Net Zero Industry Tracker 2024 Primary Chemicals

Infrastructure Transitioning to a net-zero chemicals industry by 2050 will require concerted investment and infrastructure development in CCUS, hydrogen production and clean energy generation. Presently, there are limited operational CCUS facilities, with most focusing on fossil fuel processing and industrial applications. Current capacities are insufficient, as less than 1%497 of CCUS infrastructure and clean power infrastructure required by 2050 is available for the industry. The chemical sector can use CCU in ways that most other industries cannot, creating products such as synthetic fuels (e.g. methanol and aviation fuels), polymers and plastics (e.g. CO2-based polyols for polyurethane production), chemical intermediates (e.g. formic acid and formaldehyde), and mineralized building materials (e.g. carbonates for construction). Unlike CCS, which primarily incurs costs, CCU allows the chemical industry to use CO2 to create marketable products.Renewable energy sources are increasingly being integrated into the power grid, but much more is needed to meet the projected demand. Current renewable capacity is 7 GW, and around 2200 GW of new renewable generation capacity will be required by 2050. Developing advanced energy storage technologies is essential to manage the intermittent nature of renewables and ensure a stable energy supply. The existing hydrogen infrastructure primarily involves the production of grey hydrogen, which is derived from fossil fuels. There are only a handful of large-scale projects for clean hydrogen (green or blue hydrogen) that are currently operational. Companies like air products498 are developing multiple hydrogen production facilities in the Netherlands, coupling steam methane reforming with CCUS to produce blue hydrogen while capturing and storing significant amounts of CO2. Clean hydrogen productionCurrent capacity used 7 GW 2,200 GW 60 MTPA 0 MTPACapacity required (2050) 640 MTPA 4 MTPA CO 2 transport and storage Clean power generationInfrastructure for decarbonization capacity FIGURE 62PRIMARY CHEMICALS Source: Accenture analysis based on data from CGC. 9 Net-Zero Industry Tracker: 2024 Edition