ADI Analytics evaluated the costs and technical implications of steam cracker electrification and tail gas recovery to support a client’s assessment of unconventional hydrocarbon feedstocks.
The client
A U.S.-based start-up with a proprietary process evaluating unconventional hydrocarbon streams for use in steam cracker operations.
The situation
The client was exploring using steam cracker tail gas as a feedstock but needed to assess whether electrification could free up this steam, which is typically used as fuel.
ADI’s contributions
Benchmarking industry initiatives
Profiled electrification efforts by leading players including Dow, Sabic, BASF, and Linde to establish current technology trends and competitive positioning.
Capital cost estimation
Developed high-level capital cost estimates for retrofitting or building electric steam cracker furnaces.
Energy and fuel cost comparison
Compared energy consumption and fuel cost implications of gas-fired versus electric furnaces under various operating scenarios.
Tail gas composition analysis
Analyzed tail gas steams from multiple feedstocks to characterize hydrocarbon content and variability.
Tail gas energy potential
Estimated energy content and recovery potential of tail gas to identify feedstocks with surplus hydrocarbons that could be used as fuel or for value recovery.
Key outcomes
- ADI’s techno-economic evaluation enabled the client to size and value steam cracker tail gas as a feedstock for its proprietary process technology under various scenarios including a future scenario where steam crackers are electrified.
More insights
Utility capital projects & 2026 energy trends
Utility capital projects are facing mounting delays and cost pressures in 2026, even as AI-driven demand fuels record capex. Meanwhile, the upstream oil and gas market is stabilizing around a normalizing shale cost curve, bulk liquid storage operators are shifting toward capability-driven growth, and the energy transition is exposing critical minerals bottlenecks that are pushing […]
U.S. refining capacity is gradually consolidating into larger, more complex facilities
U.S. refining capacity shows limited overall growth, but the structure of the system is shifting. Expansions at large, complex refineries are driving changes on the supply side, while smaller plants face cost and operational constraints that are forcing exits. This is steadily concentrating capacity in fewer, more sophisticated facilities. Key drivers capacity consolidation: Geographic concentration […]
Record utility spending meets project reality
U.S. utilities are entering the largest capital deployment cycle in their history, with total spending projected to reach roughly $1.4 trillion through 2030 and annual capex growing at double-digit rates. The single biggest driver behind this surge is the rapid growth in AI and data centers. Hyperscale facilities are significantly increasing load demand, often on […]