chem vision 2020

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TECHNOLOGYVISION

The U.S. Chemical IndustryAMERICAN CHEMICAL SOCIETY

AMERICAN INSTITUTE OF CHEMICAL ENGINEERS

CHEMICAL MANUFACTURERS ASSOCIATION

COUNCIL FOR CHEMICAL RESEARCH

SYNTHETIC ORGANIC CHEMICAL MANUFACTURERS ASSOCIATION

Copyright December 1996 by The American Chemical Society,American Institute of Chemical Engineers,The Chemical Manufacturers Association,The Council for Chemical Research, andThe Synthetic Organic Chemical Manufacturers Association

A full, printed version of this report can be obtained from American Chemical SocietyDepartment of Government Relations and Science Policy1155 16th Street, NWWashington, DC 20036(202) 452-8917http://www.acs.org


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TECHNOLOGY VISION 2020THE U.S. CHEMICAL INDUSTRY*

The U.S. chemical industry . . .leads the world in technology development, manufacturing, and profitability.

The U.S. chemical industry . . .is responsible for breakthroughs in R&D that enhance the quality of life

worldwide by improving energy use, transportation, food, health, housing, andenvironmental stewardship.

The U.S. chemical industry . . .leads the world in creating innovative process and product technologies thatallow it to meet the evolving needs of its customers.

The U.S. chemical industry . . .sets the world standard for excellence of manufacturing operations that protectworker health, safety, and the environment.

The U.S. chemical industry . . .is welcomed by communities worldwide because the industry is a responsible

neighbor who protects environmental quality, improves economic well-being,and promotes a higher quality of life.

The U.S. chemical industry . . .sets the standard in the manufacturing sector for efficient use of energy and rawmaterials.

The U.S. chemical industry . . .works in seamless partnerships with academe and government, creating "virtual"laboratories for originating and developing innovative technologies.

The U.S. chemical industry . . .promotes sustainable development by investing in technology that protects the

environment and stimulates industrial growth while balancing economic needswith financial constraints.

*U.S. chemical industry is defined as U.S.-based production and R&D


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TABLE OF CONTENTS

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1. Introduction to the Chemical Industry and Its Contributions to U.S. Society . . . . . . . . . . . . . . . . . . . 15

2. Business Issues Facing the U.S Chemical Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. Role of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19The Path Toward Technology Vision 2020: Technical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4. New Chemical Science and Engineering Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

The Three Areas of Chemical Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Chemical Synthesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Bioprocesses and Biotechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Materials Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Enabling Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Process Science and Engineering Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Chemical Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Computational Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

5. Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

6. Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Information Systems in the Chemical Industry from Three Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Infrastructure and Open Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Business and Enterprise Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Product and Process Design and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Computers in Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Manufacturing and Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Computers in Plant Engineering and Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

7. Manufacturing and Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Customer Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Production Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Information and Process Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Building New Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Supplier Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Global Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Vision 2020 Workshop Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72


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1This report does not focus on the needs of the pharmaceutical industry, but rather examines the chemical industry as the supplierand user of basic chemicals.

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FOREWORD

In 1994, technical and business leaders in the U.S. chemical industry1 began a study on the factorsaffecting the competitiveness of the industry in a rapidly changing business environment and set out todevelop a vision for its future. The work focused on needs in research and development (R&D)capabilities, which are directly linked to growth and competitive advantage.

This study was also stimulated by a request from the White House Office of Science and TechnologyPolicy for industry advice on how the U.S. government could better allocate R&D funding to advance the

manufacturing base of the U.S. economy. Since then, more than 200 technical and business leadershave investigated the challenges confronting the chemical industry today. (A list of the contributors is onpage 67.) The results of this work, contained in Technology Vision 2020, emphasize opportunities foradvancement in R&D capabilities. Participants concluded that the growth and competitive advantage ofour industry depend upon individual and collaborative efforts of industry, government, and academe toimprove the nations R&D enterprise.

To assemble these conclusions and recommendations, staff and members of the American ChemicalSociety (ACS), Chemical Manufacturers Association (CMA), American Institute of Chemical Engineers(AIChE), Council for Chemical Research (CCR), and Synthetic Organic Chemical ManufacturersAssociation (SOCMA) formed the Technology and Manufacturing Competitiveness Task Group(TMCTG). The charter of the TMCTG was to

provide technology vision and establish technical priorities in areas critical to improving thechemical industrys competitiveness; develop recommendations to strengthen cooperation among industry, government, and academe;

and provide direction for continuous improvement and step change technology.

Over the course of several months, the TMCTG convened 36 formal working meetings and 20 technicalsessions to review and establish consensus on requirements within the chemical industry. The task groupalso polled senior management on the industrys business needs, seeking to link technicalrecommendations to pressing business issues. Four technical disciplines were selected as crucial to theprogress of the chemical industry. They are

new chemical science and engineering technology, supply chain management, information systems, and manufacturing and operations.


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In addition to the technical work groups, a study group was put together to research existing concepts ofsustainable development, such as those developed by the Presidents Council on SustainableDevelopment and the International Council of Chemical Associations (ICCA). The study group providedthese concepts to members of the technical groups as major considerations in their future-orientedtechnology recommendations.

A second study group also reviewed ideas for partnerships among industry, government, and academe.The group concluded that in this age of reorganization, the synergy of collaboration often has amultiplier effect on our nations pool of talent, equipment, and capital available for R&D. Theconclusions of the four technical and two study groups were reviewed at a public workshop in May 1995hosted by the TMCTG and attended by 120 leaders from industry, government, and academe. Finalrecommendations and conclusions are contained in Technology Vision 2020.

Technology Vision 2020is a call to action, innovation, and change. The body of this report outlines thecurrent state of the industry, a vision for tomorrow, and the technical advances needed to make thisvision a reality. The vision, like the industry, will evolve as the industry faces new realities andchallenges. Technology Vision 2020is the first step of a continuous journeyone that will see the U.S.chemical industry continue as a global leader in the next century. We thank you, the reader, forconsidering our report and are grateful for the outstanding professional contributions of our many workingmembers and reviewers.

Sincerely,Members of the Steering Committee

John Oleson, Dow CorningVictoria Haynes, B. F. GoodrichBrian Ramaker, Shell OilRobert Slough, Air Products and ChemicalsHenry Whalen, Jr., PQ CorporationThomas Sciance, Sciance Consulting Services, Inc.Michael Saft, Saft AmericaDonald Jost, Council for Chemical ResearchWayne Tamarelli, Synthetic Organic Chemical Manufacturers AssociationSusan Turner, American Chemical Society

Dale Brooks, American Institute of Chemical EngineersDiana Artemis, Chemical Manufacturers AssociationDorothy Kellogg, Chemical Manufacturers Association


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ACKNOWLEDGMENTS

The sponsors of this report thank the many people, companies in the chemical industry, andorganizations and their staff who contributed time and energy to this project. The contributors are listedat the end of this report by name and affiliation.

As with any project, there are also people whose contributions merit particular thanks. Special effortswere made by John Oleson, Victoria Haynes, Susan Turner, Diana Artemis, and Hank Whalen toovercome challenges and keep this project on track. Gerry Lederer also helped facilitate meetings during

the early part of this project. Leadership for the development of each of the chapters was given by JohnOleson, Victoria Haynes, Brian Ramaker, Hank Whalen, and Bob Slough. These people also served asspokespersons for this project during its two-year development. Tom Sciance and Mike Saft wroteseparate sections on sustainability and partnerships that were incorporated throughout the document.Other important contributors to the format and content of the report were Mark Barg, John Munro, DaveRudy, Mike Saft, and Steve Weiner.

The New Chemical Science and Engineering Technology chapter was produced by various team leaders,who led the development of different sections. Special recognition is given to Bob Dorsch, Jim Trainham,Don McElmore, Miles Drake, Jerry Ebner, Francis Via, Chuck Rader, Jean Futrell, and Hratch Semerjian.This chapter was aided by invaluable writing and editorial assistance of Arnold Eisenberg.

Suzanne Baker and Diana Artemis spent numerous hours rewriting and editing the report. Editorialassistance also was given by Ken Reese and Susan Golden. Deitra Jackson and Susan Blanco are alsoacknowledged for the important administrative support they provided to this project.

