The Intelligent Enterprise for the Chemicals Industry. Our 2023 chemical industry outlook explores four trends that are top of mind for business leaders in the year ahead. With ever-evolving climate change accords and pressure to decarbonize and achieve net zero, major chemical producers have developed aggressive goals and announced major investments. CMR is a consulting firm specializing in chemicals, petrochemicals, polymers, and plastics. Abstract. However, sustained investments in the U.S. chemicals industry are expected to continue the strong growth in domestic bulk chemical production. The following represent the decarbonization avenues available for the chemical industry. Strategic intent Tactical and long-term low carbon objectives. If we do not meet the 2030 goal, it is theoretically possible to catch up if the actions we take now enable us to accelerate emissions reductions in the 20 years after. But there is no escape from it and a strong start needs to be made from now. The results are expected in mid 2022. It . Green hydrogen for decarbonizing the chemical industry. The zero-carbon transformation of the chemicals industry is critical to the national goal of carbon neutrality and the low-carbon transformation of the global chemicals value chain. The chemical sector is the largest emitter of U.S. industrial greenhouse gases (though a much smaller proportion of global emissions) because chemicals are essential building blocks in making plastics, rubbers, foams, dyes, adhesives, soap and detergent that contribute to the manufacture of clothing, packaging, appliances and electronics, vehicles and machinery, office and industrial equipment, pharmaceuticals, personal care products, building materials, furniture and healthcare tools. Something went wrong. Key improvements These are more difficult than the quick wins, and some of them may not be in the direct control of the industry. The racecourse on which US chemical companies run has been dramatically altered in 2022, setting the trajectory for the next major change and greater . Some can be implemented in a short time while others would need fundamental changes from selection of feedstocks to the chemistries to the entire manufacturing chain requiring very long time frames. And it presents some big potential opportunities for the chemical industry. While the diversity of businesses, products, facility sizes and configurations tend to preclude one-size-fits-all solutions for industrial emissions, there are several overarching challenges and cross-cutting solutions that apply across the sector. Co-processing of CO 2 in oxidative dry/wet conversion of methane is one of the examples, which provides an efficient solution for CO 2 utilization. The United States is beginning to offer incentives in the industrial sector through tax credits, financing tools and by investing significant dollars into research, development, demonstration and deployment (RDD&D) programs. By 2025, U.S. exports should reach $182 billion. The full benefits of these will be available only post 2030. Ammonia, methanol, and ethylene will be key focuses of China's chemicals industry decarbonization. Dickon Pinner is a senior partner in the San Francisco office, and Ken Somers is a partner in the Antwerp office. A low-carbon product standard for steel in the United States could spur adoption of these technologies while keeping U.S. steel competitive internationally. The chemical industry along with cement, iron and steel, shipping, and aviation are among the hard-to-abate sectors. By Siemens Energy September 30, 2022. Although this approach costs more than electrification or hydrogen usage, it abates emissions from both the production process and from end-of-life product disposal (for example, incinerating plastic made from ethylene). Hydrogen is widely seen as a vital key to sustainability, and to helping to meet EU goals for the reduction of CO 2 emissions. Pursue recycling and material efficiency through alternative packaging and package waste reduction, Evolve existing processes to reduce waste, including circular economy approaches for concrete construction, Improve materials and energy efficiency with deployment of breakthrough technologies and innovative chemistry solutions, Increase use low carbon binding materials and natural supplementary cementitious materials to lower the carbon-intensity of clinker and solid materials used to create cement, Strategic energy management approaches to optimize performance of industrial processes at the system-level, Systems management and optimization of thermal heat from manufacturing process heating, boiler, and combined heat and power (CHP) sources, Smart manufacturing and advanced data analytics to increase energy productivity in manufacturing processes, Electrification of process heat using induction, radiative heating, or advanced heat pumps, Electrification of high-temperature range processes such as those found in iron, steel, and cement making, Replacing thermally-driven processes with electrochemical ones, Integration of hydrogen fuels and feedstocks into industrial applications, Post-combustion chemical absorption of CO, Development and manufacturing optimization of advanced CO, Development of processes to utilize captured CO2 to manufacture new materials. This is an exciting area of research and piloting currently, as it has the potential to provide abatement at scale