Sustainability, Energy Transition, ESG

It Could Be Worse; We Could Be in Europe!
April 19, 2024
Companies Mentioned:
ExxonMobil, SABIC, Linde, Gevo, INEOS, ABB
Commodities Mentioned:
Ethylene, Carbon, Hydrogen, Natural Gas, Ammonia, SAF, Polystyrene, Polyethylene, Polypropylene, PET, RNG, Lithium
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly Sustainability and Energy Transition Report

It Could Be Worse; We Could Be in Europe!

  • 1st Topic of the Week: Planning departments within European chemical companies are likely trying to understand how their business has a future and, for some, whether it has one at all. Outside of chemicals, plenty of other energy-intensive industries face some of the same challenges. We struggle to find solutions for many.
  • 2nd Topic of the Week: The China manufacturing dominance headlines continue, and clearly, the country’s best interest is not served by cutting back manufacturing at a time when the local economy has been underperforming and other key sectors, such as construction, are suffering.
  • Otherwise: We study the challenges of competing with the food chain for fuels and the high cost of lowering carbon intensity, the need for global carbon values, why the electrical equipment/control companies could do well, and spending estimates.

Exhibit 1: We highlight a few examples of US chemical production cost advantages relative to Europe, with ethylene continuing to hold the most pronounced advantage relative to most other upstream petrochemicals.

Source: Bloomberg, C-MACC Analysis, April 2024

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