What is renewable carbon – and why is it the future of petrochemicals?

Like the energy sector, the chemicals industry is navigating a total upheaval as it attempts to move beyond fossil fuels – but what should we be aiming for? Jed Thomas

For over a century, the petrochemicals industry has relied on fossil carbon as its primary feedstock.

Oil, natural gas, and coal have powered the production of plastics, fuels, and countless chemicals that are essential to modern life.

However, this dependence on fossil resources has become increasingly unsustainable, both environmentally and economically. As climate change accelerates and governments tighten regulations on carbon emissions, the need for an alternative is clear.

The concept of renewable carbon is emerging as a solution to ensure the long-term sustainability of the petrochemical sector.

By shifting away from fossil-based carbon and embracing circular and renewable sources, the industry can significantly reduce its environmental footprint while maintaining production at scale.

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Why fossil carbon is not a sustainable feedstock for chemicals

Fossil-based carbon presents several challenges that make it unsustainable in the long run.

The most critical issue is its contribution to climate change. When fossil carbon is extracted from underground and used in chemical production, it ultimately releases CO₂ into the atmosphere, increasing greenhouse gas concentrations.

This process disrupts the natural carbon cycle, adding carbon that had been locked away for millions of years.

Unlike renewable sources, which can keep carbon circulating within the system, fossil fuels create a one-way flow that leads to long-term atmospheric buildup.

Beyond emissions, the fossil fuel supply chain is increasingly vulnerable to economic and geopolitical risks.

Oil and gas reserves are finite, and their extraction becomes more environmentally and economically costly as easily accessible sources are depleted.

Additionally, reliance on fossil carbon ties the chemicals industry to volatile global markets, where price fluctuations, trade restrictions, and political instability can disrupt supply chains.

Another major concern is the issue of plastic pollution. The widespread use of fossil-based plastics has resulted in billions of tons of waste accumulating in landfills, oceans, and ecosystems.

Unlike biodegradable alternatives, these plastics persist for centuries, fragmenting into microplastics that contaminate water, soil, and even human food supplies.

The failure of current waste management systems to handle plastic at scale only exacerbates the problem, creating an urgent need for sustainable, renewable alternatives.

Defining renewable carbon

Renewable carbon refers to carbon sources that do not contribute to the net increase of atmospheric CO₂. It includes three main pathways: recycling, carbon capture and utilization (CCU), and biomass.

Instead of extracting new carbon from underground fossil reserves, renewable carbon keeps carbon within the system by reusing existing materials or capturing carbon directly from the air.

Recycling involves repurposing plastic waste and other carbon-based materials into new products, reducing the need for virgin fossil carbon.

Chemical and mechanical recycling technologies allow materials to be broken down and reprocessed, extending the life cycle of carbon in the economy.

Carbon capture and utilization (CCU) transforms CO₂ emissions into valuable chemicals, fuels, and materials. Using captured CO₂ and green hydrogen, industries can produce e-methanol and other essential feedstocks without adding new carbon to the atmosphere.

This approach effectively closes the carbon loop, turning a waste product into a resource.

Biomass, including agricultural residues, wood waste, and non-food crops, provides another renewable alternative.

Plants absorb CO₂ as they grow, meaning that biomass-derived chemicals are inherently carbon-neutral. When processed correctly, biomass can replace fossil carbon in everything from bioplastics to biofuels, ensuring a sustainable supply chain for the chemicals industry.

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Why renewable carbon is the feedstock of the future

Transitioning to renewable carbon is not just an environmental necessity—it is also a strategic move for the long-term resilience of the petrochemicals industry.

Governments worldwide are introducing stricter carbon regulations, including carbon taxes, emissions trading systems, and extended producer responsibility policies for plastics.

Companies that fail to adapt risk economic penalties, market exclusion, and reputational damage. Embracing renewable carbon allows the industry to stay ahead of regulatory trends and align with global sustainability goals.

The market for low-carbon and bio-based chemicals is also expanding rapidly. Consumers and investors are increasingly demanding sustainable products, driving companies to seek alternatives to fossil-based plastics and materials.

Major corporations are committing to net-zero targets and sustainable supply chains, creating new business opportunities for those investing in renewable carbon technologies.

Additionally, renewable carbon solutions offer greater supply chain security. By reducing dependence on fossil fuel imports and volatile commodity markets, companies can mitigate risks related to price fluctuations and resource scarcity.

Domestic production of bio-based and CO₂-derived chemicals can help stabilize supply chains and create new economic opportunities in the transition to a circular carbon economy.

How do we source renewable carbon?

No single renewable carbon source can fully replace fossil carbon on its own.

Instead, a combination of recycling, CCU, and biomass must be deployed in tandem to build a sustainable petrochemicals sector. Investment in advanced recycling technologies will be key to improving the efficiency of plastic recovery and reuse.

Expanding CCU infrastructure will enable large-scale CO₂ transformation into valuable chemical feedstocks.

Meanwhile, responsible biomass sourcing will ensure that bio-based materials contribute to sustainability without competing with food production or harming ecosystems.

Research and development will play a vital role in accelerating the transition. Innovations in catalysis, synthetic biology, and electrochemistry will improve the efficiency and scalability of renewable carbon technologies.

Policy support, industry collaboration, and consumer awareness will also be critical in driving demand for renewable alternatives and creating the necessary infrastructure for widespread adoption.

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