The funding to publish this document was provided by the American Chemical Society (including agenerous contribution from the American Chemical Societys Corporation Associates), the AmericanInstitute of Chemical Engineers, the Chemical Manufacturers Association, the Council for ChemicalResearch, and Price Waterhouse LLP.


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EXECUTIVESUMMARY

Our Challenges

The chemical industry faces heightened challengesas it enters the 21st century. Five major forces areamong those shaping the topography of its businesslandscape:

increasing globalization of markets, societal demands for higher environmental

performance, financial market demands for increased

profitability and capital productivity, higher customer expectations, and changing work force requirements.

How the industry meets these challenges will affectthe entire American economy. The U.S. chemicalindustry is the worlds largest producer of chemicals(value shipped, $367.5 billion in 1995), contributingthe largest trade surplus of any non-defense-relatedsector to the U.S. economy ($20.4 billion in 1995),representing 10 percent of all U.S. manufacturing,and employing more than 1 million Americans. Thechemical industry, faced with an ever-changingbusiness environment, must work individually andcollectively to remain a world leader.

Meeting the Challenges

We believe the chemical industry in the UnitedStates must confront these new market pressureshead-on. With the goal of creating a technologyroadmap for the chemical industry to follow, weexamined the technical disciplines of new chemicalscience and engineering technology, supply chaintechnology, information systems, and manufacturingand operations. From our assessment of the

industrys needs in these areas, we determined thatthe chemical industry must accomplish five broadgoals over the next 25 years. It must

improve operations, with a focus on bettermanagement of the supply chain;

improve efficiency in the use of raw materials,the reuse of recycled materials, and thegeneration and use of energy;

continue to play a leadership role in balancingenvironmental and economic considerations;

aggressively commit to longer term investmentin R&D; and

balance investments in technology byleveraging the capabilities of government,academe, and the chemical industry as a wholethrough targeted collaborative efforts in R&D.

Steps to Getting There

To meet its goals, the U.S. chemical industry shouldaccomplish the following.

Generate and use new knowledge by supportingR&D focused on new chemical science andengineering technologies to develop more cost-efficient and higher performing products andprocesses.

Capitalize on information technology by workingwith academe, federal and national laboratories, andsoftware companies to ensure compatibility and to

integrate computational tools used by the chemicalindustry. Develop partnerships for sharinginformation on automation techniques andadvanced modeling.

Encourage the elimination of barriers tocollaborative precompetitive research byunderstanding legislation and regulations that allowcompanies to work together during the initial stagesof development.

Work to improve the legislative and regulatoryclimate by the reform of programs to emphasize

performance rather than a specific method ofregulatory compliance, and a greater considerationof cost, benefits, and relative risk.

Improve logistics efficiencies by developing newmethods for managing the supply chain and bysponsoring an effort to shape informationtechnology and standards to meet the industrysmanufacturing and distribution needs.


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Increase agility in manufacturing by planningmanufacturing facilities capable of respondingquickly to changes in the market-place using state-of-the-art measurement tools and other technologiesfor design, development, scale-up, and optimizationof production.

Harmonize standards, where appropriate, byworking with governments within the United Statesand internationally, and with independent standardsgroups on nomenclature, documentation, productlabeling, testing, and packaging requirements.

Create momentum for partnering by encouragingcompanies, government, and academe to leverageeach sectors unique technical, management, andR&D capabilities to increase the competitiveposition of the chemical industry.

Encourage educational improvements throughthe advancement of strong educational systems andby encouraging the academic community to fosterinterdisciplinary, collaborative research and providebaccalaureate and vocational training throughcurricula that meet the changing demands of theindustry.

Technical Recommendations

TECHNOLOGY AREA 1:

NEW CHEMICAL SCIENCE ANDENGINEERING TECHNOLOGY

Chemical science is the most fundamental driver ofadvances within the chemical industry. Maintainingand improving the competitiveness of the U.S.chemical industry requires advances in three areasof chemical science: chemical synthesis,bioprocesses and biotechnology, and materialstechnology.

Chemical Science

CHEMICAL SYNTHESISThe traditional tools of chemical synthesis in usetoday are organic and inorganic synthesis andcatalysis. Synthesis is the efficient conversion ofraw materials such as minerals, petroleum, naturalgases, coal, and biomass into more usefulmolecules and products; catalysis is the process bywhich chemical reactions are either accelerated or

slowed by the addition of a substance that is notchanged in the chemical reaction. Catalysis-basedchemical syntheses account for 60 percent oftodays chemical products and 90 percent of currentchemical processes.

To take full advantage of the potential offered inchemical syntheses, industry should work to (1)develop new synthesis techniques incorporating thedisciplines and approaches of biology, physics, andcomputational methods; (2) enhance R&Dcollaborations in surface and catalytic sciencerelevant to commercial products and processes; (3)promote enhanced understanding of thefundamentals in synthesis, processing, andfabrication for structure control of complexmolecular architectures; and (4) supportfundamental studies to advance the development ofchemistry in alternative reaction media (gas phase,water, supercritical fluid, etc.).

BIOPROCESSES AND BIOTECHNOLOGYHumans have used biologically based processes(bioprocesses) since they first made cheese,leavened bread, and brewed spirits. Systematicexploration of biological catalysts (biocatalysts)began approximately 100 years ago with initialstudies of enzymes, protein-based catalysts found inliving organisms. Bioprocesses are increasinglyused to produce chemical products, and there is awhole world of potential biocatalysts to bediscovered.

Each sector of the chemical enterprise has a role toplay in advancing the use of biotechnology. (1)Industry should define R&D necessary to discover,develop, and provide more powerful and efficientbiocatalysts, more effective process technology, andlow-cost raw materials for bio-processes. (2)Academe should broaden the knowledge baserelevant to industrial bioprocesses (such as meta-bolic pathway engineering, enzyme discovery andoptimization, and efficient reaction and separationtechnology) and use results of biotechnologyresearch in health and agriculture to seekdiscoveries in bioprocessing. (3) Government

should encourage, support, and participate inprecompetitive biotechnology R&D, while supportinglong-term, high-risk technology development anddemonstration.

MATERIALS TECHNOLOGYThe development of new synthetic materials hasfueled the growth of the chemical industry andrevolutionized our society in the 20th century.


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Replacement of traditional materials such as metals,wood, glass, and natural fibers with syntheticpolymers and composite materials has resulted inproducts with lower weight, better energy efficiency,higher performance and durability, and increaseddesign and manufacturing flexibility.

Further improvements in the design, fabrication, andquality of materials can be made only if industry (1)works together with academe to promoteinterdisciplinary approaches to materials science,including the integration of computationaltechnology; (2) defines key needs in structureproperty understanding and fundamentalinformation, which can be used to design and tailormaterials; (3) works with federal laboratories andacademe to develop practical materials synthesisand processing technologies that focus on efficientmanufacture of advanced materials systems; and(4) promotes efforts to define common approaches

for disassembly and reuse of materials.

Enabling Technologies

PROCESS SCIENCE AND ENGINEERING

TECHNOLOGYProcess science and engineering technology(PS&ET) which includes engineeringtechnologies; engineering science; and engineeringdesign, scale-up, and construction dates back tothe 1930s and is the foundation for thedevelopment, scale-up, and design of chemical

manufacturing facilities. When effectively integratedwith basic science and enabling technologies,PS&ET offers great potential for bringing scienceand quantitative understanding to the service of thechemical industry, permitting much higher capitalutilization, improved yields, reduced wasteproduction, and improved protection of humanhealth, safety, and the environment.

To exploit the potential of PS&ET, industry should(1) work with government and academe to developrelevant process software and real-timemeasurement tools; (2) support engineering

research in nontraditional reaction and separationsystems (e.g., plasma, microwave, photochemical,biochemical, supercritical, cryogenic, reactiveextraction and distillation, and membrane reactors);and (3) pursue the development of new concepts inflexible manufacturing, process technology for high-performance materials and structures, disassemblyand reuse of materials, solids processing, andsmart processes.

CHEMICAL MEASUREMENTChemical analysis is a critically important enablingtechnology essential to every phase of chemicalscience, product and process development, andmanufacturing control. New knowledge and insightprovided through chemical measurement greatly

accelerate progress in chemical science,biotechnology, materials science, and processengineering by providing reliable data to evaluatecurrent and emerging technologies.

