Energy-saving, resource-saving, and reduction of the environmental impacts

Climate Change : Contribution through Product Characteristics

The Shin-Etsu Group's various products are developed while considering their contributions to reducing greenhouse gas emissions, energy conservation, and resource conservation at the stage of use. These products are used in a wide range of fields such as industry, daily life, and renewable energy. Going forward, we will continue to develop products that contribute to carbon neutrality.

Silicones

The Group produces over 5,000 silicone products, including household products and products for the automotive, construction, and energy sectors. While being put to each of their uses, these products are contributing to reductions in greenhouse gas emissions.

In March 2024, the Global Silicones Council carried out a study of the entire silicones market, examining silicone greenhouse gas emissions at the phase of production and how much greenhouse gas emissions are curbed by the use of silicone, in comparison to silicone substitutes and alternative methods.* The study found that the silicone used as a product has the effect of reducing emissions by 14 times that of greenhouse gases emitted during the manufacturing and disposal of silicones. This is equivalent to a reduction of 148 million CO2-tons of greenhouse gases annually.

Silicone used in automobiles, construction account for the greatest share of overall silicone greenhouse gas emissions reductions. Silicone is contributing significantly to the improvement of sustainability.

*Global Silicones Council, “Update of the Si-Chemistry Carbon Balance” (as of June 2024, materials for public release in preparation)

Reduction of greenhouse gas emissions by the use of silicone

figure: Reduction of greenhouse gas emissions by the use of silicone. Ratio production impact vs. average benefit = 1:14.

Fields in Which Silicone Use is Reducing Greenhouse Gas Emissions, and Major Silicone Uses

figure: Fields in Which Silicone Use is Reducing Greenhouse Gas Emissions, and Major Silicone Uses. Construction, Automobiles, Energy, Other
TOPIC

Shin-Etsu to enhance its high-performance silicones products and expand its line-up of eco-friendly products Will make a large-scale investment of ¥100 billion

In July 2023, Shin-Etsu Chemical announced that it would invest ¥100 billion in its silicones business. Demand for high-performance silicone products continues to grow. Especially, there are high expectations for eco-friendly products that are useful for promoting the goal of carbon neutrality, and the demand for them will continue to grow in the future. In response to the demand from society and our customers, we will make investments and expand the applications of our silicones products and work to enhance the advanced functionality of our products line-up and expand our environmentally friendly silicones. At the same time, we will promote greening of our production processes and accelerate our efforts to achieve carbon neutrality.

Polyvinyl Chloride Resin (PVC)

Approximately 60% of the raw materials used in PVC are salts, which are abundant throughout the world. Compared to other general-purpose resins, the benefits of PVC include a low dependence on petroleum resources, placing a relatively small burden on the environment. The process of manufacturing PVC from raw materials uses around 60% of the energy required to make other general-purpose resins. Highly durable and easy to recycle, PVC is used for a wide range of social infrastructure materials, including vinyl windows, water and sewerage pipes, public works and other construction.

Compared to aluminum, PVC resin windows have lower thermal conductivity and are superior in insulating properties, so they are expected to protect indoors from the heat and cold of the outside air and save energy. Installing resin inner windows (double-layer glass) in single-pane aluminum windows can reduce the amount of heat loss from windows by 64% compared to single-pane aluminum windows alone.*1 By reducing the amount of heat that enters or leaves your home through windows, you can maintain a comfortable room temperature and also save energy.

Resin windows have become mainstream in Europe and the United States, and are also becoming increasingly popular in Japan in recent years. In Japan, shipments of resin windows in FY2023 totaled 31,459 tons, a record high for the second consecutive year*2. In addition, the ratio of resin windows in detached houses in Japan increased by 4.7% from the previous year to 33.2%. Looking specifically at Hokkaido, which is a cold region, 98.3% of the windows of detached houses are made of resin.*3 Adopting resin windows in Japanese detached houses by 2030 would enable the reduction of carbon dioxide emissions by 640,000 tons per year*4.

Comparison of heat loss from windows

figure: Comparison of heat loss from windows. Single-pane aluminum window: 100. Single-pane aluminum window + resin inner window (double-layer glass): 64.3% reduction

*1Japan Construction Material & Housing Equipment Industries Federation website

*2Vinyl Environmental Council, “Vinyl chloride resin production and shipment results by product”

*3Japan Sash Manufacturers Association "March 2024: Residential building material usage survey"

*4Japan Chemical Industry Association, “Case Studies of Carbon-Life Cycle Analysis (cLCA) Looking to 2030 (4th Ed.) No. 04: Resin Windows”

PVC pipes and fittings are products with a history spanning more than 50 years. Based on this track record and their outstanding features, PVC products are used in a wide range of applications, including water pipes and sewer pipes. As an important material that supports society from the ground up in terms of convenience, economy, and resource conservation, PVC plays an important role in our daily lives. Compared to ductile cast-iron pipes*5, PVC pipes have only 1/5 the total CO2 emissions*6 per meter over their lifecycles. If all ductile cast-iron pipes in Japan were replaced by PVC pipes by 2030, it would be possible to reduce CO2 emissions by 1.79 million tons per year*7.

