Sectors > Petrochemicals and Biofuels

Fuel the world while reinventing how energy is made.

A Global Industry, Built for the Energy Transition

The refining and petrochemicals sector powers the modern economy, with a global petrochemicals market worth close to $700 billion and refining capacity exceeding 104 million barrels per day.

 

This scale spans every major hub:

  • United States: 18.4 million barrels per day, the world’s largest exporter of refined products.
  • Germany: Europe’s largest chemical industry, at €222.7 billion in turnover.
  • Brazil: the world’s largest sugarcane ethanol producer, powering a $20 billion biofuel industry.
  • France: €108.5 billion in chemical industry turnover, the country’s leading industrial exporter.

    Companies across the sector share the same challenge: shifting from fossil feedstocks to biofuels, e-fuels and recycled plastics, while sustaining margins under tightening carbon regulation. This is where ABGi operates, helping them secure R&D tax credits and innovation funding to power that transition.

    Filière Chimie - ABGi France

    Key Strategic and Operational Challenges for the Sector

    Decarbonisation and Energy Transition

    Shifting production toward biofuels, e-fuels and low carbon hydrogen while managing the phase down of conventional refining assets.

    Circular Economy and Plastics Recycling

    Scaling chemical and mechanical recycling technologies to meet rising recycled content targets and reduce virgin plastic demand.

    Feedstock Diversification

    Securing alternative feedstocks such as biomass, waste oils and captured CO2 as conventional crude and naphtha volumes decline in mature markets.

    Regulatory and Carbon Compliance

    Navigating the EU Emissions Trading System, Carbon Border Adjustment Mechanism and Renewable Energy Directive, which require significant capital investment.

    Asset Conversion and Capital Intensity

    Retrofitting refineries and petrochemical plants for new fuels and materials, often at multi billion euro cost per site.

    Competitiveness Against Lower Cost Regions

    Competing with Middle Eastern and Asian producers benefiting from cheaper feedstock and faster capacity growth.

    Key figures for the sector 

    $ 700B

    Global petrochemicals market size in 2025

    $ 160B

    Global biofuels market size in 2025

    104M

    Barrels of global refining capacity processed per day worldwide

    19%

    Share of global greenhouse gas emissions expected from oil demand for petrochemical feedstocks by 2030

    Focus on the 4 Strategic Levers

    Innovation

    • Research and development of e-fuels, advanced biofuels and next generation recycling technologies.
    • Development of bio based feedstocks derived from waste, biomass and captured carbon.
    • New catalytic and separation processes to improve yield and reduce energy intensity.

    Operations & Performance

    • Retrofitting existing refining and petrochemical assets for multi feedstock flexibility.
    • Optimising plant integration between fuels, chemicals and recycling units to protect margins.
    • Building resilient supply chains for alternative feedstocks and critical raw materials.

    Technology

    • AI and digital twins to optimise plant operations, predictive maintenance and yield management.
    • Carbon capture, utilisation and storage technologies integrated into existing production sites.
    • Advanced sensors and automation to improve safety and process efficiency.

    ESG & Sustainability

    • Accelerating the shift toward sustainable aviation fuel, renewable diesel and green hydrogen.
    • Scaling chemical recycling to close the loop on plastics and reduce landfill and incineration.
    • Reducing water use, emissions and energy intensity across production sites.