European chemical industry becoming extinct Sir Ratcliffe warns
Published by Oliver Kleinschmidt,
Assistant Editor
Hydrocarbon Engineering,
The chemical industry in Europe has been hugely important to the success of the European economy over the last century. With revenues of around €1 trillion, it is similar in size to the automotive sector. But chemicals in Europe is facing extinction. Government policies have resulted in enormously high energy prices and crippling carbon tax bills.
INEOS operates one of the largest and most advanced, integrated petrochemical facilities in Europe in Cologne. It produces many critical raw materials essential for modern living and employs 10 000 people, including the support services.
The gas bill is €100 million higher than its US equivalent. The electricity bill is €40 million higher than in the US. The carbon tax bill is rising towards a shocking €100 million.
The industry is in crisis with such huge disadvantages. Instead of investing in growth for the future, it is fighting for survival.
Government policies will shut all petrochemicals in Europe. All our major competitors are planning for withdrawal from Europe as government has failed to act time after time.
The consequence of this policy is that Europe will import all its raw materials from the USA and China, who will benefit enormously.
Decarbonising Europe by deindustrialisation is idiotic. We lose jobs and security and the CO2 simply floats back over Europe anyway.
The solution is to ban carbon tax, provide competitive energy for industry and incentivise growth and clean technology. We also need tariff barriers while these changes are being implemented or there will be nothing left.
This is the US approach, where they value industry and its high value employment and they are leaving Europe behind in their dust.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/27022025/european-chemical-industry-becoming-extinct-sir-ratcliffe-warns/
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