Chemical Industry

Petroleum refineries, petrochemical companies, chemical companies, petrochemical complex, businesses in material conversion, fuel conversion, resource circulation, chemical recycling, naphtha cracking plant, hydrogen/ammonia energy, and CCUS technology

While countries around the world aims to be carbon-neutral by 2050, chemical industry, the third largest subsector of material industry that is responsible for CO2 emissions following steel/iron and cement, is embarking on achieving carbon neutrality and resource circulation. The sector sees that it is their mission to turn CO2 into fuels.

The chemical companies address reduction of Scope1 and 2 emissions by material conversion, fuel conversion, or CCUS, which is underway with governmental support, depending on the properties of naphtha cracking furnace at each company. At the same time, they work to reduce Scope3 emissions by development of bio-based energy (hydrogen/ammonia energy), plastic resource circulation by chemical recycling (pyrolysis, gasification), and methane production by carbon recycling.

This report focuses on the chemical industry’s attempts for achieving carbon neutrality by the trends of fuel conversion and material conversion, the introduction status of certification system and environmental initiatives, the current attempts and future directions by market players, the analysis of environment surrounding the industry, and future perspectives, based on the interviews to domestic companies.

In this research, Yano Research Institute investigates on how Japanese chemical industry is addressing carbon neutrality, by finding out the market trends and the business strategies of market players.

Research  include the interviews of:

• ENEOS
• Idemitsu Kosan Company
• Maruzen Petrochemical
• Mitsui Chemicals
• Tokuyama
• Tosoh Corporation
• Mitsubishi Gas Chemical Company
• Sumitomo Chemical
• Resonac
• Arkema (Japan)
• Japan Petrochemical Industry Association