To ensure that chemical measurements meet theneeds of the chemical industry in the future, theindustry should (1) promote centers of excellencefocused on chemical measurements and processanalytical chemistry in order to probe molecularprocesses; (2) establish a task force to assess thechemical process industrys measurement prioritiesand related modeling and database needs; (3)develop instrumentation interfacing standards toenable use of distributed analytical networks andmore efficient data acquisition and control systems;and (4) support development of high-performancespectrometers, as well as robust measurementtechniques for real-time analyses.

COMPUTATIONAL TECHNOLOGIESComputational technologies have a broad range ofapplications, from molecular modeling to processsimulation and control. Today, these technologiesare embodied in almost every aspect of chemicalresearch, development, design, and manufacture.Those most critical to the chemical industry includecomputational molecular science, computationalfluid dynamics (CFD), process modeling, simulation,operations optimization, and control.

In the area of computational technologies, industryshould (1) assess and assign priority to its CFDsimulation needs and explore software paradigmsfor CFD tools; (2) support further development ofhigh-performance desktop workstations, large andfast vector-processor machines, and highly parallelprocessors; (3) encourage improvements in nationalnetworks to allow high-speed communications, on-line collaborations, and efficient data transfer; (4)

support experimental validation of, or challenges to,computational results; and (5) pursue publicprivatepartnerships for illustrative implementation of largeradvisory systems.


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TECHNOLOGY AREA 2:SUPPLY CHAIN MANAGEMENT

The chemical industry has concentrated on scienceand production and also has given substantial

attention to manufacturing. But it has given lessattention to the supply chain, defined as the criticallink between the supplier, the producer, and thecustomer. Supply chain management comprises

planning and processing orders; handling, transporting, and storing all materials

purchased, processed, or distributed; and managing inventory.

Today, many estimate the costs associated withsupply chain issues to be approximately 10 percentof the sales value of delivered products domestically

and as much as 40 percent internationally. Toimprove its efficiency in managing the supply chain,and thus increasing its competitiveness, the industryshould

encourage implementation of the ChemicalManufacturers Associations Responsible Care

initiatives throughout all logistics operations,including third-party service providers;

encourage the preparation of a benchmarkingstudy to identify best practices and defineperformance targets in supply chainmanagement;

develop the logistics function to include the useof operations optimization tools on a worldwidebasis;

work with government to harmonize supplychain issues of packaging, labeling,documentation, handling, storage, and shipping;and

encourage the development of informationsystems having compatible communications,data transmission, and information processingto support global supply chain activities.

TECHNOLOGY AREA 3:INFORMATION SYSTEMS

Throughout the chemical industry, the ways in whichdata are turned into information and used,managed, transmitted, and stored will be critical toits ability to compete. Improved and enhancedinformation systems are at the very heart of our

vision, which sees the chemical industry operatinghighly efficiently and economically. To facilitate theadvances in information systems required for itsfuture, the industry should achieve the following:

Encourage technology providers to developopen systems, focusing on the capability ofintegrating specific sets of information intolarger systems. This will require improvementsin data security, quality, and reliability, as wellas data compression technologies.

Work with government to improve knowledge ofmolecular modeling and simulation as theyapply to the chemical process industry byencouraging the government to enhance thetransfer of process simulation and modelingtechniques to the private sector.

Encourage the development of standards fortransferring models and model parameters tofacilitate the use of modeling and simulation

technologies. Encourage the development of expert systems

and intelligent decision-support tools that areflexible enough to model multi-national,multiproduct enterprises for use in businessdecision making.

TECHNOLOGY AREA 4:MANUFACTURING ANDOPERATIONS

The revenue-generating capability of the chemicalindustry is derived from its capability to deliverchemicals and materials that satisfy customerneeds. Manufacturing operations play a key role inthat activity. Maintaining and improving thecompetitiveness of the U.S. chemical industry willrequire advances in six areas of manufacturingoperations: (1) customer focus, (2) productioncapability, (3) information and process control, (4)engineering design and construction, (5) improvedsupply chain management, and (6) globalexpansion. To achieve improvements in these

areas, the industry should

Encourage customer and supplier focus in apartnering fashion with emphasis on reliability ofsupply, continuous improvements in productquality and consistency, and responsiveness tochange.


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Encourage improvement in productioncapabilities to continuously improve processsafety, reduce the impact of manufacturingprocesses and products on the environment,and speed up access to product and processinformation, thus enabling quick response tochange and easing management ofimprovements.

Develop the technology to build plants in ashorter time and at lower cost to allowreconfiguration of plants as markets change.

Enhance the supply chain enterprise system bygiving it a chemical industry focus.

Expand the capability for global operations andcommerce.


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Chapter 1

INTRODUCTION TOTHE CHEMICAL

INDUSTRY AND ITSCONTRIBUTIONS TO

U.S. SOCIETY

The chemical industry is more diverse than virtuallyany other U.S. industry. Its products areomnipresent. Chemicals are the building blocks forproducts that meet our most fundamental needs forfood, shelter, and health, as well as products vital tothe high technology world of computing,telecommunications, and biotechnology. Chemicals

are a keystone of U.S. manufacturing, essential tothe entire range of industries, such aspharmaceuticals, automobiles, textiles, furniture,paint, paper, electronics, agriculture, construction,appliances, and services. It is difficult to fullyenumerate the uses of chemical products andprocesses, but the following numbers give someindication of the level of diversity1:

More than 70,000 different products are registered.More than 9,000 corporations develop, manufacture,and market products and processes. The U.S.government uses eight standard industrial

classification codes to categorize chemicalcompanies:

industrial inorganic chemicals; plastics, materials, and synthetics;

drugs; soap, cleaners, and toilet goods; paints and allied products; industrial organic chemicals; agricultural chemicals; and miscellaneous chemical products.

In short, a world without the chemical industry wouldlack modern medicine, transportation,communications, and consumer products.

WORLD POSITION

The United States is the worlds largest producer ofchemicals. In 1995, some $367 billion worth ofproducts was shipped. This represents about 24percent of the worldwide market, which is valued at$1.3 trillion. Countries that rank next in total

production are Japan, Germany, and France. Interms of exports, Germany is currently the globalleader. The United States ranks second, withapproximately 14 percent of total exports worldwide,valued at $60.8 billion in 1995.

NATIONAL POSITION

The U.S. chemical industry runs one of the largesttrade surpluses of any industry sector ($20.4 billionin 1995), and it ranks as the largest manufacturingsector in terms of value added. The more than onemillion employees in the chemical industry enjoy arelatively high standard of living, with salaries inproduction roles averaging approximately one-thirdhigher than in other manufacturing industries.Overall, the chemical industry is the third largestmanufacturing sector in the nation, representingapproximately 10 percent of all U.S. manufacturing.

RESEARCH AND DEVELOPMENT INTHE CHEMICAL INDUSTRY

The outstanding success of the chemical industry islargely due to scientific and technologicalbreakthroughs and advances, making possible newproducts and processes. The chemical industry now

1Chemical Manufacturers Association. CMA Statistical handbook;Washington, D.C., 1995, p. 7.


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spends about $17.6 billion annually on R&D2. Infact, according to an Institute for the Future study,the chemical industry is one of the eight mostresearch-intensive industries. The scientific andtechnical research of these industries makes ourlives as Americans safer, longer, easier, and moreproductive.

Through significant investment in R&D, the U.S.chemical industry has led the way in developing andsupplying products that have made our lives better.When one reviews the contributions of the chemicalindustry to our civilization, it becomes clear thatrather than any single individual invention ortechnological breakthrough, it has been theindustrys overall commitment to R&D that hasrepresented its most significant legacy.

Investment in R&D is the single greatest driver ofproductivity increases, accounting for half or more

of all increases in output per person3. Research anddevelopment is the source of new products thatimprove the quality of life and new processes thatenable firms to reduce costs and become morecompetitive. As we look to the future, it is apparentthat a continued investment in technology isnecessary for industry to meet the needs andexpectations of the next generation. Reaching thegoals of Technology Vision 2020will requireappropriate levels of support for R&D, the wellspringof future growth.

