficiency of pretreatment to remove potential solid foulants - Bed configuration - single, 2-bed series, etc - Carbon type Vapor Abatement Technology Development Regenerative Thermal Oxidation - Potential of up to 95% thermal efficiency - Design is well suited for high volume / low concentration VOC emissions. Challenge - Application to fluorinated organics - generation of HF causes attack of standard refractory materials currently used in industry. Technology development required. - Currently considering design aspects to enable high destruction efficiency and reliability. Aqueous Abatement Technology Development Research conducted - Thermolysis for more concentrated aqueous streams - Have tested several types of adsorbents and ion exchange resins vs non-polymer PFAS compounds. In-progress - Research partnerships for treatment of PFAS compounds in water streams. - Researching combinations of technologies that ultimately enable recycle of process water internal to the manufacturing facilities. Full scale pilot in Fayetteville, NC Thank You If you have any questions, please reach out to: An Lemaire @chemours.com Marc Reijmers @chemours.com Plant tour A harmonized approach to PFAS in the EU August 31, 2022 Dordrecht - 25th August 2022 Agenda Age1n.da Overview of the overall PFAS restriction proposal & process 2. Fluoropolymers and the PFAS restriction proposal 3. FGases and the PFAS restriction proposals 4. Open discussion/Q&A 1. The EU PFAS Restriction Proposal August 31, 2022 A Structure-Based Definition for PFAS Fails to Consider Key Differences These are thousands of substances with very different properties: ONE SIMILARITY F C F *IEAM 2011, 7(4):513-541. Open access: http://dx.doi.org/10.1002/ieam.258 SOLIDS MANY DIFFERENCES LIQUIDS GASES Seconds Thousands of years STABILITY MW <1,000 Daltons SIZE MW 106 Daltons Highly Mobile Insoluble / Non-volatile MOBILITY Differences must be taken into account for science-based regulation. Regulations should not group all PFAS together. External Hydrocarbon Analogy: What if we replaced fluorine with a hydrogen? A Big Universe of Very Different Substances with C-H BONDS A Big Universe of Very Different Substances with C-F BONDS Hydrocarbons Polyethylene (C2H4)n Ethyl Alcohol CH3CH2OH Propane CH3CH2CH3 Fluorocarbons Polytetrafluorethylene PTFE Plastic (C2F4)n Fluorotelomer Alcohol CnF2n+1CH2CH2OH OpteonTM YF Refrigerant We would not group these together and say "they are the same", because THEY ARE NOT THE SAME External PFAS: Grouping based on properties 1 Group 2 Categories 5 Classes Fluorine Carbon Oxygen Hydrogen External PFAS Per- and Polyfluoroalkyl substances Non-Polymers Perfluoroalkyl Substances Compounds for which all hydrogens on all carbons (except for carbons associated with functional groups) have been replaced by fluorines Polyfluoroalkyl Substances Compounds for which all hydrogens on at least one (but not all) carbon have been replaced by fluorines Polymers Fluoropolymers Carbon-only polymer backbone with fluorines directly attached Polymeric Perfluoropolyethers Carbon and oxygen polymer backbone with fluorines directly attached to carbon Side-chain Fluorinated Polymers Non-F Variable composition non- spacer fluorinated polymer backbone with fluorinated side chains IEAM 2011, 7(4)5:13-541. http://dx.doi.org/10.1002/ieam.258 PFAS REACH Restriction Timeline: Preparation and submission of the restriction proposal Consultations RAC adopts opinion and draft SEAC opinion SEAC adopts opinion consultation on draft SEAC opinion COMM drafts Annex XVII amendment (tbc) Council/EP Scrutiny (tbc) Entry into force Restriction adopted (tbc) OLD NEW Jan 2023 March 2023Sep 2023 March 2023 Nov 2023 Nov 2023Jan 2024 FebMar 2024 June 2024 Q3 2024 Q4 2024 Mid 2025 When we talk about F-Gases and Fluoropolymers we also talk about: Green Deal Energy efficiency directive EU Industrial Strategy Climate Law Shaping Europe's digital Future Common Agricultural Policy Farm 2 Fork Construction Product Regulation Industrial Emissions Directive Strategy for sustainable and smart mobility F-Gas Regulation August 31, 2022 2. Fluoropolymers Fluoropolymers Health Energy Semicons applications & sectors Connectivity Electrification Aerospace & defense Internal combustion engine (ICE) vehicles Commercial vehicles & trucks