Thanks for making time, Keith. Let’s start by sharing a bit about yourself and your experience.
I’m the CEO of Econic Technologies. Econic is a deep tech company focused on catalyst technology for renewable carbon. I joined the company in 2021, which felt like a natural fit since I’ve spent my entire career in the materials science industry. I started work with ICI, in R&D, and progressed my career in progressively larger commercial, business, and corporate positions with Dow Chemical, located around the world. As a strong advocate for sustainable advanced manufacturing business, in recent years I have worked to help develop early-stage, impact technology businesses to reach their potential, in consulting and executive roles.
How has Econic been growing?
Econic transforms CO2 into high-performance products made from renewable carbon. Companies use our patented process based on a unique catalyst to turn carbon emissions into ingredients that replace oil-based materials in everyday products. For example, our technology can be used in materials for cars, clothes, construction, mattresses, and more.
The idea was born of a brilliant chemistry breakthrough at Imperial College of London from Professor Charlotte Williams and Dr. Michael Kember, Econic’s Head of Research & IP.
Crucially, our technology also helps products work better and cost less, so they have a higher chance of winning in the market. We believe this will help industry and consumers finally make the leap to more eco-friendly formulations.
When I joined the company, it was at a pivotal moment. Econic was maturing in the sense that it was moving out of a pure R&D phase and into the commercial phase we are in now.
Today, several companies around the world license our technology, and others are actively exploring ways to use Econic’s proprietary catalyst and process. For example, in China, Changhua Chemical is building a new manufacturing facility to produce polyols based on Econic’s technology. The site will be able to produce 80,000 tons of material by 2025 and as much as 1 million tons annually in the coming years. These polyols based on renewable carbon can form the basis of polyurethanes with a lower carbon footprint, which can be used to make more sustainable furniture and mattresses, coatings and construction materials, automotive interiors, and many other commercial and industrial goods.
Beyond China, we have partners lined up to produce polyols in the US, India, and Japan.
Additionally, we are exploring other uses for our chemistry. For example, our team recently developed technology for surfactants made from renewable carbon.
Could you share how the collaboration between Econic and Changhua Chemical started?
Changhua Chemical are on a trajectory to become a leader in sustainable chemistries. We were seeking a leading manufacturer who would pioneer the production of these polyols at full scale. When I met Changhua’s Chairman, Dr. Gu, it was clear he was focused on the future and interested in investing in new technologies. In other words, it was a perfect fit. I’d also like to thank CM Venture for introducing Changhua Chemical to us (video interview here).
What prompted Econic to choose to collaborate with Changhua Chemical in this way?
At Econic, our goal is to scale our technology so that billions of people can enjoy modern life with less impact on the planet. It would be very expensive and require a lot of patience if this were to be done in the UK, so CM Venture Capital helped by looking up their extensive network in China. Also, Changhua Chemical shares the vision as us. Our companies agree there is great value in bringing new sustainable materials to market. And Dr. Gu is very ambitious, which is the type of partner we need to scale.
What key roles does Econic’s tech play in the production of polyols made from renewable carbon?
Econic’s unique catalyst allows captured carbon dioxide to be used directly in the production of polymers. It allows CO2 to be used as a monomer in the polyol. This replaces fossil fuel-based feedstocks so, not only are we using CO2 gas that would otherwise contribute to global warming, but we are reducing the need for oil-based raw materials.
The polyols made with our process can effectively replace the traditional polyether polyols that are typically used in polyurethane production.
The PCE polyols can be formulated using standard catalysts and surfactants. Foams can be produced at a range of isocyanate indices and water contents.
What about your other agreements with Sanyo Chemical, Monument and Manali? What plans are in place?
We have a memorandum of understanding with Sanyo Chemical in Japan. They are exploring our technology for producing polyols in Japan based on renewable carbon. We also have license agreements with Monument Chemical in the US and Manali in India. These companies will be producing pilot-scale volumes of polyols made with renewable carbon thanks to our process and catalyst. We’re very excited about the global adoption of CO2 based polyols in polyurethanes and the opportunity to sustainably transform such an important industry.
Compared to traditional products, what significant advantages does Econic’s PCE polyether polyol (Carnol™®) have in reducing greenhouse gas emissions?
Carnol™® is the trade name Changhua have selected for CO2-based polyols that they will produce from their new manufacturing facility, based on the Econic process and catalyst. These polyols have a 30% lower carbon footprint compared to traditional polyols.
How do you evaluate the market prospects and competitiveness of Carnol™®?
Econic’s technology has been designed based on what we call the triple bottom line: sustainability, performance, and cost competitiveness. Taken together, these three benefits give Carnol™® an edge in the market versus traditional polyols and emerging technologies such as polyols based on bio-based and recycled carbon sources.
From a sustainability perspective, our technology reduces the carbon footprint of polyols by up to 30%, keeps carbon in use and out of the atmosphere (i.e., locked into everyday items), and is compatible with bio-based technologies and emerging recycling systems.
In addition, it helps products work better and, in some cases, cost less.
We also expect manufacturers to achieve significant performance benefits. With our technology, it’s possible to finetune characteristics at the molecular level in new ways, imparting special properties that can, for example, improve the way a mattress feels or a coating withstands abrasion.
I should also point out that, thanks to Econic’s technology, Carnol™® PCE polyols are compatible with bio-based chemistries and recycled materials, which can even further reduce the carbon emissions of a product and in some cases bring it to zero.
So renewable carbon is part of the polyol, and polyol is part of the chemistry makeup of the final material – we’re often asked, how many percent of carbon is contained in a final product?
This depends on the end application. There are a huge array of polyurethane products and they can include different levels of polyol. Add to that, the Econic process allows for the polyol producer to tune the amount of CO2 in the polyol, depending on the application and performance characteristics they are targeting.
What are Econic’s strategic plans and expectations for the Chinese market?
We believe that partnering with a leading manufacturer like Changhua Chemical will help our technology gain traction in China and beyond. After all, China is a very important global manufacturing hub, and what is made in China travels around the world.
Since Changhua Chemical plans to produce very high volumes of Carnol™®, we think it will attract business from big brand owners that have global businesses and urgently need to transform global product lines to meet ambitious climate targets. For example, there are global furniture and mattress companies that are interested in reducing the carbon footprint of their products. Carnol™® is an attractive technology for these companies because it reduces emissions. With its new, state-of-the-art, high-throughput manufacturing plant that is currently under construction, Changhua will be well-positioned to capture that business and bring our technology to people worldwide.
What is Econic’s view on China’s role and contribution in global environmental protection and sustainable development?
China is an economic powerhouse and world leader. Therefore, it has a leading role to play in environmental protection and sustainable development not only for its own 1+ billion people, but globally as well.
Thank you, Mr Keith Wiggins, for your time!
