Document kmK7y4RrooYRMV5NrJGjJJMKy

22 SEPTEMBER 2023 Euroalliages reply to the public consultation on a proposed restriction on the manufacture, placing on the market and use of per- and polyfluoroalkyl substances (PFAS) I. Properties of PTFE and other Fluoropolymers According to Gore1, a main supplier of baghouse filters for energy intensive industries and in particular the ferro-alloys and silicon producers, some fluoropolymers, such as PTFE, meet the Organization for Economic Co-operation and Development (OECD) criteria of Polymer of Low Concern as they are: - Stable: They do not degrade in the environment - Large: They cannot enter human cells or trigger events within cells - Non-Toxic: They are safe to use from an environmental and human perspective - Non-Bioaccumulative: They cannot accumulate in the body In general use, PTFE is not abraded away from the bag with normal use of the filter". Once the baghouse filters have reached their service life, they are disposed of in a controlled way without expected release to the environment. PTFE is non-toxic and safe for the end user2. PTFE is a very large molecule that is unable to enter the human cell passively due to its size, nor does it have the appropriate chemical or structural properties that would enable it to interact with other biomolecules to actively move into the cell. In addition, PTFE doesn't bind to the cell surface receptors or signal events within the cell. Since PTFE is not subject to passive or active transport and does not bind to the surface receptors necessary for cell signaling, it is not bioavailable3. If a molecule cannot get into the cell or bind to the cell, it cannot be toxic. Therefore, PTFE is non-toxic and safe for the end user4. Other scientific reference are provided by Gore in the link here below. 1 Gore's Commitment to Material Stewardship | Gore 2 Henry et al., 2018, Integr Environ Assess Manag 14 Supplement, pp 327-328; L.L. Radulovic, Z.W. Wojcinski, 2014, Encyclopedia of Toxicology (Third Edition); Bruno Ameduri, 2023, Journal of Fluorine Chemistry, 267, Fluoropolymers: A Special Class of per- and polyfluoroalkyl Substances (PFASs) Essential for our Daily Life; Gerard Puts et al., 2019, Chemical Reviews, 119, Polytetrafluoroethylene: Synthesis and Characterization of the Original Extreme Polymer, American Chemical Society: ACS Publications; Sina Ebnesajjad, 2013, Applied Plastics Engineering Handbook: Processing and Materials, ed. Myer Kutz (Elsevier, 2011), Introduction to Fluoropolymers, pp 63-89; Ebnesajjad, 2014, Fluoroplastics, Volume 1: Non-Melt Processible Fluoroplastics, (Second Edition) Chapter 5, Homofluoropolymer Polymerization and Finishing, (Plastics Design Library: Elsevier Science & Technology Books) 3 Paul Leeson, 26 January 2012, Drug discovery: Chemical beauty contest, Nature 481, pp 455-456; ECETOC Special Report No. 18, Brussels July 2014, Information to be considered in a weight-of-evidence-based PBT/vPvB assessment of chemicals (Annex XIII of REACH); Ming-Qiang Zhang and Barrie Wilkinson, 2007, Drug discovery beyond the `rule-of-five'. Current Opinion in Biotechnology, pp 18:478-488; Henry et al., 2018, Integr Environ Assess Manag 14 Supplement, pp 327-328 4 Paul Leeson, 26 January 2012, Drug discovery: Chemical beauty contest, Nature 481, pp 455-456; ECETOC Special Report No. 18, Brussels, July 2014, Information to be considered in a weight-of-evidence-based PBT/vPvB assessment of chemicals (Annex XIII of REACH); Ming-Qiang Zhang and Barrie Wilkinson, Drug discovery beyond the `rule-of-five', Current Opinion in Biotechnology 2007, pp 18:478-488; Henry et al., 2018, Integr Environ Assess Manag 14 Supplement, pp 327-328; L.L. Radulovic, Z.W. Wojcinski, 2014, PTFE (Polytetrafluoroethylene; Teflon) in Encyclopedia of Toxicology (Third Edition). 1 II. Socio economic analysis (SEA) issues 1. Silicon and ferro-alloys: critical and strategic raw materials EUROALLIAGES is the European association of Ferroalloys and Silicon producers, representing more than 95% of the sector in Europe. These companies produce Ferromanganese, Ferrosilicomanganese, Ferrochromium, Ferromolybdenum, Ferrosilicon, Silicon metal, and Calcium-silicon alloys and Ferronickel. The European ferro-alloys and silicon sector has a long European history in delivering essential inputs for the European economy, forming an integrated part of strategic value chains. Our industry is the iron, steel, aluminium, and chemicals industries' first supplier. European Silicon producers also provide the electronic and solar