Sustainability in specialty chemicals needs pragmatism, reliability: Solugen CEO

This content is part of the WPC 2025 series, where we explore key themes from the 40th annual World Petrochemical Conference.

In a session focused on the future of specialty chemicals at the World Petrochemical Conference in Houston, executives emphasized a pragmatic approach to innovation.

"Aligning the chemical industry with forward-looking sustainability goals is not about wholly replacing traditional chemistry, but about understanding what we can supplement with it to find more customized tailored solutions," said Gaurab Chakrabarti, CEO of Solugen on March 20.

Chakrabarti described specialty chemicals as the "third industrial revolution," spotlighting innovation, efficiency and customization as the core tenets underpinning the sector's growth potential.

The Solugen CEO also noted that amid the current excitement, "reliability is crucial." He spotlighted geopolitical tensions and supply chain disruptions as areas to monitor, emphasizing that cost efficiency remains an industry priority.

He maintained that resource efficiency and energy efficiency are now being weighed alongside this, with sustainability now a "part of the fabric of business value."

Roman Kramarchuk, head of climate markets and policy analytics at S&P Global Commodity Insights, highlighted that energy and fossil fuel demand have "bounced back" in recent years after a period of "unbridled optimism" surrounding renewables such as hydrogen.

Platts, part of Commodity Insights, last assessed grid-based-derived hydrogen costs using electrolysis alkaline technology in Southern California at $2.73/kg on March 19, bouncing back from $2.26/kg on March 18, which was the lowest level so far in 2025.

Kramarchuk stated that expectations are being revised, also referencing a need for Europe to become, "more competitive" and for considerations to be made in line with the new US administration.

Harold Schwagger, deputy chairman of specialty chemicals producer Evonik's executive board, highlighted bio-solutions, energy transition, and the circular economy as the most relevant areas of focus for Evonik.

Schwagger described innovation in these areas as the "growth of tomorrow" and as "fundamental elements of a future-orientated business model," for "ambitious margin targets [to] be achieved."