Dow's Three-Generation Plan for CO2-Neutral and Fully Circular Chemistry

To accomplish this, Dow has a clear roadmap. “The first two phases focus on reducing CO2 emissions by about 43% using existing technologies. The third phase involves leveraging groundbreaking technologies to make our processes CO2-neutral,” explains Andrea de las Heras García, Business Development, Sustainability, and Growth Manager at Dow Benelux since January. She is responsible for driving the sustainable transition at Dow Terneuzen. “My role is centered on industrial growth with a strong focus on sustainability and circularity,” she adds.

Largest Employer in Zeeland

Dow is the third-largest chemical company globally, celebrating its 125th anniversary this year. Dow Terneuzen, with 16 factories and 3,700 employees, is the company’s second-largest production site worldwide and the largest employer in Zeeland. It produces plastics and base chemicals for products like smartphones, packaging, mattresses, insulation materials, and coatings. As with the entire chemical sector, Dow is on the brink of a major raw material and energy transition.

4 Million Tons of CO2 Annually

Currently, Dow Terneuzen emits 4 million tons of CO2 per year. Half of this comes from its naphtha crackers, where oil product naphtha is heated to 1,000°C to break down molecules into raw materials for plastics, packaging, or propylene. Across Europe, there are 43 crackers; Dow operates three in Terneuzen and more in Spain and Germany. One byproduct of this process is off-gas, a methane-like waste gas. Dow reuses this gas to heat the cracking process and generate electricity.

42.5% Less CO2 from Cracking

By separating this off-gas into hydrogen and CO2, Dow aims to reduce emissions from its crackers by 42.5% by around 2030, equivalent to a 1.7 million ton annual CO2 reduction. The clean, circular hydrogen is used to generate steam to heat the naphtha crackers, while the CO2 is captured and stored. This eliminates CO2 emissions from the heating process.

The transition occurs in two stages: first, building a hydrogen plant using existing technology, and second, exploring further CO2 reduction methods, such as modifying or replacing gas turbines and capturing emissions from the ethylene oxide plant. “We call this Generation 1 and 2. It’s key to our decarbonization journey,” says De las Heras García.

CO2-Free Electric Cracking by 2050

In the third phase, the heating of crackers will become fully electric, replacing the remaining methane and hydrogen with electricity. “It’s a bit like electrifying a boiler or central heating system in your home. The challenge is achieving a temperature of 1,000°C with the necessary controlled chemical reactions. That requires groundbreaking technology,” explains De las Heras García.

To develop this, Dow has partnered with Shell to create electric cracking technology, supported by a €3.5 million MOOI grant and in collaboration with TNO.

Challenges: Green Power Shortage

Electric cracking could drastically cut CO2 emissions from one of the chemical industry’s core processes. The separated hydrogen could also be used for other heating processes or converted with CO2 into usable raw materials for plastics, eliminating the need for CO2 storage. However, a shortage of green electricity and limitations of the power grid present significant barriers. A high-voltage connection from South Beveland to Zeeuws-Vlaanderen is essential.

Milestones: 35% CO2 Reduction by 2026

Dow has quantified the CO2 reductions for these steps. Generation 1 steam cracking will yield a 35% reduction, or 1.4 million tons of CO2, by 2026—10% of the Dutch industry’s 2030 reduction target. By 2030, Generation 2 will achieve a 42.5% reduction, with full electrification and circular raw materials reaching 95-100% by 2050.

Circular Raw Materials

Transitioning to circular raw materials is equally vital. Dow is investigating both plastic recycling and alternative raw materials to petroleum, requiring advanced recycling techniques.

Dow focuses on various levels of circularity. In the design phase, products are crafted to simplify recycling, such as food packaging. Mechanical recycling involves grinding and melting plastic waste into pellets for new plastics while maintaining quality, avoiding downcycling.

For greater impact, Dow explores chemical recycling, converting plastic waste back into pyrolysis oil—the base material for naphtha. Dow collaborates with Mura Technology, which can transform waste into oil within 25 minutes. “Advanced recycling is essential for enabling circularity at the scale we need,” says De las Heras García.

Biobased Materials: Bio-Crocs from Dow

Biobased plastics are another cornerstone of Dow’s circular strategy. However, Dow carefully avoids competing with food and agriculture sectors. For instance, it collaborates with Crocs to create Bio-Crocs from Dow’s biobased materials.

Steel2Chemical Project

Dow is also exploring alternative raw materials beyond plastic waste. In the Steel2Chemical project, it partners with the steel industry to use blast furnace gas—currently burned by steelmaker ArcelorMittal in nearby Ghent—as syngas. By adding surplus hydrogen, this gas can become an alternative raw material for synthetic naphtha.

“Waste from one industry can become the resource for another,” predicts De las Heras García. “The steel industry has a massive footprint due to CO and CO2 production. We’re investigating how to use CO as a raw material, conducting two pilots with the goal of developing a widely applicable technology.”

This article previously appeared at Change Inc as part of a campaign with Groene Chemie, Nieuwe Economie, by editor André Oerlemans. Read the full series on our site or at Change Inc.