Formaldehyde-Based Resins for Sustainable Composite Wood Products Informed

Formaldehyde-Based Resins for Sustainable Composite Wood Products “Informed by LCI data and achieved through proven low-emitting technology” Wood Adhesives 2013 Toronto, Canada October 9, 2013 Jeff Swartzentruber North American Technical Service Leader, Momentive Specialty Chemicals

Sustainable Composite Wood Products • What is Sustainability? – 1987 United Nations Bruntland Commission defined Sustainability • “Development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. ” – There a myriad of other definitions and descriptions of sustainability – Most have three basic dimensions • Environmental • Social • Economic – The differences in most definitions is on how these three dimensions are measured and weighted Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Sustainable Composite Wood Products • Composite Wood Products are positive in all three areas – Environmental • Wood is a preferred material environmentally • Composite wood products increase the utilization rate of wood resources – Economic • Composite wood products provide jobs and directly impact local economies – Social • Composite wood products improve the quality of life through the wide variety of products made from them to improve utility, functionality, performance and aesthetics of everyday life Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Wood Is A Preferred Material Source: Tackle Climate Change—Use Wood Adhesives 2013 –Toronto June

Composite Wood Products Increase Wood Utilization 35 -39% processed into lumber 20% for energy 37 -38% processed into lumber 23% as raw materials 41% processed into lumber 41 -45% as waste 16% for energy 25% as raw materials 52% processed into lumber 23% for energy 36% as raw materials Source: Utilization of Harvested Wood by the North American Forest Products Industry, Dovetail Partners, Inc. , 2012 Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved. 23 -24% as waste 11% as waste 12% for energy 1940 1970 1985 2005

Composite Wood Products Increase Wood Utilization Milestones on the Pathway to Zero-Wood-Waste 1930 s: Wood waste at 50 -60% 1955: Particleboard commercially produced in the United States 1968: Patent issued for laminated veneer lumber (LVL). 1970: Wood waste at 38%. 1971: Patent issued for wood structural I-beams. 1978: Oriented strandboad (OSB) manufactured commercially. 1981: Wood waste at 17% Early-1990 s: Parallel Strand Lumber (PSL) developed in Canada. Mid to late 1990 s: Finger-jointed lumber accepted for structural uses by all major building codes in the U. S. and Canada 2005: Wood utilization reaches 90%, and productivity has grown 29% since 1965 and 14% since 1985. 2012: Wood waste at 0. 14% - 1. 5%. Formaldehyde-based resins were essential in the development of the composite wood products that have increased utilization rates. It wasn’t until the late 1970’s and early 1980’s that focus was given to formaldehyde emissions from those products. Source: Utilization of Harvested Wood by the North American Forest Products Industry, Dovetail Partners, Inc. , 2012 Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

LCI Data Supports Composite Wood Products Carbon Storage • Life Cycle Inventory (LCI) Data has been collected for Composite Wood Products – Examples include Consortium for Research on Renewable Industrial Materials (CORRIM) • • Softwood Plywood (2005) I-Joists (2005) Laminated Veneer Lumber (2005) Oriented Strand Board (2005) Particleboard (2008) Medium Density Fiberboard (2008) Formaldehyde based resins (2008) – Data shows that carbon stored in composite wood products exceeds that generated in the extraction and production of the composite wood products • Life Cycle Analysis (LCA) reports have also been completed for many of these products or in the process of being completed. Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

LCA / LCI Energy for Common Resins Systems GHG- Green house gases Song, Y. S, et. al. Composites: Part A 40(2009) 1257 -1265 Wilson James B. Wood and Fiber Science 42(X) 2010, pp. 1 -19 http//www 3/abe. lastate. edubiobased/LCAreview. pdf • Good LCA values for Formaldehyde based resins. Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

One Example Tying It All Together ECC Certification is available to individual manufacturing plants and requires an on-site qualification audit and subsequent annual audits. Unfinished composite panel products must first comply with the stringent California Air Resources Board (CARB) formaldehyde emissions regulation before being considered for other ECC criteria. Qualified plants must then meet at least three of the following requirements: • Carbon Footprint • Local and Renewable Resource • Recycled/Recovered • Sustainability • Wood Sourcing Source: ECC Sustainability Standard & Certification Program Brochure Composite Panel Association Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

How can the world’s largest formaldehyde producer embrace sustainability? Wood Adhesives 2013 –Toronto June

Sustainability at Momentive is an Integrated Business Approach At Momentive, ‘sustainability’ creates long-term stakeholder value through responsible stewardship of our assets, the environment, our products and our social responsibility. Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Sustainability the Momentive Way Our sustainability initiatives grouped into 3 broad categories: • Operational excellence programs • Product innovation efforts • Our focus on being good corporate citizens http: //www. momentive. com/sustainability/ Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Housing/Construction Industries & Formaldehyde Based Resins Wood Adhesives 2013 –Toronto June 2013 © 2013

