EPS Flame Retardant Status

Stockholm decision to phase out use of HBCD

Update to EPSA Members by Nigel Ash – GM Expanz International - Chairman of EPSA Raw Materials sub-section

Why is HBCD under the spotlight?

• Through studies carried out in Europe & other regions, HBCD Raw material has been identified as a POP

• POP = Persistent Organic Pollutant

Stockholm Ruling• At the 6th Stockholm covention, on May 10th

2013.– HBCD is listed to Annex A, with specific

exemptions for production as allowed for parties listed in the register of specific exemptions for use in EPS and XPS in Buildings.

Chemical Activity Specific Exemption

HBCD Production As allowed for parties listed in the register in accordance with provisions of part 7 of this Annex.

Use EPS & XPS in Buildings in accordance with the provisions of part 7 of this Annex.

Stockholm Ruling• Part V11 in Annex A is to read:-• “Each Party that has registered for the

exemption pursuant to article 4 for the production and use of HBCD for expanded polystyrene and extruded polystyrene in Buildings shall take necessary measures to ensure that EPS & XPS can be easily identified by labelling or other means throughout its life-cycle.”

Stockholm Ruling

• For EPS Industry- For countries Globally who automatically Ratify the Stockholm convention recommendations.

1. EPS industry must transition away from HBCD before the end of 2014.

a) There is an Exemption that countries may seek for EPS use in Building applications.

I. This allows for a 5 year phase out transition from HBCD II. During the exemption period the use of HBCD in Building

applications has to be clearly identifiable and traceable.

b) Recycling of EPS containing HBCD is to be banned

Implications to Australian EPS Industry

• The ratification process has no definitive time-line requirements.

• Through PACIA, EPSA and the interests of IPCA, the industry is represented in Canberra at the Department of Environment.

• EPSA sub-committee is:-• Nigel Ash – Expanz (Raw Materials)• Russell Bielenberg – Foamex (Block Moulder & Pods)• Peter Brooker – Rmax (Block)

Australia’s ratification process for Stockholm Treaty

• Develop Evidence based on HBCD for RIS (Regulatory Impact Statement)• Stakeholder consultation in relation to developing a draft RIS• Meeting of Stockholm reference group to inform of ratification decision.• Both RIS and NIA (National Interest Analysis) are finalised• Ratification decision is considered by JSCOT once papers to undertake

treaty action are tabled in Parliament. (Joint Standing Committee on Treaties)

• Convention ratification is lodged with Stockholm– Requests for exemptions would be tabled.– At this point in time labelling requirements on product containing HBCD would

commence– Most likely any recycling implications would commence

• From this date the 5yr exemption clock would start, along with its implications to industry.

Ratification process status – Oct 2015

• Dept of Environment appointed Allen’s Consulting to undertake Cost Benefit Analysis (CBA)• Started May 2014• Target completion date – prior to Nov 2014.• HOWEVER – no advice of completion as at October

2015

• RIS can commence once CBA is complete

• Likely Ratification date was 2016 – now 2017?

Implications to the EPS Industry• For moulders – Use & internal re-use:-• Prior to Ratification – NIL• Post ratification• If Exemption is sought – HBCD foam to be identified• If no Exemption - NIL

• HBCD exemption is for Building applications. • Production of foam with HBCD after the

exemption date has to be Identifed. • Our suggestion is to use dates as the basis of

identification.

Health Impacts to the EPS Industry• What’s the health impact of HBCD use in EPS?– Various studies – Of importance is the NOAEL (No Adverse Effect

Level)– NICNAS identified an impact on Liver weight at

30mg/kg of body weight/day, and no effect at 10mg/kg/day. Conservatively 10mg/kg/day is chosen.

– For an 80 kg person this means they are safe from health effects if they eat <8 litres of FR grade foam/day @ 14kg/M3 density.

Implications to the EPS Industry• Product Certification using new FR• As Industry or as Moulders?• Testing of material against AS1366.3• Testing against AS1530.3• Testing against AS4859.1• AS9705 Full scale room test?

• Define the full test suite – Committee to review• Establish Testing timeline.• Need all moulders to be members & support

Potential implications to the EPS Industry• There are potential implications to sections of the local

industry.• Imported goods compliance – E&E packaging• Imported building products such as panel, or pre-fab

housing/ construction huts?• Exports to Europe or working with European

customers. Certain products may require transition early to satisfy country of destination requirements – obligations with manufacturers and their customers.

• Recycling and Waste Management.– Australian export of densified FR grade EPS is OK till we ratify

or countries that we export to ratify.– After this, waste containing HBCD has to be incinerated or

landfill.

Transition working Committee

• EPSA/PACIA/IPCA will work with Dept of Environment.

• EPSA will be represented by – Nigel Ash ( Chairman of EPSA Raw Materials section)

• In conjunction with a sub-committee :-– Peter Brooker – Rmax– Russell Bielenberg – Foamex

• PACIA - Ben Stapley, Bernard Lee, Director Govt Affairs.

• IPCA – Ron Lawson, CEO

Transition timelines for the local industry

• Key Points for consideration by Dept of Environment For their Cost Benefit Analysis (CBA):-1. Availability of HBCD alternatives2. Ratification and Transition process of

• China• Taiwan• South Korea

3. Domestic compliance testing of alternatives against AS1366.3, AS1530.3 & Other standards.

4. Identification of HBCD and non HBCD material.5. Recycling and waste management6. Compliance Auditing

HBCD alternatives and their availability

• There are 2 primary options:-– Dow’s patented ‘Polymeric FR’– TBBPA – nominally 2 variants

• It is expected that Dow’s ‘Poly FR’ will become the material of choice for HBCD replacement. – Efficient flame retardant– Toxicity & bio-accumulative risks are low.

