Chemical manufacturers face a host of supply chain barriers when trying to integrate new, oftentimes more sustainable technologies, into their product mixes, according to the U.S. Department of Energy (DOE).
The DOE’s Industrial Efficiency and Decarbonization Office summarized many of these challenges on its website March 21, citing feedback received during its 2020 and 2023 roundtables.
Among the key challenges cited:
- Capital and operational expenditure risks require commitments from buyers to make them justifiable.
- They have already optimized existing chemical properties to meet the unique needs of customers.
- New products often have slight differences in properties that don’t integrate easily with the rest of the value chain.
- Downstream customers face additional supply chain risks due to lack of suppliers offering sustainable alternatives.
- Customers may have to make substantial capital investments to accommodate the new renewable product.
The DOE recommends in its analysis that chemical producers not rely on only one bioresource or alternative feedstock. Also, chemical companies must coordinate with their value chain to ensure feasibility and availability.
This includes integrating new technologies with their downstream processes. Upstream considerations for new technologies include the available resources to meet demand, processes capable of handling mixed feedstocks and efforts to minimize any sourcing-related environmental impacts.
“To progress from a myriad of possibilities to reality, it is important for researchers and investors to consider which solutions have the greatest potential for both commercialization and decarbonization,” the DOE’s Industrial Efficiency and Decarbonization Office concluded in its analysis. “Considering broader supply chain implications during technology development can help remove barriers for promising research, promote collaboration, and appropriately target research goals.”
