Released January 24, 2022 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Both traditional and emerging growth trends, such as environmental, social and governance (ESG) initiatives, will drive future chemical project spending, Trey Hamblet, Industrial Info's vice president of research for Chemical Processing, told attendees during the 2022 U.S. & Canada Industrial Market Outlook virtual webinar.
Traditional growth components in the industry are an indicator of future growth, Hamblet noted. These include consumer demand for products such as packaging and personal protection equipment (PPE), as well as industrial consumption of chemicals amid strong industrial production and high utilization at large petrochemical plants.
"The traditional components of the industry look strong as we exit the peak of our pandemic period, and we'll start seeing those dictate spend in the future," Hamblet said during the presentation.
Emerging growth trends include the rise of "green" and "blue" commodities, such as green hydrogen--produced via electrolysis--which then can be turned into green ammonia and green methanol, all the way downstream to sustainable aviation and marine transport fuels. Blue hydrogen and other "blue" commodities are produced from natural gas or other fossil fuels, with the associated carbon dioxide (CO2) sequestered via CO2 capture. Another bourgeoning trend is recycled plastics, which involves converting post-consumer plastics into alternate feedstocks (oil-like materials) to offset traditional fossil fuels used for the chemical industry, such as ethane and naphthas.
Industrial Info is tracking $45 billion in active chemical projects in the U.S. and Canada planned to begin construction in 2022, although only a portion likely will be executed.
"The spending around these emerging growth trends is significant," Hamblet said, noting they could account for up to $7 billion of the total forecast $25.6 billion worth of chemical projects in the U.S. and Canada in 2022; these projects have a high or medium probability (70-99%) of moving forward as planned, according to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database. "Green" and "blue" commodities account for $5.6 billion of the ESG-related project spend, while recycled plastics make up $1.3 billion. "We feel certain we will see a good number of those ESG-motivated projects," he said.
The forecast for grassroot project spending in 2022 is $6.5 billion, after spending remained stagnant in 2021 ($1 billion) on the heels of a pandemic-riddled 2020--due to a lack of confidence in the industry and the economy, Hamblet said. Meanwhile, 2022 spend for expansion and addition projects is forecast to rise to $13.7 billion, up from $8 billion the year prior.
On the maintenance front, Hamblet anticipates 2022 being a "new high-water mark in terms of planned maintenance turnarounds and shutdowns in the U.S. and Canada," despite the lurking threat of COVID-19 precautions and supply-chain issues. Already this year, some large turnarounds planned for January or February are being pushed back by days or even months, but the industry is learning to manage the disruptions, he said. Industrial Info is tracking 1,128 active maintenance projects, up from 893 in 2020 and 1,042 in 2021.
For more information, see Industrial Info's January 18, 2022, article - Oil & Gas, Chemical Players Struggle to Keep Maintenance on Track Amid Covid-19 Disruptions.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Traditional growth components in the industry are an indicator of future growth, Hamblet noted. These include consumer demand for products such as packaging and personal protection equipment (PPE), as well as industrial consumption of chemicals amid strong industrial production and high utilization at large petrochemical plants.
"The traditional components of the industry look strong as we exit the peak of our pandemic period, and we'll start seeing those dictate spend in the future," Hamblet said during the presentation.
Emerging growth trends include the rise of "green" and "blue" commodities, such as green hydrogen--produced via electrolysis--which then can be turned into green ammonia and green methanol, all the way downstream to sustainable aviation and marine transport fuels. Blue hydrogen and other "blue" commodities are produced from natural gas or other fossil fuels, with the associated carbon dioxide (CO2) sequestered via CO2 capture. Another bourgeoning trend is recycled plastics, which involves converting post-consumer plastics into alternate feedstocks (oil-like materials) to offset traditional fossil fuels used for the chemical industry, such as ethane and naphthas.
Industrial Info is tracking $45 billion in active chemical projects in the U.S. and Canada planned to begin construction in 2022, although only a portion likely will be executed.
"The spending around these emerging growth trends is significant," Hamblet said, noting they could account for up to $7 billion of the total forecast $25.6 billion worth of chemical projects in the U.S. and Canada in 2022; these projects have a high or medium probability (70-99%) of moving forward as planned, according to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database. "Green" and "blue" commodities account for $5.6 billion of the ESG-related project spend, while recycled plastics make up $1.3 billion. "We feel certain we will see a good number of those ESG-motivated projects," he said.
The forecast for grassroot project spending in 2022 is $6.5 billion, after spending remained stagnant in 2021 ($1 billion) on the heels of a pandemic-riddled 2020--due to a lack of confidence in the industry and the economy, Hamblet said. Meanwhile, 2022 spend for expansion and addition projects is forecast to rise to $13.7 billion, up from $8 billion the year prior.
On the maintenance front, Hamblet anticipates 2022 being a "new high-water mark in terms of planned maintenance turnarounds and shutdowns in the U.S. and Canada," despite the lurking threat of COVID-19 precautions and supply-chain issues. Already this year, some large turnarounds planned for January or February are being pushed back by days or even months, but the industry is learning to manage the disruptions, he said. Industrial Info is tracking 1,128 active maintenance projects, up from 893 in 2020 and 1,042 in 2021.
For more information, see Industrial Info's January 18, 2022, article - Oil & Gas, Chemical Players Struggle to Keep Maintenance on Track Amid Covid-19 Disruptions.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
