The chemical industry’s job of turning raw materials into chemicals for industrial and consumer use is vital for a strong global economy, writes Diana Garcia
The International Energy Agency currently ranks the chemical sector as not on track to meet its CO2 emissions reduction targets. Direct CO2 emissions from primary chemical production remained relatively constant (around 935 Mt) in 2022, largely due to a stagnation in production.
Industry emissions must peak, however, in the next few years and then start to fall towards 2030 – reaching an 18 per cent reduction compared to 2022, despite an increase in production.
Chemicals manufacturing is the largest industrial energy consumer and the third largest industry subsector for direct CO2 emissions. This is largely because most of the industry’s energy outputs are consumed as fossil fuel feedstock, including coal, oil and gas, and is the reason the IEA suggests its main pathway to decarbonisation is through carbon capture, utilisation and storage (CCUS). This is along with the use of electrolytic hydrogen.
Yet, while there has been some progress in the adoption of CCUS within the chemicals sector to meet the Paris Agreement goals, progress needs to move much faster. So, why carbon capture? CCUS technology has existed since the 1970s. It captures 45 Mt CO2 globally every year, with around 300 projects in development. This is unlike electrolytic hydrogen production where the technology is not yet deployed at scale.
The most advanced and predominantly use of CCUS technology is amine-based absorption, which can capture up to 95 per cent of CO2 emissions from industrial processes. Once captured, the chemical compound is transported through a pipe network or across land for underground storage in geological formations.
Alternatively, it can be used in products such as concrete, plastics, and even synthetic fuels. It’s clear the chemical industry is already, to some degree, embracing the technology. At the end of 2023, the ethanol industry had the second largest number of CCUS facilities worldwide, while hydrogen, ammonia and fertilisers combined came in fourth.
In fact, global carbon capture capacity within the chemicals sector is forecast to see a compound annual growth rate of more than 14 per cent by 2030, with ground-breaking projects becoming operational in the next few years, increasing capacity. And IEA predicts that by 2050 up to 56 per cent of primary chemicals production will be CCUS-equipped. As the industry is a producer and potential consumer of CO2, and many products and processes associated with organic chemistry require carbon to form complex compounds, it makes sense.
It’s clear the industry sees that captured CO2 has high potential for replacing fossil fuels as carbon feedstock, while also helping it meet its decarbonisation obligations. Along with industry, governments are also recognising the potential of CCUS more broadly, with several countries, including France, the UK and Germany, having established roadmaps and strategies to support its development. But undoubtedly more needs to be done.
Before adopting CCUS technology there will be technical considerations and adaptations to consider. For example, steam is used in the process, so operators will need to think about where this will come from. And heat is produced which needs to be managed and could even be funnelled for use in existing heating processes within the plant, improving the overall project economics. There is also room for more advanced CCUS technology that could improve on efficiency and be better tailored
to the chemicals sector.
Beyond the technical application, there are other challenges to the adoption of CCUS. As with any plant upgrade, the technology requires upfront investment which can be difficult for a sector under cost pressure. It’s hoped an upward trend in Europe’s Emissions Trading Scheme may support the economics to justify investment. The EU’s new Carbon Border Adjustment Mechanism, which puts a price on carbon for some goods entering the EU, including fertilisers and hydrogen, could also support domestic industries.
Industry is responding with various initiatives and dedicated facilities. For example, Imperial College London in the UK has the world’s first educational institution with a Carbon Capture Pilot Plant teaching facility
However, uncertainty in these areas, along with sometimes inconsistent government policies, still present challenges to making such long-term investments. Another issue is the European-wide skills shortage affecting myriad sectors, including chemicals. The increased use of CCUS in hard to abate industries as part of the energy transition will undoubtedly require new skill sets to be developed. This will be needed to not just operate the technology but to improve it, to maximize its potential as a way of reducing carbon emissions.
Industry is responding to this problem, however, with various initiatives and dedicated facilities. For example, Imperial College London in the UK has the world’s first educational institution with a Carbon Capture Pilot Plant teaching facility. The four-storey plant is fitted out with ABB’s distributed process control system and the latest generation measurement instruments and software, preparing the next generation of carbon capture and process engineers.
Until the world achieves new levels of energy efficiency and shifts completely to a renewable energy and storage system, carbon capture will be an essential part of the decarbonisation equation.
Together with an improvement of process efficiency, the recycling of chemicals towards a circular economy, and the use of hydrogen and biomass as feedstocks, CCUS can potentially be seen as a game-changer.
Diana Garcia is industry Segment Initiative leader, ABB Measurement and Analytics