SPICE is a high resolution imaging spectrometer observing in extreme ultraviolet wavelengths, 70.4 – 79.0 nm and 97.3 - 104.9 nm. It is a facility instrument on the Solar Orbiter mission. SPICE will address the key science goals of Solar Orbiter by providing the diagnostics of the physical state and composition of the plasmas in the solar atmosphere, in particular investigating the source regions of the solar wind outflows and ejection processes which link the solar surface and corona to the heliosphere. SPICE wavebands include lines from elements such as H, C, N, O, Ne, Si, Mg, S, Ar and Fe. By observing intensities of selected lines and line profiles, SPICE will derive temperature, emission measure, flow and composition information for the plasmas in the temperature range from 10,000 K to 10MK. Several bright lines in the SPICE range permit high-cadence observations of plasma dynamics in the upper chromosphere and the lower transition region. We also identify intensity ratios of elements with a low First Ionization Potential (FIP) to high-FIP elements, suitable for creating maps of low/high FIP abundance ratios and establishing connectivity to in-situ observations. SPICE can also apply promising methods for the study of the coronal heating investigated by Fludra and Warren (2010), and contribute to studies of transient ionization and non-equilibrium processes in the transition region.