Chemical Companies Profit From Green Construction Market
Amid recession, the global building and construction market finds growth in green
DESPITE THE recession, the chemical industry is finding the green building sector a bright, profitable spot within the overall construction market.
US consulting firm McGraw-Hill Construction reported in its Green Outlook 2009 that the value of green building construction is expected to triple to a range of between $96bn-140bn (€76bn-109bn) and by 2013. The market has already rocketed from $10bn in 2005 to around $36bn-49bn last year.
Growing public awareness, an increase in government regulation and recognition of bottom-line advantages are some of the growth drivers, said Harvey Bernstein, vice president of industry analytics, alliances and strategic initiatives at McGraw-Hill Construction, in a statement.
"The business opportunities afforded by green building even in the midst of a global economic crisis are real and recognized by industry players," said Bernstein.
"Perceived economic benefits are driving green building, including higher revenues, lower lifecycle costs, and lower operating costs, but builders and buyers are also motivated by health benefits, new government regulation, and pressure from global competition," he added.
Arizona, US-based consultancy Yudelson Associates expects the green building industry to grow by more than 60% this year.
Principal consultant Jerry Yudelson noted in his January 2009 report Top Ten List of Green Building Trends that the global credit crisis and the ongoing economic recession in most countries are not hindering the substantial growth expected for the green building industry.
"What we're seeing is that more people are going green each year and there is nothing on the horizon that will stop this trend," reported Yudelson. "Green building will benefit greatly from the Obama presidency as the [US] government focuses on green jobs in energy efficiency, new green technologies and renewable energy. Green homes will dominate new home developments in more sections of the US as builders increasingly see green as a source of competitive advantage."
Several chemical companies agree with this prediction as they build up their construction chemical portfolios, focusing on making buildings sustainable.
At the International Builders' Show in Las Vegas in January, Germany's Bayer MaterialScience highlighted its Bayseal polyurethane (PU) foam for building insulation and Mondur polymeric MDI (diphenylmethane diisocyanate) binder for wood composites.
The MDI binder is already being used as a replacement for formaldehyde-emitting binders in flooring, cabinetry and other furniture applications, says Eric Denison, vice president, rigid/specialties raw materials, Bayer MaterialScience.
Denison adds that it is also compliant with the new California Air Resource Board (CARB) regulations, which limits the amount of formaldehyde emission in wood composite products.
The polyurethane foam insulation saves energy and dramatically reduces residential heating and cooling costs. Bayer says energy consumption in buildings accounts for almost 20% of total greenhouse gas emissions worldwide.
GREEN BUILDING BLOCKS
Chemistry, according to Germany's BASF, is the building block of construction, and companies are now paving the way to make housing and buildings more energy efficient, environmentally friendly, safer and healthier places to live and work.
Jack Armstrong, BASF Construction Initiative leader for North America, notes that the company avoids green claims as the definition of green building/construction is still too murky.
"We instead define our core competency as delivering high-performance solutions that increase energy efficiency, durability and speed of construction while minimizing environmental impact," says Armstrong.
"These are areas that we can measure and prove with our sustainability tools such as the BASF Eco Efficiency and Life Cycle Analyses. We also invest in third-party studies and testing to provide further proof points," he adds.
Examples of BASF offerings include PU foam insulation, low or zero VOC (volatile organic compounds) adhesives and sealants concrete admixtures that create pervious concrete which aids in storm water management restoration products that extend the life of building and infrastructure and exterior insulation finishing systems that are said to be durable enough to withstand up to Category 5 hurricanes.
The company's Neopor and Styropor expandable polystyrene (EPS) are also making key contributions to energy efficiency and climate protection because of their exceptional insulating capacity, says Helmut Winterling, global marketing and strategy, foams, at BASF.
"We see the growth for EPS as insulating material is supported by the trend for energy-efficient and sustainable buildings. For EPS in the building and construction segment, we expect the worldwide market to grow by about 5%/year," he adds.
GREEN EQUALS SAVING MONEY
US-based Dow Chemical points out that building insulation is the single most cost-effective way to reduce energy consumption.
The challenge, says Mike Kontranowski, North America strategic market manager for Dow Building Solutions, is to educate architects, builders and homeowners how to gain a better understanding of the need for continuous insulation.
"Blanketing exterior walls of homes and buildings in continuous insulation is a critical first step to prevent energy loss and maintain desirable indoor air temperatures," says Kontranowski.
"To address this, Dow introduced this year the THERMAX Wall System for commercial construction that insulate both the wall cavity and studs to prevent thermal breaks and air infiltration unlike traditional gypsum and batt insulation," he adds.
