European chemicals industry is facing shortages as it struggles with reduced gas supply

 The EU has asked member states to cut gas consumption by 15% from August, in anticipation of a total shutdown ahead of winter. The German government has asked its citizens and industry to cut back on energy consumption so the country can try to boost its reserves before winter so there is enough gas for the population to heat their homes and cook. If this doesn't happen then rationing would have to be imposed. The German chemical industry relies almost totally on gas. This industry consumes around 135TWh of gas, which is approximately 15% of the country’s total natural gas consumption. Around a quarter of that gas is used as a raw material for the chemical industry. The UK is also worried because they use the German chemicals to supply their industry and without these the UK chemicals industry would face problems. In January 2021 prices were around €20/MWh,. Since then the prices have risen to €150–160/MWh, with further rises expected. This puts knock on price increases on all the chemical produced, both in Germany and the UK and all this must get past on to the consumer. There is a need to switch to renewable energy and technologies like electric crackers, and find new sources of raw materials. This can't happen overnight, but it could make for a better future in years to come.



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