Evonik Pioneers CO2 Circularity to Drive Innovation in the Chemical Industry

Carbon dioxide is typically framed as a problem the chemical industry must solve. Increasingly, however, it is also being explored as a potential feedstock for future chemical production.

During the session “CO₂ Circularity as an Opportunity for the Chemical Industry” at CIEX, Jean Vincent, Former Head of Research, Development and Innovation (RD&I), Americas, Evonik, discussed how carbon capture, green hydrogen, and biotechnology could enable new circular production pathways.

Using Evonik’s Project Rheticus as an example, she illustrated how CO₂ conversion technologies are progressing from laboratory research toward pilot-scale industrial validation.

You can explore the full executive summary from the presentation below or watch the complete presentation recording via the link below.

📹 Watch the full Evonik presentation: [Link]

 

Rethinking Carbon: From Waste Stream to Industrial Building Block

Nature has always treated CO₂ differently from the way industry does.

Plants, algae, and marine organisms use carbon dioxide as a fundamental building block for growth through photosynthesis. Translating this concept into industrial chemistry is becoming an increasingly attractive pathway as the industry seeks alternatives to fossil-derived carbon.

The opportunity is significant.

Today, the majority of carbon embedded in chemical products still originates from fossil feedstocks. Increasing the share of circular carbon sources—whether captured CO₂, bio-based inputs, or recycled materials—represents one of the most important structural shifts required for the industry to meet long-term climate targets.

However, transforming CO₂ into viable chemical feedstock requires new technological platforms capable of converting a highly stable molecule into usable intermediates.

One emerging approach combines electrochemistry, biotechnology, and renewable energy.

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Industrial Photosynthesis: Converting CO₂ into Specialty Chemicals

One of the most promising directions involves mimicking the logic of photosynthesis in an industrial environment.

Instead of sunlight powering biological conversion, electricity generated from renewable sources can be used to split water into hydrogen and oxygen. The hydrogen then becomes a key input for transforming captured CO₂ into new chemical molecules.

Evonik’s Project Rheticus represents a notable example of how this concept is being translated into practice.

The platform integrates three technologies:

• Electrolysis to generate hydrogen
• Carbon capture to supply CO₂ feedstock
• Fermentation to convert these inputs into longer-chain molecules

Within the fermentation process, specialized microorganisms convert CO₂ into organic acids through a multi-step biological pathway. These intermediates can then be further processed into specialty chemical building blocks.

The target molecules are not commodity fuels but higher-value chemical intermediates, including compounds used in coatings, cleaning formulations, thermal management fluids, and personal care products.

This strategic positioning reflects an important commercial reality: circular carbon technologies must find markets where customers are willing to pay for the value they create.

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Scaling the Technology: Why Pilots Matter

As with many emerging chemical technologies, the challenge lies less in proving scientific feasibility than in demonstrating industrial reliability.

Evonik has therefore spent several years advancing the technology through pilot-scale validation. A fermentation reactor installed in Marl, Germany, has operated continuously for thousands of hours, producing small but meaningful volumes of product.

The objective of this phase is not production scale but process confidence—testing microbial stability, operational resilience, and downstream separation.

The next step would involve demonstration-scale infrastructure capable of increasing output by orders of magnitude. Achieving that milestone would require both public support and industrial partnerships.

This reflects a broader truth about CO₂ utilization technologies: no single company will scale them alone.

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The Missing Piece: Green Hydrogen

Any CO₂ conversion strategy ultimately depends on the availability of low-carbon hydrogen.

Hydrogen provides the chemical reducing power needed to transform CO₂ into more complex molecules. Without it, carbon circularity at scale becomes extremely difficult.

However, hydrogen production technologies themselves are still evolving. Current proton exchange membrane (PEM) electrolysis systems are effective but rely on expensive precious metal catalysts.

Alternative approaches, such as anion exchange membrane (AEM) electrolysis, aim to reduce these costs by enabling different catalyst systems.

Advances in hydrogen technology therefore play a critical role in determining whether CO₂-based chemical production becomes economically viable.

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Securing the Carbon Feedstock

Another challenge lies in sourcing the CO₂ itself.

While global emissions provide no shortage of carbon, capturing and concentrating it in usable form requires dedicated technologies. Chemical companies are exploring several complementary approaches:

• Membrane separation for biogas streams
• Chemical absorption systems for industrial emissions
• Direct air capture technologies
• Solid sorbents and advanced materials

Each pathway has different energy requirements, cost profiles, and scaling constraints. As a result, the future carbon supply landscape will likely involve multiple capture technologies operating simultaneously.

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Why Collaboration Is Becoming the Industry’s Operating Model

Perhaps the most important insight emerging from CO₂ innovation efforts is that technology ecosystems matter as much as technology itself.

Carbon circularity requires the integration of multiple disciplines:

• Electrochemistry
• Biotechnology
• Process engineering
• Carbon capture technology
• Renewable energy systems

Few companies possess all these capabilities internally.

As a result, collaboration between chemical companies, startups, academic institutions, and industrial partners is becoming the dominant innovation model.

Industry platforms, startup accelerators, and research consortia are increasingly acting as innovation bridges, allowing large organizations to explore emerging technologies while sharing risk and expertise.

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CO2 Circularity Will Require Many Solutions

One lesson emerging clearly across the industry is that there will not be a single pathway to carbon circularity.

Some technologies will rely on biomass.
Others will focus on recycling existing plastics.
Still others will convert captured CO₂ into new molecules.

Each approach addresses a different segment of the chemical value chain.

The long-term objective is not to replace fossil carbon overnight but to gradually diversify the sources of carbon entering chemical production.

In this sense, CO₂ utilization is less about eliminating emissions entirely and more about closing the carbon loop.

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Strategic Implications for Chemical Industry Leaders

For R&D leaders and innovation executives, several practical lessons are emerging from early CO₂ circularity projects.

First, technologies must be developed with commercial end markets in mind, particularly in specialty chemicals where value creation can justify early adoption.

Second, pilot and demonstration facilities are essential for bridging the gap between laboratory discovery and industrial reality.

Third, innovation strategies must extend beyond internal R&D to include external technology ecosystems.

Finally, the future competitiveness of chemical companies will increasingly depend on their ability to secure alternative carbon feedstocks.

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The Road Ahead

Carbon circularity remains an early-stage field. Many technologies are still progressing through pilot or demonstration phases, and large-scale economics are not yet fully proven.

Yet the direction of travel is becoming clearer.

As regulatory pressure intensifies and fossil feedstocks become less attractive long-term, the chemical industry will need new carbon sources to sustain growth.

CO₂—once considered purely a waste stream—may become one of them.

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Where These Strategic Questions Move From Theory to Practice

The structural issues outlined above are not isolated operational matters; they are shaping board-level conversations across the chemical sector.

CIEX North America 2026 is designed as a working forum for senior leaders addressing disciplined portfolio governance, AI integration, capital efficiency, and sustainability-driven product design. It focuses on the operational realities behind these strategic imperatives.

Join us for two focused days with senior leaders in R&D, innovation, and sustainability across the consumer, industrial, and specialty chemical sectors — tackling:

• Scaling new technologies beyond the pilot phase
• Embedding AI and digital tools into real R&D workflows
• De-risking innovation through the right partnerships
• Turning sustainability targets into profitable product pipelines

Expect practical case studies from leading global brands, proven methodologies, and direct access to senior decision-makers across the chemical industry.

📍 CIEX North America | September 9–10, 2026

If you influence innovation strategy, R&D direction, or technology investment — this is where you need to be.

Register for CIEX 2026 now.