Transition Planning Globally

“Poly FR” availability

• It has been licensed to 3 licensees:-– Chemtura - Great lakes . Emerald 3000, Producing

at 10,000TPA rate as of April 2013– ICL . FR122P. Completed Pilot scale late 2012 –

2,500TPA in Netherlands. Israel capacity of 10,000TPA to be achieved in H2, 2014.(Q2 2015)

– Albemarle in USA. Had planned a 10KT facility in USA, but have now chosen to joint market ICL product.

Transition discussions with Dept Environment

• There have been two meetings in Melbourne in 2014. No activity since last EPSA Annual meeting.• Introduction meeting with Allens Consulting – CBA• Follow-up to show how EPS is processed and

recycled• Key Items discussed• Use of non-FR in construction• Product identification for HBCD• Testing of ‘new’ material• Recycling

Transition Planning Globally• Transition plans for China, Taiwan

• Remain unknown

• Japan• May 2014

• Sth Korea• Likely to take the exemption. BASF – Neopor – done.

• Europe and countries with Automatic ratification.• By Nov this year• EU requirements under REACH is phase out of HBCD

by Aug 2015. – Has this happened??

Transition Planning Globally• Transition plans for Canada

• Targeting transition by end of 2015, or 2016?

• USA• Summary Report on Options• Transition timing uncertain, but industry has started.• Report on FR options and alternatives to FR grade EPS• http://www.epa.gov/dfe/pubs/projects/hbcd/hbcd-full-

report-508.pdf

Risk management to EPS industry• Recycling of EPS.• Prior to Ratification• Internal re-use – Allowed• Export of packaging grade and construction foam – OK to

countries that haven’t ratified (China OK)

• Post Ratification and prior to transition• Internal Re-use is still ok for all grades• Export of packaging grade – Approved• Export of Construction waste containing HBCD - BANNED

• Post Transition• As above, except that export of New Flame retardant

waste should be OK to all countries.

Risk management to EPS industry• Post Ratification identification of HBCD.• Identify HBCD by date, rather than colour• Will this be accepted?

• Transition Process• Exemption or No Exemption?• China/Taiwan/Sth Korea make non-HBCD available• Product Performance Testing• Level Playing Field - Locally

• Compliance • Imports of raw material - audits• NICNAS• Imports of product – Panel, packaging etc

Risk management to EPS industry

• NICNAS approval for Emerald 3000.• Done• NICNAS approval of GreenCrest (Albemarle) & FR122P

(ICL) has not happened, but should be under the same CAS Number.

• NICNAS approval of Alternatives• Liability on Importer and Buyer to comply

• Subject to testing required, costs in $10k’s to $100k’s

Key Point Summary• Nov 2014 – Countries who automatically ratify• Aug 2015 – HBCD banned in Europe (REACH)• 2015 to 2017 – Aust Ratification process• When ratified• Take Exemption or Switch

• 2015/2016 Testing Program to be established• Set dates• Start testing as Non HBCD becomes available

Key Point Summary• 2014 to 2016 Monitor China/Taiwan/Korea

transition plans.• Potentially China to happen with minimal notice• Timing will vary between countries• Testing timeline will need to be flexible

• Manufacturer Transition Timing may vary within a country. BASF has transitioned NEOPOR in Korea. Readiness for transition in korea is moving forward

• Level playing field is what we want• How?

NEW Data from USA• They think that Canada plan is to transition by end

of 2017 (advised without notes at hand)• Discussions with FR manufacturers and resin

manufacturers, - no apparent supply limitation for USA.

• Resin suppliers are substantially or completely transitioned. – (not sure how accurate this is, but certainly testing has been done).

• Moulders have not noticed where changes have happened.

• No end of life issues for HBCD product have been raised in USA.

European Update• Has REACH deadline of ceasing HBCD by Aug 2015 been

enforced?– Not really.– Situation varies by country. Some seeking a deferment of 2yrs– Some National Associations forced change, some didn’t.– Transition dependent upon public and authorities.

• Have any new candidates surfaced?– No.– Alternatives aren’t meeting environmental objectives

• Risks of only 2 supply source options?– Real concern– Supply risks – Force Majeure– Pricing power – higher pricing possible– No discussions heard about increasing capacity or suppliers.

European Update

• Recycling and re-use status– Subject to UN Basel convention– It is being discussed at an EU level– For waste

» Most likely outcome is <1000ppm considered low POP» Positions vary between 100ppm and 1000ppm» Allowance for unintentional trace contamination – being

considered.

Regional DataAS1530.3 testing by AWTA on Expanz material showed:-

Ignitability Index 8Spread of Flame Index 0Heat Evolved Index 0Smoke Developed Index 4

(Testing undertaken on 9 x 50mm samples.)

Asian Testing Test Result AS1366.3

Density 20.5g/l M grade H Grade

10% compressive 144Kpa 105 135

Flex Strength 326Kpa 200 260

Thermal Conductivity 23C (W/M k)

0.0432 .04167 0.04

Water Absorption % (immersion 24h)

0.43% N/A N/A