Towards a new future: The role of Power-to-X in ARRRA’s chemical transformation
24-09-2025
High energy prices and stringent climate regulations are putting pressure on the chemical industry in the ARRRA region. This has already led to well-established companies closing down their operations. In contrast, a new TNO VoltaChem white paper explores a bold move forward: developing and implementing Power-to-X technology for a sustainable, CO2-based production of chemicals. This can aid in securing the future of the ARRRA chemical cluster and boost the transition of the European chemical industry at large.
The chemical industry in the ARRRA-region (Antwerp-Rotterdam-Rhine-Ruhr Area) is a European chemicals powerhouse, accounting for approximately 40% of the total production. The success of the trilateral region stems from its strategic accessibility over sea, extensive pipeline networks and integrated production chains. This success, however, is under pressure resulting from high energy prices and stringent climate regulations. Companies are struggling and already plants are closing down. Due to the high degree of industrial integration, this poses a major risk to the entire cluster.
A recently published TNO VoltaChem whitepaper signals a way out of this threatening situation. It explores a shift towards CO2-based production of chemicals, applying Power-to-X technology using renewable electricity. This Power-to-X-CCU concept offers the ARRRA cluster a way to reinvent itself, explore new business models and renew its earning power. The whitepaper identifies technological developments, analyses strengths and weaknesses, and presents strategic directions for the ARRRA cluster to leverage its integrated industrial networks and support Europe’s strategic autonomy in the production of sustainable chemicals and fuels.
Three types of technology
The whitepaper focuses on three Power-to-X-CCU pathways, built around three types of technology for CO2-conversion: thermochemical, electrochemical and plasma-based. These are described in detail in terms of their technological maturity, economic viability and potential climate impact. It concludes that while conventional thermochemical CO2 conversions are quite mature (TRL 6-9), the other technologies still need significant development towards scale-up and ultimately commercial operation. In economic terms, CO₂-based production currently does not provide a cost-competitive alternative to fossil-based production. However, learning effects, economies of scale, and improved designs are expected to reduce costs significantly over the next 15–20 years. Finally, the potential climate impact of the technologies hinges on the availability of renewable energy and the extent of carbon circularity in the product lifecycle. With abundantly available renewable electricity and sustained recycling (realising long-term storage of CO2 in products), Power-to-X-CCU pathways can lead to significantly reduced—potentially even net-negative—emissions.
Two strategic directions
The whitepaper presents a thorough strategic evaluation for the ARRRA chemicals cluster based on a SWOT analysis with respect to development and utilization of the aforementioned Power-to-X-CCU technologies. It arrives at two promising strategic directions: building strategic production capacity and/or becoming a global technology provider.
Building strategic production capacity will reduce dependence on suppliers from outside Europe, stimulate innovation and drive further deployment of Power-to-X-CCU in the ARRRA region. This can be made a success by boosting the competitiveness of the chemical industry, targeting of specific product-market combinations (such as sustainable aviation fuels) and harnessing synergies with other sustainable production pathways.
The ARRRA cluster can also gain a competitive edge in the global market by exporting Power-to-X-CCU technologies and its components, leveraging its strong position in technology development. This can be made a reality by consolidating and protecting the Power-to-X-CCU technology position, addressing the technical challenges and strengthening the ARRRA ecosystem.
Maintaining ARRRA’s competitive edge
The whitepaper concludes that both strategic directions offer opportunities to secure a leading role for the ARRRA cluster and the broader EU in developing a Power-to-X-CCU based economy. However, to make this a reality it is imperative to convert the ambitions of the EU Clean Industrial Deal into tangible measures. It requires supportive policy, coordinated investment and strategic alignment throughout the value chain. Aligning innovation, infrastructure, and policy will unlock the potential of Power-to-X CCU so that it can contribute to a sustainable, competitive, and circular chemicals and fuels industry in the ARRRA cluster. At the same time, it will redefine ARRRA's role n the global energy and material transition and maintain its competitive edge.
Interested? Download the full white paper Harnessing Power-to-X CCU for a sustainable carbon future, or contact Monalisa Goswami, senior business developer Power-to-Chemicals.
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