Why is the chlor-alkali industry dependent on electricity?
Commercial production of chlorine is a large-scale, round-the-clock, process that uses electricity as a raw material. Therefore a reliable electricity supply is essential. Not only chlorine plants, but also manufacturing industries that require chlorine supplies, are unable to operate when there is a risk of power outages.
Chlorine production is energy intensive: 50-70% of the variable cost related to making chlorine is due to electricity (see further information in this document). Operators are therefore sensitive to electricity price trends.
Without secure and competitively priced electricity supplies, Europe will no longer be an attractive location for future investments. Chlorine-based production will risk moving elsewhere, together with other manufacturing operations and jobs.
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