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Using Waste Carbon Feedstocks to Produce Chemicals Figure 1 A depiction of the chemicals value chain from fossil fuel inputs through end use products Source: Pales and Levi, “The Future of Petrochemicals,” IEA, 2018, 21. All rights reserved. Many chemicals, especially commodity chemicals, have low margins and are extremely price competitive and any processes that reduce production costs can increase competitiveness; as such, companies have continuously incorporated process and product enhancements during the past century to optimize production capacity and competitiveness. For example, chemical companies have been integrating sustainable processes into their value chains for the last three decades for several reasons, including beneficial environmental impacts, improving process efficiency and reducing costs, and achieving “better bottom line results.”5 Within the chemical industry, sustainability is now considered to be “absolutely vital to long-term viability” and a “strategic imperative.”6 The chemical industry— particularly the commodity chemicals segment—also has high barriers to entry as a result of factors such as capital-intensive processes; high energy costs; the necessity of large-scale production; and environmental liabilities.7 Crude petroleum and natural gas have long been preferred feedstocks for many chemicals and liquid transportation fuels because they are significant sources of carbon and because they have been readily available. Crude petroleum is a significant feedstock for liquid transportation fuels and, depending on the region, can also be an important feedstock for the chemical industry.8 Moreover, crude petroleum 5 American Institute of Chemical Engineers (AIChE), “RAPID Spotlight: Sustainability and Process Intensification,” June 27, 2019. 6 Coons, “Clear Business Case,” Chemical Week, December 9, 2019. 7 ACC, “Guide to the Business of Chemistry,” 2019; Clomburg, Crumbley, and Gonzalez “Industrial Biomanufacturing,” Science, January 6, 2017. 8 The type of energy used by the chemical industry as feedstock can vary by region. For example, natural gas is a major feedstock for the U.S. chemical industry while naphtha is the predominant feedstock in the EU. United States International Trade Commission | 5PDF Image | Using Waste Carbon Feedstocks to Produce Chemicals
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