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Marco Codognola & Manfred Holzleg

Marco Codognola & Manfred Holzleg

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28 May 2024

Manfred Holzleg – CEO of SAFECHEM & Marco Codognola – CEO of Itelyum

SAFECHEM is part of the Itelyum Group following its acquisition in February 2024

Why does SAFECHEM matter to the chemicals industry, especially in Europe?

MH: SAFECHEM stands as a pioneer in sustainable solutions within the metal cleaning sector, particularly for precision cleaning in industries such as automotive, aviation, electronics, and medical applications. Our company, established in 1992 in Germany, emerged from a joint venture between Dow Chemical, a leading producer of chlorinated solvents, and a recycling company. Nowadays, we operate globally in over 40 countries, serving more than 5,000 customers with our solvent offerings along with service elements to manage and optimize their chemical cycles. Our innovation includes the 'SAFE-TAINER™ System', which consists of two differently designed double-walled safety containers that ensure not only the safe transport and storage of solvents, but also the practically emission-free transfer of fresh solvent  into the cleaning machine and the collection of used solvent for further recycling. This system helps companies adopt a broad-based risk management approach so they can take advantage of solvents in a way that is not only compliant but even a step ahead of current worker safety or environmental regulations, thus driving the next level of sustainability. 

Could you provide a practical example of how your additive solution has benefited your customers?

MH: We continuously onboard new customers and have published several case studies illustrating our impact. And we are proud to have received several recognitions and best practice awards from government bodies like UNIDO, UNEP, or industry associations like CEFIC  or NGO’s like WWF. However, for us Circular Economy is not just about offering closed-loop solutions and recycling; it is also about decoupling the desired outcome from the resources needed. This means helping customers to obtain the maximum performance out of every kg of solvent.  

As just one of many examples, I’d like to refer to a recent case study with an aerospace customer. They have switched from a traditional fluorinated solvent supply to our DOWCLENE™* modified alcohol solution to be used in a modern vacuum cleaning machine, in combination with our full-service Chemical Leasing offering, which has led to a reduction of over 200 tons of CO2 in a year. This impact is equivalent to the annual CO2 emission from 20 cars or the energy use of 10 homes, demonstrating significant environmental benefits

In a competitive market where options like incineration are cheaper, what is the value of using Itelyum's solutions?

MC: Our solutions significantly reduce CO2 emissions—i.e. recycled acetone saves 94% of CO2, and isopropanol saves 92% compared to virgin production. This is crucial as future regulations will likely incorporate carbon pricing, making our services even  more competitive , compared to other disposal options which are environmentally less friendly. Our technologies not only recycle but also cut down on environmental impacts, enhancing a country's appeal to investors by offering a robust waste management system.

The benefits extend beyond current cost comparisons. For instance, if crude oil prices fall, virgin materials may seem cheaper, but they don't account for environmental and carbon costs that will increasingly come into play. Our technologies offer long-term advantages by preparing companies for a future where environmental impact and sustainability are critical for maintaining competitiveness and compliance with upcoming regulations.

Why do you matter to the global chemicals ecosystem, a $4.7 trillion revenue ecosystem?

MC: Itelyum is crucial because we bring sustainability to a significant sector of the global economy. Our projects, such as those in Italy, manage and recycle waste from major pharmaceutical companies, transforming precious molecules contained in their waste into valuable resources. This aligns with our historical focus on solvent purification and the production of solvent from waste, establishing us as key players in sustainable chemical processing. Pharma is a global industry and there are several opportunities to develop other ecosystems similar to the Italian one, i.e. in Singapore. Our distinct approach comes from our chemical and process engineering background, contrasting with the typical logistic and trading origins of other companies in the waste space. From the foundations of ViscoLube in 1963, our company has been at the forefront of developing technologies like thermal deasphalting and hydro finishing in used oil re-refining. This deep expertise allows us to transform hazardous waste into quality products, setting us apart in the industry for over fifty years.

What are the risks associated with pyrolysis in recycling, and how does Itelyum’s approach differ?

MC: Pyrolysis, while beneficial compared to incineration or landfilling, comes with its own risks, particularly the potential use of pyrolysis oil for burning, which we believe is inefficient. Our industry represents a more refined approach, focusing on developing technologies tailored to specific waste streams. For example, the SAFECHEM model, mentioned by Manfred, and our own use of specialized catalytic reactors for used lubricants demonstrate our commitment to targeted, sustainable recycling solutions. Moreover, we advocate for a balanced view where both generic and specific recycling methods like pyrolysis and our tailored solutions coexist to enhance overall recycling yields. However, we caution against relying solely on broad solutions like hydrocrackers for unsorted waste.

Our research and development focus on creating high-value recycled products from specific waste streams, applying technologies to sorting and recycling throughout the value chain, representing a higher level of sustainability.

Looking forward, what do you hope to achieve with Itelyum’s business model and technology in the next three to five years?

MC: In the next few years, our goal is to replicate our successful business model, which encompasses a comprehensive waste management service for industrial clients, across Europe, specifically in Germany and France. This model involves handling all types of industrial waste and maximizing recycling outcomes directly, ensuring traceability and effective waste management along the entire value chain. I envision expanding our newly acquired chemical PET recycling technology beyond Italy, promoting local recycling facilities to avoid the inefficiencies of transporting waste plastics across borders. This aligns with our broader strategy to offer sustainable waste solutions globally, including potential projects in industrially dense regions like South and North Carolina in the US, where much of the waste currently goes to incineration.