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Implications of Climate Change for the Petrochemical Industry: Mitigation Measures and Feedstock Transitions

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Handbook of Climate Change Mitigation

Abstract

For the past 50 or more years, society has been increasingly reliant on the products of the organic chemical industry to supply the clothes we wear, the food we eat, our health, housing, transportation, security, and other commodities. Approximately 92% of organic chemical products are produced from petroleum, that is, fossil, or mineral, oil, and gas. In addition, these same resources are generally used to provide the large quantities of process heat and power needed by the industry. In the modern petrochemical industry, oil and gas inputs for both raw material and process energy compose around 50% of the operating costs.

The result is that not only is the chemical industry (including petrochemicals) the industrial sector with the highest emissions worldwide, it is also very vulnerable to variations in fossil fuel prices and carbon prices. Thus, efficiency has long been a major factor in determining competitiveness in petrochemicals, and the sector has a high success rate in reducing its energy intensity. Despite this, over the past decade, while total use of oil has grown globally at a rate of 1.4% per year over, the use of oil for chemical feedstocks has grown at about 4.0% per year. Reducing greenhouse gas (GHG) emissions in an industry that is so dependent on fossil fuels presents a significant challenge that has begun to receive serious attention from researchers and businesses alike.

This chapter introduces the history of the modern chemical industry and the establishment of its close relationship with the oil industry – a relationship that has recently come under strain. It goes on to describe some of the major chemical processes, their GHG emissions, and their geographical variations. The main focus of the chapter is a discussion of the benefits and challenges of three main technological mitigation options: efficiency gains, CO2 capture and storage, and feedstock switching. The interaction of these options with the main climate policy instruments in Europe, and worldwide, is considered.

The concept of “biorefining” for bio-based chemicals is given particular prominence for its potential to deliver renewability, low CO2, and energy/feedstock security in the long term. However, establishing new production routes based on biomass in Europe is shown to face considerable social, technical, and economic obstacles to reaching a scale that can contribute valuable emissions reductions.

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Bennett, S.J. (2012). Implications of Climate Change for the Petrochemical Industry: Mitigation Measures and Feedstock Transitions. In: Chen, WY., Seiner, J., Suzuki, T., Lackner, M. (eds) Handbook of Climate Change Mitigation. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7991-9_10

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