fresh funding

DOE deploys $6B into decarbonization projects — including 4 on the Gulf Coast

Four decarbonization projects in the region have received federal support. Photo via Getty Images

Four projects along the Gulf Coast will receive a share of up to $6 billion in federal funding for decarbonization initiatives.

The $6 billion in funding was announced March 25 by the U.S. Department of Energy. The federal agency and the award recipients still must hammer out details.

“Spurring on the next generation of decarbonization technologies in key industries like steel, paper, concrete, and glass will keep America the most competitive nation on Earth,” U.S. Energy Secretary Jennifer Granholm says in a news release.

Below are details about the four projects.

Baytown Olefins Plant Carbon Reduction Project

The Baytown Olefins Plant Carbon Reduction Project, led by Spring-based ExxonMobil, will receive up to $331.9 million in federal funding.

Officials say the project will enable the use of hydrogen in place of natural gas for heat-fired equipment using new burner technologies for ethylene production in Baytown. Ethylene is a chemical feedstock used in the production of textiles, synthetic rubbers, and plastic resins.

The equipment modification is aimed at generating 95 percent clean hydrogen fuel and eliminating 2.5 million metric tons of carbon emissions per year.

The Baytown project is expected to employ about 400 construction workers. Furthermore, an estimated 140 current Baytown workers will be trained in the use of hydrogen.

Sustainable Ethylene from CO2 Utilization with Renewable Energy (SECURE)

The federal government will supply as much as $200 million for the SECURE project, which will be located along the Gulf Coast. T.EN Stone & Webster Process Technology in Houston is leading the project in partnership with Illinois-based LanzaTech.

The project seeks to capture carbon dioxide from ethylene production — an important building block for many products — by applying a biotech-based process and green hydrogen to create clean ethanol and ethylene.

SECURE is expected to generate 200 construction jobs and 40 permanent jobs.

Star e-Methanol

The Star e-Methanol project, which will be located along the Texas Gulf Coast, will collect up to $100 million in federal funding. A subsidiary of Denmark-based clean energy developer Ørsted, which recently opened an office in Houston, is leading the project.

The project seeks to capture carbon dioxide from an industrial facility to produce e-methanol, helping reduce the carbon footprint for hard-to-electrify sectors like shipping. Ørsted’s facility will produce up to 300,000 metric tons of e-methanol per year.

Star e-Methanol is projected to create 300 construction jobs and 50 permanent jobs.

Ørsted is collaborating with the University of Houston to develop a curriculum covering zero-carbon fuels and the hydrogen economy.

Syngas Production from Recycled Chemical Byproduct Streams project

The Syngas Production from Recycled Chemical Byproduct Streams project, led by chemical giant BASF, will secure up to $75 million in federal funding.

The project aims to recycle liquid byproducts into synthesis gas. That gas will be used as low-carbon feedstock for BASF’s manufacturing plant in Freeport.

BASF plans to use plasma gasification and renewable power to replace natural gas-fired incineration, decreasing carbon dioxide emissions at the Freeport site by as much as 90 percent.

About 1,600 employees and contractors work at BASF’s Freeport facility.

Trending News

A View From HETI

The project would nearly eliminate the emissions associated with power and steam generation at the Dow plant in Seadrift, Texas. Getty Images

Dow, a major producer of chemicals and plastics, wants to use next-generation nuclear reactors for clean power and steam at a Texas manufacturing complex instead of natural gas.

Dow's subsidiary, Long Mott Energy, applied Monday to the U.S. Nuclear Regulatory Commission for a construction permit. It said the project with X-energy, an advanced nuclear reactor and fuel company, would nearly eliminate the emissions associated with power and steam generation at its plant in Seadrift, Texas, avoiding roughly 500,000 metric tons of planet-warming greenhouse gas emissions annually.

If built and operated as planned, it would be the first U.S. commercial advanced nuclear power plant for an industrial site, according to the NRC.

For many, nuclear power is emerging as an answer to meet a soaring demand for electricity nationwide, driven by the expansion of data centers and artificial intelligence, manufacturing and electrification, and to stave off the worst effects of a warming planet. However, there are safety and security concerns, the Union of Concerned Scientists cautions. The question of how to store hazardous nuclear waste in the U.S. is unresolved, too.

Dow wants four of X-energy's advanced small modular reactors, the Xe-100. Combined, those could supply up to 320 megawatts of electricity or 800 megawatts of thermal power. X-energy CEO J. Clay Sell said the project would demonstrate how new nuclear technology can meet the massive growth in electricity demand.

The Seadrift manufacturing complex, at about 4,700 acres, has eight production plants owned by Dow and one owned by Braskem. There, Dow makes plastics for a variety of uses including food and beverage packaging and wire and cable insulation, as well as glycols for antifreeze, polyester fabrics and bottles, and oxide derivatives for health and beauty products.

Edward Stones, the business vice president of energy and climate at Dow, said submitting the permit application is an important next step in expanding access to safe, clean, reliable, cost-competitive nuclear energy in the United States. The project is supported by the Department of Energy’s Advanced Reactor Demonstration Program.

The NRC expects the review to take three years or less. If a permit is issued, construction could begin at the end of this decade, so the reactors would be ready early in the 2030s, as the natural gas-fired equipment is retired.

A total of four applicants have asked the NRC for construction permits for advanced nuclear reactors. The NRC issued a permit to Abilene Christian University for a research reactor and to Kairos Power for one reactor and two reactor test versions of that company's design. It's reviewing an application by Bill Gates and his energy company, TerraPower, to build an advanced reactor in Wyoming.

X-energy is also collaborating with Amazon to bring more than 5 gigawatts of new nuclear power projects online across the United States by 2039, beginning in Washington state. Amazon and other tech giants have committed to using renewable energy to meet the surging demand from data centers and artificial intelligence and address climate change.

Trending News