Compared with R&D investment levels (as apercentage of gross domestic product, GDP) inleading industrial countries, the United States iscurrently only slightly ahead of Germany and Franceand just behind Japan. In terms of nondefense-related R&D, which has more impact on thechemical industry, the United States outspends onlyFrance. Moreover, federal expenditures onnondefense-related R&D have actually fallen as apercentage of GDP over the past three decades.This reduction is a serious threat becausegovernment is the primary source of support forbasic research. Government expenditures, in turn,influence the level of private support for appliedresearch and development. Applied research canonly proceed in directions indicated by basicresearch, and commercialization follows fromapplied research. Exacerbating this situation is thatcompanies appear to be shifting their R&Dinvestments to shorter term R&D.

2U.S. Department of Commerce, Meeting the Challenge: The U.S.Chemical Industry Faces the 21st Century; January 1996.

3Material in this section is drawn from The Council of EconomicAdvisers, Supporting Research and Development to PromoteEconomic Growth: The Federal Governments Role, October 1995.


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Chapter 2

BUSINESS ISSUESFACING THE U.S.

CHEMICAL INDUSTRY

A Time of Dynamic Tension

Looking ahead to the 21st century, we see six forceschanging the topography of the business landscape:increasing globalization, sustainability, financialperformance (profitability and capital productivity),customer expectations, changing work forcerequirements, and increased collaboration.

Within this changing landscape, the industry

continues to both improve its ability to meetcustomer needs and develop pathways forcontinued growth and improved profitability. It iscertain that some paths will lead to new levels ofsuccess, and others will take us to the dead end ofdeclining competitiveness. The critical questiontoday is, Which is which?

All paths have barriers, but the leadership of thechemical industry is confident that the United Stateshas or can develop the resources necessary to getfrom where the industry is today to where it must bein 2020.

Privately financed scientific R&D conducted bychemical companies has built a strong and vitalchemical industry. Nevertheless, as other nationsenter the global marketplace and major producersbecome more competitive, the current level ofinvestment in R&D may be insufficient to maintain acompetitive edge. Companies alone will be unableto meet the new realities of the 21st century.Partnerships can help to leverage R&D resources inthe interest of industry needs.

The following sections provide a more detailedexamination of the challenges and opportunitiescreated by the forces shaping the chemical industryand the increasingly important role technologicalleadership plays in the outcome.


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Chapter 3

ROLE OFTECHNOLOGY

Technology holds promise for positively shapingthe U.S. chemical industry as it adapts to the newglobal business environment requirements forsustainability, financial performance, expandedcustomer expectations, and a more highly skilledwork force.1

INCREASING GLOBALIZATION

We define globalization as the acceleratinginterdependence of nations and private firms.

OpportunitiesTechnological innovation will provide many newmarket opportunities. As industry advances towardour Technology Vision 2020, people, technology,capital, information, and products will move freelyacross international boundaries, minimizing, andsometimes equalizing, past economic andtechnological disparities. Worldwide economicgrowth offers many new opportunities for sellingproducts and services in countries previouslyinaccessible because of geography. To competeeffectively in foreign markets, localmanufacturing is important and will increase the

potential markets for U.S.-owned foreign affiliates,which generated sales of $186 billion in 1992.

Impact of TechnologySuccess in capturing new, emerging markets willdepend on the industrys ability to compete indifferent environments. Threatened by what someeconomists forecast as an inevitable decline in theU.S. share of world output and trade, the chemical

industry can develop competitive, advancedmanufacturing technologies, improve logistics andmanagement of supply chains, and create newproducts that support the needs of customersglobally.

SUSTAINABILITY

We define sustainability as technologicaldevelopment that meets the economic andenvironmental needs of the present while enhancingthe ability of future generations to meet their ownneeds.

OpportunitiesWhile the challenges of sustainability are significant,there are also major opportunities for growth as thechemical industry advances through the nextquarter-century. As world population increases, thechemical industry can serve more customers withhigher quality, higher performing products andservices, while demonstrating responsiblestewardship of our planet.

With the U.S. chemical industrys commitment toResponsible Care, the nation is ideally positionedto bring into reality the technology vision of anindustry that is a welcome neighborone thatprotects environmental quality, improves economicwell-being, and promotes a higher quality of life.

Impact of TechnologyThe chemical industry now has the opportunity toaccelerate its development of advancedmanufacturing technologies and new chemistry andrelated technologies that use materials and energymore efficiently.

U.S. companies also have an opportunity to build ontheir current dominance in the relatively new field ofenvironmental technology. Environmentaltechnologies make sustainable developmentpossible by reducing risk, enhancing costeffectiveness, improving process efficiency, andcreating products and processes that areenvironmentally beneficial or benign. The worldmarket for environmental technologies is growingrapidly, forecasted to increase from $300 billion in

1For further details on trends affecting the chemical industry, referto the U.S. Department of Commerce Report, Meeting theChallenge: The U.S. Chemical Industry Faces the 21st Century,January 1996.


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1992 to $425 billion in 1997. U.S. companies makeup the largest portion of the industry, withapproximately 45 percent of the global market.

FINANCIAL PERFORMANCE

Companies are increasingly being judged by theirability to create products that generate revenues tosatisfy stockholders profitability expectations. Theemphasis on short-term profitability has improvedstockholders satisfaction, but is a significant barrierto funding long-term R&D.

Impact of TechnologyThe chemical industry now has the opportunity todevise strategies to achieve targeted short-termreturns while at the same time attracting the capitalneeded for investment in longer term projects andfacilities. Appropriate, strategically driven

investment in R&D and new technologies, such asthose described below, will continue to drive theindustry toward unprecedented levels of productivityand return on capital.

R&D is the single greatest driver of productivityincreases. Investment in advanced manufacturingtechnologies, logistics and management of thesupply chain, information technology, and newchemistry and engineering technologies are vital forachieving our goal of leading the manufacturingsector in profitability.

CUSTOMER EXPECTATIONS

Responding to needs of customers in real timeincreasingly defines financial success for both thecustomer and the chemical producer.

OpportunitiesAs the values and structure of business shift, thechemical industry has unprecedented opportunitiesto develop new markets and forge even strongerrelationships with its customers.

Realizing the technology goals of Technology Vision2020will require that the industry relates to itscustomers in new ways. These changes include

improved business relationships developedthrough new partnerships between suppliers andcustomers,

cooperation to remove inefficiencies in bothsupplier and customer operations,

collaboration to reduce environmental impact,and

enhanced performance for customers and forsociety as a whole, through commitment tocontinuous improvement.

The companies that gain and retain market sharewill be those companies that meet changingcustomer expectations by

increasing responsiveness, especially in termsof reduced product cycle time, focused onadding value to customers products;

continuously improving product quality; and continuously improving service.

As customers aggressively expand and unify theiroperations globally, chemical producers in theUnited States must meet constantly evolving

material specifications. From just-in-time deliveryto higher quality and increased technical support,customers are requiring more from their chemicalsuppliers.

Impact of TechnologyTo meet expanding customer expectations, theindustry needs to apply innovative technologythroughout all phases of R&D, production, anddistribution. Improvements in logistics and supplychain management will enable manufacturers todeliver products to customers more efficiently and atlower cost. New operations and manufacturing

technologies will ensure highest product quality, andmore sophisticated information systems will linkcompanies to their customers. New chemistry andengineering will provide products that add value forcustomers and, in turn, for their customers. Over all,technological advances will reduce productdevelopment response times and help industry meetcustomers rising expectations.

CHANGING WORK FORCEREQUIREMENTS

Because of all the forces creating change inindustry, particularly having to do with the nature ofthe manufacturing process and facilities (as we willdetail below), more highly skilled workers will berequired for tomorrows work force.

The influx of computers and automation will makeplants easier to run but will require a moretechnically advanced understanding of the process.


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The increasing complexity of technology and therapid pace of technological change placesincreasing demands on employees across the workforce, from the scientist at the laboratory bench tothe operator on the plant floor.

The hallmark of the future work force will beflexibility, not an assault on jobs. Worker training willbe an ongoing part of every employees career. Thisdynamic has implications for educational curriculaand programs of the future.