industries with elements essential to their manufacturing process, offering the highest qualities of products with the lowest carbon footprint worldwide. Since the war in Ukraine, European authorities at the highest level have become aware of Europe's dependence on a significant number of raw materials, technologies and related know-how. Unfortunately, Europe is losing ground for many of them. A resilient Europe, less dependent on third markets, is not only an economic issue but also a geopolitical and security issue. As much as possible, value chains must be preserved in Europe, even relaunched, and not weakened even more. Restriction of PFAS based on hazard will create an incalculable number of "cases", which authorities at all levels are unable to handle, instead of targeting the real problems. In addition, the restriction of substances in the name of a potential danger can go against the handling of real risks by undermining the use of dedicated and efficient equipment which also allows energy and raw materials savings. What is the benefit for human health, the environment and saving resources? The restriction must be done with a holistic and sustainable approach that does not create cross-media effects so as to avoid going in the opposite direction of the Green Deal objectives. While the CRM Act and the NZIA are about to be adopted, with a view to helpingsg relaunch the European machine, REACH is acting in the opposite direction by putting enormous constraints on companies, not because of a real exposure to SVHCs, meaning the existence of a risk, but due to a hazard classification. Restriction on the use of PFAS will have a significant impact on the production of silicon and ferroalloys and will go against the recognized status of critical raw material of silicon and the status of strategic material of silicon and of some major ferro-alloys. 2. Uses Dust capture by Teflon bag filters: a recognized success story Our sector is using baghouse filters to capture the dusts emission from the production, mainly from the furnaces, and in particular silica fume from the production of silicon and ferro-silicon. The industrial baghouse filters used for filtration are made of PTFE (PolyTetraFluoroEthylene) membranes also called Teflon. They are the best available technology to efficiently capture the dust 2 as outlined in the Non-Ferrous Metal BREF under the Industrial Emission Directive- chapter 2.12.5.1.4 Fabric or bag filters: Non-Ferrous Metal BREF as well as under chapter 8 covering our sector. Indeed, bag filters are: fits all purposes Resists high off-gas temperature (250 C). Our smelting process occurs above 1500 C Can be used in corrosive environments (SOx, NOx) Lower off-gas temperature results in the formation of sulfuric and nitric acid, which will corrode the filtration system and require re-build in stainless steel instead. Used by all open and semi-open silicon and ferro-alloys smelters in Europe. A less efficient filtration system will let dust escape creating a cross-media effect. This BAT reference to bag house filter was further used to derive BAT-associated emission levels for dust emissions to air from ferro-alloys production as outline in the Commission Implementing Decision (EU) 2016/1032 3 Here below is outlined an example of the annual quantity of PTFE membranes in European smelting plants as provided by the PTFE membrane: Site Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 bags 1446 8397 8033 3926 3928 4404 Length [m] 5 9.3 9.3 10 9.3 5 Diameter [m] 0.127 0.299 0.299 0.299 0.299 0.127 Area [m2] 1.99 8.74 8.74 9.39 8.74 1.99 Total area [m2] 2884.64 73354.74 70174.90 36878.34 34314.33 8785.59 Kg PTFE/m2 0.0622 0.0439 0.0439 0.0439 0.0439 0.0622 Total Total Weight PTFE [kg] 179.42 3,220.27 3,080.68 1,618.96 1,506.40 546.46 10,152.20 According to other suppliers, the PFAS content in bag house filters is as follows: (PFOA) - 0,01 mg/kg (APFO) - 0,01 mg/kg (PFOA-Na) - 0,01 mg/kg (PFOA-K) - 0,01 mg/kg (PFOA-Ag) - 0,01 mg/kg (PFOA-F) - 0,01 mg/kg 4 Maintenance: A bag house filter contains 2560 pcs. of filter sleeves. In a ferro-alloys producer having 3 filters, they had to change over 3 years above 50 % of their 7680 pcs of sleeves (diameter 0,3m, length10m) 2021 - 741 pcs. 2022 - 1373 pcs. 2023 (till June) - 1650 pcs. 3. Dust capture by Teflon bag filters: a recognized success story The development of more advanced filters like the Teflon ones enables the capture of more silica fume resulting in cleaner air and improved occupational health conditions. With the significant