Dow Signs MOU for Gasification Facility
Share:
Hunton Energy to supply Dow with synthetic gas and steam in Texas
Freeport, TX - December 13, 2007
The Dow Chemical Company has entered into a Memorandum of Understanding (MOU) with Hunton Energy for the drafting of definitive agreements, which if executed, would result in the construction of a gasification facility in Freeport, Texas. According to the non-binding MOU, Hunton would own, build and operate a petroleum coke gasification plant at Dow's Oyster Creek property. Once the gasification plant is completed, Dow would purchase synthetic natural gas and steam from Hunton for its large Texas Operations manufacturing site also located in Freeport.
"This agreement with Hunton Energy is an example of how Dow is pursuing diverse sources of energy as part of our overall strategy to mitigate rising feedstock and energy costs," said Rich Wells, vice president of Energy. "As an added benefit, the process used to produce the steam consumed by Dow will capture CO2 emissions to be sold for enhanced oil recovery use. By switching from our site-produced steam to this new technology offered by Hunton, we will be reducing Dow's CO2 emissions in Freeport and thereby reinforcing our publicly stated Climate Change sustainability goal to reduce the company's greenhouse gas emissions by more than 20 percent by 2015."
The Hunton gasification facility would manufacture synthetic gas (syngas) by reacting pure oxygen with petroleum coke and biomass such as wood chips and rice hulls. The syngas would be converted into synthetic natural gas (methane) and three byproducts including liquid sulfur, high purity carbon dioxide (CO2) and slag. Each byproduct will be captured and sold. The sulfur will be sold to fertilizer manufacturers and the slag will be sold as concrete aggregate and other construction products. The CO2 will be captured and compressed to be sold for enhanced oil recovery use, a process that uses CO2 to increase oil production from older fields.
Petroleum coke (pet coke) is a solid form of carbon that is a byproduct from oil refinery processes.
Through a gasification process, Hunton will transform pet coke from a solid to a gas. Synthetic natural gas can be used by Dow to produce electricity and steam which are necessary for the manufacturing of Dow's products at its Freeport facility.
About Dow
Dow is a diversified chemical company that harnesses the power of innovation, science and technology to constantly improve what is essential to human progress. The Company offers a broad range of products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
For Editorial Information:
Jolen T. Stein
The Dow Chemical Company
985-783-3774
