Page 131 - CW E-Magazine (22-4-2025)

Point of View

Hard, expensive choices make decarbonisation

of chemical industry a risky proposition

Decarbonisation or removal/reduction of carbon dioxide (CO ) output into the atmosphere is a growing demand from governments and civil
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society. In the chemical industry – as many others – decarbonisation is a hot topic and refers not to the embedded carbon in the molecular
architecture of products made, but to the carbon footprint left in the wake of a products manufacture, use and disposal.

The $4.7-trillion global chemical industry accounts for about 2% of total carbon CO emissions globally – about 925-mt annually. This
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is the target for reduction, and a challenging one at that. One that the industry has only just started to emphasise, by deploying a slew of
approaches, including some novel technologies that are only now out of laboratories and being taken down the arduous path of commercialisation.

The use of bio-based raw materials as an alternative to petroleum-based feedstock and the greater emphasis on recycled materials
(especially polymers) are two well-known approaches to decarbonisation commercially deployed at scale. So are use of process efficiency
improvements; deployment of digital technologies; and low- and/or no-carbon energy sources. But there are several other initiatives at early
stages of the technology curve that can have an impact. These include use of green hydrogen and nuclear energy; electrification of chemicals
production, notably of ethylene; carbon capture and storage (CCS); and carbon capture and utilization (CCU).

Process efficiency improvements
Efficiency improvements in materials and energy usage are low-hanging fruits that have quick and significant paybacks. They are typically
low-cost and regulatory friendly (meaning there are no cumbersome approvals) and can offer a 5-10% reduction potential in carbon emissions.

A few such measures include improved heat integration, including usage of waste and low-grade heats; improvement in energy efficiency
of existing equipment, such as chillers, pumps, etc.; replacement of older equipment with contemporary ones; and close performance
monitoring of equipment such as heat exchangers, pumps, etc. using sensors, to ensure design-level performance.

Digital technologies like Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and Digital Twins are aiding this task,
enabling the chemical industry reduce resource & energy consumption, improve efficiency, and so drive decarbonization. These technologies
help in optimizing processes, predicting maintenance needs, and calculating carbon footprints, leading to more sustainable practices and
lower emissions.

Digital technologies can, for example, facilitate integration of heat from different processes, reducing energy waste and increasing overall
efficiency. AI and ML can predict equipment failures, allowing for proactive maintenance and reducing downtime, which in turn minimizes
energy waste and emissions. Real-time data from sensors can be used to monitor energy consumption and identify areas for improvement,
leading to more efficient use of resources and reduced emissions.

Embracing renewable energy
The chemical industry is also turning to renewable energy (RE) – solar, wind or biomass-derived – in a more concerted manner. In India,
several companies have opted to switch from fossil- to biomass-fired boilers for generation of steam and electricity, aided by the emergence
of a growing ecosystem for supply of densified biomass at scale. While the sugar industry has for long used bagasse in its boilers for steam
generation, several chemical units have also re-engineered steam generation plants (or installed new ones) to accommodate biomass –
partly or fully.

According to an analysis carried out by McKinsey, a consultancy, newer approaches to steam generation can afford reductions of 25-30%
on the chemical industry’s carbon footprint (in a European context). In the more fragmented Indian chemical industry, these savings may
not amount to that much but will still be significant.
Another approach that has gained momentum is to invest in captive solar and wind energy projects to meet energy needs (if only
partially), or to sign power purchase agreements with third-party RE players.

Going nuclear
An interesting dimension in use of low-carbon energy – electric and thermal – is the possible deployment of nuclear energy to meet the
needs of large petrochemical complexes. In the US, the petrochemical company Dow, is partnering with X-Energy, a nuclear fuel & power

Chemical Weekly April 22, 2025 131

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