Also this year, Dow introduced its STYROFOAM SIS structural insulated sheathing for residential construction.
Kotranowski says Dow will invest significant capital resources and expenses over the next two years to transition most of its STYROFOAM production lines in North America to new non-ozone depleting foaming agent technology and which cuts greenhouse gas emitting potential in half.
Another new product in the market this year is Canada-based NOVA Chemicals' new Elemix concrete additive. Tony Torres, vice president of NOVA Chemicals' Building and Construction says the additive helps builders achieve their sustainability goals through thermal performance.
"Elemix additive distributes uniformly, resulting in a lighter-weight product at structural strengths that produce durable concrete, improve energy efficiency, reduce construction costs, resist cracking and deliver more environmental benefits than any other product of its type," adds Torres.
NOVA Chemicals also highlights its accel-E Steel Thermal Efficient Panel wall system, which combines the strength of cold-formed steel framing with the insulation properties of EPS. The panel system is said to deliver a thermally resistant, high-performance building system that's strong, light in weight, and energy efficient.
"We view this as a great time to bring innovative, sustainable products to the marketplace as businesses tend to be more willing to try new products during a recession," says Torres. "People are looking for ways to differentiate themselves in this economy. Green products that also save time and money are uniquely attractive to those looking to have an edge in the marketplace."
Products that assist contractors and building owners in getting green credit points, such as the US Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED), has also led to a stronger drive toward more sustainable and environmentally friendly building materials.
US-based specialty chemical firm Ashland says its green building technologies, such as the company's Envirez bio-based resin formulations help in the attainment of such points in new construction and renovation. Its premium Soyad formaldehyde-free adhesive products are also being brought to engineered-wood customers.
The soy-flour-based adhesives were developed to perform in wood composite, particleboard and medium-density fiberboard production.
"Many of our products help our customers produce building and construction materials that can contribute to the various green building rating systems," says Ashland Performance Materials president Peter Rijneveldshoek. "Ultimately, our goal is to develop a pipeline of products that are designed to replace current technologies and deliver a lower environmental footprint or function as enabling technologies for applications which have a lower overall environmental impact."
USGBC reported that LEED-certified projects are directly tied to more than $10bn of green materials. "That could reach more than $100bn by 2020, contributing to a vibrant industry that could drive an economic recovery," said USGBC.
DESPITE THE recession, the chemical industry is finding the green building sector a bright, profitable spot within the overall construction market.
US consulting firm McGraw-Hill Construction reported in its Green Outlook 2009 that the value of green building construction is expected to triple to a range of between $96bn-140bn (€76bn-109bn) and by 2013. The market has already rocketed from $10bn in 2005 to around $36bn-49bn last year.
Growing public awareness, an increase in government regulation and recognition of bottom-line advantages are some of the growth drivers, said Harvey Bernstein, vice president of industry analytics, alliances and strategic initiatives at McGraw-Hill Construction, in a statement.
"The business opportunities afforded by green building even in the midst of a global economic crisis are real and recognized by industry players," said Bernstein.
"Perceived economic benefits are driving green building, including higher revenues, lower lifecycle costs, and lower operating costs, but builders and buyers are also motivated by health benefits, new government regulation, and pressure from global competition," he added.
Arizona, US-based consultancy Yudelson Associates expects the green building industry to grow by more than 60% this year.
Principal consultant Jerry Yudelson noted in his January 2009 report Top Ten List of Green Building Trends that the global credit crisis and the ongoing economic recession in most countries are not hindering the substantial growth expected for the green building industry.
"What we're seeing is that more people are going green each year and there is nothing on the horizon that will stop this trend," reported Yudelson. "Green building will benefit greatly from the Obama presidency as the [US] government focuses on green jobs in energy efficiency, new green technologies and renewable energy. Green homes will dominate new home developments in more sections of the US as builders increasingly see green as a source of competitive advantage."
Several chemical companies agree with this prediction as they build up their construction chemical portfolios, focusing on making buildings sustainable.
At the International Builders' Show in Las Vegas in January, Germany's Bayer MaterialScience highlighted its Bayseal polyurethane (PU) foam for building insulation and Mondur polymeric MDI (diphenylmethane diisocyanate) binder for wood composites.
The MDI binder is already being used as a replacement for formaldehyde-emitting binders in flooring, cabinetry and other furniture applications, says Eric Denison, vice president, rigid/specialties raw materials, Bayer MaterialScience.
Denison adds that it is also compliant with the new California Air Resource Board (CARB) regulations, which limits the amount of formaldehyde emission in wood composite products.
