On September 24, 2024, SABIC, a global leader in the chemical sector, announced the launch of its certified low carbon product portfolio, aimed at supporting customers and the broader value chain in achieving sustainability objectives. This initiative is a crucial part of SABIC's commitment to reaching carbon neutrality by 2050, focusing on products with a lower carbon footprint.

The inaugural product in this new portfolio is methanol, produced through SABIC's Chemicals business. This methanol boasts a reduced carbon content compared to traditional offerings, while maintaining the high-quality specifications customers expect. The lower carbon footprint is primarily attributed to the innovative raw materials used in its production: by-product CO2 captured from upstream processes, a method known as carbon capture and utilization (CCU). This approach not only supplies the necessary carbon for methanol production but also reduces reliance on conventional feedstocks. By utilizing captured CO2 as a raw material, SABIC enables significant Product Carbon Footprint (PCF) savings.

Manufactured at SABIC’s joint venture methanol production sites, the certified low carbon methanol is versatile, finding applications in maritime fuel, resins for laminate flooring and furniture panels, and acrylic sheets. SABIC plans to expand this certified low carbon offering across its global asset base, launching additional products in the near future.

Olivier Thorel, Executive Vice President of Chemicals at SABIC, emphasized the petrochemical industry's critical role in fostering a sustainable and resilient future. With rising demand for innovative materials and sustainable practices, the industry is poised to lead transformative trends toward carbon neutrality and a circular carbon economy. Thorel stated, “SABIC is deeply committed to pursuing efforts and exploring solutions together with our value chain partners to help meet our carbon neutrality ambition.”

As an early adopter, SABIC collaborated with independent third parties to develop the ISCC Carbon Footprint Certification (CFC) module, successfully executing a pilot audit at its joint venture methanol production sites. This new CFC module is designed to certify product carbon footprints across various products and value chains, facilitating the integration of sustainability certifications and mass balancing in complex supply chains.

Dr. Fahad Al Sherehy, Vice President of Corporate Sustainability at SABIC, highlighted the company's ongoing technological advancements aimed at reducing carbon footprints. These innovations encompass electrification, hydrogen combustion, renewable energy, and enhanced carbon capture, utilization, and storage processes. The CCU project that converts captured CO2 into low carbon methanol and its derivatives is pivotal in decreasing embedded carbon emissions within SABIC's value chain and that of its customers.

SABIC remains committed to achieving carbon neutrality in its operations by 2050, aligning its strategies with various regional and national sustainability ambitions. This new low carbon product offering exemplifies SABIC’s dedication to collaborating with partners throughout the value chain to mitigate indirect Scope 3 emissions.