Evonik Announces New Strategy: Ambitious Goal to Double Sales in 10 Years, Yet Faces Economic Challenges

Anchoring the three major areas of biobased, energy transition and circular economy, Evonik has recently announced its new innovation strategy. The strategy will focus most of its R&D activities around three core innovation growth areas, biobased solutions, energy transition and circular economy, with the aim of driving the green transition and further strengthening the focus on the sustainable sector. Based on 2023, Evonik expects to achieve additional sales of 1.5 billion euros by 2032.

"Our new innovation strategy will contribute to Evonik's future growth in a stronger way through sustainable products and solutions that help customers reduce their ecological footprint," said Harald Schwager, Vice Chairman of Evonik. Ralph Marquardt, Chief Innovation Officer, said: "Through our innovative technologies, Evonik aims to create a better future. The three innovative growth areas are business-oriented and focus on the most relevant sustainability trends."

In the area of innovative growth in advanced precision bio-based solutions, Evonik is using biotechnology to develop solutions that improve people's health and quality of life, save energy and resources, and protect ecosystems. Related products include modern biosurfactants such as rhamnose-lipids. In May this year, Evonik officially opened the world's first large-scale production plant for the biosurfactant rhamnose-olipin in Slovakia. At the same time, the company is also actively promoting the application of rhamnoolipid in other fields.

In the area of accelerating the growth of innovation in the energy transition, Evonik integrates all technologies related to the energy transition, including the development of solutions to capture carbon dioxide from process exhaust gases or directly from the air. At its production site in Schulfrein, Austria, Evonik produces gas separation membranes that can be used to purify biomethane and other gases. The production site was first expanded in 2023 and is currently undergoing further expansion. At the same time, Evonik is also working on other gas separation membrane solutions, such as gas separation membranes for hydrogen production.

In the area of enabling innovative growth in the circular economy, Evonik will integrate all research projects to promote the loop of the modern circular economy and materials, and lay the foundation for customers to realize the circular economy. For example, Evonik optimizes the recycling of polyurethane or rubber through advanced catalyst recovery methods to achieve a circular economy.

"In the past, R&D activities have contributed significantly to Evonik's growth," Marquardt said. Now, with these three new growth areas, we will also drive further growth."

In 2023, despite the challenging economic situation, Evonik's research and development expenses remained at the same level as in 2022, reaching 443 million euros, or 2.9% of annual sales. The majority of R&D expenses are spent on research in the business unit, with a small portion being spent on Evonik's strategic research unit and in-house incubator Creavis. Evonik said it will continue to focus on strengthening its research and development capabilities to contribute more broadly to driving the green transformation of itself and its customers.