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
4
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:
- Map supply chains for base chemicals across Europe from production through to end of life
- Survey customers and conduct interviews with experts, peers, and customers to model market demand, premiums and bottlenecks
- Modelled willingness to pay across product segments to prioritise 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:
- Developed a business case to support investment in 1G/2G bio-based and circular chemicals
- Advised on the market demand strategy to understand market dynamics and customer value propositions
- Identified potential demand that would support required price premiums
Strategic innovation:
- Designed four interventions to widen and grow demand, pivot customer value propositions, and support high premium offtake.
- Deployed a ‘willingness to pay assessment’ to priority segments across five industries
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