As previously reported, Dow and BASF were among seven chemical companies to receive U.S. Department of Energy (DOE) funding for sustainability projects.
The DOE announced the recipients on March 25 as part of President Biden’s Investing in America initiative.
Other recipients include Exxon Mobil Corp., ISP Chemicals, Eastman Chemical and Orsted.
Here is a detailed description of the seven projects from the DOE’s news release announcing the recipients:
Project Name: Baytown Olefins Plant Carbon Reduction Project
Location: Baytown, Texas
Federal Cost Share: Up to $331.9 million
Selectee: ExxonMobil Corporation
Project Summary
The Baytown Olefins Plant Carbon Reduction Project, led by ExxonMobil, would enable the use of hydrogen in place of natural gas across high heat-fired equipment using new burner technologies for ethylene production in Baytown, Texas. Ethylene is an important chemical feedstock in the production of textiles, synthetic rubbers, and plastic resins, with applications in packaging, electronics, and vehicles. The equipment modifications aim to enable the use of up to 95% clean hydrogen fuel. When fully implemented, the modifications would expect to avoid 2.5 million metric tons of carbon emissions per year—equal to more than 50% of the plant’s total emissions—and would reduce criteria air pollutants. Demonstrating clean hydrogen fuel switching in the largest ethylene plant in the U.S. would help de-risk one of the most viable decarbonization solutions for large, existing industrial facilities, prove the use of clean hydrogen in industrial processes, and provide a pathway for decarbonizing the chemical industry, which is responsible for more than one-third of the U.S. industrial sector’s carbon emissions. In addition to substantially decarbonizing a major U.S. petrochemical complex, this project would also reduce harmful NOx pollutants to improve air quality for the local community.
This project plans to create approximately 400 new construction jobs, 15% of which would be offered U.S. Department of Labor approved apprenticeships. Additionally, an estimated 140 current Baytown Olefins Plant workers would be trained in the use of hydrogen. As part of its Community Benefits Plan, Exxon plans to create three flagship programs including a new training center to expand non-traditional educational pathways for residents, a Teen Engineering & Tech Center teaching space for hands-on learning and academic support in STEM fields, and a local business development program that includes a Small Business Support Center. ExxonMobil also plans to establish a new independently facilitated Community Advisory Panel, which will complement the existing panel, where community members and project management commit to regular dialogue throughout the life of the project.
Project Name: Chemical Production Electrification and Heat Storage
Location: Calvert City, Kentucky
Federal Cost Share: Up to $35.2 million
Selectee: ISP Chemicals, LLC an Ashland Company
Project Summary
The Chemical Production Electrification and Heat Storage project, led by ISP Chemicals (Ashland), Tennessee Valley Authority (TVA) and Electrified Thermal Solutions (ETS), plans to replace natural gas boilers with electric heat delivered with a thermal battery, reducing GHG emissions associated with steam generation by nearly 70% at Ashland’s Calvert City, Kentucky chemical plant. This project intends to demonstrate electrification with thermal heat storage using ETS’s Joule Hive system, supported by ARPA-E, as a scalable, highly replicable, readily deployable, and customizable decarbonization solution for moderate heat processes across multiple hard-to-decarbonize sectors. This project would demonstrate the ability to navigate challenges that currently present a barrier to electrification of high-temperature thermal processes, including reliability, efficiency improvements, and the ability to leverage affordable off-peak electricity rates for a 24/7 operation.
Ashland workers are unionized under the International Association of Machinists and Aerospace Workers (IAM), which would have a significant role in workforce development. Ashland has met with IAM leadership at the local and national level to discuss workforce development needs, and their partnership expects to support thermal battery skills development with a training program. Ashland and project partner University of Kentucky both serve on the Calvert City Community Advisory Team (CCCAT), with Ashland participating for more than 30 years. The CCCAT consists of approximately 30 community members including local politicians, residents, clergy, educators, students, members of the media, and representatives from industry.
Project Name: Novel CO2 Utilization for Electric Vehicle Battery Chemical Production
Location: U.S. Gulf Coast
Federal Cost Share: Up to $95 million
Selectee: The Dow Chemical Company
Project Summary
The Novel CO2 Utilization for Electric Vehicle Battery Chemical Production project, led by The Dow Chemical Company (Dow), plans to design and construct a facility on the U.S. Gulf Coast (USGC) with the intent to capture and utilize approximately 100,000 tons of carbon dioxide per year to produce essential components of electrolyte solutions needed for domestic lithium-ion batteries. This project represents a leading U.S. demonstration to capture and utilize carbon dioxide from ethylene oxide manufacturing. This project would also provide supply chain resilience by establishing a domestic manufacturing base for the rapidly expanding U.S. electric vehicle and power storage markets, critical pieces of the energy transition.