capture of silica fume through these filters the industry was able to develop and sell silica fume for downstream applications, like in concrete with benefit to the environment, health, material performance. This industrial development is a typical case of circular economy. It is so true that it has been recognized as a success story by the European Commission in 2017: IED Success story Silica Fume 4. European productions replaced by imports: carbon & environmental leakages Many sectors are at the verge of bankruptcy due first to the energy crisis and international competition from third-party markets not subject to the same regulatory constraints on EHS, climate or social aspects. This is so true that the states aids legal framework has been provisionally relaxed by the relevant services of the European Commission itself. At the same time, other Commission services argue for increasing the burden on companies through other regulations, many of these companies are already seriously weakened. Excessive use of an instrument such as restrictions under REACH contributes and will contribute to pushing the industry out of Europe. European production is gradually being replaced by production from third countries, which is much less virtuous in terms of human health, the environment, or the social aspects. Deindustrialization is taking place in Europe. An overall assessment of the situation is fundamental, through economic indicators, without blinders and reasoning in silos. The crisis is not over, in particular for electro-intensive industries like Silicon and ferro-alloys. Adding additional burden on a too short run will be the straw that breaks the camel's back. Already 40 % of the operating furnaces in the ferro-alloys Industry in the EU have been curtailed since mid-2022. These massive plants curtailments, some of which with no return, will increase Europe's dependency on third markets for strategic supply chains and will drastically increase not only the carbon footprint but also the environment footprint. In July the European Commission published the trade balance for the year 2022. This shows a large trade deficit, the first in the last 10 years. Total imports exceed significantly total exports, giving a trade deficit of 430 billion Euros. This is a clear turning point showing an import dependency larger than ever before. 5 Looking into the trade balance per sector in the long run, sectors like for example steel moved from a large surplus to a large deficit during the last decade. Also, the steel tubes saw its trade balance deteriorate. The steel industry is the major downstream user of the ferro-alloys industry. Sectors like aluminium and silicon moved from a large deficit to an even larger one, knowing that Aluminium Industry is a major downstream user of the Silicon Industry. 6 5. Costs impacts on the silicon and ferro-alloys smelters For As Silicon and ferro-alloys industry is fully electrify, changing equipment related to electricity to the smelting plants has a cost significant impact, on top of all the current costs. As an example, in one company, the recent change of the switch gears has implied investment costs of 1.5 mill EUR per furnace, excluding costs for the down-time (2 weeks) with no production. The costs allocated to the down time will depend on the furnace size and the specific quality of the product. Here below is outlined the cost estimate for 1 week of down time for a potential furnace shutdown due to the replacement of the high-voltage switch gears. plant 1 (2 furnaces) plant 2 (3 furnaces) plant 3 (3 furnaces) costs of downtime (1 week) 797,548 EUR 1,164,266 EUR 1,550,000 EUR There are 81 silicon & ferro-alloys furnaces in the EEA and 53 in the EU. Our industry is experiencing a very difficult economic context due to circumstances beyond its control. Imposing restrictions on specific uses of PFAS requires enough delays to be sustainable. In another ferro-alloy producer, the estimated investment costs to replace appliances containing SF6 is outlined here below: - Switches 110kV - 3m - MV Switch - 0,8m - Switchboard replacement - 0,7m Total: 4,5m. 7 6. Using article containing PFAS in silicon and ferro-alloys production: essential uses The use of PTFE membranes in filtration technology and in switchgear are essential uses as 1) PTFE membranes use is necessary for health or safety or is critical for the functioning of society: see BAT for dust abatement for the health and the environment, success story in circular economy, key equipment to produce critical and strategic raw materials. The Silicon and ferro-alloys industry is one of the most electro-intensive sector. A Carbon neutral economy will require massive use of electricity. SF6 gas is used in switchgear as it provides the high-voltage insulation with permanent impregnation for the foil insulation of the winding discs. This specific technical function is therefore key for the society. Alternatives (C4FN gas) are available, but they are 25 % more expensive and require more space. 