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Apex PetroConsultants, LLC

Decarbonization of Ethylene based Complexes - An example of good policy framework that creates market-based mechanism for incentives for decarbonization

10/16/2021

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A recent announcement by Dow to build the world’s first net-zero carbon emissions ethylene and derivative complex(https://investors.dow.com/en/news/news-details/2021/Dow-announces-plan-to-build-worlds-first-net-zero-carbon-emissions-ethylene-and-derivatives-complex/default.aspx) is a showcase example for the petrochemical industry.

The proposed complex will achieve this utilizing the current best available technologies. The high-temperature cracking furnaces will use hydrogen as a fuel for providing the necessary heat input for the process. This will eliminate the carbon dioxide emissions from the furnaces. Hydrogen will be generated using an auto-thermal reforming (ATR) process with a carbon capture step. The captured carbon dioxide will be transported and stored in adjacent infrastructure. (https://cen.acs.org/environment/greenhouse-gases/Dow-details-plan-decarbonize-petrochemical/99/i37). The advantage of this approach is that owners can decarbonize existing assets with minimum changes, provided they have access to infrastructure for carbon storage and utilization.

There are potentially many factors that may have contributed to the decision-making process. Canada’s  Pan-Canadian Framework on Clean Growth and Climate Change played a role that creating market-based carbon pricing mechanisms and financial incentives to reduce greenhouse gas emissions and make the reductions economical. Alberta province has two market-based policies including a carbon tax and an output-based pricing system for emissions reduction. This provides certainty to businesses in their decision-making process.

The companies will have to assess individual facilities and sites to develop the most appropriate approaches as they can vary significantly from one site to the other.

At Apex PetroConsultants, we advise client teams to evaluate decarbonization approaches for each individual facility and site that are economical to meet short to mid-term targets while focusing on the longer-term net-zero approaches for new and existing assets.
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    Sanjeev Kapur is Principal Consultant at Apex PetroConsultants. He focuses on consulting/advising olefins based petrochemical businesses. He is a leading expert in petrochemicals and integration.

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