Chemical processing equipment Chlor-akali production Wire & cable Oil & gas extraction and distribution Semiconductors Semiconductors Electric vehicles Hydrogen electrolysis Energy storage 5G network Connected devices Communications equipment Wire & cable Preliminary assessment - May be subject to change Essential Today Essential Tomorrow Fluoropolymers - Polymers of Low Concern with High Societal Value Polymers Fluoropolymers Carbon-only polymer backbone with fluorines directly attached Fluorine Carbon RELEVANT PROPERTIES Thermal, chemical and biological stability* High Molecular Weight; Not bioavailable or subject to long-range transport Fluoropolymers shown to meet OECD Polymer of Low Concern (PLC) criteria* *IEAM 2018, 14(3):316-334 Open access: https://doi.org/10.1002/ieam.4035 *IEAM 2022 Open access: https://doi.org/10.1002/ieam.4646 External Fluoropolymers have a unique combination of properties that no other material has. That makes them critical materials for production of semiconductors, the automotive industry today and future electrification of vehicles, and making the hydrogen economy a reality... to name a few. IPnutebrlincal Overly-broad regulation of fluoroproducts can have devastating effects on the whole technology ecosystem - with downstream users of these chemistries bearing most of the burden. If fluoroproducts can't be manufactured or distributed... Silicon wafers can't utilize fluoroproducts in wet processing which helps prevent contamination, ensure high yields, and forms carriers Cables and wiring can't utilize fluoroproducts that provide excellent electrical performance and necessary heat and corrosion protection in critical uses Data centers can't utilize fluoroproducts that provide immersion cooling, thermal management, and safe, clean fire suppression systems that don't damage systems or compromise stored information Just some of the impacted industries include... Automobiles (XEVs, EVs, and FCEVs) Consumer Technologies Computers & Software Systems 5G and IoT Deployment Medical Way Forward for Fluoropolymers - REACH PFAS Restriction - Fluoropolymers should be exempted from restriction as they meet OECD criteria of low concern (PLCs) and are critical materials used in nearly every sector without alternative - Concerns with the manufacture of fluoropolymers can be addressed under the Industrial Emissions Directive (IED) Preliminary assessment - May be subject to change August 31, 2022 3. FGases FGASs as a Green Deal Enabler: Overview of Sub-Applications Farm to Fork Residential Commercial Industrial TDrXansportation D Chillers Heat Pumps Mobile Split VRF Closed cell spray Pour in place HP Panels MoldedIS SUBAPPLICATIONS APPLICATIONS APPLICATIONS Refrigeration A/C Blowing Agents Carbon neutrality Solvents Propellants Other Critical cleaning Carrier fluid Aerosols, MDI Fire protection Switchgear High Temp Heat Pumps ORC Renovation Wave Smart and Sustainable Mobility Digital Transformation FGASs provide functionality to a wide range of applications, equipment types and variation of heating and cooling capacity. Their unique properties enable widespread use despite geographic and ambient temperature differences in Europe. F-gases in RACHP applications: health, safety, environmental and economic considerations Safety and Environmental Criteria Non or low flammability Low toxicity Ultralow GWP Mechanical & chemical safety HFOs HFCs CO2 NH3 HCs Financial Benefits of FGASs Optimized Total Cost of Ownership (TCO) Investment, maintenance and operational costs Energy efficiency (TEWI) Resource efficiency 1520 year equipment lifetime Non or low flammability Low toxicity (1) Ultra-low GWP Mechanical & chemical safety Dedicated value chain Specialized & extended value chain has been established for several industries, including FGAS recovery measures After market: producerdistributor wholesalerservice/installerend user Thousands of SME wholesalers & installers rely on FGASs (1) CO2 (R744) Acute Toxicity ATEL (Acute Tox exposure limit) is 30,000ppm (3%), 3x lower vs ATEL of HFO1234yf (Ref.: ASHRAE SP34) FGases are required for a full toolbox across many applications - they provide the best combination of environmental, health, safety and economic benefits How are F-Gases already regulated? Montreal Protocol (Kigali Amendment, 