Chemicals
The chemical sector is the largest industrial consumer of both oil and gas. Yet despite being the largest industrial energy consumer, it is the third industry subsector in terms of direct CO2 emissions – behind iron and steel and cement. This is largely because around half of the sector’s energy input is consumed as feedstock, the emissions of which are released downstream in other sectors.
Read more
The sector’s substantial energy consumption is driven by demand for a vast array of chemical products. Demand for primary chemicals (high-value chemicals, ammonia and methanol) – which is an indication of activity in the sector overall – has grown strongly in recent years.
Demand for plastics, mainly derived from high-value chemicals (HVCs), has been growing quickly and will continue to do so. Key plastic end-use sectors are packaging, construction and automotive applications. In many parts of the developing world, demand for plastics has just recently begun to gain momentum. Recycling of thermoplastics only counterbalances a small proportion of global demand for virgin plastics, thereby reducing demand for primary chemicals.
Demand for ammonia, the chemical that is the basis of all synthetic nitrogen fertilisers, has been relatively flat in recent years, but demand for other synthetic fertilisers that are also critical to modern agricultural systems has been increasing steadily, including those that deliver potassium and phosphates, but they are less important from an energy standpoint.
Methanol production is currently expanding the most quickly of all primary chemicals. Methanol’s main end use is for formaldehyde, which is employed to produce several specialist plastics. Methanol is also used for fuel additive applications (a key driver of the more-than-average growth) and as an intermediate to produce HVCs, mainly when oil is not available as a feedstock.
With increasing demand for chemical products, it will be crucial to reduce the emissions intensity of production. Reducing the share of coal-based production towards gas and adoption of CCUS or innovative process routes based on electrolytic hydrogen can help.
Use and disposal of chemical products should also be addressed, through efforts such as reducing reliance on single-use plastics and improving waste management practices.
Demand for plastics, mainly derived from high-value chemicals (HVCs), has been growing quickly and will continue to do so. Key plastic end-use sectors are packaging, construction and automotive applications. In many parts of the developing world, demand for plastics has just recently begun to gain momentum. Recycling of thermoplastics only counterbalances a small proportion of global demand for virgin plastics, thereby reducing demand for primary chemicals.
Demand for ammonia, the chemical that is the basis of all synthetic nitrogen fertilisers, has been relatively flat in recent years, but demand for other synthetic fertilisers that are also critical to modern agricultural systems has been increasing steadily, including those that deliver potassium and phosphates, but they are less important from an energy standpoint.
Methanol production is currently expanding the most quickly of all primary chemicals. Methanol’s main end use is for formaldehyde, which is employed to produce several specialist plastics. Methanol is also used for fuel additive applications (a key driver of the more-than-average growth) and as an intermediate to produce HVCs, mainly when oil is not available as a feedstock.
With increasing demand for chemical products, it will be crucial to reduce the emissions intensity of production. Reducing the share of coal-based production towards gas and adoption of CCUS or innovative process routes based on electrolytic hydrogen can help.
Use and disposal of chemical products should also be addressed, through efforts such as reducing reliance on single-use plastics and improving waste management practices.
Last updated Aug 27, 2020
![Chemcials Jpg](https://webarchive.library.unt.edu/web/20210119223529im_/https://iea.imgix.net/1d5c97e0-168b-4631-93db-697540c71b7f/chemcials.jpg.jpg?auto=compress%2Cformat&fit=min&q=80&rect=0%2C0%2C3000%2C2000&w=1800&h=1200&fit=crop&fm=jpg&q=70&auto=format)
Key findings
Direct CO2 emissions from primary chemical production in the Sustainable Development Scenario, 2015-2030
OpenGrowing demand for chemical products
Direct CO2 emissions from primary chemical production were 880 MtCO2 in 2018, a nearly 4% increase from the previous year, driven by growth in production. In the SDS, emissions from primary chemicals peak in the next few years and then decline to about 10% below today’s level by 2030, despite continued strong growth in demand. To get on track, government and industry efforts need to address CO2 emissions from chemical production as well as from the use and disposal of chemical products.
Analysis
Article
Ammonia – the CO2-free fuel of the future?
Part of Today in the Lab - Tomorrow in Energy?
Commentary
China’s net-zero ambitions: the next Five-Year Plan will be critical for an accelerated energy transition
Flagship report
CCUS in Clean Energy Transitions
![ETP](https://webarchive.library.unt.edu/web/20210119223529im_/https://iea.imgix.net/fb8881ee-2fe4-4298-bb87-ef0e02564be9/GettyImages-646788346-extended--dark-magenta.png?auto=compress%2Cformat&fit=min&q=80&rect=0%2C0%2C6633%2C4427&w=680&h=454&fit=crop&fm=jpg&q=70&auto=format)
Article
The challenge of reaching zero emissions in heavy industry
Heavy industries both facilitate and complicate the transition to a net-zero emissions energy system
Flagship report
Energy Technology Perspectives 2020
![ETP 2020](https://webarchive.library.unt.edu/web/20210119223529im_/https://iea.imgix.net/3a5b4cc8-ae90-46e5-8a22-0d0ce662f3b4/etp-20202-website-image.png?auto=compress%2Cformat&fit=min&q=80&rect=0%2C0%2C6633%2C4427&w=680&h=454&fit=crop&fm=jpg&q=70&auto=format)
Article
ETP Clean Energy Technology Guide
Tracking report
Chemicals
Tracking progress 2020
![Shutterstock 1304391682](https://webarchive.library.unt.edu/web/20210119223529im_/https://iea.imgix.net/b6ff7d6a-cede-4ed3-8723-76c88efd1cda/shutterstock_1304391682.jpg?auto=compress%2Cformat&fit=min&q=80&rect=863%2C0%2C4601%2C3070&w=680&h=454&fit=crop&fm=jpg&q=70&auto=format)
Reports
Our work
The IETS TCP focuses on energy use in a broad range of industry sectors with significant potential for emissions and cost savings. The IETS TCP work programme ranges from aspects relating to development of processes and energy technologies, to overall system analysis and energy efficiency in industry sectors.