Sustainability, Energy Transition, ESG | Weekly Thematic

Decarbonization Will Take The Last Fizz Out Of Chemical Profits
September 8, 2023
Companies Mentioned:
Origin Materials, Nutrien, Orsted, Dow, ExxonMobil
Commodities Mentioned:
Hydrogen, Methanol, Ammonia, Natural Gas, Polyethylene, Polymers, Packaging, Fossil Fuels, Batteries, EVs, Lithium, Nickel
Subjects Covered:

C-MACC Weekly Sustainability and Energy Transition Report

Decarbonization Will Take The Last Fizz Out Of Chemical Profits

  • As chemical industry margins fall globally, the expense of options to decarbonize becomes a larger portion of a smaller capital pie – maybe too large.
  • Escalation in cost estimates for clean projects does not help: US offshore wind is the best current example – higher power cost expectations will change many plans.
  • Despite losses in chemicals, China is pushing ahead with green/clean projects quickly. Costs are low and low-cost/low-carbon products from China are coming.
  • The shipping fuel debate continues, and the only broad agreement is that change is coming – we see roles for methanol and ammonia – skeptical about hydrogen.
  • Otherwise, we look at other challenges with blocking China’s influence in energy transition, and we talk about the consequences of higher power costs from wind.

See PDF below for all charts, tables and diagrams


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