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THE PATH TOWARDTECHNOLOGY

VISION 2020:TECHNICAL ISSUES

This section looks closely at four disciplines that willdetermine the progress of the chemical industry:new chemical science and engineering technology,supply chain management, information systems,and manufacturing and operations.

Twenty-five years ago, few people could haveimagined many of the technological advances thathave led to tools taken for granted today, from theomnipresent microwave oven to the immediacy ofelectronic mail. We are confident that during thenext 25 years, similarly dramatic new technologieswill emerge, as the needs and challenges are met

and the challenges associated with them areovercome.

Here are some glimpses of the future, as we lookahead to the year 2020, when chemical science andengineering technology will have become thedriving force for creating sustainable value andgrowth in the U.S. chemical industry.

We describe current technological conditions,identify research needs and challenges, envisionoptimal future conditions, and offerrecommendations to achieve these advances in

each area. The sections delineate not only the newcapabilities required to reach this vision of thechemical industrys future, but also the step changeimprovements and enhancements that are just ascrucial in moving forward.


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Chapter 4

NEW CHEMICALSCIENCE ANDENGINEERINGTECHNOLOGY

The Three Areas ofChemical Science

CHEMICAL SYNTHESIS

Current StateThe traditional tools of chemical synthesis in use

today are organic and inorganic synthesis andcatalysis. Synthesisis the efficient conversion ofraw materials such as minerals, petroleum, naturalgases, coal, and biomass into more usefulmolecules and products; catalysisis the process bywhich chemical reactions are either accelerated orslowed down by the addition of a substance that isnot changed in the chemical reaction.

Advances in core strategies, such as those insynthesis or catalysis, can have huge impact. Forinstance, a major breakthrough in catalysis was thediscovery of coordination anionic catalysis, which

won Karl Ziegler and Guilio Natta a Nobel Prize in1953 and opened up the possibility of developingmaterials based on olefins. This catalytic discoveryled to the creation of a multibillion-dollar-per-yearmarket, predominantly in two polyolefinspolyethylene and polypropyleneincluding theproduction of everything from common garbagebags and childrens toys to high-tech internalautomotive parts and life-saving medical devices.

What may be surprising to many nonscientists is thefact that the vast majority of products made todayare being produced with traditional synthesismethods developed between 40 and 50 years ago.Though classical organic and inorganic synthesesare used widely to support much of the chemicalindustry, catalysis-based chemical synthesesaccount for 60 percent of todays chemical productsand 90 percent of current chemical processes.Given this dominance, catalysis has emerged as theprimary focus of development in chemical synthesis.In fact, innovations in catalysis have driven manyincremental improvements in synthesis.

Needs and ChallengesTo advance chemical science, the industry mustmove beyond the current state-of-the-art insynthesis and catalysis. A summary of industryneeds and challenges follows.1

Develop new synthetic techniques incorporatingthe disciplines and approaches of biology,physics, and computational methods.Meeting this need will require the furtherdevelopment of synthesis tools that permit rapidcreation of unique molecules, using

a variety of new combinatorial techniques, new computational techniques to guide

synthesis by theory and molecular modeling, techniques to conduct molecule-specific

measurements, and further development of chemistries using natural

processes such as photochemistry andbiomimetic syntheses.

Develop new catalysts and reaction systems toprepare economical and environmentally safeprocesses with lowest life-cycle costs.This includes the need for new and improvedcatalysts that can be applied to existing processes,such as

viable solid acid and base catalysts to replacethe toxic and corrosive mineral acids and basesfor organic syntheses,

methods of synthesis and catalysis to convertproduct molecules and polymers back to usefulstarting materials, and

1See the Computational Technologies section (pg. 34) and theInformation Systems chapter (pg. 43), which describe the impact ofcomputational technologies, and specific Needs and Challengessections on product and process development.


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catalysts with increased molecularity, andcatalysts with long life and self-repairingabilities.

Develop chemistry for the use of alternative rawmaterials.

This will require the development of new catalystsand systems for carrying out reactions in alternativereaction media, specifically new catalysts for theefficient conversion of biomass and unusedbyproducts into useful raw materials, and newchemistries based on abundant materials, such asCO2.

Develop new synthesis tools to efficiently createmultifunctional materials that can bemanufactured with attractive economics.Cost-effective techniques are needed to synthesizeorganic- and inorganic-based materials, allowingcontrol at the molecular level, using

new catalysts for customizing polymerproperties (composition, stereochemistry) duringsynthesis;

molecular self-assembly methods, chemistries,and techniques;

new inorganic/organic hybrid chemistry; use of biologically based pathways; and new organometallic compounds and clusters,

inorganic polymers, metal alloys, metallicglasses, and sol-gel-based materials.

Develop techniques for stereospecificity, or

precision in spatial arrangements of molecules.Achieving this will require catalysts for reactionpathways focused on ultrahigh selectivity, highermolecularity, higher regio- and stereospecificity, andasymmetric and chiral syntheses.

Develop new cost-effective techniques to createa broader variety of molecular architectures inalternative reaction media.New chemistry and fundamental understanding isneeded for application in

water-based systems,

gas-phase systems, reactions carried out in bulk, and supercritical reaction media.

TECHNOLOGY VISION2020

New CapabilitiesInterdisciplinary activities will create new fields oftechnology.

Final product performance can be developedthrough control of structure and properties at themolecular level.

Multiple product functionalities will be routinelycoupled in single, or perhaps complex, molecules ormolecular architectures.

Chemists will apply natural processes, includingphoto- and biomimetic chemistry, to industrialchemicals and materials, achieving widespreadeconomic efficiency and improved process safety.

Surface science and supporting engineeringsciences will be able to define, control, andmanipulate chemistries of active sites at the single-site level.

HOW TO GET THEREResearch can be conducted by scientists working inindustry-wide collaborative research teams involvingscientists and engineers from companies,universities, and government laboratories in jointefforts reflecting levels of unprecedentedcollaboration. Advances will depend on enhancedcollaboration among scientists and engineersworking in fundamental and applied research insurface and catalytic science relevant to commercialprocesses and products.

Research can become more interdisciplinary,integrating knowledge from surface, biological,catalytic, and traditional chemical sciences todevelop manufacturing technologies for ultrahighselectivity and chirally, stereo-, and regio-selectiveproducts.

Similarly, education and training for chemists canbecome more interdisciplinary. Curricula for training

research chemists can be restructured, refocused,and intensified to highly integrate the disciplines ofbiology, biochemistry, physics, and computationalmethods.

Research can accelerate the understanding anddevelopment of novel synthesis techniques usingprocesses such as biomimetic synthesis andphotochemistry.


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Research in computational chemistry can besupported by supplying fundamental knowledge ofstructurepropertyperformance relationshipsthrough the development of accurate predictivetools and timely incorporation of these tools intesting and validating models.

Improvements and EnhancementsAdvances in chemistry will be characterized by ashortened and enhanced value-adding chain, thecontrol of chemical reactions and structuredevelopment at the molecular level, and fewer stepsfor processing.

Engineered systems will support the adoption ofnontraditional synthetic pathways.

Scientists will be able to synthesize andmanufacture catalysts and their products with little

or no postprocessing for separation, purification, orisolation.

Chemists working in the area of synthesis will haveready access to newly applicable combinatorialtechniques.

Life-cycle concepts will be integrated into productand process selection criteria. When favorable,highly selective natural processes will be translatedinto analogues for versatile commercial processes.

Plans for disassembly and reuse will be an integralpart of product development.

HOW TO GET THERECenters of excellence are needed to promotedevelopment of fundamentals in synthesis,processing, and fabrication that result in the abilityto control structures at the molecular level ineconomically efficient ways.

Research will focus on the translation of knowledgeand techniques from the biological sciences, amongothers, to apply combinatorial methods in thebroader field of chemical synthesis.

Scientists can develop a set of life-cycle conceptsthat can be accepted nationally and industry-wide.

Investment in new engineering technologies, suchas reactor design and separations systems, shouldbe cost-effective and environmentally protective.

BIOPROCESSES ANDBIOTECHNOLOGY

Bioprocesses and biotechnology is the second areain the chemical sciences where advances are critical

to the industry if it is to maintain and improvecompetitiveness.

