SP & PT versions under construction
Chemical Commodities
The dual nature of chem industry: change-driver or energy-consumer?
Chemical products touch every aspect of modern-day life, being widely used in various sectors such as health, energy, mobility, and housing, ensuring high living standards of modern society.
Chemical & petrochemical sector together makes one of the most energy-intensive industries, as can be seen in Figure 1 (total final energy consumption by industry sector in European Union (EU), in 2021). It is no coincidence that the sector is the third largest emitter of carbon dioxide (CO2) in the EU (925 million tons of CO2 in 2021) [CEE, 2021].
After China, the EU was the world's second largest chemical producer in 2021, with the EU27 chemical sales increasing to EUR 594 Billion. Figure 2 shows the world's top chemical industry companies (obs: operating income was affected by inflation in 2022).
Figure 1: Total final energy consumption by industry sector in EU, in 2021
Figure 2: Top chemical industry companies in the world
Fossil fuel use
The chemical industry is unique in its fossil fuels use. While most industries use fossil fuels as energy source, the chemical industry uses about half of the sector's demand as feedstock: fossil resources are used as raw material for a variety of widely used products like plastics, fertilizers, detergents or tires.
The chemical industry accounts for 14% of the total primary demand for crude oil and 8% for natural gas: ammonia, methanol, ethylene, and propylene are the most important basic chemicals used as the starting materials for a large number of industrial downstream products. In 2016, crude oil and natural gas represented 87% of feedstocks in the carbon-based chemical industry {DENA, 2029].
Chemical commodities
Commodity chemicals (bulk commodities/chemicals) are a group of chemicals that are made on a large scale to satisfy global markets in many applications. The main chemicals produced are listed below.
Sulphuric Acid (H2SO4)
A colorless, odorless, and viscous liquid, sulfuric acid is the most widely produced industrial chemical in the world. Its primary industrial use is the production of phosphoric acid, a key ingredient in phosphate fertilizers. The Middle East plays a particularly important role in this supply chain, as major oil & gas producers generate large volumes of sulfur during hydrocarbon processing. Today, most of the sulfur used to produce sulfuric acid is recovered as a by-product of oil and natural gas refining rather than mined directly. Sulfuric acid is also essential in metal manufacturing, particularly in the production of copper and zinc and in steel pickling processes. Around 270 Mt of Hâ‚‚SOâ‚„ is produced every year.
​
Olefins: Ethylene (C2H4), Propylene (C3H6)
Olefins are unsaturated hydrocarbons with the general formula Câ‚™Hâ‚‚â‚™ (e.g., ethylene, propylene, and butadiene) that play an important role in chemical and polymer production. At industrial scale, they are produced via several routes, including crude oil, natural gas, coal, and methanol-based processes.
Ethylene (Câ‚‚Hâ‚„) is the most important olefin in the petrochemical industry and a key building block for polyethylene (PE) and a wide range of downstream plastic products. It is primarily produced via steam cracking of hydrocarbons such as ethane and naphtha, and is a colourless, flammable organic gas with a faint “sweet and musky” odour when pure. Over 150 Mt are produced annually, more than any other organic compound, with demand largely driven by advances in polymer production, particularly polyethylene. It is also used as a feedstock for other industrial chemicals such as ethanol.
Propylene (C₃H₆) is the second most important olefin in the petrochemical industry and a key feedstock for polypropylene (PP), acrylonitrile, propylene oxide, and cumene (for phenol and acetone production). It is primarily produced via steam cracking, refinery fluid catalytic cracking (FCC), and propane dehydrogenation (PDH), making its supply more diversified than ethylene. Over 100 Mt are produced annually, driven mainly by demand for polypropylene, one of the most widely used thermoplastics.
​
Ammonia (NH3)
​
A colorless, inorganic compound gas (boils at −33.34 °C) consisting of nitrogen and hydrogen, ammonia is often used in its gas form. Most ammonia use is found in household, agricultural and industrial sectors, including use as an ingredient in fertilizers, cleaning products, cosmetics and refrigeration. Over 150 Mt of ammonia was produced in 2022.
​
Methanol (CH3NO)
​
Methanol is used as a precursor to industrial chemicals, such as formaldehyde & methyl benzoate. It is primarily used as an industrial solvent for inks, resins, adhesives, and dyes, as well as a solvent in the manufacture of cholesterol, streptomycin, vitamins, hormones, other pharmaceuticals, antifreeze for automotive radiators, ingredient of gasoline (anti freezing agent & octane booster), and alternative motor fuel. Around 100 Mt of MeOH is produced per year.
​
Propylene (C3H6)
Also known as propene and/or methyl ethylene, propylene is an organic colourless gas compound. It’s a natural byproduct of the fermentation process, making it an important chemical compound for the advancement of the green chemistry sector. Also produced from fossil fuels, propene is hugely significant to the petrochemical industry and as a raw material for a variety of products. Over 85 Mt of propylene are produced globally each year, primarily as fuel or for rubber/plastic production.
Sodium Hydroxide (NaOH)
Sodium hydroxide (caustic soda) is a white odorless solid inorganic compound vital to many industries. NaOH is used to produce soaps, rayon, paper, products that explode, dyes, and petroleum products. Other tasks that may use NaOH include processing cotton fabric, metal cleaning and processing, oxide coating, electroplating, and electrolytic extraction. It is often present in commercial drain & oven cleaners [CDC, 2022]. For biodiesel manufacture, NaOH is used as a catalyst for the transesterification of methanol & triglycerides. Over 70 Mt of NaOH is produced worldwide.
​
Aromatics (BTX): Benzene (C6H6), Toluene (C7H8), Xylene (C8H10)​
Benzene, Toluene, and Xylene (BTX) are key aromatic hydrocarbons and represent three of the basic petroleum-derived chemicals produced globally. Most BTX is obtained by recovering aromatics from the catalytic reforming of naphtha in petroleum refineries. Annual BTX demand is nearly 108 million tons, with an approximate growth rate of 5%.
Benzene is a colorless or light yellow liquid at room temperature (but evaporates very quickly). Some industries use it to make other chemicals that are used to make plastics, resins, and nylon and synthetic fibers. Benzene is also used to make some types of lubricants, rubbers, dyes, detergents, drugs, and pesticides. More than half of the entire benzene production is processed into ethylbenzene, a precursor to styrene, which is used to make polymers and plastics like polystyrene. Around 60-70 Mt of C6H6 is produced per year.