Demand is growing for inexperienced chemical compounds that do with out fossil fuel-derived components, says Celtic Renewables, a Scottish agency targeted on the sector, which attributes the expansion to regulatory strain to cut back carbon emissions in manufacturing provide chains along with rising demand from the general public for greener, sustainably made merchandise.
The demand is coming from main client items corporations and pharmaceutical corporations, mentioned the group, which is predicated in Grangemouth close to Falkirk.
“Producers have voluntarily set web zero and sustainability targets,” mentioned Mark Simmers, the group’s CEO. “However they face the problem of how one can take away from their provide chains components which can be at present comprised of fossil fuels.
“On the similar time, nationwide governments together with the UK are placing in laws requiring departments and suppliers to maneuver away from utilizing fossil fuel-based supplies.
“For instance, in response to NHS Shared Enterprise Companies, in 2024 provide chain emissions alone accounted for 74 p.c of the NHS’s total worth chain greenhouse gasoline emissions.
“Working with pharmaceutical corporations to cut back fossil gas components of their merchandise will assist shrink this determine down.”
Simmers went on, “Most of the people additionally wish to do their half to preserve the atmosphere and cut back emissions. This contains shopping for merchandise which can be made with sustainably sourced components.
“The onus is on client items corporations to switch the oil-derived supplies they at present use of their merchandise with inexperienced alternate options – which is the place Celtic Renewables is available in.”
Celtic Renewables was based in 2012 and is backed by greater than £60 million in non-public and public funding. Its biorefinery at Grangemouth started industrial operations in 2023 and it employs sixty individuals, of whom 17 – practically a 3rd of the workforce – beforehand labored within the oil and gasoline sector.
The corporate just lately launched a two-minute quick movie entitled “Circularity Renewed: The New Regular”. The movie explores how the on a regular basis objects we depend on might be made extra sustainable by utilizing inexperienced chemical compounds as an alternative of fossil fuel-based components.
Celtic Renewables makes use of by-products and waste from the meals, drink and agricultural industries to provide low-carbon inexperienced chemical compounds bio-acetone, bio-butanol and bio-ethanol.
These solvents have the identical properties as their fossil fuel-based equivalents and are sustainable alternate options that can be utilized in the identical merchandise.
Simmers went on, “If producers swap out present chemical compounds for greener, non-fossil alternate options, their clients can stay extra sustainable lives while not having to make any modifications to their purchasing habits.”
“Up to now, the dialogue about sustainability has been dominated by decarbonising the world’s vitality techniques and making the transition to renewables.
“However clear vitality is just a part of the drive to web zero: different industries must decouple from fossil fuels, together with the chemical compounds sector.”
He defined, “Excessive-profile occasions just like the annual United Nations COP conferences have introduced companies on board with the worldwide atmosphere motion and have been instrumental in shaping their long-term plans and technique to be extra sustainable.
“There’s now a rising ambition and a dedication from producers throughout a variety of industries to chop their fossil gas use and use bio-based alternate options.”
On the subject of how inexperienced chemical producers like Celtic Renewables can correctly compete on worth with bigger fossil fuel-using rivals, Simmers factors to scale as the reply.
“Competing with fossil fuel-using incumbents within the chemical business is about economies of scale,” Simmers mentioned. “The reply is to scale up manufacturing of bio-based chemical compounds to satisfy the clear demand available in the market, in a approach that’s commercially viable,” he mentioned.
“Our present biorefinery facility has confirmed the technical and industrial feasibility of utilizing by-products and waste as a feedstock for chemical manufacturing.
“Our aim now’s to safe new monetary backing to construct a bigger facility over the subsequent two to a few years, with which we will fulfil the numerous demand for our chemical compounds from clients and shut the hole with incumbent producers.”
Simmers concluded by saying, “We’re originally of the top of our dependence on fossil fuels. Celtic Renewables is displaying that it’s doable for the chemical sector to transition away from fossil fuels and convey a couple of greener, extra sustainable web zero financial system and lifestyle.”
Celtic was just lately nominated for the CPHI Pharma Awards for Sustainability in recognition of its achievements in innovation and sustainable manufacturing for the pharmaceutical business.