Current StateHumans have used biologically based processes(bioprocesses) since they first made cheese,leavened bread, and brewed spirits. Systematicexploration of biological catalysts (biocatalysts)began approximately 100 years ago with studies ofenzymes, the protein-based catalysts found in livingorganisms. A wide range of bioprocesses are nowused, sometimes complementing traditional processchemistry and sometimes offering alternative

process chemistries.

Currently, bioprocesses account for commercialproduction of more than 30 billion pounds per yearof chemical products, including organic and aminoacids, antibiotics, industrial and food enzymes, finechemicals, as well as active ingredients for cropprotection, pharmaceutical products, and fuelethanol. These products account for almost $10billion in annual sales at the bulk level, but arelargely unrecognized by consumers, who buy themas ingredients or components of products with othernames. Examples include additives to motor fuels

that reduce air pollution, enzymes that clean clothesbetter or make fabrics softer, food ingredients andpackaging that keep food fresh and safer, and theactive components in drugs that restore health.

The potential for discovering new biocatalysts islargely untapped, since 99 percent of the microbialworld has been neither studied nor harnessed todate.2 Recognized today through their genetic code(DNA sequence), these members of the Archaealand Eubacterial domains3 are expected to providebiocatalysts of much broader utility as this microbialdiversity is further understood.

2DeLong, E. F.; Wu, K. Y.; Prezelin, B. B.; Jovine, R.V.M. Nature1994, Vol. 371, p. 695. Amann, R.; Ludwig, W.;Schleifer, K-H. Microbiol. 1995, Vol. 59, p. 143.

3Woese, C. R.; Kandler, O.; Wheelis, M. L. Proc. Nat. Acad. Sci.1990, Vol. 87, p. 4576. Barnes, S. M.; Fundyga, R. E.; Jeffries, M.W.; Pace, N. R. Proc. Nat. Acad. Sci. 1994, Vol. 91,p. 1609.


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Needs and ChallengesGiven the breadth of possible research, settingpriorities in biotechnology may be most critical. Theimproved performance of bio-catalysts andimproved biochemical processing are two areasholding great promise for the chemical industry.

Improved performance of biocatalystsImproved biocatalysts are needed for biochemicalroutes to higher performance chemical productsmade by lower cost bioprocess alternatives. Morepowerful enzymes will provide the basis forimproved biocatalysts; increasing the yield, rate,and selectivity of bioprocesses while retaining theadvantages of sustainable chemistry. That is, inaddition to increasing productivity and speed ofbioprocesses, these improved catalysts will bettertarget the desired chemical reaction. They will alsoallow better use of lower cost feedstocks from

biomass and greater stereochemical specificity. Thisultimately results in bioprocesses that improveprotection of human health, safety, and theenvironment.

Achieving these advances will involve overcomingchallenges in the following areas:

New enzymes must be isolated from thecurrently unexplored realms of microbes beingdiscovered through studies of biodiversity.

Substrate specificity (a biocatalysts preferencefor a specific molecular structure, from amongmany similar structures, as its raw material) andactivity of known enzymes must be enhanced.Using the techniques of molecular biology andtargeted molecular evolution, researchers willachieve analogous improvements that increasethe robustness of the catalysts, permitting abroader operating range of pH, temperature,and media composition that is both water- andnonwater-based.

Sequential enzymatic pathways (metabolicpathways) that perform multiple synthetic stepsin industrial microorganisms must beengineered to make new products through lowercost and more efficient processes. The

increased yields, reaction rates, and finalproduct concentration in the production mediawill be key elements for achieving theseenhanced processes.

Improved biochemical processingImprovements in biochemical processing willdepend on enhancements in fundamentalbiochemical engineering capabilities and applied

engineering skills. Such improvements wouldinclude

on-line measurements and process controlmodels for combined biological and chemicalprocesses;

fully effective continuous processes for thebiological reactions;

better processes at the interface between thebiological and chemical operations within abioprocess;

more effective separation processes that, forexample, address the acid basesalt usechallenges faced in the production of chargedmolecules; and

successful biological reaction and productextraction processes yielding greaterproductivity and lower investment.

TECHNOLOGY VISION2020New CapabilitiesThe DNA of all industrially importantmicroorganisms and plants will be sequenced andgene structures defined, thereby permitting optimalefficiency of metabolic pathways.

High-value-in-use molecules and structures will bedesigned, some of biological or biochemical origin.

Metabolic pathways will be thoroughly understoodand fully functional; quantitative models will be

available.

Very low cost raw materials for bioprocesses will bederived from agricultural and forestry wastes and, toan increasing extent, cultivated feedstock crops.

New capabilities, including biotechnology-basedprocesses, will enable the manufacture of chemicalswith greater energy efficiency and environmentalstewardship.

HOW TO GET THEREFully automated sequencing of very large genes will

be complemented by information systems that offereasy access to the data obtained.

Molecular biology will have gained exquisite controlof the magnitude and timing of activating genes toproduce enzymes. The coordinated function ofgenes and enzymes in forming a pathway will bewell understood.


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Quantitative models will be constructed based onthe knowledge derived from this work.

Very low cost raw materials for bioprocesses willrequire coincident improvements in disparate fields,such as

plant biology and stock improvement technologyfor farm and forest,

science and engineering for separatingfeedstock values from plant-based materials;and

recovery of feedstock energy values fromresiduals of the plant materials.

Improvements and EnhancementsBioprocesses for chemical manufacture will play amore prominent role as we approach 2020.

Known biocatalysts will be improved through theapplication of molecular biology, genomesequencing, metabolic pathway engineering, anddirected molecular evolution. These improvementswill lead to further use of biological processes,based on domestic and renewable materials.

Bioprocesses will increasingly be used to produce abroader range of chemicals.

HOW TO GET THEREResearch teams will integrate basic sciences toconceive, design, synthesize, and manufacture

high-value-in-use molecules and structures, some ofbiochemical origin and others based on afundamental understanding of biology.

Scientists and engineers will develop betterstrategies in several areas, including

highly efficient processes for convertingbiomass or cultivated feedstock crops into verylow cost raw materials for bioprocesses;

more efficient concepts and designs formicrobial bioprocess reaction steps such asmedia sterilization, oxygen transport, agitation,and temperature control; and

robust techniques for separating biocatalysts(whole-cell or supported enzymes) from processmedia and separating the desired product fromthe spent medium. The separation must becharacterized by high levels of purity andrelatively low cost.

Industry, academe, and government must togethersupport the research and educational efforts that will

lead to broader economic viability and publicacceptance of bioprocesses as the source ofsustainable, higher performance chemical productsand a globally competitive chemical industry. Thiswill require that scientists in industry clearly definethe challenges in precompetitive science andtechnology that, when met, will provide morepowerful and efficient biocatalysts, more effectiveprocess technology, and very low cost rawmaterials, particularly domestic and renewableones.

Companies can sponsor and pursue the proprietaryresearch that will yield higher performance productsand processes.

Scientists and engineers in universities shouldbroaden the knowledge applicable to industrialbioprocesses. This would include work in thefollowing areas:

metabolic pathway engineering and thequantitative modeling of fluxes through thepathways,

enzyme discovery and optimization throughbiodiversity and directed evolution, and

more efficient reaction and separationtechnology.

Government can encourage, support, andparticipate in the precompetitive efforts describedabove, while supporting long-term, high-risktechnology development and project demonstration.

MATERIALS TECHNOLOGY

Materials technology is the third area in thechemical sciences where advances are important.

Current StateThe development of new synthetic materials hasfueled the growth of the chemical industry andrevolutionized our society in the 20th century.Replacement of traditional materials such as metals,wood, glass, and natural fibers with synthetic

polymers and composite materials has resulted inproducts with lower weight, better energy efficiency,higher performance and durability, and increaseddesign and manufacturing flexibility.

Biomedical polymers have enhanced health, withuses in diagnostics, medical and prosthetic devices,and membranes. Synthetic materials are animportant component of the chemical industry and


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are critical to the aerospace, automotive,construction, electronics, energy, metals, and healthcare industries.4

Recent examples of progress in materials arenoteworthy. During the past several years, advancesin composites, including mixtures of polymers andfibers, and metals and ceramics, have extended therange of performance and applications of thesematerials. New advances in catalysis are upgradingcommon polymers into materials offeringuncommon performance. Tailored blends ofpolymers and other materials have expanded theirapplications beyond the range accessible withsingle-polymer systems.

