At the 2023 FlexPO+ (now incorporated into the ADI Forum), Carlos Villa, R&D Fellow, Dow Chemical, joined moderator Uday Turaga, CEO, ADI Analytics during the decarbonizing chemicals panel. He addressed how the electrification of the chemical industry would drastically increase its electricity demand, driven by a future reliance on CO2 and water as primary feedstocks for carbon and hydrogen. This shift moved away from fossil fuels, which historically provided both raw materials and energy, necessitating new energy sources and more energy-intensive production pathways.
For example, producing ethylene from CO2 and water via electroreduction required roughly 10 to 20 times more energy than traditional steam cracking of ethane. This significant energy demand, coupled with the inherent thermodynamic challenges of converting stable molecules like CO2, suggested that the cost of clean electricity would likely rise, contrary to assumptions that it would become cheap or free.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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