This project is expected to create roughly 50 permanent manufacturing jobs and approximately 600 construction jobs. Dow is committed to supporting the essential capacity building necessary at the chosen USGC manufacturing site that would serve the surrounding community beyond this project by partnering with diverse suppliers, educational institutions, accelerators, economic development organizations, and leveraging private, public, and philanthropic capital.
Project Name: Polyethylene Terephthalate Recycling Decarbonization Project
Location: Longview, Texas
Federal Cost Share: Up to $375 million
Selectee: Eastman Chemical Company
Project Summary
The Polyethylene Terephthalate Recycling Decarbonization Project, led by Eastman Chemical Company (Eastman), plans to construct a first-of-a-kind plastic molecular recycling facility in Longview, Texas capable of taking products that are typically landfilled or incinerated, like polyester trays, colored and opaque bottles, and fabrics and turning them into virgin-quality polyethylene terephthalate (PET)—a material that is in high demand for use in packaging, film, and fiber applications. The facility plans to use thermal energy storage combined with on-site solar power to decarbonize process heating operations, resulting in a product with 70% lower carbon intensity compared to fossil virgin PET, and approximately a 90% reduction when including avoided incineration emissions. The thermal battery technology at this scale represents a cross-cutting opportunity to electrify and decarbonize high-temperature process heat across industry sectors, and Eastman’s decarbonized material is commanding a green premium among consumer facing brands.
The project plans to support approximately 1,000 construction jobs and 200 new permanent jobs. Eastman leads the Community Advisory Panel for the Sabine Industrial District of Longview, which works to facilitate two-way communication between community members and industry to address concerns, build trust, and educate stakeholders on industry developments. Through the Branches of Hope initiative, Eastman plans to support the renovation of the Paula Martin Jones Recreation Center that is underutilized and after renovation, it will serve as a hub for community outreach, workforce training, and resource for its community partners.
Project Name: Star e-Methanol
Location: Texas Gulf Coast
Federal Cost Share: Up to $100 million
Selectee: Orsted P2X US Holding LLC
Project Summary
The Star e-Methanol project, led by a U.S. subsidiary of Orsted, plans to use captured carbon dioxide from a local industrial facility to produce e-methanol to reduce the carbon footprint for hard-to-electrify sectors like shipping. Orsted’s facility is estimated to produce up to 300,000 metric tons of e-methanol per year and would reduce the carbon footprint by 80% or more than traditional production methods. This project expects to prove out both the supply and demand for clean hydrogen-derived alternative fuels for the marine shipping and transportation sector. These sectors currently rely on energy-intensive fossil-derived fuels to move the world’s goods.
The Star e-Methanol project is estimated to create 300 construction jobs and 50 permanent jobs. Orsted has committed to working with the University of Houston to develop a curriculum around zero-carbon fuels and the hydrogen economy. Overall, this project intends to serve as a catalyst to equip workers with the skills to take part in the new energy economy.
Project Name: Sustainable Ethylene from CO2 Utilization with Renewable Energy (SECURE)
Location: U.S. Gulf Coast
Federal Cost Share: Up to $200 million
Selectee: T.EN Stone & Webster Process Technology, Inc.
Project Summary
The Sustainable Ethylene from CO2 Utilization with Renewable Energy (SECURE) project, led by T.EN Stone & Webster Process Technology, Inc. in partnership with LanzaTech, plans to demonstrate an integrated process to utilize captured carbon dioxide from ethylene production—an important building block for many products—by applying a biotech-based process and green hydrogen to create clean ethanol and ethylene. LanzaTech’s Gas Fermentation technology, previously supported by ARPA-E, can also be deployed in any industry with carbon dioxide emissions, allowing other industries to capture and upcycle carbon dioxide instead of emitting it to the atmosphere or needing to sequester it.
The project expects to provide 200 construction jobs and 40 permanent jobs with benefits and training opportunities. Once the site is finalized, the project aims to hire from the local area with a focus on residents of disadvantaged communities. T.EN and LanzaTech plan to approach community groups, unions, and labor groups to negotiate, review, and update agreements for quality jobs and community collaboration at the host site.
Project Name: Syngas Production from Recycled Chemical Byproduct Streams
Location: Freeport, Texas
Federal Cost Share: Up to $75 million
Selectee: BASF Corporation
Project Summary
The Syngas Production from Recycled Chemical Byproduct Streams project, led by BASF, plans to recycle liquid byproducts into syngas, which will be used as a low-carbon feedstock for BASF’s Freeport operations. BASF expects to use plasma gasification and renewable power to replace natural gas-fired incineration, decreasing carbon dioxide emissions at the BASF Freeport site by up to an estimated 90%. By demonstrating plasma gasification, BASF would enable uptake for a technology that is widely able to recycle liquid byproducts into additional production feedstock like syngas or hydrogen, supporting the transition toward a low-carbon and more circular chemical production.
This project plans to improve local air quality and create additional permanent jobs at the BASF Freeport manufacturing site, which already supports 1,600 employees and contractors.