Emerging concepts in materials R&D includeincreasing the functionality of materials, extendingtheir performance range, and using new synthetictechniques. Smart or triggered materials are

increasing materials functionality, and theirproperties include the ability to self-repair, toactuate, and to transduce.

Examples of smart materials includeelectrochromics, controlled-release devices, electro-and magneto-rheological materials, and shapememory alloys.

Advances in modifying materials surfaces andinterfaces are also being achieved through newcoating technologies, film, self-assembly, orreactive approaches using ion beams, among other

methods. Also under development are materials thathave special attributes, such as the ability towithstand superhigh temperatures, photovoltaiccapabilities, and superconductivity.

Additionally, bioengineering with plants andbacteria, microwave-enhanced chemistry, and newcompositional conceptssuch as hybridorganicinorganic systems and self-reinforcingsystemshave emerged recently as routes tohigher performance.

These recent developments will lead to higher

performing materials produced at lower cost. Newapproaches to the design and fabrication ofmaterials will facilitate the incorporation of life-cycleconsiderations into materials design and will enablethe reuse or disassembly of many materials used today.

Needs and ChallengesPrediction of materials propertiesThe highest priority challenge is the prediction ofmaterials properties from the molecular levelthrough the macroscopic level. This includes thedevelopment of a fundamental understanding of

structure property relationships and computationaltechniques.

Advances needed include the ability to

rapidly develop new products with desiredperformance at lowest cost,

develop tools to integrate material performanceneeds with emerging process and raw materialalternatives, and

develop new ways to use natural and otherrenewable sources to create materials that canachieve the required performance.

Synthesis technology for precise manipulationof material structuresDevelop new practicable synthesis technology forprecise manipulation of materialstructuresincluding bulk, surface, andinterfacesfrom nanoscale to macroscale for theeconomical synthesis, processing, andmanufacturing of lower cost, higher performancematerials. These technologies may include

molecular self-assembly, net shape synthesis, biomimetic synthesis, and materials catalysis.

Enhanced performance in materialsFind new ways to improve and develop enhancedperformance in materials in the following categories:

sensors for chemical process industry use; materials with enhanced environmental stability

and durability and strength-to-weight ratios; electrical and optical materials; triggered or smart materials (for disassembly,

self-repair, self-indication, actuation,transducing, etc.);

biocompatible systems; higher temperature systems for intermaterial

replacement, including composites; materials for separation processes; and membranes for chemical processing, packaging,

medical, and other separations applications.

4National Research Council. Materials Science and Engineeringfor the 1990s, National Academy Press, 1989.


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Develop routes for step change improvementsin performance of materials systems with theuse of new additive technology.We can look for improvements in these areas:

new nontoxic additives for the polymer industry,

including plasticizers, flow aids, colorants, flameretardants, etc.; additives for the polymer industry that can

tolerate high temperatures, including plasticizersand flow additives; and

alternative approaches to additive technologythat include increasing functionality and usinglow-cost synthesis routes.

Develop technology in integrated materials andprocesses for reuse and disassembly.

TECHNOLOGY VISION 2020

New CapabilitiesScientists will be able to design materials, andpredict their properties, from the molecular levelthrough the macroscopic level, relying on easy-to-use computational tools.

Scientists will be able to manipulate materialspreciselyfrom nanoscale to macro-scalefor theeconomical synthesis, processing, andmanufacturing of lower cost, higher performancematerials.

New chemical structures have been developed thatmeet requirements presently provided usingadditives, mixtures, blends, etc.

There is increased acceptance of methods fordisassembly and reuse, and life-cycleconsiderations are part of materials development.

HOW TO GET THERECompanies can collaboratively define fundamentalstructureproperty needs to guide academe towardincreasing scientific understanding and control ofthe functional properties of materials.

Industry can increase collaboration in guidance ofcurrent development platforms or create new waysto accelerate the collaborative development of toolsfor modeling and prediction in materials systems.

Academe and industry should create and supportinterdisciplinary programs or centers focused onsynthesis of novel materials with controlled bulk,

surface, and interface structures, from nanoscale tomacroscale.

Research programs that develop alternativepathways to enhancing materials performance,currently achieved with additives, should besupported.

Industry, academe, and government should workcollaboratively to define protocols for disassemblyand reuse and support molecular design andsynthesis programs oriented toward these protocols.

Companies should consider early integration ofdisassembly and reuse concepts in new materialsdevelopment programs.

Early integration of bioresponse models (forexample, toxicity predictions) should beincorporated with molecular, systems, and synthetic

modeling.

Improvements and EnhancementsEnhanced education will ensure the availability ofcritical tools and integrated resources and programsthat respond to industrys needs.

Industrial organizations focus on cross-disciplinaryteams and their abilities to rapidly translate andassimilate new knowledge and tools.

Specialty materials are cost competitive with lowerfunctioning materials on a systems basis.

HOW TO GET THEREScientists in universities should integratemathematics, physics, and chemistry curricula todevelop an interdisciplinary approach for a newmaterials curriculum focused on the development ofstructureproperty relationships and the design andsynthesis of both new and existing materials. Thisnew materials education should integratecomputational methods with traditional curricula.

University researchers should develop appropriatescience for a mechanistic understanding of new

features of materials science.

Companies should restructure industrial organizations toaccommodate an appropriate cross-disciplinary ability totranslate new interdisciplinary knowledge.

New processing technologies that focus on economicbulk-processing technologies applied to a variety of newand traditional materials systems should be developed.


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Enabling Technologies

The industrys future will be shaped, in part, byadvances in its enabling technologies that improvethe application of its fundamental sciences. Theseinclude (1) process science and engineeringtechnologies, (2) chemical measurements, and (3)computational technologies.

PROCESS SCIENCE ANDENGINEERING TECHNOLOGY

Process science and engineering technology(PS&ET) dates back to the 1930s and is thefoundation for the development, scale-up, anddesign of chemical manufacturing facilities. PS&ETconsists of engineering technologies; engineeringscience; and engineering design, scale-up, andconstruction. Taken together, these provide thebasis for manufacturing excellence and sustainablecompetitive advantage.

Engineering technologies include environmentalprocessing, hazards evaluation and control,materials engineering, particle processing, processcontrol, and unit operations. Although anunderstanding of the first principles of the scienceunderlying these technologies is beginning tomature, the technologies are generally applied usingempirical, semiquantitative techniques that permitthe safe development, design, and operation of our

chemical processes. Engineering science includesthermodynamics, kinetics, and mechanisms;transport phenomena; and reaction engineering.Engineering design, scale-up, and constructioninclude process synthesis and conceptual design,process development and scale-up, and engineeringfacilities design and construction. A continuumextends from process synthesis to production designand construction.

Current StateThe application of PS&ET is somewhat fragmented,often sequential, and frequently driven by

immediate business needs. These technologies arealso applied to operating manufacturing facilities toreduce the operating costs, to incrementallyincrease capacity, and to comply with ever-changingfederal, state, and local regulations. Integration ofbasic science and enabling technologies withPS&ET offers great potential for bringing scienceand quantitative understanding to the service of thechemical industry, permitting much higher capital

utilization, improved yields, reduced wasteproduction, and improved protection of humanhealth, safety, and the environment. All this resultsin greater international competitiveness.

The supporting tools that would permit a morefundamental application of these technologies are

just becoming available. A wealth of scienceunderlies the fields of engineering science, and themeasurement, modeling, and simulation toolsneeded to apply this knowledge to engineeringproblems are generally available. Industry andacademe have collaborated effectively to developboth the science and the tools. Advances incomputational technology, coupled with newmeasurement techniques, have provided thesupport for simulation and analysis of problems ofever-increasing complexity and commercialimportance. However, as described in theInformation Systems chapter (pg. 43), improved

systems integration capabilities are needed toeffectively apply these technologies.

The current state of engineering design, scale-up,and construction technologies varies fromembryonic to very mature. Process synthesis is arelatively new development that is permitting earlyassessment and evaluation of the manufacturabilityof products resulting from potential new chemistries.While much of the work in this area is still focusedin academe, some companies are using thetechniques effectively.

