Demand For Basic Chemicals To Witness Dramatic Surge: Focus Toward Use Of Renewable Resources

consumer sectors. They are divided into three prime categories such as organic petrochemicals, oleochemicals, and inorganic chemicals.

Basic chemicals are sold within the chemical industry before for the general consumers. They are processors of raw materials in several industries and serve as additives and solvents in many mixtures.

What are basic chemicals?

Alcohols: These organic compounds contain one or more hydroxyl groups attached to a carbon atom and they can be converted to several other functional groups. Alcohols are widely used for laboratory purposes and as fuel and methanol as industrial feedstock.

Acids: These are a solution that reacts with bases and some metals to form salts. They have an increased concentration of hydrogen ions when dissolved in water.

Chemical aliphatic solvents: They are open-chain hydrocarbons and are used in pharmaceuticals, paints, pesticides, agriculture, and the printing industry. They have the ability to dissolve, extract, and suspend other materials without chemical change.

Inorganic salts: These industry-rich inorganic salts such as sodium benzoate, caustic soda, and sodium sulfate are used for a variety of purposes.

Aromatic solvents: Several industries including agrochemicals, paints & coatings, ink resins, oil field, and industrial wash oil demand for aromatic solvents. They are the main ingredients in insecticides and as chemical intermediates.

Esters: These are the components derived from inorganic and organic acids. They are prime ingredients in perfumes, cosmetics such as nail polish removers, and paints & coatings. These powerful non-polar solvents are needed in several industrial applications and for several chemical reactions.

Surge in demand for basic chemicals across the globe

The demand for basic chemicals has increased over the last few years. The inclination toward reducing greenhouse gases and the use of non-renewable fuels have increased more than ever.

Recently in Germany, TotalEnergies SE announced the launch of the e-CO2Met project to produce climate-neutral methanol from low-carbon hydrogen and capture CO­2. The company currently produces around 700,000 tons of methanol per year using fossil raw materials and is the largest methanol producer in Europe. Thus, this project is now regarded as a vital step toward climate neutrality.

On the other hand, Mitsubishi Chemical Corp. announced its licensing agreement with Mitsui Chemicals, Inc for the related patent for biomass-based polyester. The license includes polyethylene terephthalate (PET) using renewable biomass resources and is projected to have multiple industrial applications such as the manufacturing of bottles. The project focuses on reducing the emission of greenhouse gases.

The manufacturing of basic chemicals has increased across the globe, especially in Indonesia. According to Allied Market Research, the Indonesia basic chemicals market is expected to reach $35.1 billion by 2030, growing at a CAGR of 7.2% from 2021 to 2030. Increase in use of inorganic chemicals in fertilizers manufacturing and surge in demand for inorganic chemicals in pharmaceuticals and building & construction sectors drive the market.

The focus on manufacturing basic chemicals from biomass and other renewable fuel sources and reducing greenhouse gases will define the future of the basic chemical industry.

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