Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
The chemical industry is marching forward with its spending of
$1 trillion now through 2030 to build new capacity (globally) to
meet the ever-growing demand of fundamental feedstocks and their
derivatives. As such, decisions surrounding the deployment of this
capital become ever more important as sustainability seems to be a
moving target. Sustainability encompasses many aspects beyond
investment and operating cost, which includes:
Health and safety associated with the project/operation
Environmental impact (carbon, water and plastics wastes)
Geo-political landscapes
and now much stronger socially-driven consumer pattern shifts
and influences...
While many of these aspects are outside of the control of the
operators/stake holders, the deployment of capital in an efficient
and responsible manner is within their control.
Specifically, capital investment costs continue to be at the
center of a company's long-term sustainability. This especially
takes in account the growth in the scale of plant capacities -
e.g., current announcements of nearly 2 million metric tons per
year ethylene plants as well as 4.3 million ton per year
p-xylene-based mega Crude-oil-Chemical plants in China (a
philosophy of "go big or go home".)
A more recent critical dimension of capital deployment impact is
the relative cost in a country to build an equivalent
technology/capacity (location factors). The IHS Markit
Process and Economics Program (PEP) team is seeing that leading
companies have, and will continue to take advantage of - local
costs, macroeconomics and country infrastructure within each of the
engineering, procurement and construction phases of a product
development to achieve a high capital deployment efficiency (i.e.
low cost per ton of installed capacity).
Examples of this realized advantage are illustrated below:
IHS Markit
Process and Economics Program (PEP) has packaged five essential
relevant reports/reviews as a part of our continuing technology and
economics PEP offering on Capital Deployment:
