Page 120 - CW E-Magazine (6-2-2024)

Point of View

share of the market in 2022. Thanks to the substantial improvement in solar efficiency, the amount of EVA encapsulant consumed per unit of
solar power produced has fallen – from 11-mn sq.m. per GW in 2019 to 9-mn sq.m. per GW in 2022. Despite this ~20% decline, the global
market for EVA films as encapsulants will continue to expand. An alternative to EVA is Polyolefin Elastomer (POE), which has the advantage
of being free from acid formation (from EVA degradation), but is pricier and not so widely available. IHS Markit, a consultancy, puts the market
share of POE encapsulants at 20% in 2020, almost doubling from 11% in 2017, with further increase in share expected in years to come.

New technologies that enable the shift from monofacial to bifacial solar panels will also provide additional opportunities for materials
and chemicals.

According to estimates by S&P Global Commodity Insights, a market research firm, the global market value of speciality materials for
manufacturing PV modules reached $35-bn in 2021, and is expected to grow at a CAGR of 9.3% from 2022-2027.

Wind turbines
One of the overwhelming trends in wind turbines is the upscaling of power ratings consequent to a substantial increase in size. Larger
sizes generate more power and reduce the number of units required to generate a given amount of power, and today blades 50-m and longer
are commonly used to maximize efficiency.

Innovations in materials, composite technology, coatings and design are enabling these new generation turbines to cope with high
mechanical stresses, especially in offshore installations where wind shear is high. Other demands on the materials include ease of processing,
light weight, and, increasingly, ease of recycling (wind turbines are 85-90% recyclable).

The most common matrix material used for wind turbines are epoxy resins, embedded with glass or carbon fibres to improve mechanical
properties, and coated with resins to improve chemical resistance. Indeed, wind turbines account for about 18% of global demand for epoxy
resins.

While glass fibres still account for the majority of reinforcement in use in current installations, carbon fibre is gaining market share in
newer builds thanks to advantages of lower weight, better stiffness and improved fatigue resistance.
The coating systems for the blades span a broader range of polymer chemistries and include polyurethanes, epoxies, silicones and
fluoropolymers.

Lubricants are another important lot of chemicals in wind turbines, ensuring their smooth and efficient working. More than 80% of
lubricants used here are the synthetic variety, typically poly(alpha-olefins).

The global market for chemicals used in wind turbines reached $3.93-bn in 2021, and is expected to grow at a CAGR of 6.5% from 2022-
2027, according to S&P Global Commodity Insights.

Investment opportunities in India
The capacity in India for manufacturing chemicals and materials serving these two renewable energy sectors is not as broad or adequate
as it should be, and there are several investment opportunities.

Most chemicals used for making solar cells (and semiconductors), for example, are imported and could present opportunities for the
companies involved in making commodity versions of the same.

In the case of polymers, there is adequate capacity for epoxy resins, some for PVDF, but none for EVA.

There is much talk of green hydrogen globally, and India’s planners are also emphasising its production and consumption. This will need
membranes for the electrolysers, none of which are currently commercially produced, but must be.

As the capacity for renewable energy grows in India, in line with government targets, the manufacturing ecosystem for these chemicals
and materials also needs to grow. This is important if we are not to trade an energy dependence for a materials one!
Ravi Raghavan

120 Chemical Weekly February 6, 2024

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