Plastic Omnium - 2018 Registration Document

3 STATEMENT OF NON-FINANCIAL PERFORMANCE CSR at the heart of our strategy www.plasticomnium.com PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 92 CLEAN PROPULSION SYSTEMS 3.1.2.3 The current development of the automotive market incorporates the challenges of the energy transition namely, reducing fossil energy consumption in order to reduce global warming. Clean Energy Systems supports its customers in achieving their transition by proposing products to them consistent with their change and adaptation policy. Manufacturers are thus investing to improve the efficiency of internal combustion engines to reduce fuel consumption. Hybrid and plug-in hybrid propulsion systems form part of the solutions. Plastic Omnium supports its customers by producing products adapted for the specific requirements of the engine tanks for hybrid and plug-in hybrid vehicles: Inwin and Tanktronik ® , which are protected by 64 patents. As the majority of dedicated tanks are still made from metal, the current transition towards plastic tanks is enabling Plastic Omnium to win significant market share forecast to reach 13% in 2021 compared with 4% in 2018. The Group is also working on improving traditional tanks and on emission control technologies. requirements of the future Euro 7 standard. As new vehicle approval tests in Europe are making achieving emissions targets more difficult and diesel continues to grow in non-regulated markets, SCR is an essential technology for coming years. Plastic Omnium expects that its market share should increase from 18% in 2018 to 23% in 2021. For diesel vehicles, Plastic Omnium is marketing its Selective Catalytic Reduction (SCR) system which allows manufacturers to reduce NOx emissions (nitrogen oxides with a harmful effect on health) of their diesel vehicles. When AdBlue ® is sprayed into the exhaust pipe and makes contact with the gases that result from diesel combustion, a chemical reaction breaks down nitrous oxide emissions into nitrogen and water vapor. 95% of emissions are avoided, dramatically reducing the impact on air quality. The Dual SCR, a complementary system to SCR, improves diesel engine efficiency as soon as the engine is started and in all driving conditions, particularly in cities. This technology is compatible with the Gasoline-powered vehicles currently emit more CO 2 than diesel vehicles. To achieve the standards (95 gCO 2 /km in Europe from 2021), Plastic Omnium is developing a water injection technology, HydroPower, which reduces CO 2 emissions by 15%. With regards to electric vehicles, Plastic Omnium estimates that the future is open for vehicles producing their own electricity and not needing to be plugged in. Hydrogen technology is particularly suitable and promises to meet consumers’ expectations. The refilling time for hydrogen is the same as the refilling time using fuel (less than five minutes) with a similar range (more than 500 km) at a cost that is still comparable. This technology requires several stages to be mastered before becoming viable: a tank capable of withstanding a pressure of 700 bars to contain the ● compressed hydrogen: Plastic Omnium is working on composite materials that are very strong and light compared with their metal equivalents. Two 60 liter tanks would allow a range of 800 km to be achieved. Acquiring Optimum CPV enables Plastic Omnium to strengthen its skills in designing and manufacturing these tanks; fuel cells allow hydrogen to be transformed into electrical energy that ● can be used by the engine to propel the vehicle while only emitting water. The Ξ PO-CellTech joint-venture and the future Δ -Deltatech center are dedicated to developing a fuel cell containing low levels of precious metals; the management of flows to control the energy in fuel cell systems ● while managing data. The acquisition of Swiss Hydrogen enables Plastic Omnium to develop its expertise in the design and manufacture of energy management and control solutions. FUEL CELL Electricity generation Water (H 2 O) Electricity Battery Electric motor High pressure hydrogen vessel Hydrogen station O 2 + H 2 Hydrogen (H 2 ) Oxygen (O 2 ) Air H 2