Chemical Industry Eyes Hydrogen, Nuclear and Geothermal to Fuel Decarbonization
Global Competition Intensifies
As part of its RePowerEU action plan, the European Commission aims to reduce dependence on Russian energy, particularly through clean hydrogen.
The plan calls for an EU production target of 10 million tons annually of clean hydrogen by 2030 along with 10 million tons per year of imported clean hydrogen by the same year.
Hydrogen is expected to play an important role in achieving EU objectives to reduce greenhouse gas emissions by a minimum of 55% by 2030 and reach net-zero emissions by 2050.
Hydrogen projects across Europe are accelerating, with several announced in the past year. For example, on Dec. 10, Air Liquide received a €110 million ($115 million) grant from the European Innovation Fund for its Enhance project in the port of Antwerp-Bruges, Belgium. The project aims to produce and distribute low-carbon and renewable hydrogen derived from ammonia.
As part of the project, Air Liquide intends to build, own and operate a large-scale renewable ammonia cracking plant and a hydrogen liquefier.
Enhance is the first European industrial-scale project for the production and distribution of low-carbon and renewable hydrogen using ammonia as a feedstock.
As part of this initiative, Air Liquide intends to retrofit one of its hydrogen production units located in the Port of Antwerp-Bruges, using renewable ammonia as a feedstock instead of natural gas and would also build a hydrogen liquefier. This new facility would support the development of a low-carbon and renewable hydrogen supply chain in Europe and contribute to the decarbonization of a wide range of hard-to-abate customers, such as refineries, chemicals, and the heavy-duty road, maritime and aviation sectors.
Air Liquide says the project will capitalize on the knowledge and expertise acquired from the group’s ammonia cracking pilot plant located in the port of Antwerp.
A month earlier, the company announced a renewable hydrogen production project at La Mède, Provence-Alpes-Côte d'Azur, France. Here, Air Liquide will cover the hydrogen needs of TotalEnergie's biorefinery. This project will contribute to the emergence of a new renewable hydrogen ecosystem in the Fos-sur-Mer area, a major industrial basin for Air Liquide in France.
Meanwhile, according to Canadian government’s latest Hydrogen Strategy for Canada: Progress Report, the country currently has 80 projects announced, under consideration or under development with investment already topping C$100 billion ($70 billion).
Australia’s clean-hydrogen strategy includes a hydrogen production tax incentive of A$2 ($1.30) for every kilogram of eligible renewable hydrogen produced for up to 10 years, between July 1, 2027, and June 30, 2040.
The country’s A$4 billion ($2.5 billion) Hydrogen Headstart program will support large-scale renewable hydrogen production projects designed to accelerate scaling of Australia’s hydrogen industry. These will assist industry learning and experience by successfully delivering and operating large-scale clean hydrogen projects, says the government.
Expanding Nuclear
Dow’s plans to build four X-energy XE-120 small modular reactors (SMRs) at its Seadrift site in Texas are well known at this stage (Figure 1).
The high-temperature gas-cooled reactors will provide both power and steam heat for Dow’s industrial production facility and are poised to be the first grid-scale advanced nuclear reactors at an industrial site in North America.
Nano Nuclear Energy plans to develop its portable Zeus and Odin microreactors on a recently acquired site near Oak Ridge National Laboratory, with the chemical industry to play a critical role in this work, according to CEO James Walker.
Ineos and other chemical manufacturers in the UK and Europe have been speaking with Rolls-Royce about its new generation of SMRs.
Meanwhile, NextChem, based in Rome, Italy, through its subsidiary NextChem Tech, has signed an agreement with UK-based Newcleo for exclusive chemical sector access to its generation IV SMRs.
The agreement forms part of NextChem parent Maire’s new “E-factory for carbon-neutral chemistry,” which is heavily focused on using electrochemical processes to decarbonize chemical and e-fuels production.
According to NextChem, this approach will eventually enable the production of electrolytic hydrogen and sustainable chemicals, including carbon-neutral ammonia, methanol, e-fuels and derivatives.
In December, Newcleo submitted a generic design assessment (GDA) for its 200MWe lead-cooled fast reactor in the UK. It’s the first such application for a new reactor there in almost a decade and the first ever for an advanced modular reactor, according to Newcleo. If all goes well, the GDA could begin in spring 2025 and last about two years.
In September 2024, global engineering and construction company Saipem signed an agreement with Newcleo to investigate the use of its nuclear technologies in offshore applications.
In what they believe is the first such agreement between European companies, the two will study the potential for Newcleo’s lead-fast-reactor (LFR) technology to provide zero-emission electricity and process heat to oil and gas offshore installations. As part of the agreement, SM-LFR technology could also be extended to producing zero-emission electricity on floating nuclear units, which could then be connected to the electricity grid on land or diverted to other uses (Figure 2).
Newcleo’s moves have been boosted by the October 2024 announcement that the European Industrial Alliance on Small Modular Reactors supports its LFR technology.
The Alliance’s aims are to fortify the nuclear supply chain, support specific AMR/SMR projects and facilitate investment opportunities from organizations, such as the European Investment bank.
Interestingly, the European Chemical Industry Council (Cefic) considers the formation of the Alliance an important step for identifying the enabling factors and regulatory bottlenecks that could hamper the industry’s uptake of nuclear technology.
For example, to avoid bottlenecks, Cefic calls for coherence between member states’ permitting approaches and the exchange of best practices to reduce lead times: standardization and pre-licensing of a given model of SMR can further aid in accelerating deployment, it notes.
Cefic also has called for the removal of barriers to the contribution of nuclear energy to the EU’s climate targets — meaning nuclear reactors with a power output of 10–300 MWe.
In addition, Cefic urges the Alliance to consider leveling the playing field between low-carbon and renewable energies across production pathways for hydrogen and electricity and clarifying a framework for the safety and liability of nuclear assets on industrial sites.
Going Underground: Geothermal
In December, the EU announced that the 27 member states aim to further cut reliance on Russian gas by collectively endorsing geothermal energy.
According to Reuters, the draft document they are considering proposes measures to expedite geothermal initiatives, including financial guarantees to mitigate investment risks and streamline permitting processes.
Saipem also has been busy here, signing Memorandums of Understanding with energy industry services specialist Geolog in Italy and Houston-based Ignis H2 Energy to develop technologies and conduct feasibility studies for new geothermal plants to provide renewable energy.
Ignis has been carrying out exploration drilling at the Kaynarpinar geothermal site of Ignis Energy in Türkiye for three months, seeking to validate the project’s conceptual model and geothermal potential for use by businesses and homes.
The company is also conducting detailed exploration work at geothermal sites in Nevada’s Basin and Range region and California’s Clear Lake Volcanic Field in the north of the state.
Even low-temperature geothermal energy (i.e. below 150°C) is ideal for various basic chemical industry processes, including preheating, washing, evaporation and distilling, sterilizing, drying and refrigeration, according to the International Geothermal Association.
While regional challenges persist, the convergence of innovation, investment and policy support will determine whether these emerging technologies can meet the ambitious decarbonization targets set for the next decade.