Formaldehyde Based Resins Offer Performance Attributes • PF resins for OSB – Lower cost solution for surface resins • Does not adhere to metal • Does not require a release agent – Durable and creep resistant – Easy to manage for safe handling at the panel manufacturer Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Formaldehyde Based Resins Offer Performance Attributes • Amino Resins for HWPW – Higher solids • Less water means reduced issues with wood regarding checking and blows or blisters – Thermosetting • better heat resistance • rigid glue lines – In making curved plywood this is critical to hold the “curve” and not have any springback. – Provides impact resistance for paper laminating – Will not soften under the heat of embossing • Heat cured amino resins are faster setting than thermoplastic systems – Light color cure • No bleed through with thin veneers – Tack for layup time Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Formaldehyde Based Resins Offer Performance Attributes • Amino Resins for PB/MDF – Cure speed “customizable” to enhance productivity • Buffers • Catalysts – Ability to develop “tack” for process flexibility • Dry tack • Wet tack – Water based for ease of cleanup/line flushing – Excellent machinability and paintability – Light color cure Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Low-Emitting Composite Wood Products Is The Goal • Primary Focus On Resins Used for Interior Products – Indoor Air Quality the driving force – Focus on formaldehyde as an indoor air pollutant result of several factors – HUD standard for PB and HWPW implemented in 1984 – ANSI Standards for PB and MDF lowered the levels further – California Air Resources Board Composite Wood Rule pushed the levels down closer to the levels of natural wood • Outside of North America, similar push for lower emissions in EU, AU/NZ and Japan Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Formaldehyde Bioassay Results (Rats) Nasal tumor data that initiated investigations Levels of formaldehyde given to rats that had an effect 60 50 Monticello et al. , 1991 40 30 20 10 0 0 700 2, 000 6, 000 10, 000 15, 000 Exposure Concentration (ppb – parts per billion) Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved. Tumor Response (%) Kerns et al. , 1983

PPB Formaldehyde Emissions in Particleboard – UF Resin (NA) Year Wood Adhesives 2013 –Toronto

Interior Panel Emission Standards F*** and F**** are 6 month average results, maximum individual tests at 120 ppb and 70 ppb respectively ULEF RT and Exempt are 90% of QC and all quarterly certification limits, 10% of QC tests are allowed up to a higher limit. ULEF RT max is 80 ppb and 90 ppb for PB and MDF – not applicable for HWPW ULEF Exempt max is 50 ppb for HWPW and 60 ppb for PB/MDF Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Typical Formaldehyde Indoor Air Levels are Already Very Low (ppb levels) EPA Informal Level of Concern WHO Guideline Source: CARB Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

How Did We Get There? • It is not resin technology alone – Panel producers play an important role • Increased emphasis on process control – Furnish moisture control – Weight control • Pressing strategies • Catalyst strategies • Scavenger strategies – Important no matter which resin technology is utilized http: //evergreengroup. com. my/pop. php? view=MDF_Particleboard_Process&mid=1931 Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

How Did We Get There? But particleboard resin molar ratios (formaldehyde: urea*) have changed *Mole Ratios are expressed as an approximate F/U dramatically • Prior to HUD – 1. 20 – 1. 40 • After HUD pre CARB – 1. 10 – 1. 20 surface layer – 1. 15 – 1. 40 core layer • CARB phase 1 – 1. 00 – 1. 10 surface layer – 1. 10 – 1. 25 core layer • CARB phase 2 – 0. 75 -0. 90 surface layer – 1. 00 -1. 20 core layer • ULEF – 0. 65 -0. 80 surface layer – 0. 80 -1. 00 core layer equivalent to account for melamine Consistent with what has been found for E 0/F*** and SE 0/F**** in Europe and AU/NZ Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Resin Technology Modifications • Multiple methods of achieving target molar ratios • Specific to an individual plant’s need for flexibility and required molar ratio range • Incorporation of melamine at the lowest molar ratios (1 -4% typical) has become more common • Cook strategies • Internal buffers/catalysts Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

“One Size Does Not Fit All” • The same molar ratio, or even the exact same resin formulation does not result in the same formaldehyde emissions when used at different manufacturing locations – Some differences have been observed on different production lines within the same site when making the same products! • Old relationships still apply – Thicker panels vs. thinner panels – PB vs. MDF – High density vs. low density Customization of formulation to manufacturing process is needed! Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Panel Emissions Decay Over Time Source: Particleboard Formaldehyde Emissions and Decay under Elevated Temperature and Humidity Conditions. 2012 Reidlinger et al Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Beyond the Raw Panel Source: VOC Emission Barrier Effects Technical Bulletin, Composite Panel Association Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Continuing into the Future • All adhesive systems have positives and negatives • Development efforts focused on improving formaldehyde based resin performance – Reduced resin usage – Improved property performance – Improved productivity – Improved moisture resistance – Incorporation of renewable raw materials • As technologies develop and become economical formaldehyde and urea from bio based syn gas becomes possible • Enhances the sustainability message – All with low emission products as a prerequisite Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.

Momentive Advocacy • Momentive continues to advocate for bringing value to the wood/forest industry • We continue to advocate vigilantly for: – The sustainability of the forest products industry – The sustainability of wood as a building/construction product – The sustainability of advanced formaldehyde technologies and its responsible use Wood Adhesives 2013 –Toronto June 2013 © 2013 Momentive Specialty Chemicals Inc. All rights reserved.