Innovative Chemical Solutionsfor a Cleaner, Healthier,for a Cleaner, Healthier,

More Energy Efficient World

Dr. Robert V. SloneJanuary 2015上海 中国上海, 中国

©2015 Stepan Company. All rights reserved.

Agenda

• Stepan Company Basics• Stepan Company Basics

• Sustainability at Stepan

• Green Cleaning: Antimicrobials

• Green Personal Care: STEPANMILD® L3

• High Performance Green Cleaning:• High Performance Green Cleaning:

STEPOSOL® MET-10U

Stepan Company• Chemical company with $1.8 billion net sales• Manufacturers of surfactants, polymers and specialty products• Publicly traded on the New York Stock Exchange• Publicly traded on the New York Stock Exchange• Founded in 1932 by Alfred C. Stepan, Jr.• Over 1,900 employees globally• Corporate offices in Northfield, IL• Seventeen manufacturing locations worldwide• Charter Member of ACC’s Responsible Care and CSPA Product Care• ISO 9001:2008 Certified

Surfactants

PolymersSpecialty

Sustainability Statement

At Stepan, we embrace a broad view of sustainability and are committed to

– Delivering outstanding, sustainable value to all our stakeholdersstakeholders,

– Increasing our efficient use of resources and minimizing our footprint, and W ki i ti t ith t i– Working as innovative partners with our customers in pursuit of their sustainability goals.

Sustainability at Stepan Company

Innovative Chemical Solutions for a Cleaner, Healthier, More Energy Efficient World

Partnering Partnering To Meet To Meet Reducing Our Reducing Our

ImpactImpactInvesting In Investing In PeoplePeople

Economic Economic ProgressProgressNeedsNeeds Impact Impact PeoplePeople ProgressProgress

Framework for Guiding Sustainability

R d iR d iP t i tP t i t Reducing Reducing Our ImpactOur Impact

Partnering to Partnering to Meet NeedsMeet Needs

Investing In Investing In PeoplePeople

Economic Economic ProgressProgress

Customer focus Reduced

Safety and security

Promoting human h lth d ll b i Continuous

Responsible and ethical corporate management

Sustainable sourcing

Innovationconsumption, emissions, and waste

health and well-being through safety, policies, products, opportunity, and community

Continuous improvement

Sustainably advantaged chemistry

Operational excellence

Industry Partnerships

yconnection

Sustainability Attributes of Stepan Products

• Household cleaning, personal care industrial andSurfactants care, industrial and institutional cleaning, agricultural, oilfield

Polymers• Polyester polyols for insulation,

coatings, adhesives, sealants, elastomers

S i l

elastomers

Specialty Products

• Food, health, nutrition, and specialty markets

Sustainability Attributes of Stepan Products

• High performance while conserving resources andSurfactants conserving resources and energy

• Promoting human healthI l i d h h l

Polymers

• Insulating products that help conserve energy from heating and cooling

• Reduced greenhouse gas

S i l

• Reduced greenhouse gas emissions

• Promoting human wellnessSpecialty Products

Promoting human wellness• Providing health and nutrition

benefits

Sustainably Advantaged Chemistry

B U iBy Promoting Energy Conservation

By Using BiorenewableResourcesConservation Resources

By Reducing By Enabling Environmental Impact

Product Compaction

Stepan R&D Capabilities

InnovationProduct Process

mer

N M l l

New Processes

Development Technology

Cus

tom New Molecules

New Formulations

Biobased Materials

and Ingredients

STEPOSOL® MET-

STEPAN-MILD® L3 Sulf(on)ation

Esterification

Quaternization

Alkoxylation

S l h i t

Biobased Materials

New Test Methods

STEPOSOL® MET10U

AmidationOxidation

Viability?• Scale new chemistry• Increase throughput• Decrease scrap & waste• Enhance Sustainability

Sustainability

Pre-screen.

