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Daily Update — March 24, 2025

Low-Carbon Petrochemicals; Utility CEOs on AI Demand; and Private Equity Hydrogen Investments

Today is Monday, March 24, 2025, and here’s your curated selection of essential intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

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Energy Transition & Sustainability

Clean conversion, advanced recycling infrastructure critical to securing low-carbon feedstocks: chemicals experts

 

During S&P Global’s World Petrochemical Conference last week, industry leaders discussed the future of low-carbon petrochemicals, highlighting the benefits of ethane feedstock and the need for advanced recycling infrastructure. Executives from Chevron Phillips Chemical, ExxonMobil, Braskem and Lummus Technology emphasized on a panel discussion that the clean conversion of feedstocks and exploration of alternative bio-based sources are crucial to reduce the industry's carbon footprint.

 

The panelists agreed that a successful strategy hinges on sourcing feedstocks that can meet rising demand without incurring excessive energy costs. They noted that customer demand and advancements in technology and policy should drive the exploration of alternative feedstock options. However, challenges remain in transitioning to low-carbon alternatives, including the need for a supportive regulatory environment to secure investments. As global populations and GDPs rise, particularly in developing regions, the demand for plastics is expected to grow, necessitating the diversification of feedstock options and the decarbonization of production processes. 

Artificial Intelligence

Listen: Three utility CEOs on energy transition, AI demand and changing US politics

 

In this episode of “Energy Evolution,” host Taylor Kuykendall engaged more industry leaders at S&P Global’s CERAWeek energy conference, including Portland General Electric CEO Maria Pope, National Grid CEO John Pettigrew and NextEra Energy Resources CEO Rebecca Kujawa.

 

The discussion revolved around the rapid growth of datacenters and the evolving energy landscape. Pope highlighted the significant role of semiconductor manufacturing and AI in shaping energy consumption patterns. Kujawa underscored the importance of renewable energy and storage solutions in meeting new load growth, which is being driven by AI and the reshoring of manufacturing capabilities in the US.

Private Markets

European hydrogen market attracts private equity investment as US deals falter

 

Private equity investors are increasingly favoring hydrogen opportunities in Europe over those in the US, as investment prospects in the regions diverge significantly. Private investment in US hydrogen fell nearly 90% year over year in 2024, dropping to $120 million across eight deals from $1.11 billion across 18 transactions. This decline is attributed to growing concerns about the US’ energy transition goals, particularly in light of the Trump administration's Jan. 20 executive order that paused tax credits for renewable energy producers and investors, leading some to view the US as a less attractive market for green hydrogen.

 

In contrast, Europe has a more favorable regulatory environment that supports the hydrogen industry's growth. The EU's emissions trading system and Carbon Border Adjustment Mechanism create a positive backdrop for hydrogen investments. In the year to Feb. 28, global private equity-backed hydrogen deals totaled $80 million, with only $20 million coming from US-based transactions. 

 

Explore Platts Hydrogen Assessments. Platts is a part of S&P Global Commodity Insights. 

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