CO2 emissions per meter of pipe

figure: CO2 emissions per meter of pipe. Ratio of lifecycle CO2 emissions PVC pipe : Ductile cast-iron pipe =1:5

*5Ductile cast-iron pipes
Pipes made of spheroidal graphite and iron in which the shape of the precipitated graphite in the cast iron structure is changed from flakes to spherical nodules. It has more than twice the strength and toughness of flake graphite cast iron.

*6Lifecycle CO2 emissions
Total CO2 emissions from product raw material collection to manufacturing, use, disposal, and recycling.

*7Japan Chemical Industry Association "Case Studies of Carbon-Life Cycle Analysis (cLCA) Looking to 2030 (4th Ed.) No. 05: Piping Materials"

Rare Earth Magnets

Rare-earth magnets are roughly 10 times as strong as conventional ferrite magnets, offering a great deal of magnetic force despite their compact size. These properties allow them to contribute to making motors for hybrid and electric vehicles, energy saving air conditioning compressor motors, and the like more compact, lightweight, and high powered. For example, using rare-earth magnets in air conditioning compressors can improve energy efficiency by 5 to 10%. This cuts overall power usage, helping to reduce carbon-dioxide emissions. Rare-earth magnets are also used in wind power generation motors, contributing to the spread of renewable energy.

Column: Shin-Etsu Group's products support Eco-friendly cars

The Company's neodymium magnets*1 are used in drive motors and generators, which are the most important core unit of eco-friendly electric vehicles (EVs) and hybrid vehicles (HVs). The Company's silicon wafers, sealing materials, and heat dissipation materials are also used in power control units for system control.

Compared to gasoline cars, HVs can reduce carbon dioxide emissions when driving by about 40%, while EVs can reduce emissions by 100%*2.

(1)Drive motors and generators(Neodymium magnets)
・Smaller and lighter
・Heat-resistant
・Reduced overcurrent

(2)Starters and generators(Neodymium magnets)
・High-powered
・Heat-resistant

(3)Power control units(Silicon wafers, encapsulant materials, and thermal interface materials)
・Smaller and lighter
・High sealing performance
・Heat-dissipating properties

We also incorporate a carbon neutral perspective into the production of our products. At Shin-Etsu Magnetics Philippines, Inc., which is a production plant for rare earth magnets, solar panels with a generating capacity of approximately 1,200 kW were installed and began operation in June 2023. This will make it possible to reduce CO2 emissions by 1,026 tons per year. In Japan, Shin-Etsu Chemical's Takefu Plant has installed solar panels with a power generation capacity of 137 kW, which are expected to reduce CO2 emissions by 62 tons per year. The Company is promoting the stable supply of various products used in eco-friendly cars and the development of new products, and the shipment volume of such products is increasing year by year. The Company' products are making a significant contribution to reducing CO2 emissions.

*1Neodymium magnet
A type of rare earth magnet with very strong magnetic force, composed mainly of neodymium, iron, and boron. It contributes to the miniaturization and reduction of energy consumption of motors and other devices with its strong magnetic force.

*2Source: "Contributing to Lower Emissions through the Global Value Chain" by Keidanren (Japan Business Federation)

Contributions of the Company's neodymium magnet to reducing CO2 emissions due to its use in eco-friendly car

In response to policies aimed at carbon neutrality in countries around the world, the proportion of eco-friendly vehicles is rapidly increasing. The global proliferation of eco-friendly vehicles is expected to reduce CO2 emissions by 458.74 million tons per year by 2030*3. The International Energy Agency (IEA) predicts that electric vehicles will account for more than 50% of global sales by 2035*4.

*3Japan Chemical Industry Association "Case Studies of Carbon-Life Cycle Analysis (cLCA) Looking to 2030 (4th Ed.) No. 05: Next-Generation Automotive Materials"

*4Source: "Energy Technology Perspective 2017" by IEA

Future issues and challenges

  • Neodymium magnets: Promote a stable supply system by expanding production facilities and recycling technologies, and improve the performance of magnets while reducing their size and weight
  • Silicon wafers: Stable supply of high-quality silicon wafers that support miniaturization and other requirements
  • Encapsulant materials: High sealing performance and insulation properties
  • Heat dissipation materials: High heat dissipation properties