In Bulgaria, no subsidies are planned to support industrial decarbonization,

In Bulgaria, no subsidies are planned to support industrial decarbonization, and at the European level there is a lack of a political framework for a transition to new technologies, without affecting competitiveness. This was stated to Dir.bg and 3eNews by the general secretary of the Bulgarian Chamber of Chemical Industry (BCCI), Reneta Kopandanova. She emphasized the contribution of the Bulgarian chemical industry to the national economy, its positions on the European market, the importance of the sector for Europe and warned of the danger of deindustrialization. It is necessary to develop a strategy for energy-intensive industries in Europe and stable political solutions to maintain the industrial base, are categorical in the chamber of the chemical industry. Here`s what else BCCI General Secretary Reneta Kopandanova said about the state of the Bulgarian chemical industry and the green transition, which is problematic for competitiveness: Mrs. Kopandanova, what is the state of the Bulgarian chemical industry? Today, there is no industrial process in which chemicals are not used, and through the processing of various raw materials, valuable intermediate and final products are obtained. In turn, they are used in many economic sectors such as agriculture, construction, almost all manufacturing industries, as well as for a number of services. The chemical industry is important to the country as it contributes to higher productivity, higher gross domestic product and better foreign trade. Regardless of the difficult times, Bulgaria`s chemical industry is one of the successfully developing ones, with a high contribution to the main indicators of the national economy and an important place in the European chemical industry. The Bulgarian chemical industry ranks 19th among the EU-27 countries in terms of sales of chemicals for 2020 with a value of 1.6 billion euros or a 0.3% market share (according to CEFIC data). It is constantly developing, which is reflected in the increasing variety of chemical substances and products. Export-oriented - this is how the chemical industry in the country can be defined. Lukoil Neftohim Burgas AD, the fertilizer plant Agropolihim AD, the soda ash producer Solvay Sodi AD, Orgahim AD, Agria AD occupy a significant share in exports. But both this and next year are shaping up to be difficult for the chemical industry - due to high inflation, lower consumer confidence, the energy crisis, increased geopolitical tensions and the war in Ukraine. How is the realization going on the domestic market and abroad? In the sector " Production of chemical products " about 4.5% of the volume of industrial production in the country is produced and 4.7% of the added value in the industry is created. 2.6% of those employed in industry are employed in the branch. In December 2022, the production of chemical products increased by 2.5% compared to the corresponding month of the previous year. In the sector " Production of rubber and plastic products " 3.2% of the volume of industrial production in the country is produced and 4.1% of the added value in the industry is created. 5.5% of those employed in industry are employed in the branch. How far is the industry on the " Pathway for the transition of the chemical industry " drawn up by the EC? Despite the difficulties, the chemical industry continues to support the goals of the European Green Deal and remains on track to become climate neutral by 2050. So far, the chemical industry is the only energy-intensive industry for which there is a special pathway – the EC`s Sector Transition Pathway. The document outlines almost 200 actions we need to take - to become climate neutral, digitize our processes, make our production resource-efficient and circular, and increase the number of safe and sustainable chemicals by 2050. In other words, our industry will have to change " how " it produces and " what " it produces in less than 30 years. It is not only for those working in the chemical industry that it is obvious that the change required is unprecedented and very expensive. Companies cannot guarantee their competitiveness and long-term productive capacity alone. Strong support from government and local communities is needed to achieve an affordable and competitive transition to sustainable production. How are we in this respect compared to EU partners? Many industrial enterprises are currently pressed against the wall, because in Bulgaria there is no support mechanism at the national level, as there is in Poland, the Czech Republic and even in Romania, etc. How will the new eco-restrictions, such as the directive on industrial emissions, etc., affect the Bulgarian companies in the sector? As reflected by any restrictions at EU level, which are likely to lead to deindustrialization. Which investments are most urgent and are sources emerging for them? Investments in energy transition. At the moment, no subsidies are planned in Bulgaria to support industrial decarbonization, especially for enterprises that use thermal energy for production purposes. Could you