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NEW TECHNOLOGIES

Scope 3 representing emissions generated on the related to upstream and downstream dynamics:
value chain by products or feedstocks is the largest strong dependance from suppliers (e.g., feedstock
contributors to overall emissions with share of 60- availability and prices), Contractors, OEMs, E&Cs
70% of total emissions depending on the player. and increasing pressure from clients.
Secondly, abatement levers are often constrained
Chemical companies have set ambitious decar- by technological maturity, such as early-stage
bonization targets, driven by EU Emission Trading development of cracker electrification (for Scope
System (ETS) requiring to reduce GHG emissions 1 abatement) or the availability of new feedstock
(with focus on Scope 1), but also by more and more (e.g., bio-naphtha) and the development of sustai-
sustainability-cautious customers and investors. nable processes for transformation (for Scope 3
On one hand, the rapidly evolving business context abatement).
and energy transition has highlighted the impor- Lastly, decarbonization represents an economic
tance of building a roadmap for decarbonization; challenge in terms of sizeable CAPEX required to
on the other hand, customers are increasing their sustain investments in new low-carbon technolo-
pressure to chemical companies in order to obtain gies (e.g., electrification of processes) and incre-
decarbonized solutions and products, being at the asing OPEX (e.g., bio-feedstock): despite saving
intermediate point of the value chain. on ETS, customers have limited willingness to pay
Therefore, Large Chemical and downstream inte- premium prices.
grated Oil companies are mostly setting commit- In such context, technology providers and contrac-
ments to net-zero by 2050 with different interme- tors play a critical role in debottlenecking projects,
diate targets at ’30 (avg. -30/40% vs. baseline) and accelerating technological innovation and suppor-
a focus on Scope 1 and 2. ting emission abatement pathways.
No public announcements on specific commit- Technology providers and contractors have an
ments for Scope 3 emissions before 2050. unprecedented twofold opportunity: on the one
hand, they may decarbonize their own footprint
and thus be the supplier of choice for a chemical
Pathway to Net Zero Chemical company looking to abate own supply chain emis-
sions (upstream scope 3) and on the other hand,
Co faces three critical provide technology and solutions to abate direct
challenges – technology emissions of chemical companies.
Innovative business models (e.g. “Pay per CO2
providers and contractors abated”) and partnerships with chemical compa-
may unlock value and nies (e.g. on pilots or innovative technology testing
in selected plants) may lead to scale new value pro-
accelerate pathways position specifically dedicated to decarbonization
of hard to abate chemical plants.
The decarbonization of chemical sector, then, fa-
ces three critical challenges. Abating emissions in chemicals requires a com-
Firstly, companies play their role in the middle of prehensive set of interventions across scopes and
the value chain, facing a high level of complexity engaging the value chain and will require a multi-

A comprehensive set of interventions across scopes and engaging the value chain

34 Impiantistica Italiana - Gennaio-Febbraio 2023