Helping a European petrochemical major transition to bio-based chemicals

Generating a business case for sustainable chemicals

The client, A large European Petrochemical Company [confidential] asked Xynteo, alongside the Mission Possible Partnership, to design a supply and demand strategy to help them develop bio-based and circular base chemicals.​

In particular, our client asked Xynteo to advise on the market demand strategy to understand market dynamics

150

Peers, customers and consumers engaged to support supply chain mapping and demand assessments

12

Product segments prioritised where there was the potential to gain a 100-200% product premium in base chemicals

04

Interventions prioritised and designed to support a business case for 2 million tonnes offtake of sustainable base chemicals by 2030​

The initiative

The key objectives for the engagement:

  • Mapped supply chains for base chemicals across Europe from production through to end of life​
  • Surveyed 132 customers and conducted 20 interviews with experts, peers, and customers to model market demand, premiums and bottlenecks​
  • Modelled willingness to pay across 25 product segments to prioritise 12 high potential focus areas​

Xynteo engaged senior leaders and partners to advise on supply chains and market opportunities to maximise high premium demand.

Xynteo’s role

Research and analysis:

  • Balance the business case to support >$1B investment in 1G/2G bio-based and circular chemicals targeting 2 million tonnes offtake by 20230
  • Advise on the market demand strategy to understand market dynamics whilst prioritising industry segments and customer value propositions
  • Identify potential demand that would support required premiums of 100-200%

Strategic innovation:

  • Designed four interventions to ‘de commoditise’ base chemicals, widen and grow demand, pivot customer value propositions, and support high premium offtake​.
  • Xynteo deployed its willingness to pay assessment to priorities 12 segments across 5 industries as potential high demand areas

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