Monthly Thematic Piece

A Global Industrial Revolution? Risks and Opportunities For Chemicals
October 9, 2020
Products Mentioned:
Ethylene, Ethylene Vinyl Acetate (EVA), Polyethylene, PVC, Carbon Fiber, Silicon, Epoxies, Hydrogen, Lithium, Specialty Polymers
Companies Mentioned:
LyondellBasell, Wacker Chemie, Tokuyama, Dow, Celanese, Air Products, Lotte Chemical, Westlake, Shintech, Formosa, OxyChem, Ineos, SABIC, CP Chem, Kraton, Borealis, DuPont, Lanxess, Huntsman, Albemarle, OIln, SQM, Hexcel, Livent, Solvay, Tianqi, Ganfeng
Subjects Covered:
Climate Change, Clean Energy, Energy Transition, Incentives, Carbon Capture, Recycling, Renewable Polymers, Low Carbon Heat

C-MACC Perspectives 28 – Energy Transition/Plastic Waste

 

A Global Industrial Revolution? Risks and Opportunities For Chemicals

 

  • While investment in a carbon neutral world will be substantial, we have not seen a credible analysis that suggests it will be a meaningful boost or drag to global GDP, with the risk of mismanagement leading to a drag on growth, offset by the same mismanagement resulting in likely over-spending.
  • Chemical companies without a decarbonization plan could get dragged into the “bad fossil fuel” bucket and see more expensive, or hard to get, funding as well as continued downward pressure on equity multiples. The same issues may arise on the plastic recycling front if positive posturing does not become more positive action – this is not a problem that polymer producers can solve alone.
  • We see opportunities for those companies with a vision of what they need to look like in 10-15 years, and who start to act on it, to outperform those who hope that no-one notices them and see business as usual as the right path.

See PDF below for all charts

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