Cogeneration allows Dow Chemical Canada to become net energy vendor

April 1, 2002

Cogeneration allows Dow Chemical Canada to become net energy vendor

Dow Chemical Canada Inc. focuses its energy efficiency efforts to manage and reduce carbon dioxide (CO2) emissions. To that end, the company has set a goal to improve energy efficiency per kilogram of product manufactured by 20 per-cent between 1994 and 2005. This is in addition to the 20-percent improvement in energy efficiency attained between 1990 and 1994.

The key projects impacting GHG reduction in 2000 involved Dow's co-generation facilities. First, at its Fort Saskatchewan site, a joint venture company involving Air Liquide Canada Inc. and TransAlta Enterprise Corporation

built a highly efficient cogeneration facility. Electrical power from this new facility will reduce Dow's attributed CO2 emissions versus purchased electrical power from an Alberta-based utility generation. Initial projections estimate a reduction of approximately 400 kilotonnes (kt) per year of CO2.

Second, at Dow's Sarnia site, conversion of the existing joint venture, in which Dow participates, to a large-scale TransAlta cogeneration facility will reduce CO2 emissions. Not only will Dow benefit from this project, but the new facility will reduce overall regional emissions from other CO2-intensive utilities. This see a 650 MW cogeneration facility for the Sarnia area that would result in a CO2 emissions reduction from the Sarnia site.

Dow has undertaken a number of projects in a number of areas to improve overall energy efficiency and reduce GHG emissions. Voluntary measures, which touched on GHGs, CFCs (chlorofluorocarbons) and HCFCs (hydrochlorofluoro-carbons), have resulted in an emissions reduction of over 50 percent since 1990. In the same time frame, Dow's energy efficiency initiatives and cogeneration have "avoided" an estimated 20 million tonnes of CO2 emissions. With the high value of energy, it increased electrical production and delivered power into the consumer market pool, becoming a net electricity vendor in 2000.

Dow also undertakes projects that result in regional GHG emissions reductions. In one such project, it sells hydrogen, which it previously burnt as a fuel, and uses natural gas instead. The consumer's process involving the hydrogen lowers GHG emissions more than Dow's increase in emissions from burning gas. As a result, although Dow's emissions have increased, overall GHG emissions in the region have been lowered.

In addition to large capital projects, a key to Dow's success has been its employees and their use of continuous improvement in daily operations. Their success has been a major factor in Dow attaining its previously stated targets and should be recognized. All efforts large and small have contributed to an improvement in product CO2 intensity. Between 1990 and 1999, the amount of CO2 produced per kg of product was reduced by over 50 percent. This indicates Dow Canada is contributing to the targets.

In March 2002, Dow Canada was awarded Canada's Climate Change Voluntary Challenge and Registry Inc. (VCR Inc.) Leadership award in the Chemicals category.