The polyurethane foam insulation saves energy and dramatically reduces residential heating and cooling costs. Bayer says energy consumption in buildings accounts for almost 20% of total greenhouse gas emissions worldwide.
GREEN BUILDING BLOCKS
Chemistry, according to Germany's BASF, is the building block of construction, and companies are now paving the way to make housing and buildings more energy efficient, environmentally friendly, safer and healthier places to live and work.
Jack Armstrong, BASF Construction Initiative leader for North America, notes that the company avoids green claims as the definition of green building/construction is still too murky.
"We instead define our core competency as delivering high-performance solutions that increase energy efficiency, durability and speed of construction while minimizing environmental impact," says Armstrong.
"These are areas that we can measure and prove with our sustainability tools such as the BASF Eco Efficiency and Life Cycle Analyses. We also invest in third-party studies and testing to provide further proof points," he adds.
Examples of BASF offerings include PU foam insulation, low or zero VOC (volatile organic compounds) adhesives and sealants concrete admixtures that create pervious concrete which aids in storm water management restoration products that extend the life of building and infrastructure and exterior insulation finishing systems that are said to be durable enough to withstand up to Category 5 hurricanes.
The company's Neopor and Styropor expandable polystyrene (EPS) are also making key contributions to energy efficiency and climate protection because of their exceptional insulating capacity, says Helmut Winterling, global marketing and strategy, foams, at BASF.
"We see the growth for EPS as insulating material is supported by the trend for energy-efficient and sustainable buildings. For EPS in the building and construction segment, we expect the worldwide market to grow by about 5%/year," he adds.
GREEN EQUALS SAVING MONEY
US-based Dow Chemical points out that building insulation is the single most cost-effective way to reduce energy consumption.
The challenge, says Mike Kontranowski, North America strategic market manager for Dow Building Solutions, is to educate architects, builders and homeowners how to gain a better understanding of the need for continuous insulation.
"Blanketing exterior walls of homes and buildings in continuous insulation is a critical first step to prevent energy loss and maintain desirable indoor air temperatures," says Kontranowski.
"To address this, Dow introduced this year the THERMAX Wall System for commercial construction that insulate both the wall cavity and studs to prevent thermal breaks and air infiltration unlike traditional gypsum and batt insulation," he adds.
Also this year, Dow introduced its STYROFOAM SIS structural insulated sheathing for residential construction.
Kotranowski says Dow will invest significant capital resources and expenses over the next two years to transition most of its STYROFOAM production lines in North America to new non-ozone depleting foaming agent technology and which cuts greenhouse gas emitting potential in half.
Another new product in the market this year is Canada-based NOVA Chemicals' new Elemix concrete additive. Tony Torres, vice president of NOVA Chemicals' Building and Construction says the additive helps builders achieve their sustainability goals through thermal performance.
"Elemix additive distributes uniformly, resulting in a lighter-weight product at structural strengths that produce durable concrete, improve energy efficiency, reduce construction costs, resist cracking and deliver more environmental benefits than any other product of its type," adds Torres.
NOVA Chemicals also highlights its accel-E Steel Thermal Efficient Panel wall system, which combines the strength of cold-formed steel framing with the insulation properties of EPS. The panel system is said to deliver a thermally resistant, high-performance building system that's strong, light in weight, and energy efficient.
"We view this as a great time to bring innovative, sustainable products to the marketplace as businesses tend to be more willing to try new products during a recession," says Torres. "People are looking for ways to differentiate themselves in this economy. Green products that also save time and money are uniquely attractive to those looking to have an edge in the marketplace."
Products that assist contractors and building owners in getting green credit points, such as the US Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED), has also led to a stronger drive toward more sustainable and environmentally friendly building materials.
US-based specialty chemical firm Ashland says its green building technologies, such as the company's Envirez bio-based resin formulations help in the attainment of such points in new construction and renovation. Its premium Soyad formaldehyde-free adhesive products are also being brought to engineered-wood customers.
The soy-flour-based adhesives were developed to perform in wood composite, particleboard and medium-density fiberboard production.
"Many of our products help our customers produce building and construction materials that can contribute to the various green building rating systems," says Ashland Performance Materials president Peter Rijneveldshoek. "Ultimately, our goal is to develop a pipeline of products that are designed to replace current technologies and deliver a lower environmental footprint or function as enabling technologies for applications which have a lower overall environmental impact."
USGBC reported that LEED-certified projects are directly tied to more than $10bn of green materials. "That could reach more than $100bn by 2020, contributing to a vibrant industry that could drive an economic recovery," said USGBC.
quoted from: www.ICIS.com
