Recently, while attending the Cambridge Energy Week conference held by Standard&Poor's Global, Dow Chemical CEO Jim Fitlin said that the company is studying low-carbon production processes and developing chemical recovery technologies for waste polymers to achieve carbon neutrality. To this end, the company has multiple investment and cooperation plans.

At the meeting, Feitlin pointed out that almost all carbon emission reductions will come from investment in new technologies. Some of these technologies are already available, such as renewable energy or hydrogen production technologies combined with carbon capture. In terms of low-carbon production, Dow Chemical is building a new cracking unit in Fort Saskatchewan, Alberta, Canada, which will rely on hydrogen generated internally as fuel. The cracking unit produces by-products such as hydrogen and methane, and Dow Chemical plans to process these by-products from the cracking unit in an autothermal reforming unit. The reforming unit will generate more hydrogen, which will be transported to the cracking furnace of the cracking unit to generate carbon free heat. The autothermal reforming unit will also generate carbon dioxide, which Dow Chemical will capture and store using Canada's existing infrastructure.

In addition, the company is also studying the combination of chemical production and long-term new technologies. Fitlin introduced two medium - and long-term low-carbon technologies being developed by Dow Chemical. One of them is small modular nuclear reactors for power generation. It can provide chemical plants with the steam and electricity they need to produce. "This type of reactor is a safer technology when used on a small scale, because it uses a different fuel technology than the large reactors used by utility companies," Fitlin said. "The reaction in a small modular reactor does not get out of control, but rather extinguishes itself before things get out of control," Fitlin said. In response, Dow Chemical signed an agreement with X-Energy to use the reactor at an unnamed production site in Texas around 2030. The production base will use four reactors, each with a design power generation capacity of 80 megawatts and a total power generation capacity of 320 megawatts.

Another technology is electro cracking technology. Such a cracking device requires a high temperature of 815 ℃ to convert substances, and the required materials must be able to withstand such temperatures repeatedly for several years. Dow Chemical and Shell are developing a 25 megawatt demonstration electric cracking unit in the Netherlands. Fitlin estimates that if a conventional scale electric cracking device is developed, it will consume 1 billion watts of electricity per year, but this is lower in carbon than using fossil fuels.

Regarding the chemical recovery technology of waste plastics, Feitlin said that Dow Chemical may establish a new chemical recovery plant with Mura in Bolen, Germany. The factory will rely on hydrolysis to decompose the plastic into monomers, which are then polymerized. The two companies may make a final investment decision this year.

Feitlin pointed out that whether it is physical recovery or chemical recovery, the demand for recycled plastics in the downstream is too strong, and upstream chemical enterprises are still unable to meet this demand. This will lead to a significant influx of funds into waste management, urban recycling centers, roadside collection, and waste classification technology, and Dow Chemical will follow this progress.

"For example, many well-known consumer brand owners hope to incorporate 30% of post consumer recycled plastics into their product production by 2030, but currently chemical companies are unable to provide sufficient materials.". Currently, downstream demand for products made from recycled and renewable plastics is strong, leading to higher prices than petroleum derived products. In some cases, these premiums may reach $1000 per ton. "Customers are willing to pay such a premium on a smaller scale, but not in the broader market," Mr. Fitlin said. "If policymakers want to accelerate the transition to more sustainable products, then they should consider pricing carbon," said Mr. Fitlin. This will enable enterprises such as Dow Chemical to recover the operating and capital costs involved in developing sustainable products while developing the market and increasing demand for such materials.

Regarding fossil energy, Feitlin said that the world will still need oil and natural gas to provide raw materials for the manufacturing of wind blades, solar panels, and electric vehicle components, which will be an indispensable part of getting rid of fossil fuels. "The world can use oil as a raw material to produce durable and non durable goods, rather than burning it as a fuel," Feitlin said.