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CHEMICALS & PHARMACEUTICALS DECARBONISING THE CHEMICAL INDUSTRY


Through innovation, collaboration, and a commitment to sustainable practices, we can create a future where the chemical sector thrives in harmony with the environment


a multi-pronged approach including: • Renewable Energy Procurement (Scope


Yash Chawla, chemical expert and Strategic Project Manager at STX Group, presents a roadmap to sustainable growth in the chemical industry


he chemical sector plays a vital role in our modern world, providing the building blocks for countless products and industries. However, this crucial function comes at a cost – the chemical industry is responsible for around 4% of global CO2 emissions, with primary chemicals production - such as ammonia, methanol and high-value chemicals - accounting for 70% of emissions. Decarbonising the chemical sector is no longer an option, it's a necessity. Thankfully, opportunities for change are powerful and varied.


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Regulations like the EU's Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM) are pushing for greater transparency and accountability. Also, end-customer demand for sustainable products is escalating, with major industries setting ambitious net-zero targets. Additionally, voluntary commitments such as SBTi validation from leading chemical companies further underscore the industry's commitment to a greener future. According to S&P Commodity Insights, more than 70% of the world's top 100 chemicals producers pledged to reach carbon neutrality by 2050.


Moreover, recent policy developments like the


Inflation Reduction Act (IRA) in the United States and the Renewable Energy Directive III (RED III) in the European Union are expected to significantly impact the chemical industry's decarbonisation efforts. RED III sets a binding target on member states that 42% of hydrogen used in industry (e.g., ammonia production) should come from renewable fuels of non-biological origin (RFNBO) by 2030 and 60% by 2035, potentially influencing the types of bio-based feedstocks adopted by the chemical industry. Understanding and


navigating these evolving policy landscapes will be essential for chemical companies to maximise the effectiveness of their decarbonisation strategies.


Decarbonising the chemical sector is a complex undertaking. The industry is characterised by intricate value chains with numerous sub-sectors and a heavy reliance on fossil fuel-based feedstocks. Global chemical production is projected to see an average increase of around 13% for primary production by 2030 compared to 2022. This presents a crucial window for the industry to innovate and embrace sustainable practices. One of the most promising avenues for decarbonisation lies in the adoption of bio- based feedstocks. Replacing fossil fuels with renewable alternatives like advanced biofuels and biomethane (RNG) offers a significant reduction in greenhouse gas emissions across the entire value chain. This is particularly impactful when considering Scope 3 emissions, a crucial aspect for the chemical sector. While Scope 1 (own emissions from production) and Scope 2 (emissions from purchased electricity) are significant contributors (around 17% and 7% respectively), Scope 3 Category 1 (emissions from purchased goods and services) represents 44% of the chemical industry's total emissions. The key here lies in the fact that today's primary chemicals are largely produced using fossil fuel-based feedstocks. By transitioning to renewable sources of chemical feedstock, we can significantly reduce these upstream Scope 3 emissions associated with our supply chain.


A truly sustainable chemical sector requires


2): reduction of the environmental footprint across the entire value chain by utilising renewable energy sources like solar and wind power, backed by instruments like Energy Attribute Certificates (EACs). • Bio-based Solutions (Scopes 1 & 3): minimisation of emissions throughout operations by replacing conventional feedstock with biofuels and bio-feedstocks. • Energy Efficiency Optimisation (Scope 1): Implementation of energy-saving measures and technologies to minimise energy consumption and associated emissions within the production processes. • Carbon Capture and Storage (Scope 1): Capture of unavoidable CO2 emissions from production for safe underground storage (CCS) - enabling "blue" products like ammonia or hydrogen. • Voluntary Carbon Markets:


Compensation of any remaining emissions by financing carbon avoidance, removal and reduction projects globally. • Compliance with regulations like the EU Emissions Trading Scheme (ETS), Carbon Taxes, and CBAM. • Material Circularity (recycling) and


electrification (heat recovery, biomass boilers)


As an example, the transition towards sustainable methanol production is essential for decarbonising not only the chemical industry but also related sectors like transportation. Bio-methanol produced from renewable feedstocks like biomethane or biomass gasification offers a significant reduction in emissions compared to conventional methods. Similarly, e-methanol produced using renewable electricity and captured CO2 boasts an even lower carbon footprint.


Ammonia (NH3) is another critical chemical undergoing a green transformation. Advancements in electrolysis technology are paving the way for "green" ammonia production using renewable electricity and nitrogen from the air. This breakthrough holds immense promise for the fertiliser industry, enabling the production of clean fertilizers that can nourish crops without harming the environment.


STX Group stxgroup.com


JUNE 2024 | PROCESS & CONTROL 25


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