Decarbonizing the Chemicals Industry - Trends, Assessing Technologies, Challenges and Case Studies

Abstract

This report identifies the current and potential sector trends necessary to meet emissions targets and introduces the energy transition technologies most suited to decarbonizing the chemicals industry. The technologies discussed include hydrogen, alternative fuel sources, CCUS, as well as energy efficiency and optimization measures. The chemicals industry is responsible for 14% of global CO2 emissions. According to the International Energy Agency, the sector is also the largest industrial consumer of oil and gas products. The chemicals industry has traditionally depended on low cost and readily available fossil fuels for feedstock and as a source of process energy. Although some processes can be electrified, very high temperatures are required for many reactions to take place. This makes a complete departure from conventional fuels and the wider sector's decarbonization especially challenging. Captured CO2, green hydrogen and other alternative feedstocks such as biomass and waste can serve to replace oil and gas as the main sources of carbon and hydrogen, while electrification and the use of alternative fuels will aid in the replacement of fossil fuels for process energy. Meanwhile, increasing process efficiency through recycling of industrial heat or utilizing waste chemicals can help to reduce the overall energy demand of the sector, making the decarbonization challenge more manageable.

Accounting for 14% of industrial emissions in 2021, the chemicals industry represents a key point of intervention for achieving net-zero targets but remains a sector whose emissions are among the hardest to abate. The chemical industry underpins much of the materiality of modern life, with its end-products spanning agricultural, construction, and consumer industries. Carbon emissions from the chemical industry can be broken down into direct energy demand and process emissions, both of which represent a challenge to decarbonization. As a result of these two emission sources, a combination of energy transition technologies and measures will need to be required to curb emissions from the sector. These include, hydrogen, CCUS, increasing process efficiency, and the use of biomass and waste as feedstock.

Key Highlights

• Almost two thirds of emissions from the chemicals industry come from energy use. Energy is used to heat and cool reactions, grind and mix compounds, and transport around the plants.
• In order to get on track with net zero emissions, ammonia needs to drastically reduce its petroleum dependency, going beyond the current policies set out. Upscaling of green hydrogen needs to be accelerated to decarbonize ammonia production.
• Methanol made up around half the primary chemical production in 2018 and is expected to see a demand increase of 17.56% from 2023-2030 due to rising demand from automotive and construction industries in developing economies
• Despite the ICCA claiming to support the Paris Climate agreement, the IEA considers the chemicals industry to be 'not on track' for its 2030 checkpoint
• Global carbon capture capacity within the chemicals sector is forecast to see a 14.2% CAGR from 2020-2030, with groundbreaking projects becoming operational in the next few years increasing capacity.

Scope

• The chemical industry's current contribution to carbon emissions
• Key chemicals for decarbonization
• Focus technologies for decarbonizing the chemical sector
• Carbon Capture, Utilization, and Storage (CCUS)
• Hydrogen
• Process efficiency
• Biomass and waste as feedstocks

Reasons to Buy

• Obtain the most up to date information on recent developments and policies effecting the chemical industry's energy transition.
• Identify key energy transition technologies for the decarbonization of the chemical industry
• Obtain market insight into current rates of technology adoption and the factors that will shape the sector's decarbonization.
• Identify the companies most active companies across CCUS, hydrogen, process efficiency, and feedstocks derived from biomass and waste within the chemicals sector.