Shell and Dow Get Funding Boost for Greener Ethylene

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands) and Dow Incorporated (NYSE:DOW) (Midland, Michigan) have received funding from the Dutch government for their efforts to electrify ethylene steam crackers using renewable energy.

The duo, which first joined forces in 2020 to create an electrified cracker, or e-cracker, has been awarded 3.5 million euro (US$4.2 million) in MOOI (Mission-driven Research, Development and Innovation) scheme funding by the Netherlands. For the past year, the companies have been working on electrification solutions for today's steam crackers while also pursuing new technologies for future e-crackers. Teams in the Netherlands and the United States working in electrical design, metallurgy, hydrocarbon technology and computational fluid dynamics have been working to narrow down concepts, validate emissions benefits, advance patents, demonstrate the durability of electric heating elements, and partner with equipment suppliers. The companies are now evaluating construction of a multi-megawatt pilot plant, with potential start-up in 2025, subject to investment support. A location in the Netherlands has yet to be finalised.

There is a growing wave of investment in technologies that are seeking a greener way of making ethylene. The conventional steam-cracking method of making petrochemicals, like ethylene, is highly energy-intensive thanks to the fossil-fuelled furnaces which have to be heated to more than 800°C. This temperature is necessary to convert the leading alkanes, such as ethane into ethylene, one of the most important building blocks of petrochemicals in the chemical processing industry. Cracking furnaces are one of the largest CO2 emission sources in the petrochemical value chain, which Shell and Dow aim to reduce and eventually eliminate. Both have ambitious emissions reduction targets for 2030 and both aim to be carbon neutral by 2050.

Thomas Casparie, executive vice president of Shell's global chemicals business, said "Being selected for funding from the Dutch Government is a vote of confidence in the initial progress of this joint e-cracking programme, and its potential to help transform the chemicals industry. The effort is an example of genuine cross-company collaboration to accelerate decarbonisation, and it's great to have our two new partners aboard."

"Our multi disciplined team has forged a strong working foundation and made significant progress in the first year of our multi-generational plan," said Keith Cleason, vice president Dow Olefins, Aromatics and Alternatives business. "We are pleased to add ISPT and TNO to the joint programme as they bring complementary expertise and share the same drive to bring viable, low-carbon technologies online as soon as they are feasible."

Earlier this year, BASF (Ludwigshafen, Germany), SABIC (Saudi Arabia) and Linde plc (NYSE:LIN) (Guildford, England) joined forces to create the world's first electrically heated steam cracker furnace. Having already worked previously on concepts that use renewables for heating instead of fossil-fuel gas, the goal is to create a commercial scale e-cracker that will reduce emissions by 90%.

"This technology leap will be a milestone on the path to a low-emission chemical industry," claimed Dr. Martin Brudermüller, chairman of the board of executive directors of BASF SE. "We have not only developed the world's first electrical heating concepts for steam crackers, but also want to demonstrate the reliability of key components for use in this type of high-temperature reactors. To be able to drive a timely scale-up and industrial implementation of this technology, investment support and competitive renewable energy prices will be important prerequisites.'' The partners are seeking funding from the European Union (EU) and German government and are evaluating construction of a multi-megawatt demonstration plant at BASF's Ludwigshafen site, targeted for start-up as early as 2023.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.