chapter 5 
The Chemical Industry 
Background 
The organic substances first used hv humans 
to make useful materials such as cotton, linen, 
silk, leather, adhesives, and dyes were obtained 
from plants and animals and are natural and re- 
newable resources. In the late 19th century, 
coal tar, a tionrenewahle substance, was found 
to he an e.xcellent raw material for many organ- 
ic compounds. When organic chemistry devel- 
oped as a science, chemical technologv' im- 
proved. .At about the same time relatively cheap 
petroleum became vv idely av ailahle. The indus- 
try shifted rapidly to using petroleum as its ma- 
jor raw material. 
The chemical industry's constant search for 
cheap and plentiful raw materials is now about 
to come full circle. The supply of petroleum, 
which presently serv es more than 90 percent of 
the industrv’s needs, is severely threatened by 
both dw indling resources and increased costs. It 
has been estimated that at the current rate of 
consumption, the world's petroleum supplies 
w ill be depleted in the middle of the ne.xt cen- 
tury. Most chemical industry analysts, there- 
fore, foresee a shift first back to coal and then, 
once again, to the natural renewable resources 
referred to as biomass. The shifts will not 
necessarily occur sequentially for the entire 
Overview of the industry 
The chemical industry is one of the largest 
and most important in the world today. The U.S. 
market for synthetic organic chemicals alone, 
e.xcluding primary products made from petro- 
leum, natural gas, and coal tar, exceeded S35 
billion in 1978. 
The industry's basic function is to transform 
low-cost raw materials into end-use products of 
greater value. Tbe most important raw materi- 
als are petroleum, coal, minerals (pbospbate, 
carbonate), and air (oxygen, nitrogen). Roughly 
two-thirds of the industry is devoted to produc- 
chemical industry. Rather, both coal and bio- 
mass will be examined for tbeir potential roles 
on a product-by-product basis.' 
Tbe chemical industry is familiar with the 
technology of converting coal to organic chem- 
icals, and a readily available supply exists. Coal- 
based technologies will he used to produce a 
w ide arrav of organic chemicals in the near fu- 
ture.* Nevertheless, economic, env ironmental, 
and technical factors will increase the industry’s 
intei'est in biomass as an alternativ e source tor 
raw materials. .Applied genetics will probably 
plav a major role in enhancing the possibilities 
l)v allowing biomass and carbohydrates from 
natural sources to be converted into various 
chemicals. Biology will thereby take on the dual 
role of prov iding both raw materials and a proc- 
ess for production. 
'For I'lii’lhpi' dclails see Energy From Biological Processes, \ol. I, 
or.V-K-124 (W ashington, O.C.: OtI'iee ot Technology Assessment, 
July 19801. 
VVIost important organic intermediates (chemical compounds 
used lor the industrial synthesis of commercial products such as 
plastics and fihers) can be obtained from coal as an alternative raw 
material. Currently, methods are being dexeloped to convert coal 
into "synthetic gas," which can then be used as raw material for 
further conversions. 
ing inorganic chemicals such as lime, salt, am- 
monia, carbon dioxide, chlorine gas, and hydro- 
choloric and other acids. 
The other third, which is the target for bio- 
technology, produces organic chemicals. Its out- 
put includes plastics, synthetic fibers, organic 
solvents, and synthetic rubber. (See figure 24.) 
In general, petroleum and natural gas are first 
converted into “primary products” or basic or- 
ganic chemicals such as the hydrocarbons ethyl- 
ene and benzene. These are then converted into 
a wide range of industrial chemicals. Ethylene 
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