‘As the LCET initiative moves into the critical implementation stage, it will demonstrate the ground breaking innovation that our industry can achieve through collaboration.’
A collaborative project between BASF and SABIC, with technology provider Linde, is set to pilot the world’s first electrically heated steam cracker furnace commercially. This project, amongst others, is part of an initiative between leading chemical companies in partnership with the World Economic Forum (WEF) to share early-stage risks and co-investment in developing and up scaling low-carbon emitting technologies.
The so called Low-Carbon Emitting Technology (LCET) Initiative will be a stand-alone entity by the end of 2023 and the Project Development Company (PDC) will be led as a collaborative effort. Companies in the PDC include: Air Liquide, BASF, Clariant, Covestro, Dow, Mitsubishi Chemical Corp, Royal DSM, SABIC, SIBUR, Solvay and the World Economic Forum. The LCET Initiative aims to foster alliances, potentially structured as joint ventures or start-up companies, to prioritise, innovate, share knowledge and reduce investment risks.
The World Economic Forum said that the getting to net-zero emissions in the chemical industry by 2050 would require ‘extraordinary business transformation, unprecedented partnerships and collaboration both within the private sector and across all stakeholders including society and government.’
The World Economic Forum asserts that chemicals are needed for more than 95% of the world’s manufactured goods, and as a consequence is responsible for some 5% of total greenhouse gas emissions. Worldwide product demand is expected to quadruple by 2050.
Other joint programmes in the PDC pipeline include an emerging R&D hub for plastic waste processing, along with projects on hydrogen generation in low-carbon emission processes, the use of carbon dioxide and biomass as feedstock and the overall electrification of chemical operations.
Yousef Al-Benyan, Vice Chairman and CEO of SABIC and LCET Co-Chair said ‘As the LCET initiative moves into the critical implementation stage, it will demonstrate the ground breaking innovation that our industry can achieve through collaboration.’
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