WPC 2022: Nuclear could be key to net-zero petchems
In the near term, high cost and limited scale will prevent green hydrogen from contributing to the chemical industry's transition to net-zero carbon dioxide (CO2) emissions, and in the long-term, its contribution will depend on access to nuclear energy, according to Jim Fitterling, chairman and CEO of Dow.
During a panel discussion last week at the 2022 World Petrochemical Conference in Houston, Texas, Fitterling said Dow is evaluating two of its US sites for the integration of small-scale nuclear energy production.
”In order to move to the point where green hydrogen will be economical—it will be impossible to do it without nuclear energy, and think small, modular reactors,” Fitterling said. “That’s because of the amount of energy needed.”
Hydrogen is “green” if its production does not also generate CO2, “blue” if the CO2 generated is captured and stored, and “circular” if produced by the gasification of non-recyclable waste streams.
Noting that Dow is itself one of the largest consumers of renewable energy in the world, Fitterling said renewable energy has a significant role to play in the decarbonization of chemical production, but that it could not come close to meeting the industry's overall energy requirements.
"Carbon capture and hydrogen will be critical to the transition," said Fitterling. "This is a transition that will include the use of fossil fuels, and it will take decades, […] and that's why the target is 2050. It also means that when we look at hydrogen, we have to look at the affordability and what's available now—what can be done now, and what can be done in the future."
During 2005-2020, Dow reduced its CO2 emissions by 15% while increasing output by 30%. By 2030, the company aims to lower its emissions 15% more while increasing output by another 20%. Hydrogen will be key to reaching these targets, Fitterling said, but in the near-term it will be as blue and circular hydrogen.
Fitterling pointed to Dow's projects at Terneuzen, the Netherlands, and Fort Saskatchewan, Alberta, Canada, to illustrate how the company is using blue and circular hydrogen to meet its near-term objectives. Meanwhile Dow is actively developing plans to incorporate small-scale nuclear energy into its operations.
"We are in the process right now of looking at two sites in the United States to be an offtaker for a small-scale modular reactor," he said.
"Obviously this is a longer-term objective, but when you think about power and utilities, one of the things that small scale reactors do is give you a pretty good balance of electric and steam output, and for a lot of our operations, we need that balance. So a small modular nuclear reactor can take an entire site to net zero. Of course, we have to look at what the costs are to do that and the regulatory environment to do that, but I can say that the appetite out there is good. And I think if we can get a world scale, industrial scale site with small modular nuclear, then I think that will be another tool in the arsenal to take us to net zero."
Current events have highlighted the need for a realistic assessment of the path forward, Fitterling suggested.
"We've got a lot of work to do with the regulatory environment, the least of which is helping people understand that this is a transition," he said.
"Doubling down on alternatives is fine, but we need to double down on all forms of energy in this country, and if you didn't think we needed to do that before Russia-Ukraine, you really [should] think we need to do it now. This is a moment in time, and we've got to get this right."