2019); Mobile air-conditioning systems (MAC) Directive (EU) 2006/40. F-Gas Regulation (EU) 517/2014; The F-Gas Regulation proposal provides a comprehensive legal & technical toolbox to control emissions, which includes leak checks, leakage detection systems, recovery, producer responsibility schemes, training and certification, restrictions on the placing on the market, labelling, control of use etc. The proposal includes new additional measures on containment and recovery for all gases, including HFOs Why do F-Gases not meet REACH restriction criteria? REACH foresees restrictive measures for several broad groups of hazard classes: CMR substances, PBTs, vPvB Unless it is demonstrated that they are of equivalent concern, no other intrinsic properties (e.g., P or vPvM) are eligible for certain restrictive measures under REACH Article 68(1) of REACH states that a substance can be restricted "when there is an unacceptable risk to human health or the environment, arising from the manufacture, use or placing on the market of substances" "Unacceptable risk" hinges upon the fulfilment of a double criteria: hazard is coupled with exposure Although no legally binding definition of "essential use" exists at EU level - F-gases explicitly fulfill the Montreal protocol definition due to their vital role in achieving EU climate objectives FGases do not pose an `unacceptable risk' to human health and environment within the legal meaning of REACH Preliminary assessment - May be subject to change TFA considerations Trifluoroacetic acid is a naturally occurring organic acid. More than 200 million tons of TFA are found in the world's oceans. [1] [2] [3] Multiple sources for TFA: 95% of the TFA on Earth is believed to be a natural. However, 5% comes from anthropogenic sources (i.e., agriculture, pharma, some Fgases). [4] [5] The human and environmental health effects of TFA have been thoroughly evaluated in various toxicology studies that have also been used to meet the requirements of REACH. UNEP Environmental Effects Assessment Panel (EEAP) scientific conclusions for TFA : "There is still NO indication that exposure to current and projected concentrations of salts of TFA in surface waters present a risk to the health of humans and the environment." The EU FGas Regulation revision process is critical to ensure proper handling of refrigerants. Our proposed risk management options also help address unwanted releases of Fgases, minimizing manmade TFA in the environment. [1] Scott B.F., et al., "Haloacetic Acids in the Freshwater and Marine Environment," First International Symposium on Atmospheric Reactive Substances, 1416 April 1999, Bayreuth, Germany. [2] Von Sydow L., et al., "Natural background levels of trifluoroacetate in rain and snow,"Environmental Science & Technology, 34, 31153118, 2000. [3] Frank H., et al., "Trifluoroacetate in Ocean Waters," Environmental Science & Technology, 36, 1215, 2002. [4] Bavarian State Office for the Environment, "FGases and Water Protection: Trifluoroacetic Acid (TFA)," presentation from conference, "The Way to Natural Refrigerant Technologies," WWA Nuremberg, 2019. [5] "EFCTC Special Review: Understanding TFA," European Fluorocarbons Technical Committee, 2016. Conclusion: F-Gases F-gases are required for a full toolbox of refrigerants across many applications. They provide the best combination of environmental, health, safety and economic benefits. REACH Annex XVII restriction is not an appropriate regulatory management option (RMO) Emissions can be controlled via sector-specific legislation: Refrigerants: via inclusion of HFOs into the containment measures applied to Annex I & Annex II substances of the F-Gas regulation (except quota restrictions) Foams within construction sector: through industry end-of-life asbestos-like initiatives Preliminary assessment - May be subject to change Chemours' position Chemours supports a coherent regulatory framework that leads to safer use and responsible manufacture of chemicals: Through a science based approach Ensuring regulatory coherence Taking it casebycase (substances, applications) An accurate and complete view of the use and value of our chemistries is key to achieve this. Questions? August 31, 2022 Thank You If you have any questions, please reach out to: August 31, 2022