The Role of Steam Crackers in the Future

The Clean Industrial Deal and the EU Chemical Industry Action Plan present an opportunity for policymakers to drive forward the transformation of the European chemical industry in a targeted manner – towards a sustainable, competitive and climate-neutral industry.

The joint policy briefing ‘The Role of Steam Crackers in the Future – Recommendations for action for the sustainable production of basic chemicals in the European Union’ by PtX Lab Lausitz and the  Kassel Institute for Sustainability analyses transformation paths for fossil-fuel-powered steam crackers and the petrochemical clusters and chemical parks that depend on them. 

Based on the current situation and possible scenarios, the briefing formulates concrete policy recommendations for the European Union to strengthen the resilience and innovative power of the European chemical industry.

The industry, especially its steam crackers, is heavily dependent on fossil fuels and raw materials. This dependence increases geopolitical risks, weakens competitiveness and is exacerbated by outdated facilities and fragmented responsibilities in industrial clusters. Announced shutdowns of fossil-fuel-powered steam crackers threaten above all those chemical clusters that are organised around these steam crackers.

Ways to transformation

In their briefing ‘The Role of Steam Crackers in the Future – Recommendations for action for the sustainable production of basic chemicals in the European Union’, the PtX Lab Lausitz and the Kassel Institute for Sustainability propose a balanced transformation approach based on two political principles:

• Principle A: Change requires combined transformation paths. These combine a phase-out of the dominance of fossil steam crackers in European basic chemical production with the establishment of a balanced, climate-neutral production mix. A key component is the development and scaling of methanol-based routes. At the same time, suitable steam crackers should be specifically retrofitted. This interaction enables a gradual and competitive transition to climate neutrality.
• Principle B: The transformation should be cluster-oriented. This approach strengthens local and regional production chains and promotes the further development of existing chemical parks.

Political and economic framework conditions

The briefing recommends creating EU-wide lead markets for climate-neutral products. In addition, financing instruments such as the Value Chain Transition Fund and European Green Guarantees are needed to secure investments.

The supply of fossil-free raw materials must be achieved through import partnerships and local strategies. In addition, simplified and accelerated approval procedures, the expansion of shared infrastructure and local transformation plans should support the restructuring of clusters and chemical parks. 

Government subsidies – such as climate protection contracts or double auction models – should be geared towards maximum transformative effect.

Cluster initiatives should be given priority over individual projects in order to promote systemic change.

In the long term, this should result in resilient, circular and climate-neutral chemical production in Europe.

Bibliographic Data

• Publication: The Role of Steam Crackers in the Future – Recommendations for action for the sustainable production of basic chemicals in the European Union
• Publication date: October 2025
• Publisher: PtX Lab Lausitz – Think and Do Tank for Fuels and Basic Materials from Green Hydrogen, Calauer Straße 70, 03048 Cottbus
• Authors from PtX Lab Lausitz: Martin Hock, Dr Irina Akhmetova, Lukas Horndasch, Dr Sarah Bernhardt, Anita Demuth, Dr Harry Lehmann
• Authors from the Kassel Institute for Sustainability: Dr Clemens Schneider, Prof. Dr Stefan Lechtenböhmer
• Suggested citation: PtX Lab Lausitz & Kassel Institute for Sustainability (2025): The Role of Steam Crackers in the Future – Recommendations for action for the sustainable production of basic chemicals in the European Union 

About the PtX Lab Briefing

The PtX Lab Briefing ‘The role of steam crackers in the future – Recommendations for action for the sustainable production of basic chemicals in the European Union’ was developed by PtX Lab Lausitz in cooperation with the Kassel Institute for Sustainability.

The 14-page publication is based on the results of two joint workshops organised by PtX Lab Lausitz and the Kassel Institute for Sustainability, which provided a forum for exchange with stakeholders.