give examples of good practices and of difficulties? The sector will continue to face supply issues, high commodity prices and other challenges arising from the difficult international context. But there are also good practices. For example, Solvay Sodi AD announced at the beginning of 2022 an ambitious roadmap for ecological and sustainable development, aiming to reduce the carbon footprint of production by 40% by 2026 and end the use of fossil fuels in the largest plant for the production of calcined soda ash of the Solvay Group by 2030. The main projects of the energy transition include the conversion of one of the boilers to be able to operate with 30% biomass, a process innovation project and a project for the high-efficiency recovery of non-recyclable waste, with goal of energy production instead of disposal. Let me remind you that in June 2022, Solvay Sodi opened one of the largest sodium bicarbonate plants in the world. Lukoil Neftohim Burgas AD also presents itself with good practices. The company is a center for technology transfer, engineering and digital competences, works on technological innovations related to the transition to sustainable green energy and circular economy. Industrial and environmental safety of production are among the main priorities in the company`s activities. As a result of complex and consistent solutions in the field of environmental protection, a drastic reduction of emissions of dust particles, nitrogen and sulfur oxides in the atmosphere has been achieved. The company continues to work on the modernization of major technological and infrastructure projects. In 2022, the reconstruction of a Catalytic Cracking plant (with a budget of $61.2 million) was completed with a significant improvement in technological indicators and its level of reliability. The expected investments for the period 2019-2026 amount to 130 million US dollars. Work continues on the project for the construction of a new polypropylene production complex. In 2022, the company launched a new environmental project LIFE WATEROIL, which will reduce the consumption of electricity and fuels in the enterprise, while reducing CO2 emissions into the atmosphere by 1,000 tons/year. The project activities also include implementation of Eurovix technology for refinery wastewater treatment using specific bioactivators. I would also point out the investment program of Agropolychem AD as a good example. The program covers all aspects of the company`s activities. In terms of ecology, work is being done to put into operation highly efficient wastewater treatment plants, air emissions and waste, and monitoring systems. For energy efficiency, the focus is on the installation of highly efficient equipment with low consumption of energy products. Investments in new facilities and modernization of production technologies in accordance with the best available technologies are planned for production, including for automation - implementation of the latest generation systems for management and control of the production process, etc. What are the main challenges for the sector and what prospects are emerging? Reducing carbon emissions of energy-intensive industries should become a priority for Bulgaria, as it is in other EU countries. The majority of Bulgarian heavy industry is left to deal with the challenges of decarbonization alone. Large companies with energy transformation projects that are not related to the production of electricity from renewable sources and/or its storage are not included and cannot apply for funding to support their energy transition. The chemical industry, with its many products, is crucial for climate neutrality across the EU economy. New materials developed by the chemical industry are at the heart of innovation, especially for transformational technologies – such as renewable energy, carbon-neutral mobility and housing, sustainable agriculture, carbon capture chemicals and many other essential applications and industries that depend on them. In order to successfully manage the transformation process ahead of us in order to achieve our climate goals and to contribute to Europe achieving its goals, the chemical industry must remain globally competitive. The EU policy framework should enable a transition from today`s production technologies to new technologies without jeopardizing competitiveness. The EU needs to create a cost-competitive framework for operating new or refurbished plants in Europe. It is important to preserve existing work to bridge the time gap until new or refurbished capacity is introduced. This will ensure that Europe continues to have a competitive chemical industry as the basis for its downstream sectors, both in terms of material supply and innovation. The transition will require huge public and private investment and therefore a robust regulatory framework is needed. Several measures are needed, such as the development of a strategy for energy-intensive industries in Europe and sound policy solutions to maintain the industrial base. They must reflect the critical role of downstream value chains, as well as Europe`s medium and long-term sustainability.