The chemical industry in Sweden

In addition to the production of chemicals and pharmaceuticals, the chemical industry also includes refineries and plastic and rubber production. The most energy-intensive sectors are in the chemicals production and oil refining segments, which have a combined turnover of approximately SEK 229 billion and employ some 39,000 people. A large proportion of the sector’s production facilities are located in and around the major cities of Gothenburg and Malmö and in the Mälardalen and Sundsvall regions.

More than 95 per cent of all manufactured products depend on chemistry, and the chemical industry today produces a vast range of products that we use every day. The sector develops new ways to produce energy, reduce energy demand, produce clean water and food and many other solutions to the world’s challenges.

Companies in the chemical sector produce important inputs for many other processes and include the manufacture of basic chemicals and pharmaceuticals. Refineries produce various fuels, including biodiesel. The majority of the chemicals and fuel produced in Sweden are exported, mainly to Europe, but also to other parts of the world. The sector accounts for a total of approximately six per cent of Sweden’s exported goods.

There are thermodynamic and economic limitations to the potential of energy efficiency in all processes, and the chemical industry is – and is likely to remain – an energy-intensive sector. IKEM companies are currently undertaking a transition process with a view to achieving climate neutrality by 2045. Concrete plans are in place for an overall 85 per cent reduction in emissions.

The climate transition will entail a pronounced increase in electricity consumption for production processes and transport in line with the industry’s climate investments. Electricity is a highly efficient energy carrier and plants that are adapted for electrical operation can only replace electricity with fuels to a limited extent. Therefore, an internationally competitive and stable electricity system is important for the fossil-free chemical industry of the future and a priority issue for Innovation and Chemical Industries in Sweden (IKEM).