2) There are not yet alternatives acceptable from the standpoint of human health or of the environment for new polymer membranes or switchgears. Testing on industrial scale takes time in particular under extreme conditions. The aim of the "essential use concept" is to increase the protection of health and the environment by accelerating the phase-out of the uses of the most harmful substance that are non-essential and, where they are essential, to provide more time for their substitution. The PFTE membranes have specific technical functions enabling performant dust filtration in extreme conditions such as high off-gas temperature and corrosive environments. There is only one membrane available for off-gas filtration, i.e. PTFE, because it meets all the needs in terms of durability, chemical resistance, temperature etc. There is no direct exposure to PFAS during use of bag house filters since the membranes are embedded in the glass fibre-mats. III. Transitional period/deferred entry into force In Annex XV - restriction report of March 2023 - industrial textiles used for air filtration would benefit from the derogation for 6.5 years from the entry into force (EIF). It already indicates the importance of PTFE membranes for filtration purposes. However, the ferro-alloys and silicon Industry is requesting to allow a derogation to either keep the use of PTFE membranes and the use of switchgear or at least allow a derogation time of 12 years for the following reasons: Specific technical functions of PFAS in dedicate uses: o PTFE membranes tolerate the high off-gas temperature of 250 C that plants experience in industrial scale smelters. o PTFE membranes tolerate the corrosive nature of the off-gas with NOx and SOx. o Lower off-gas temperature leads to the condensation of nitric and sulfuric acid, which corrode the filtration facilities. 8 litium AXILLIAGIES COMITE DE LIAISON DES INDUSTRIES DE FERRO-ALLIAGES Without PTFE membranes plants will not be able to comply with the emission permits of 5 mg/m3dust, thus, counteracting the IED. A Carbon neutral economy will require massive use of electricity. SF6 gas is used in switchgear as it provides high-voltage insulation. This specific technical function is therefore key for society. The use of PTFE membranes in filtration technology and in switchgear are essential uses o Silicon is identified as critical raw material and silicon as well as major ferro-alloys as strategic raw materials o Silica fume captured with PTFE membranes is considered a success story under IED o These uses are necessary for health or safety or is critical for the functioning of society The silicon and ferroalloy industry is bound to the corresponding BAT reference document (BREF) titled "Non-Ferrous Metals Industries". The best available technique is the use of PTFE membranes. The current filtration technology is the best available solution. There is high risk that alternatives do not perform, leading to incompliance with IED, competition distortion and ultimately closure of plants. While the raw material for the production of PTFE (PFOA) is indeed a substance of very high concern (SVHC), the resulting membrane is a polymer of low concern with no direct exposure. There are currently no sustainable alternative at industrial scale. Only changing switch gears implies significant costs knowing that our sectors is already confronted with the soaring of electricity prices having implied massive furnace curtailments in the EU. Our industry is experiencing a very difficult economic context due to circumstances beyond its control. Imposing restrictions on specific uses of PFAS requires enough delays to be sustainable. Macro-economic figures show a trend of de-industrialization. This will mean replacing European production with high EHS standard with low standards imports, thus creating carbon or environmental leakage with no gain for the society, on the contrary. For further information, please contact: Nadia Vinck Director EHS, Energy & Climate EUROALLIAGES Tel.: +32 495 26 59 96 @euroalliages.be 9 10