Steven Prusak, senior vice president of corporate planning and technology for Chevron Phillips Chemical (CPChem), called sustainability an "exciting world," but admits there are challenges amid the opportunities.
Part of the challenge to be faced in the near future is the growing demand for plastics as the global middle class enlarges. With rising populations and the need for society to "enjoy the benefits" of petrochemical products, there could be issues with balancing the demand with sustainability. Prusak said it is part of CPChem's core beliefs that plastics enable the modern life and facilitate prosperity.
"This growing population and prosperity does increase resource demand and presents challenges to meeting the combination of demand and sustainable solutions," Prusak noted in his address at Downstream USA 2021.
Even amidst the mountainous difficulties associated with the pandemic, CPChem has enjoyed record sales over the past 18 months, and the demand growth is continuing at an unprecedented pace. Prusak said the pandemic only highlighted the necessity of plastics and the products companies like CPChem produce.
"As we look to the future, we expect demand growth to be greater than the global GDP with a positive long-term view," he said. Even COVID-19 did not affect the company's outlook on growth in the middle class and its demand.
CPChem is continuing to pursue strategic opportunities to prepare for this dynamic growth environment. Even in a circular, low-carbon world, CPChem believes there will continue to be demand growth for virgin polymers in the future. Because of this belief, CPChem is continuing to invest in growth and industry needs to retain the capabilities associated with executing organic growth projects.
Potential risks associated with this growth include inflation and access to craft labor, Prusak added. Currently, inflation in the U.S. is a greater concern than global inflation, and its impacts include labor, raw materials and services. He said industry needs to develop "smart mitigations" for procuring and contracting both materials and equipment. Craft workers need adequate compensation to draw and retain them in the industry because of increasing competition.
"Plastics are recyclable and have a value at the end of their life," Prusak said. Because of the emerging popularity and intrigue around circularity, there is now value for reducing plastic waste and a future where plastics will not end up in unintended environments.
"Industry is going to play a central role in this process through technology advances and advocacy," Prusak asserted. "It's incumbent on those of us in the industry to highlight the benefits, demonstrate the value and invent an environment where there is increasing regulation on things like greenhouse gases and plastic waste."
When it comes to sustainable solutions, Prusak said there are two areas of focus: the circular economy and climate change. For the circular economy to continue growing, public and elected officials need to partner with industry, he said.
"We need to have fact-based, science- based decision making and we ultimately need support for the investments that will be needed to meet these ambitious goals," Prusak said. "Our role as an industry is to make sure we advocate for and make clear the benefits that plastics afford the world."
CPChem believes that advanced recycling is the "ultimate key" to unlocking the circular economy, but ultimately, mechanical recycling and infrastructure investments must be paired with it.
"Plastics are too valuable to be left where they don't belong," Prusak concluded. "As a company, industry and society, we must find ways to capture that value in the form of circular feedstocks."
