Sustainable Feedstocks and Facility Integration Shape the Petrochemical Industry

Sustainable Feedstocks and Facility Integration Shape the Petrochemical Industry

This Frost & Sullivan study analyzes the competitiveness and dynamics of the various types of feedstocks available for the petrochemical industry, with the intention of revealing how the growing concerns and the subsequent efforts to reduce the use of fossil fuels in transportation and energy industries will impact the availability of fossil-based petrochemical feedstocks.

In the net zero emission (NZE) scenario examined in this study, stakeholders in transportation and energy sectors are expected to reduce emissions through decarbonization, and electrification, among many other energy efficiency levers. The study concludes that stakeholders will evaluate the use of alternate feedstocks to produce petrochemicals in a way that is both sustainable and profitable.

While the emissions in the petrochemical industry can be attributed to processes and feedstocks, this study covers the nature and footprint of feedstocks used in petrochemical production. The energy aspect is covered in Frost & Sullivan’s report on decarbonization and associated processes. This analysis includes petrochemicals manufactured from hydrocarbons and from sustainable sources.

Finally, five key trends in the petrochemical industry are examined in this report: fossil-based (conventional) feedstocks, crude-oil to chemicals (COTC), carbon capture and storage (CCUS), recyclates and bio-based feedstocks, according to their degree of advancement, market opportunities, and key challenges in each of these segments.

RESEARCH HIGHLIGHTS

Furthermore, Frost & Sullivan’s research into the future of petrochemicals amidst the rapidly changing regulatory landscape, consumer preferences, government initiatives, and environmental priorities leads it to believe that the industry will be influenced by dynamics at three different levels.

Customer needs are changing—consumers’ opinions on plastic packaging, recyclable products, and ‘natural’ products will accelerate the development of alternate feedstocks, efficient processes, and enabling technologies. Regulations in the end industry, such as the plastic ban, and the phasing out of hazardous chemicals, will boost the need for newer, safer, and more sustainable feedstocks.

Petrochemical companies strive to improve efficiency in their processes to boost productivity and profitability. Integrating refineries (both fossil-based and bio-based) to yield a higher share of petrochemicals will be a key strategy.

Breakthrough technologies such as COTC, CCUS, and petrochemicals produced from recyclates and bio-origin feedstocks will necessitate partnership opportunities among stakeholders across the petrochemical value chain.