Cleaning the diesel engine emissionsCleaning the diesel engine emissions- Facilitating technology push through cluster - Facilitating technology push through cluster development strategies in the Danish automotive development strategies in the Danish automotive particulate filter industryparticulate filter industry

Thomas Budde ChristensenThomas Budde ChristensenRoskilde University, DenmarkRoskilde University, Denmark

tbc@ruc.dktbc@ruc.dk

BackgroundBackground The The LisbonLisbon process: Economy, Environment and Social process: Economy, Environment and Social

cohesioncohesion Air qualityAir quality in urban areas. Enhanced focus on negative in urban areas. Enhanced focus on negative

health effects related to particulate emissions from diesel health effects related to particulate emissions from diesel vehiclesvehicles

The The European CommissionEuropean Commission has launched a draft directive has launched a draft directive for euro 5 standards for heavy-duty diesel vehicles to be for euro 5 standards for heavy-duty diesel vehicles to be enforced in 2008 with a cut in maximum emission limit on enforced in 2008 with a cut in maximum emission limit on particulate emission from 0,0050 g/km (euro 4) to 0,002 particulate emission from 0,0050 g/km (euro 4) to 0,002 g/km (euro 5). g/km (euro 5). • The NOx emission limits will also reduced The NOx emission limits will also reduced or or a euro 6 will be a euro 6 will be

proposed in the near future.proposed in the near future.

EU legislation provides market potential for emission EU legislation provides market potential for emission control manufacturers!control manufacturers!

Research questionResearch question

How can and Danish innovation strategy How can and Danish innovation strategy for emission control manufacturers be for emission control manufacturers be designed in order to designed in order to • reduce negative health effects from particulate reduce negative health effects from particulate

emission from diesel vehicles and emission from diesel vehicles and • improve innovation and competitiveness of improve innovation and competitiveness of

Danish emission control manufacturers to the Danish emission control manufacturers to the mutual benefit of employment and economic mutual benefit of employment and economic growthgrowth

MethodologyMethodology Case studies of four Danish diesel particulate Case studies of four Danish diesel particulate

filter manufacturers: filter manufacturers: Case studies based on explorative interviews and Case studies based on explorative interviews and

visits at production plants and focussed on:visits at production plants and focussed on:1.1. Important innovation issues for the companies, Important innovation issues for the companies, 2.2. supply chain dynamics andsupply chain dynamics and3.3. local business environment (cluster relations)local business environment (cluster relations)

Theory: Michael Porter, Peter Wells, Klaus Theory: Michael Porter, Peter Wells, Klaus RenningsRennings

Conclusion: Innovation issues and action planConclusion: Innovation issues and action plan

CompanyCompany ProductsProducts TurnoverTurnover EmployeesEmployees

AA Diesel Diesel particulate particulate filtersfilters

100 (2005)100 (2005)

BB Diesel Diesel particulate particulate filtersfilters

4.4 million 4.4 million euro (2005)euro (2005)

33 (2005)33 (2005)

CC integrated integrated emission emission control control systemssystems

34 million 34 million euro (2004)euro (2004)

173 (2004)173 (2004)

DD Developer of Developer of diesel diesel particulate particulate filter systemsfilter systems

0.5 million 0.5 million euro (04/05)euro (04/05)

22

Environmental InnovationEnvironmental Innovation

Product: Eco design. Emphasis on green technologies

Economic structure: Clusters and globalisationOutsourcing, mergers and acquisitions

Process:Mass production, lean production, modular production and platforms

Source: Wells 2004

Forcing environmental innovationForcing environmental innovation

Standard OHSTechnology

push

Eco-innovation

market pull

RegulatoryPush/pull

Existing environmental law

Product

palette

Product qualityMaterial efficiency

Energy efficiency Expected regulation

Market share

Competition

New markets

Costumer demand

Image

Labour costs

Source: Rennings 2000

Findings from case studies: Findings from case studies: innovation issuesinnovation issues

Economic structure: Economic structure: Marked requirements: Meeting euro 5+6 and future requirements in the Marked requirements: Meeting euro 5+6 and future requirements in the

European market and stricter requirements on the US market. Supplying European market and stricter requirements on the US market. Supplying niche markets such as non-road vehicles.niche markets such as non-road vehicles.

Automotive sector requirements: Development of integrated emission Automotive sector requirements: Development of integrated emission control systems (integrating silencers, catalytic converters and diesel control systems (integrating silencers, catalytic converters and diesel filters). Danish suppliers to become system integrators (tier 1) or niche filters). Danish suppliers to become system integrators (tier 1) or niche producers.producers.

Product development: Product development: Silicon carbide diesel particulate filter: Negative trade off with CO2? Effects Silicon carbide diesel particulate filter: Negative trade off with CO2? Effects

of biofuels? of biofuels? Improved Improved regeneration solutions for particulate filtersregeneration solutions for particulate filters Selective Catalytic Reduction: Development of SCR technology including Selective Catalytic Reduction: Development of SCR technology including

additives and applications. Infrastructure development for SCR technology additives and applications. Infrastructure development for SCR technology additive including additive dispensers at the vehicle refuelling facilities. additive including additive dispensers at the vehicle refuelling facilities. Maintenance and control system.Maintenance and control system.

Enhanced collaboration with research institutionsEnhanced collaboration with research institutions Demonstration projects: particulate filters and SCR technology. Demonstration projects: particulate filters and SCR technology. Process:Process: Strategic initiatives focused on cost reduction of emission control Strategic initiatives focused on cost reduction of emission control

equipment. Large scale production, lean production initiatives including, equipment. Large scale production, lean production initiatives including, automotive quality certification (TS 16949) at emission control system automotive quality certification (TS 16949) at emission control system supplierssuppliers

Conclusion: Action planConclusion: Action planLevel of governance Technology pull initiative Technology push initiative

EU Euro 5 and 6 6th framework programme

Danish government

Green taxes (2006: no registration fee on particulate filter, limited effect on lorries and heavy weight vehicles due to low registration fee)

Cluster strategy, network on lean and quality certifications, branch organisation, marketing cooperationNational research strategy on emission technology (universities and public-private partnerships)Subsidise installation of particulate filters on vehicles in use.

Local/regional initiative

Green public procurement (renovation vehicles, busses etc)

Cluster development Demonstration projects (environmental zones etc.)

Thank youThank you

Thomas B. ChristensenThomas B. ChristensenRoskilde University, DenmarkRoskilde University, Denmark

tbc@ruc.dktbc@ruc.dk