May 2024 - The Clean Formula Newsletter - Sustainability Roadmapping

Developing a Sustainability Roadmap Amidst Increasing Industry Regulation

We're nearly halfway through the year, and the chemicals industry continues to develop and evolve. The current landscape involves increased regulatory scrutiny as governments seek to reduce the industry's greenhouse gas emissions, hazardous waste generation, and pollution. For instance, the EPA's new rule mandates that over 200 chemical plants cut down air pollutants to reduce cancer risks near industrial sites.  

This new regulatory environment will accelerate the transition to cleaner production technologies, and accordingly, chemical companies are now developing their sustainability roadmaps. It’s a challenge, though, as many industry leaders have said publicly, due to massive capital investments associated with existing assets, challenging economics of clean process technologies, and the lack of a cohesive technology development and deployment pathway. Initiatives like the Inflation Reduction Act and Bipartisan Infrastructure Law have helped substantially –  DOE’s Office of Clean Energy Demonstrations just awarded $1.3 billion to Eastman, BASF, Dow, and others to build large-scale facilities for sustainable chemicals production –  but these projects are just the start of what is possible in clean chemistry.

For instance, not all investments in new chemical processes require hundreds of millions of dollars in capital expenditure. The deployment of modular infrastructure enables incremental capital investments as product demand increases or existing supply declines, while also enabling chemical production at the point of use. Electrochemical reactors, which have emerged as key decarbonization technologies, are cost-efficient at small scales and are well-suited for modular deployment into the field. Electrochemistry offers additional operational benefits, including a reduced need for harsh chemical reagents for improved safety and regulatory compliance, operation near ambient temperature and pressure, and access to new and efficient chemical pathways.

At Mattiq, we are working with chemical producers to develop their decarbonization roadmaps, including electrochemistry as a key pillar. Together, we can unlock commercially viable decarbonization of the chemicals sector. 

If you would like to hear more about our plans with chemical makers, stop by our booth (#1116) at the upcoming ARPA-E Energy Innovation Summit in Dallas, TX, or contact us today!

Associated Press: New EPA rule says 218 US chemical plants must reduce toxic emissions that are likely to cause cancer

• The EPA issued a rule to significantly reduce cancer-causing air pollution from chemical plants, targeting ethylene oxide, chloroprene, and other toxic chemicals. The rule mandates fence line monitoring, requiring hundreds of plants to track and publicly report emissions, compelling corrective action when levels exceed permitted amounts. It is expected to cost $1.8 billion to comply. 

Business Insider: Climate and Infrastructure Startups are Leaning into Modularity - and Investors are Paying Attention

• As the industry builds a clean chemicals future, we have the opportunity to re-think what a chemical plant looks like. Instead of a massive facility that requires a nine-figure upfront investment, we can smooth out the asset deployment curve, layering in additional production capacity as needed at specific locations.

Chemical & Engineering News: Chemical makers plot their low-carbon future

• The chemicals industry is under pressure to balance environmental sustainability with economic viability, leading chemical executives to seek government incentives like those offered in the US Inflation Reduction Act. The industry's challenge is to develop and implement clean chemistry solutions without stranding existing assets, while managing a challenging macroeconomic environment.

CNN: EPA implements toughest restrictions yet on use of highly toxic chemical in paint stripper

• The EPA finalized a rule to ban many uses of methylene chloride, a highly toxic solvent linked to cancer, with a phased approach that restricts its use in paint strippers, consumer products, and most industrial and commercial applications. The rule, praised by labor unions and environmental activists, includes a comprehensive worker protection program, but still allows some uses for critical applications, such as making refrigerants and electric vehicle batteries, with guidelines for safer handling and monitoring of exposure.

Department of Energy: Industrial Demonstrations Program Selections for Award Negotiations

• The US Department of Energy has awarded $1.3 billion in funding across eight projects in the chemicals and refining space, which will collectively abate ~3 million tons of CO2 per year. This announcement represents a significant step forward for industrial decarbonization.

The World's Most Technologically Advanced Clean Chemistry Company

This newsletter shares our perspective on advances and relevant news in the broader effort to deliver a clean chemicals future. Mattiq delivers chemical and energy companies safe, scalable, and cost-effective clean chemistry solutions that support supply chain resilience and a cleaner planet.

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