Future of an Eco-friendly Chemical Manufacture Sector

The European chemical industry, a significant contributor to the continent's economy, accounts for approximately 6% of the annual global greenhouse gas emissions. Currently, recycling in the EU only accounts for 12% of total plastic consumption, highlighting the need for more sustainable practices.

A recent development in the pursuit of a greener chemical industry is the joint work by Fraunhofer ISE and partners such as the Öko-Institut, the Albert-Ludwigs-Universität Freiburg, and the Hochschule Offenburg on the research project "IND-E". This project aims to develop electrification solutions for the German chemical industry, with the ultimate goal of decarbonisation.

One of the most promising solutions is the eFurnace, a central example of electrification possibilities in the chemical industry. The eFurnace targets the largest process-related CO2 source in the value chain: the steam cracker. Studies suggest that commercial eFurnaces could save at least 90% of the direct CO2 emissions from steam cracking.

However, covering the remaining 86% of the chemical industry's energy demand from renewable sources is a financial and planning challenge. Currently, renewable electricity accounts for only about 14% of the chemical industry's energy supply. To meet this challenge, the EU may need to consider increased imports to maintain biomass availability.

Particularly suitable biomass sources are plants rich in starch, sugar, or lignocellulose. However, it's crucial that biomass should not compete primarily with food production. Potentials from biowaste and residues from grain and wood production should be exploited instead.

A climate-compatible realignment of agriculture and nutrition could reduce the need for feed crop cultivation, further supporting the biomass supply. For instance, Covestro, a key player in the industry, commissioned the world's first pilot plant for bio-based aniline at its site in Leverkusen in 2024. Aniline is a key intermediate product in the production of polyurethanes.

The German chemical sector currently requires around 15 million tonnes of carbon annually for material input. In the future, reducing the use of fossil raw materials as much as possible and guiding the used carbon in closed cycles will be essential for a sustainably long-term industry.

In 2023, the chemical industry's energy demand in Germany was approximately 171 TWh, with more than half coming directly from fossil sources. To achieve net-zero emissions, it's necessary to transition away from these sources.

Together with project partners SABIC and Linde, BASF SE is testing the two first electrically heated cracking furnaces worldwide (one directly electrified, the other indirectly) with funding from the Ministry of Economics until 2026. These tests mark a significant step towards a more sustainable future for the chemical industry.

As the EU and its chemical industry strive for a greener future, it's clear that electrification and bio-based solutions will play a crucial role. With the right strategies and partnerships, it's possible to transform the chemical industry and significantly reduce its carbon footprint.