Energy and natural resources
Feedstock
The raw material fed into a process, such as naphtha or ethane for a chemical plant.
Last reviewedWhat does Feedstock mean?
Feedstock is the basic raw material a plant turns into products: crude oil for a refinery, naphtha, ethane, propane or coal for petrochemicals, and natural gas for ammonia and methanol. In commodity chemicals it is often the largest cost, so cheap feedstock is a lasting competitive advantage. Plants in the Gulf and the United States that crack cheap ethane have had lower costs than many naphtha-based plants in Europe and Asia. Example: if ethylene costs 400 a tonne to make from ethane but 800 from naphtha, a 1.5 million tonne plant using ethane saves 600 million a year.
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Related terms
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