Energy Transition: Our Journey Towards a More Sustainable Future

Rhea-AI Summary

Dow has outlined its strategy for reducing greenhouse gas emissions and transitioning to clean energy. The company currently sources over 50% of purchased electricity from renewables, with contracted capacity exceeding 1,000 megawatts. Key initiatives include building the world's first net-zero Scope 1 and 2 emissions integrated ethylene facility in Alberta, Canada, which will reduce emissions by approximately 1 million metric tons of CO2e annually while tripling manufacturing capacity. Additionally, Dow partnered with X-energy to implement advanced nuclear technology at their Seadrift, Texas site, expected to reduce emissions by 440,000 MT of CO2e yearly.

Positive

• Over 50% of purchased electricity sourced from renewables
• Contracted renewable capacity exceeding 1,000 megawatts
• New Alberta facility will triple manufacturing capacity while reducing emissions
• Expected 1 million metric tons CO2e annual emissions reduction at Alberta site
• Projected 440,000 MT CO2e yearly reduction at Seadrift site through nuclear technology

Negative

• Significant capital investment required for clean energy transition
• Complex technological transitions may pose implementation risks
• Continued dependence on traditional energy sources for 24/7 operations

Insights

Environmental Policy Analyst

This sustainability update from Dow outlines significant strategic initiatives but lacks concrete financial commitments or immediate market-moving developments. While the company's renewable energy sourcing and planned net-zero facilities are noteworthy, the article primarily discusses ongoing initiatives and future plans without specific timelines or investment figures.

The Fort Saskatchewan facility and X-energy partnership represent important steps in Dow's decarbonization strategy, with potential emissions reductions of 1 million MT and 440,000 MT of CO2e annually, respectively. However, without clear financial metrics, implementation timelines, or immediate operational impacts, these developments are more indicative of long-term strategic positioning rather than material near-term catalysts for investors.

NORTHAMPTON, MA / ACCESSWIRE / October 29, 2024 / DOW

By Edward Stones

We are determined to lead our industry in the complex work of reducing GHG emissions and in enabling our customers and consumers to understand and value the investments we are making.

Reducing greenhouse gas (GHG) emissions and accelerating the clean energy transition are crucial to creating a more sustainable future. Industrial decarbonization requires significant changes in each of what energy sources we use, how we use them, and how we inform customers of what they are buying.

At Dow, we understand and embrace our responsibility to protect the climate, building on almost twenty years of emissions reductions and as embedded in our Path2Zero. To reach our goal, we are increasing the use of clean energy and investing in sustainable manufacturing technologies at our sites, enabling us to verifiably and visibly deliver low emissions products that help our customers meet their sustainability needs.

Increasing the use of clean energy

Energy is crucial to our operations. To make our products, we import and use approximately 10 gigawatts of energy to produce heat, power and steam from more than 80 gas turbines, steam turbines, and boilers, and nearly 200 furnaces at 25 major manufacturing sites worldwide.

An important tool for our emissions reduction efforts is the use of renewable energy. Through renewable power purchase agreements in Europe, Latin America and North America, we are supporting our customers' ability to reduce their value chain emissions, while supporting the continued development of clean energy markets.

In 2023, we sourced more than half of purchased electricity from renewables such as wind, solar and hydroelectric, contracting a capacity of greater than 1,000 megawatts, and recently were named to the EPA's Green Power Partnership National Top 100 list. These technologies will remain an important part of our decarbonization strategy in the future. However, our manufacturing operations need reliable, affordable, and sustainable energy around the clock, which means we must also look beyond renewable energy to support our operations.

Investing in next-generation manufacturing technologies

Low-emissions sources such as hydrogen, advanced nuclear, and natural gas connected to carbon capture, utilization and storage (CCUS) also are required for the energy transition to realize a low-GHG-emissions future in manufacturing.

That is why we support policies that accelerate the development of all forms of clean energy, modernize the transmission grid, and support the industry's deployment of energy-efficient manufacturing processes. We are making investments in these technologies as part of our Decarbonize & Grow strategy to drive long-term growth and reduce GHG emissions.

We also are building the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility at our Fort Saskatchewan site in Alberta, Canada. In this project, Dow will become one of the first industrial users of hydrogen technology to power our operations at scale. Our planned use of hydrogen and CCUS at the site will help reduce emissions at the site by approximately 1 million metric tons (MT) annually of CO₂e, while tripling our manufacturing capacity at the site. This decoupling of our emissions growth from our manufacturing growth is a significant step on our path to achieving our emissions reduction targets. Across the globe, we also are working with our suppliers and customers to reduce our Scope 3 emissions.

In 2023, we signed a joint development agreement with X-energy, a leading developer of advanced nuclear reactors and fuel technology for clean energy generation, to deploy zero-emissions advanced small nuclear technology at our Seadrift, Texas, site by early next decade. The proposed project would provide the site with safe, reliable, low-GHG-emissions power and steam and is expected to reduce site emissions by approximately 440,000 MT of CO₂e per year.

We are determined to lead our industry in the complex work of reducing GHG emissions and in enabling our customers and consumers to understand and value the investments we are making.

The above examples are a few ways we are helping our customers by providing low-emissions products enabled by our decarbonization efforts. We calculate product carbon footprints using the Carbon Footprint Ledger methodology, which is based on current standards, such as ISO14067 and the GHG Protocol Product Standard and industry guidelines. We are confident that verifiable purchase of low-emissions products will help accelerate investment in these new technologies at Dow and across our value chains.

View additional multimedia and more ESG storytelling from DOW on 3blmedia.com.

Contact Info:
Spokesperson: DOW
Website: https://www.3blmedia.com/profiles/dow
Email: info@3blmedia.com

SOURCE: DOW

View the original press release on accesswire.com

FAQ

What is Dow's renewable energy capacity in 2023?

In 2023, Dow contracted over 1,000 megawatts of renewable energy capacity and sourced more than half of its purchased electricity from renewable sources including wind, solar, and hydroelectric.

How much will Dow's new Alberta facility reduce CO2 emissions?

Dow's new net-zero facility in Fort Saskatchewan, Alberta will reduce emissions by approximately 1 million metric tons of CO2e annually while tripling manufacturing capacity.

What is Dow's partnership with X-energy expected to achieve?

Dow's partnership with X-energy to implement advanced nuclear technology at the Seadrift, Texas site is expected to reduce emissions by approximately 440,000 MT of CO2e per year.

How many energy facilities does Dow currently operate?

Dow operates more than 80 gas turbines, steam turbines, and boilers, and nearly 200 furnaces across 25 major manufacturing sites worldwide.