Enhance Sustainability

Sustainability Platform: Quats

Quaternization Biocides

Esterification L3

Amidation MET-10U

Stepan Sustainable Chems – Antimicrobials

NR

RCl–

+

ADBAC DDACADBAC DDAC

Sustainability Platform: Esters

Quaternization Biocides

Esterification L3

Amidation MET-10U

STEPAN-MILD L3

Personal care product Lactic acid derived

K ti Key properties• Viscosity builder

• Foam booster/stabilizer• Foam booster/stabilizer

• Skin feel and moisturizer

• Emulsifier

R = C12

L3 = Lauryl Lactyl Lactateu s e

• Emollient

• Solubilizer

L3 Lauryl Lactyl Lactate

14

Sustainability Platform: Amides

Quaternization Biocides

Esterification L3

Amidation MET-10U

STEPOSOL® MET-10U:

High Performance Green Cleaningand Solvent Replacementp

The Road to a Green Chemical1. Consumer Trends

and Needs2. Green Product

Development 3. One Step Forward

Consumer Trends and Needs1. Quantitative

Sustainability2. Biobased

Materials3. Raw Material

Shortages

##

Maintain scorecards for suppliers from

Improve product performance with

Diversify feedstocksand simplify product pp

customers at all links in value chain.

plower footprint.

p y plines.

Consumers: Developing versus OECD

2011

2012

2011

Global

China+6%

+5%

% of Age 15+ who behave ecologically all or most of the time

50

60

2012

2011

2012

Latin America*

*Argentina, Brazil, and Mexico

0%

+6%

+7%

20

30

40

Take environmental Do research on companies’

+2%+6%

0

10

Surfactant Contributions to Sustainability

Source: National Geographic Society (NGS) and GlobeScan

Source: GfK, Green Gauge Report, 2012

protection into consideration when making purchase decisions

environmental practices

Solvent Replacement• Hard Surface Cleaners• Agrichemicals• Oilfield ChemicalsE S i

Natural Resource Savings• More concentrated formulations• Higher cleaning efficiency

• Oilfield Chemicals• Emulsion Polymers

Energy Savings• Cold Water Cleaning

Future Stepan Feedstocks

Oleo • Seed oils• Animal fats

Oleo-basedTG

Bio

• Refined• Sugar, HFCS• Cane juice, beat juice, molasses

SimpleCarbohydrate

WasteBio • Waste• Bagasse, stover, wheat straw

straw, forest by-product• Primary intent• Switch grass, populars, etc.

Biomass

Feedstocksfor

Stepan Derivatives

Alcohols, Esters,

• Aliphatic Hydrocarbons• C2, C3, C4, Kerosene, Gas, Diesel• Aromatic Hydrocarbons

Petroleum

Olefins, and Novel Hydrophobic Tails

Petro • C1, FT to alkanes• C2• C3

Natural Gas

• C1, FT to alkanesCoal

Metathesis Conversion Technology

Novel Feedstocks for Differentiated ProductsIndigenous oils Metathesis

MetathesisThe interchange of carbon atoms between a pair of double bonds+ + a pair of double bonds.

Stepan Overall Evaluation Program15-Month Duration > 400 Derivatives

Synthesized> 4,000 Physical

Properties> 1,500

Application Test

Specialty Esters Derivatives MarketsSpecialty Esters Derivatives

Q t

C10 Unsaturated Methyl EstersO

OMe

Betaines

Markets

Biocides

PCQuatsC12 Unsaturated Dimethyl Esters

O

OOMe

MeO Amine Oxides

PC

L&CP

HSC

Esters

Amides

Modified Triglycerides

OO

OR'"

O

O

*

*

n

HSC

Ag

EP&SFAmides

Ethoxylates

ORO

Unsaturated Triglycerides

O

O

EP&SF

Oilfield

Sulf(on)ateOO

OO

R ' EOR

Range of Derivatives and Testing (HSC)

