ICIS: Market outlook: Shale gas impacts bio-based chemicals

There are both positive and negative impacts on the bio-based chemical sector from shale gas development. However, the positive aspects outweigh the negative

There has been a great deal of discussion on the impact of shale gas on bio-based commodity chemicals. While shale gas offers competitively priced feedstock for certain chemicals, it also opens up opportunities to develop bio-based chemicals.Less production of other chemicals resulting from shale gas feedstock leaves a gap for bio-based chemicals to fill. The latter are also driven by demand pull from consumer companies.

Shale gas and biomass feedstock share a number of similarities that both shape and drive the development. Both feedstocks are dispersed over vast areas, face logistics challenges and require highly capital intensive processing. However, they also provide an unrivalled opportunity to reduce oil dependence and carbon dioxide (CO2) emissions.  MORE