With an additional investment of $759 billion, petrochemical products can have almost no carbon emissions.
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As reported in New York on May 24, 2022, according to a latest report by research firm BloombergNEF, through additional investments of $759 billion by 2050, petrochemical products could have almost no carbon emissions. Electrification and carbon capture and storage (CCS) technologies may play a key role in reducing carbon emissions from the production of high-value chemicals (HVCs). HVC is a key raw material for manufacturing plastics and many finished products. HVC’s carbon emissions account for 2% of the global total, which is equivalent to those from the aviation industry and twice that of the aluminum industry. Countries and enterprises are working to drive emissions reductions in the petrochemical industry by 2050. Although the decarbonization pathway facing the petrochemical industry is more complex than that of any other industry, compared to other heavy carbon-emitting sectors such as steel and cement, the net-zero goals of petrochemical producers cover a larger share of global manufacturing capacity. A report titled “Decarbonizing Petrochemicals: Pathways to Net Zero Emissions” published by BloombergNEF outlines pathways to low-emission chemicals and explains how reducing the costs of CCS and electrification can enable emissions to be brought down to net zero despite significant increases in total production. Bloomberg New Energy Finance estimates that, compared to normal capacity growth, new clean capacity and upgrades to reduce emissions will cost the petrochemical industry an additional $759 billion. According to Bloomberg New Energy Finance, decarbonizing the global energy sector by 2050 will require $172 trillion, and this represents approximately 1% of that amount.
Without the help of refineries, the petrochemical product supply chain cannot be decarbonized. Currently, most of the world’s supply of aromatic hydrocarbons is sourced as a by-product of fuel production by refineries, and these aromatic hydrocarbons are key chemical components in products such as PET bottles. Under net-zero emissions, as the demand for transportation fuel reaches its peak, refineries will cease operations by 2030, after which the electrification of passenger vehicles will lead to a decline in fuel demand. This creates a shortage in the supply of aromatic hydrocarbons, which can currently only be addressed by using green methanol as a raw material – an expensive approach that will triple the prices of many chemicals. This process will account for 20% of chemical production, compared to 0% at present, unless refiners significantly shift their focus to chemical production while decarbonizing their operations. Research by Bloomberg New Energy Finance shows that by 2050, despite significant cost reductions, the costs of low-carbon pathways will still be higher than current production costs. This could lead to a persistent green premium and create strong incentives to replace or reduce the use of plastics and chemicals in the market in order to meet net-zero targets. Chemicals are key inputs in many industrial supply chains, so decarbonizing them may increase costs across various industries. Unless costs fall rapidly, taxpayers are likely to foot the bill for long-term emissions reductions by raising prices or providing subsidies. Ilkhan Savot, a sustainable materials analyst at BloombergNEF and the lead author of the report, said: “If the petrochemical industry wants any chance of achieving net-zero emissions, it must start making substantial capital investments by 2030.” ”“In the short term, deploying these technologies will be costly, but it can put the petrochemical industry on a path to low-cost decarbonization. Given the long asset lifespan of chemical companies, they must act swiftly to fund net-zero projects as soon as possible, otherwise they risk being left out of key technologies. Today’s investment will be key to managing long-term costs and paying dividends after 2035. ” If green plastics are burned at the end of their useful life, they are no longer zero-emission. “Although many net-zero targets do not include Scope 3 emissions, customers and investors will associate burned plastics with oil and chemical companies, just as they do with plastic waste. The entire supply chain is a problem for plastic producers,” said Julia Atwood, head of Sustainable Materials at BloombergNEF. “The low-carbon petrochemical industry will need actions in the area of circular economy.” Producers are already working with refineries and waste management agencies to obtain recycled and low-carbon raw materials. ” Although currently most zero-carbon capacity is driven by customer demand for sustainable plastics, policymakers can also initiate the decarbonization of the petrochemical industry. Carbon pricing is often touted as a lever for decarbonization, but very high prices are needed to drive change. At $250 per ton of carbon dioxide, 80% of the net-zero emission HVC capacity will be competitive. Currently, the price of carbon dioxide emissions in Europe is around $90 per ton, while industrial emitters pay a significantly lower price, thanks to generous free quotas. The report states that to encourage faster action, **long-term subsidies can be provided to early adopters to justify higher production costs, and investments can be made in infrastructure such as carbon dioxide transportation and storage networks, as well as power grids that supply clean electricity 24/7 (24 hours a day, 7 days a week).**
Just by looking at the title, you can tell it’s a pretty fantasy from the United States!
Use a sensational title to attract attention
Latest reports on carbon sequestration technologies: 1. Production of starch from carbon dioxide； 2. Production of formic acid from carbon dioxide ； 3. Producing gasoline from carbon dioxide ； I think these technologies are certainly good, but once the issue of clean energy is resolved, such as through nuclear fusion power generation, carbon emissions will be easily addressed.
It would be great if nuclear fusion power generation could be achieved, but other methods cannot be ruled out