Electric Cracking Furnace

[Maricel Fergason]

Steamcracking furnaces play a significant role in the production of basic chemicals by breaking down hydrocarbons into olefins and aromatics. This cracking process requires a temperature of more than 1,500F (850C).

Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The company benefits from its robust project delivery model supported by extensive technology, products and services offering.

The use of electricity for heating - ideally from renewable sources - has the potential to massively reduce CO2 emissions. But can this concept be transferred to the petrochemical industry? BASF, SABIC and Linde certainly believe so. They are working on a joint e-furnace project with the potential to cut CO2 emissions by more than 95 percent!

E-furnace highlights include improved thermal efficiency. More than 95 percent of the electrical power can be directly utilized in the cracking coils, partially heating the feed and conducting the cracking reaction. By contrast, a conventional fired furnace typically transfers only 40 to 45 percent of the fired duty to the coils. The remaining heat in the flue gas is generally partially recovered for secondary low-temperature use like feed preheating or steam generation. By improving efficiency, electrification thus speaks to the sustainability and decarbonization trends that are driving industry worldwide.

Steam cracking furnaces play a significant role in the production of basic chemicals by breaking down hydrocarbons into olefins and aromatics. This cracking process requires a temperature of more than 1,500F.

Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons into olefins and aromatics. Typically, the reaction is conducted in furnaces at temperatures of about 850 degrees Celsius. Up to now, these temperatures have been reached by using conventional fuels. The demonstration plant aims to show that continuous olefin production is possible using electricity as a heat source. By using electricity from renewable sources, the new technology has the potential to reduce CO2 emissions of one of the most energy-intensive production processes in the chemical industry by at least 90% compared to technologies commonly used today.

The demonstration plant, which produces olefins, such as ethylene, propylene, and possibly also higher olefins from saturated hydrocarbon feedstock, is fully integrated into the existing steam crackers in Ludwigshafen. The upcoming operation serves the goal of gathering data and experiences about material behavior and processes under commercial operating conditions for the final development of this innovative technology to industrial market maturity. In two separate demonstration furnaces, two different heating concepts will be tested. While in one furnace, direct heating applies an electric current directly to the cracking coils, in the second furnace, indirect heating uses radiative heat of heating elements placed around the coils. The two electrically heated furnaces together process around 4 tons of hydrocarbon feedstock per hour and consume 6 megawatts of renewable energy.

Linde is a leading global industrial gases and engineering company with 2023 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. For more information about the company and its products and services, please visit www.linde.com.

This new eFurnace technology could enable the company to use renewable electricity as a heat source for the olefins cracking process in the future, significantly reducing the greenhouse gas (GHG) footprint of its olefins production process, and helping the company meet its ambitious climate targets.

"We are taking decisive steps to reduce our absolute scope 1 and 2 greenhouse gas emissions, while creating solutions for everyday sustainable living," said Peter Vanacker, CEO of LyondellBasell. "Deployment of an industrial-scale electric cracking furnace is one option we are considering in this space because of its ability to reduce furnace GHG emissions by up to 90% compared to a conventional furnace."

Construction of the demonstration unit, which would be the first for LyondellBasell, is an essential step in the development of eFurnace technology and a critical pre-condition for potential future construction of a full-scale unit. It will enable the company to test the technology and confirm continuous olefin production is possible using electricity as a heat source.

The LyondellBasell Channelview site offers an optimal environment for the demonstration unit due to its operational excellence, feedstock flexibility and electric grid infrastructure, proximity to the other MOU parties and access to expertise at the company's Houston Technology Center. The three parties plan to assemble a joint development team to support implementation of the project.

"Climate change is a global issue that will take action from all segments of society, and we want to be part of the solution by reducing the intensity of our carbon footprint," said Bruce Chinn, President and CEO of Chevron Phillips Chemical. "This project supports our efforts toward lowering the carbon intensity of our operations and demonstrates our continued focus on accelerating change for a sustainable future."

LyondellBasell is committed to reaching net zero scope 1 and scope 2 greenhouse gas (GHG) emissions by 2050 and has set ambitious interim targets to reduce scope 1 and 2 GHG emissions 42%, and scope 3 GHG emissions 30% by 2030, relative to a 2020 baseline. To reach these targets, the company is deploying emissions reduction initiatives at its sites. The company has also announced plans to develop an integrated hub in Houston to support the growth of its circular and low carbon solutions business, which will leverage existing capabilities at its sites in Houston, such as Channelview.

The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to complete the transaction described or the timing of such transaction; the successful construction and operation of the facilities described in this release; our ability to obtain all necessary regulatory approvals; our ability to meet our sustainability goals, including our ability to reduce our emissions and achieve net zero emissions by the time set in our goals; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2022, which can be found at www.lyondellbasell.com on the Investor Relations page. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.

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