Dow Signs MOU for Gasification Facility

Freeport, Texas - 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.

“Access to a diverse supply of cost-effective fuels is critical to the long-term competitiveness of energy-intensive sites like Dow’s Texas Operations,” said Bob Walker, vice president and site director of Texas Operations. “The arrangement with Hunton would give our site a more abundant supply of cost-effective energy, while helping to reduce greenhouse gas emissions.”

State Representative Dennis Bonnen (R-Angleton), Chairman of the House Environmental Regulation Committee said, "I am excited about the prospects of this project coming to Brazoria County. It demonstrates many of the desirable characteristics that I and others in the Texas Legislature believe is the future of cleaner energy in Texas. When private companies like Hunton and Dow can come together and basically build what the federal government envisioned in Future Gen, it is a testimony to these companies and the market-based incentives I helped put in place with HB 2994."

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 process called integrated gasification combined cycle power generation configuration (IGCC), pet coke transforms 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.

“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.”

For Editorial Information:

Tracie Copeland
The Dow Chemical Company
1-979-238-3792


News Center News Releases Public Reports Security at Dow Sign-up for Texas Operations E-Updates About Texas Operations Dow in the Community Brazosport Industrial CAER 65th Anniversary Dow in Texas Sign-up for Texas Operations E-Updates Our Locations Texas Texas Operations		Dow Signs MOU for Gasification Facility Freeport, Texas - 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. “Access to a diverse supply of cost-effective fuels is critical to the long-term competitiveness of energy-intensive sites like Dow’s Texas Operations,” said Bob Walker, vice president and site director of Texas Operations. “The arrangement with Hunton would give our site a more abundant supply of cost-effective energy, while helping to reduce greenhouse gas emissions.” State Representative Dennis Bonnen (R-Angleton), Chairman of the House Environmental Regulation Committee said, "I am excited about the prospects of this project coming to Brazoria County. It demonstrates many of the desirable characteristics that I and others in the Texas Legislature believe is the future of cleaner energy in Texas. When private companies like Hunton and Dow can come together and basically build what the federal government envisioned in Future Gen, it is a testimony to these companies and the market-based incentives I helped put in place with HB 2994." 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 process called integrated gasification combined cycle power generation configuration (IGCC), pet coke transforms 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. “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.” For Editorial Information: Tracie Copeland The Dow Chemical Company 1-979-238-3792
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