A Green Sea
Navigating sustainability
The petrochemical and chemical industry cannot escape the energy transition. While we can argue that every extractive industry is seen as the "bad guy", we can definitely say that the petrochemical is seen as the antagonist.
Today there are countless initiatives to comply with more stringent regulations to become more sustainable. For instance, Magdalena Balcells, ASIPLA's general manager, highlighted the Operation Clean Swift (OCS) program, started over 50 years ago in the US to prevent the loss of plastic granules (pellets, flakes, and powders) during handling by various entities in the plastics value chain. For her, the demonization of plastics by environmental groups has led the industry to focus on a circular economy, and plastic pellets offer a new opportunity to recycle used resin, which by re-using it for a second time "pays its sin."
“The demonization of plastic has spurred innovation in reutilization, leading to the increasing use of plastic pallets in logistics. They are more durable and an excellent solution for capturing recycled resin.”
Magdalena Balcells, General Manager, ASIPLA
On this matter, Oliver Hoeul, general manager – Americas at Eurotainer US, commented that the company, which provides ISO tanks and flexibags, said: "Our approach to embracing sustainability involves making our equipment more ESG-compatible. We focus on recycling and enhancing equipment safety for social responsibility. Additionally, addressing end-user concerns, particularly regarding the recyclability challenges of Flexibags, is crucial. Thus, we are increasingly involved in projects to replace Flexibags with more sustainable alternatives like stainless steel tank containers," he continued.
Sustainability is spread across the value chain. Regarding fleets, Mathias Dümmer from Ultratank commented that the IMO Net-Zero roadmap puts additional stress on the aging fleet. The goal is that by 2050, no fleet will consume contaminant fuels and all must have zero emissions. Will the industry meet IMO's Net-Zero roadmap, or is it too much for the 25 years until 2050?
The region must start with a green energy mix to achieve a green propulsion system. So, is the energy transition a challenge or an opportunity for LATAM? According to Juan Carlos Jobet, former Minister of Energy and Mining of Chile, it is both: "The transition to more sustainable energy sources in the Latin American petrochemical industry and logistics presents a significant challenge, given its strong dependence on oil, with some contributions from gas. However, the region also boasts vast potential in renewable energies and biofuels. Latin America could strategically position itself globally by leading this energy transition, leveraging its natural resources, and establishing a competitive advantage over regions less endowed with these resources. Reducing emissions in key sectors such as transportation and logistics would help mitigate environmental impact, open new economic opportunities, and strengthen regional energy security, creating a conducive environment for long-term sustainable development and investment," he argued.
During his presentation, Jobet explained that the global transportation segment is expected to double its energy consumption, which currently is heavily reliant on oil. The transition to greener solutions has cost-associated challenges. For instance, green methanol costs 10 times more than conventional methanol, making balancing affordability with sustainability a challenge. Achieving sustainability involves balancing profitability. In this context, Jobet commented that it is essential to prioritize a sequence in which technologies and policies are implemented to reduce emissions while remaining economically viable. This economic viability and balance are crucial since increasing costs for the sake of sustainability can increase society's cost of living, making it a complex challenge to navigate.
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