Chemical industry leaders chart 'zero carbon' production path

At the recent World Petrochemical Congress 2022, including Dow Chairman and Chief Executive Officer Jim Fitlin, ExxonMobil Chemical President Karen McKee, BASF Chairman Brummeller and SABIC Deputy Director Industry leaders, including President and Chief Executive Yusuf Albayyan, who took part in discussions on achieving net-zero emissions in the chemical industry, said that it is entirely possible to conduct chemical production under "zero carbon" conditions, even without sacrificing industry growth. While developing their own net zero carbon emission chemical production technologies, various enterprises also call on government departments to issue stable guiding policies.

US companies are optimistic about CCS and hydrogen energy

Jim Fitlin said that Dow is optimistic about carbon capture and storage (CCS) technology and has begun to deploy it. Fitlin said Dow chose Alberta, Canada, for its first net-zero carbon production site, in part because Canada's emissions trading system creates a market for carbon emissions. The company also plans to achieve net-zero carbon emissions on the Gulf Coast, and hopes to build carbon capture and hydrogen centers in the United States, Fitlin noted. Dow, ExxonMobil and 12 other chemical and energy companies had already announced plans last year to collaborate on building carbon capture and storage capacity near Houston, Texas.

"The goal of this collaboration is to achieve 50 million tonnes of carbon capture and storage by 2030," said Karen McKee, highlighting ExxonMobil's 30 years of experience in carbon capture and storage, which captures and collects more carbon dioxide than any other company in the world. The company has a lot of confidence in "zero carbon" production.

McKee also said that, in addition to CCS, hydrogen is a key component of a net-zero carbon emissions solution. ExxonMobil plans to build a world-scale blue hydrogen production facility at its Baytown, Texas site that could reduce carbon emissions from the company's olefins unit by up to 30% The company cooperates with other companies so that the partner companies can also reduce their own carbon emissions.

BASF focuses on electrification and decarbonization technology

Business executives believe the best mix of decarbonization technology and infrastructure will vary by company and location. Therefore, CCS and hydrogen energy construction are not the only solutions. Brudermüller described BASF's focus on electrification. BASF believes decarbonisation can be achieved through electrification, he said. There is a lot of unused waste gas and waste heat in chemical production. For example, there is 20 TWh of unused waste heat at BASF's Ludwigshafen production site. Both these exhaust gases and waste heat can be a source of electricity.

Brummeller pointed out that BASF has cooperated with SABIC and Linde to realize the electrification of waste heat from the pyrolysis process. This may not apply everywhere, but if the plant is in a place like Ludwigshafen, there is no carbon capture and storage capacity, and other ways of decarbonizing it will have to be looked for, Brummeller believes. BASF uses a carbon management approach to decarbonization, but places particular emphasis on the use of waste heat to generate electricity.

Call on countries to introduce relevant policies

Business executives say it is possible for the chemical industry to achieve net-zero carbon emissions without sacrificing growth, but that will require strong government support, broad collaboration between the private sector and a better public understanding of carbon emissions trading.

Fitlin called on governments to introduce long-term policies, at least to help with investment. Fettling listed ongoing projects around the world and said Dow has the ability to use advanced technologies to simultaneously grow its business and decarbonise emissions, but these are long-term projects that require good long-term policy support. McKee added that Exxon Mobil believes that for "zero carbon" production, close coordination between business and the public sector is essential. Chemical companies need to work with governments and regulators. He called for a stable, comprehensive, predictable and cost-effective regulatory framework.

Brudermüller emphasized that the public needs to have a better understanding of "zero carbon" production. He noted: “We have to tell the end consumer that if companies achieve net zero carbon emissions in their production, products will become more expensive. This is an unwelcome message, but it’s the truth. If we don’t, We can't translate the need for social transformation into an economic business case. Right now, the trend is positive, and I've noticed that consumers in every industry are increasingly willing to pay more for products with a lower carbon footprint. Brudermüller predicts that global demand for products with a zero carbon footprint will outstrip supply by 2030.