as well as new business opportunities for many stakeholders (think CO2 based chemicals, fuels, concrete). Energy Efficiency in California's Chemical Industry The chemical and petrochemical industry is the largest consumer of energy among industrial sectors in California and is one of the top GHG emissions-intensive industries as well. Construction companies may be unable to buy concrete made from zero-carbon cement since it is not yet included in building codes. The U.S. Department of Energy (DOE) today issued a $70 million funding opportunity announcement to establish its 7th Clean Energy Manufacturing Innovation Institute. As can be observed from the exhibit, DSM has committed to cut emissions by 30% from 2016 levels and Dow and LyondellBasell have committed to cut emissions by 15% from 2020 and 2010 levels, respectively. Ammonia, cement, ethylene, and steel are commodities, so cost is the decisive consideration in purchase decisions. This category only includes cookies that ensures basic functionalities and security features of the website. Three such intents can be considered: Quick wins These are decarbonization wins that the chemical industry can achieve in the short and medium term through smart process tweaks and intelligent use of digital technologies to drive efficiencies CCUS and switching to clean hydrogen fuel to generate heat can eliminate most emissions. SAP is ready to help chemical companies move toward a low-carbon economy to meet the requirements of their value chains and policy makers. In this context, decarbonization refers to 10 Joule 1, 10-14, September 6, 2017 2017 Elsevier Inc. Bio-based alternatives Bioplastics are an obvious example of fossil feedstock being replaced by a renewable feedstock embodying much less net carbon compared to synthetic plastics. Please correct the marked field(s) below. It also includes $4 billion for deploying advanced technologies that can accelerate emission reductions at industrial facilities. Pressures from government agencies, investors, and consumers are, however, driving decarbonization commitments in the chemical industry. The path to net zero in the chemicals and related industries will rely on a mix of known and novel process technologies. Challenges and opportunities coexist to transform this sector. Reducing these emissions by switching to alternative fuels, such as zero-carbon electricity, would be difficult because this would require significant changes to the design of furnaces. A price on carbon has been viewed as the most efficient way to reduce emissions throughout the economy. The chemical industry has a CO 2 problem. France has laid out a new roadmap for the decarbonisation of its chemical industry, including a new target of 31% lower emissions by 2030, and concrete steps for lowering emissions across the sector - the UK and Germany laid out a similar roadmap in 2015 and 2019 respectively. In this context, decarbonization refers to the reduction of atmospheric carbon dioxide emissions. Decarbonization and Electrification in the Current Industry In order to decarbonize the chemical industry, we need to reduce carbon dioxide emissions by closing and moving beyond the current carbon cycle . Infrastructure: A second near-term opportunity is providing federal support for an initial build-out of infrastructure, such as carbon dioxide and hydrogen pipelines, that will be essential for decarbonizing the chemical industry. Collaborations like the Industrial Innovation Initiative are bringing key industry actors and environmental groups together to identify policies needed to foster this new low-carbon industrial revolution. Subscribe to our FREE Newsletter & Stay Updated. It can be used to decarbonize the processes used to produce iron and ammonia, for example, or to convert CO 2 back into hydrocarbons . Today, the U.S. Department of Energy announced its intent to issue a funding opportunity that will support the development of a Clean Energy Manufacturing Innovation Institute dedicated to rapidly decreasing emissions across the industrial sector Funding Will Expand Cohort of Colleges and Universities Helping Local Manufacturers Reduce Carbon Footprint, Lower Energy Costs, and Expand the Energy Workforce. Decarbonization efforts include: Post-combustion chemical absorption of CO 2 Development and manufacturing optimization of advanced CO 2 capture materials that improve efficiency and lower cost of capture Development of processes to utilize captured CO2 to manufacture new materials Key Recommendations from the Industrial Decarbonization Roadmap Many companies in the chemical industry are committing to ambitious goals to reduce their CO2 emissions and ultimately achieve net zero status by 2050. Incentives for carbon capture are greeted with skepticism from some climate advocates who fear that it will lock in fossil fuel infrastructure and could contribute to continued reliance on fossil fuels at the expense of increasing the use of renewable energy. In 2022, the chemical industry will likely have a sharper focus on decarbonization strategies due to increased attention from stakeholders, regulatory change, and technology innovation. this perspective describes the challenges and opportunities to decarbonize the chemical industry via electrification powered by the low-emission electric power sector, both in the near-term and.

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