On the path to climate neutrality

Just about everything involves chemicals - the sector is vital for numerous industries. The problem, however, is that the chemicals industry consumes huge amounts of energy and emits large quantities of greenhouse gases. The good news, on the other hand, is that the sector has recognised the problem and is working intensively on solutions to decarbonise its processes. 

“Though the goal of moving towards climate neutralitycouldn’t be more clear, totally transforming our energy-intensive industry is an incredibly complex business,” says Wolfgang Große Entrup, CEO of the German Chemical Industry Association (VCI). To achieve greater clarity, the VCI and the Association of German Engineers (VDI) jointly created the climate action platform Chemistry4Climate (C4C). Between 2021 and 2024, this broad-based and publicly funded initiative developed various scenarios and possible solutions for achieving climate neutrality in Germany’s chemicals industry. 

Scenarios for a climate-neutral chemicals industry 

Three central scenarios defined within the framework of C4C describe the different transformation paths: 

• Maximum direct use of renewable electricity: the focus here is on electrifying processes with a view to replacing fossil energy sources for the most part. 
• Emphasising hydrogen and power-to-X technologies: in this scenario, green hydrogen plays a key role as a substitute for fossil resources and fuels. 
• Secondary resources in the spotlight: the focus here is on a circular economy and chemical recycling so that the carbon demand of the chemicals industry can be met to the greatest extent possible by waste products. 

It is clear from these scenarios that transforming the industry will require massive investment. It is estimated that a greenhouse gas-neutral chemicals industry could consume more than 600 terawatt hours (TWh) of electricity per year by 2045 – compared to a Germany-wide figure of 464 TWh in 2024. “Transforming the chemicals industry is particularly challenging because it involves not only the supply of energy but also the raw materials upon which its products are based,” says Dieter Westerkamp, head of the VDI’s Technology and Society division. 

Challenges: infrastructure, raw materials and regulations 

The availability of green electricity is one of the biggest obstacles on the path to climate neutrality. The expansion of renewable energies and of the grid infrastructure must be accelerated to ensure a sufficient supply for the energy-intensive chemicals industry. 

There is also the question of how to meet the demand for sustainable raw materials. Biomass, plastic waste and carbon play a vital role in all the scenarios. That said, other sectors that are likewise aspiring to climate neutrality will be competing to use them. 

Regulatory uncertainties make the transformation even more difficult. The chemicals industry wants clear policy frameworks to enable it to make the necessary investments. Despite these challenges, many companies are already taking action and implementing climate protection projects.  

Hopes pinned on hydrogen 

One promising approach when it comes to producing climate-neutral hydrogen is methane pyrolysis. BASF in Ludwigshafen for example is trialling a pilot facility at which methane is split into hydrogen and solid carbon - without producing any direct carbon emissions. This method could allow hydrogen to be extracted in a significantly more energy-efficient manner than using electrolysis.  

Thyssenkrupp Nucera in Dortmund is industrially ramping up water electrolysis and researching the use of smelter gases for chemical processes. This technology should make it possible to produce hydrogen on a grand scale using renewable energies. 

The PtX Lab Lausitz is one of the most important research institutions for power-to-X technologies. It is helping chemicals companies and other industrial firms to produce carbon-neutral chemicals using renewable electricity. One particular focus is on methanol synthesis, which involves turning hydrogen and carbon into methanol - an essential raw material in the chemicals industry.