The basic approach to process development andscale-up remains much as it was a decade agoexcept that new computational and simulation toolsare being employed to accelerate the rate ofcommercialization. Facilities design andconstruction is a relatively mature technology, but isbenefiting from advances in logistics management.Since most of the cost of a manufacturing facility isincurred during development, design, andconstruction, significant effort is underway toimprove the effectiveness of these activities and thecapital productivity of the resulting manufacturingfacilities.

Beginning to emerge are concepts in nontraditionalchemical processing, such as bioprocessing,recycling, expanded use of water-based processes,cryogenic processing, and new reactor andseparations technologies.


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Needs and ChallengesFuture advances in PS&ET will require collaborativeefforts of interdisciplinary research teams focusedon the following Needs and Challenges. Refer tothe Information Systems and Manufacturing andOperations chapters of this report for additional

insight on PS&ET needs.

The development of appropriate designprinciples, tools, systems, and infrastructures toaccommodate a variety of improvements to meetcurrent and emerging needs

Reduction of the commercialization process fornew products and processes to less than threeyears (from product synthesis through plantconstruction)

Development of an economically viable processtechnology for high-performance materials and

structures such as ceramics, composites, andelectro- and photoactive polymersImprovement in solids-processing efficiency

Integration of process control and optimizationfor plantwide and multisite implementation

Integration of reactor and separation systemssuch as reactive distillation or extraction,membrane reactors, and supercritical fluidsystems

Development of production planning,scheduling, and optimization tools that coverany businesss value-adding chain

Production of reactors for new, emergingprocess chemistries including nontraditionalmedia, such as plasma, biochemical andmicrowave media, and supercritical fluids

Development of smart processes that includebiomimetic control schemes

Improvement of manufacturing processflexibility

Production of existing and new products thatreduce significant overall waste, optimize cost,and minimize environmental impact

Development of disassembly procedures forrecovery or reuse of materials

Meeting these needs will require advances in

computational technologies in combination with newmeasurement techniques to meet the demands ofincreasingly sophisticated simulation and analysis oftechnical problems.

Incomplete knowledge of the particulate processA major area of weakness is the current incompleteknowledge of the particulate process, which isextremely important because a high percentage ofthe chemical industrys products and processesinvolve handling solids.

Improving manufacturing flexibilityProcess engineers and scientists are facing thechallenge of improving manufacturing flexibilitywhile reducing the capital investment needed tobuild effective manufacturing facilities.

TECHNOLOGY VISION2020

In the future, process design will be viewed morecomprehensively and will focus on the principles ofconcurrent engineering, designing from firstprinciples, improved energy efficiency, and the

protection of human health, safety, and theenvironment.

New CapabilitiesOpen architecture software tools will be developedto permit rapid plug-in integration of tools and datafrom a variety of sources, along with a consistentuser interface for

rapid selection of chemistry; physical property databases (thermodynamic,

kinetic, and transport) or ways to computevalues for commercially important systems;

rapid product and process development thatoptimizes technology options, manufacturability,environmental and safety issues, and financialperformance;

solids processing; plantwide process control and multisite

optimization; and production planning, scheduling, and

optimization of value-adding chain.

Traditional quality control laboratories will bereplaced by real-time, continuous, in-processmeasurement of composition and properties.

Improvements and EnhancementsMany new commercial processes will use recycledraw materials as feedstocks.

Much of industrys production capacity will becharacterized by new, economic, high-yield andhigh-quality processes with improved environmentalimpact.


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Many new commercial processes will be based onnontraditional chemistry. They will include plasma,microwave, photochemical, biochemical,supercritical, and cryogenic processes.

HOW TO GET THERE

The development of relevant software and real-timemeasurement tools can be supported by funding forbroad-based consortia, coordinated among industry,commercial vendors, federal laboratories, anduniversity researchers.

Fundamental engineering research can besupported on nontraditional reaction and separationsystems, such as plasma, microwave,photochemical, biochemical, supercritical,cryogenic, reactive extraction and distillation, andmembrane reactors. This research can be supportedon flexible manufacturing, high-performancematerials and structures, disassembly of materials,solids processing, and smart processes.

CHEMICAL MEASUREMENT

Current StateChemical analysis is a critically important enablingtechnology essential to every phase of chemicalscience, product and process development, andmanufacturing control. New knowledge and insightsabout existing and new systems, developed as aresult of advances in chemical measurement overthe past two decades, have greatly accelerated

progress in chemical science, biotechnology,materials science, and process engineering.

Impressive achievements have been made in theresolution, sensitivity, and specificity of chemicalanalysis. The conduct of analytical chemistry hasbeen transformed by advances in high-fieldsuperconducting magnets, multiple-wavelengthlasers, multiplex array detectors, atomic-force andscanningtunneling microscopes, non-scanningspectral analysis (for example, Fourier transform),and the integration of computers withinstrumentation.

The recent extension of these methods to thedetection and spectral characterization of molecularstructure at the atomic level shows that the ultimatelimit of specificity and sensitivity of chemicalmeasurements can actually be reached in tightlyspecified experiments.

More broadly, the inclusion of analytical specialistsas full partners has been shown to greatly enhancethe efficiency of research teams in chemicalsynthesis, surface science, catalysis, nanostructurescience and technology, and environmentalchemistry. Real-time control and refinement ofprocess variables can be achieved withsophisticated analytical instrumentation.

Comprehensive compositional analysis is seldomused in chemical manufacturing process control.Multistep protocols, requiring skilled technical labor,are required to obtain accurate compositional datafor process monitoring. Real-time analyticalmeasurements are not generally available, eitheron-line or off-line. Most compositionalmeasurements are used to provide postproductionquality control assessment and demonstrate wastedischarge compliance.

Needs and ChallengesWhile significant progress has been made in movingprocess analytical measurements from thelaboratory to the manufacturing line, more real-worldchemical measurements are still conducted off-line.Most of the more spectacular recent achievementsin this area have been made by highly skilledscientists using one-of-a-kind instruments. Theisolation of sophisticated methods of chemicalanalysis from the environments in which they aremost neededranging from R&D laboratoriesthrough manufacturing facilitiesis a majorlimitation in present-day chemical measurements.Both state-of-the-art research-grade instruments andlaboratory proto-types often lack the robustness,sophistication, and general utility required foreffective, widespread use by nonspecialists.Advances are needed to meet challenges in threedistinct, but related, areas of PS&ET measurement.

Highly sensitive, precise, and accuratemeasurement technology needed to probemolecular processes in the laboratory

Nanotrace analysis. These chemical analysistechniques will provide information at

nanometer-scale spatial resolution with ultra-high sensitivity and selectivity, using electronbeam, ion beam, and surface spectroscopies.To conduct nanotrace analysis, non-scanning(transform, array detector) spectrometers arerequired. Also needed are methods for samplingand characterizing heterogeneous materials in


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small sampling volumes, includingcharacterization of interfacial phenomena,particulates, and aerosols.

Time-resolved measurements. These areneeded for detailed studies of the dynamics ofreactions, interfaces, adsorption and desorptionphenomena, catalysis, and drug release usingspectroscopic techniques capable of detectingsingle molecules and molecular-scaleaggregates and following the time dependenceof chemical reaction, molecular motion, andconfiguration change with picosecondresolution.

Macromolecular characterization. Materialscharacterization to the level of macromoleculararchitecture is needed. The fabrication ofdesigner materials is currently limited bychallenges involving cross-linking, networking,branching, composition of copolymers, andterpolymers, etc.

Characterization of minute amounts ofbiopolymers and biomolecules. Thesemeasurements provide high selectivity analysisof micro- and nanoliter volumes, providinginformation on tertiary structures of biopolymersand assays of optical activity and/or bioactivity.

Techniques to support combinatorial chemistryin cellular systems. These will aid discoveryefforts in pharmaceuticals and agro-chemicals.

For instance, research in drug discovery andpharmaceutical efficacy can be facilitated bystereospecific analysis for monitoring enantiomer-

specific catalysis.

Improved separations techniques. These include stereospecific methods of analysis andseparations, including process-scale chiraltechniques,

techniques for isolating specific groups ofcompounds from complex mixtures of organicconstituents removed from t

chem vision 2020

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