Sulf(on)ation

AnionicsAnionics

Esterification

EstersEsters

Amidation

A idA id

Quaternization

BetainesBetaines

Alkoxylation

NonionicsNonionics

Oxidation

Amine OxidesAmine OxidesAnionicsAnionics~ 72~ 72

EstersEsters99

AmidesAmides~ 13~ 13

BetainesBetaines~ 38~ 38

NonionicsNonionics˜ 23˜ 23

Amine OxidesAmine Oxides~ 23~ 23

Screened 178 Derivatives from Metathesis Feed

Identified 14 Candidates for HSC TestingAnionics, Nonionics, Amphoterics, , p

HSC Performance, Market Potential

First Commercial Product:First Commercial Product: STEPOSOL® MET‐10Ud C 0 idUnsaturated C10 DMA Amide 

The Hurdles (A Partial List)

Market LaunchRegulatory

Intellectual Property

Collaboration

• TimingTerms

Price + Performance

• $10s MM• Multi-year R&D

• $1s MM

Regulatory• $1s MM

• Persistence

• Terms• Goals

y

Biorenewable Carbon Index (BCI)

C12

STEPOSOL® MET-10U (C10) 90

C10 C12

70

80

90

Unsat Derivatives

Sat'd Products

50

60

C10 C12

Sat d Products (TODAY)

Saturated C10 DMA Amide (C10)C10 C12

STEPOSOL® MET 10-UThe Value Proposition

• Non-VOC• Readily biodegradable• Naturally-derived• DFE recommended• DFE recommended• Effective in aqueous form (~5%)• 75% BCI

ON O– H

VOCListed CarcinogenInhalation Hazard

VOCEmbyrofetotoxin

Corrosive (pH >12)

Paint Stripping

Aqueous Latex Brush Cleaner

Screening Test: 5% MET-10U versus Mineral SpiritsSubstrate: Professional Latex Paint BrushSubstrate: Professional Latex Paint Brush

Soil: White Latex Paint Dried Overnight On Brush

1 Coated Brushes and 2 In Process 3 Completed1. Coated Brushes and Cleaning Solutions

2. In Process 3. Completed MET-10U Clean as New

STEPOSOL®

MET-10UMineral Spirits

STEPOSOL®

MET-10U 5%Mineral Spiritsp

Auto Care: Insect and Tar RemovalSTEPOSOL®

MET-10U 1%Commercial

Bug RemoverCommercial

Bug RemoverSTEPOSOL®

MET-10U 1%

CommercialCommercial Commercial Tar Remover40% Solvent

Commercial Tar Remover40% Solvent

STEPOSOL®

MET-10U 1%STEPOSOL®

MET-10U 1%

Permanent Marker Removal – AqueousScreening Test: 1% MET-10U (96% water) versus Commercial Products

Substrate: White Dry-Erase Board (10” by 12”)Soil: Black Sharpie® Permanent MarkerSoil: Black Sharpie Permanent Marker

After Wiping

Sprayed with Products p gProducts

Clearing the Hurdles and EnteringMarkets with Metathesis Derivatives

Specialty Esters Markets

Derivatization

C10 Unsaturated Methyl Ester

C12 Unsaturated Methyl EsterO

OMe

O Consumer Products

DerivatizationScreeningScale-upUnsaturated Dibasic Methyl Esters

OMe

O

OMe

O

MeO

IndustrialProducts

Pharma-Products

Modified Triglycerides

O

*

OO

OR'

O

O

*n

O

PolymerProducts

Unsaturated Triglycerides

OO

OR'

O

O

O

O

STEPOSOL® MET-10U

Extremely surface active, low-HLB nonionic surfactant that makes water work like organic solvent even at 85% to 98% water.

Hard Surface Cleaning of non-baked aged kitchen grease

Neutral pH

Cleaning of baked kitchen and oven soilspH 10–12

Removal of latex, spray paints, adhesivesRemoval of latex, spray paints, adhesivespH 11–13

Innovative Chemical Solutionsfor a Cleaner Healthierfor a Cleaner, Healthier,

More Energy Efficient World

©2015 Stepan Company. All rights reserved.

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