NPE ’24: INSIGHT: Big themes at NPE include sustainability, EVs, toxicity rules

HOUSTON (ICIS)–The biggest plastics trade show in the Western Hemisphere returned last week after a six-year hiatus. Delegates returned to consider an industry that is increasingly being shaped by government policy which is favoring sustainability and electric vehicles (EVs) while restricting the use of some classes of chemicals that are used in processing aids.

SUSTAINABLE CONTENT
The regulatory outlook is influencing companies’ sustainability goals, and that is influencing which plastics they buy and which ones are made by producers.

Sustainability was the most prominent theme at the show. The title of the keynote address given by BASF Corp CEO Mike Heinz was “Our Plastics Journey: The Road to Shaping a Sustainable Future”.

Other examples of sustainability at the show include the following:

• Executives from SABIC and NOVA Chemicals talked at lengths about what their companies are doing to incorporate more recycled content into their materials.
• Renewable plastics producers CJ CheilJedang and Danimer Scientific had booths showcasing their grades of polyhydroxyalkanoate (PHA), a renewable polyester.
• GREENMANTRA showcased its chemical recycling technology, which breaks down plastics to produce waxes, which are then then uses to make additives that make it easier to incorporate waste plastic into finished products.

If the exhibitor booths and keynote address weren’t enough to drive home the prominence of sustainability, delegates only had to consider the recent round of talks for the UN plastic waste treaty. It was held just days before NPE.

While the plastics industry is advocating curbs on pollution, several groups at the talks were pushing for curbs on production. US lawmakers have repeatedly introduced bills that would impose moratoria on new plants.

A small number of US states are adopting mandates that require minimum amounts of recycled content. A few states are also adopting policies calling for extended producer responsibility (EPR).

The outlook of regulations is causing consumer goods producers and other plastic consumers to start seeking out sustainable materials now, so they have time to rearrange their supply chains and so prepare for the anticipated regulations.

POLICIES PROMOTING EVS, LIGHTWEIGHTING
Government support should rekindle sales of EV and pull them out of what could be a temporary lull, according to BASF. The world will need more EVs if it wants to achieve its carbon-cutting goals.

In the US, the federal government and individual states are adopting and proposing policies that will promote EV adoption.

• The Environmental Protection Agency (EPA) introduced a new tailpipe rule that will require the US light vehicle fleet to emit progressively smaller amounts of carbon dioxide (CO2).
• The EPA is expected to decide if California can adopt its Advanced Clean Car II (ACC II), which would phase out the sale of ICE-based vehicles by 2035. If the EPA grants California’s request, that would trigger similar programs in several other states.
• The US Department of Transportation (DOT) is proposing stricter efficiency standards under its Corporate Average Fuel Economy (CAFE) program.

EVs have material challenges that are different from automobiles powered by internal combustion engines (ICEs), and these are increasing demand for new grades of plastics.

Some plastics will need to tolerate higher voltage environments, while others will need good thermal management properties.

BASF and other companies at NPE showcased how several of their materials were meeting these challenges.

At the same time, auto companies will want materials that will lighten their vehicles so they can travel farther on a battery charge.

ICE automakers also want to lighten their vehicles, in part to comply with stricter emission requirements.

Longer term, Dow highlighted the revolutionary ramifications that autonomous vehicles will have on the plastic industry.

Such vehicles are driven almost entirely by machines, which should greatly reduce crashes and accidents. Dow said automakers could replace nearly all steel and aluminum paneling used in automobiles with plastic alternatives.

SUBSTANCES OF CONCERN
Dow and Clariant highlighted the ramifications of substances of concern, so called because regulators are concerned about their effects on safety.

The latest such substance include per- and poly fluorinated alkyl substances (PFAS), which are used in many polymer processing aids (PPAs). Clariant has recently introduced a hydrocarbon-based processing aid.

Longer term are the possible ramifications of the prioritization process that the EPA has started on five chemicals. The regulator would like to start the prioritization process on five additional chemicals each year.

The prioritization process is the first step in determining whether a chemical poses an unreasonable risk. If the EPA makes such a finding, then it will proceed with the risk management phase, in which it will propose ways to manage the unreasonable risks.

If the chemicals are used in plastics, then any subsequent restrictions could cause companies to find alternative materials.

EXCESS PLASTICS CAPACITY
Excess plastic capacity will likely persist even as destocking ends and demand recovers. NOVA Chemicals expects future expansion will be on pause until later in the decade.

Lost cost regions like North America should suffer less than higher cost regions like Europe. SABIC recently started up its first ethylene and PE production in the US through its joint venture with ExxonMobil, while announcing plans to shut down a cracker in Europe. The company did not rule out further capacity rationalizations

Produced by Plastics Industry Association (PLASTICS), NPE: The Plastics Show took place 6-10 May in Orlando, Florida.

Insight by Al Greenwood

Thumbnail shows cups made out of plastic. Image by Shutterstock.