(357c) Designing a Holistic Systematic Framework to Ensure Effective Policies for Electrification in the Chemical Industry

In the face of escalating climate change concerns and tightening global carbon emission regulations, the chemical industry stands at a critical stage where the urgency of managing carbon is not only desired but also mandated. Carbon is a valuable atom and the question is how to manage this molecule. The path to achieving this lies through the adoption of electrified chemical processes based on any raw feedstock powered by renewable energy—a transformative approach that cuts across traditional boundaries and merges technological innovation with policy reform. This holistic strategy aligns with the statement of our collective desire for a sustainable future and guides our actions towards responsible energy production, distribution, and consumption.

To quantify the decarbonization and electrification of the chemical industry, we must develop new methodologies and frameworks that consider the entire lifecycle of chemical processes. This holistic view will enable us to accurately measure the impact of our efforts and guide our actions in the most effective direction. Energy Attribute Certificates, including Renewable Energy Certificates, play a crucial role in documenting the generation and purchase of electricity from renewable sources. These certificates are vital in assessing the emissions associated with the production of clean products such as hydrogen, a leading candidate for the energy carrier in the decarbonized chemical industry.

This analytical process extends to integrating the complex interplay of politics and economics, systematically examining the efficacy of existing policies and identifying the most advantageous policy interventions. This entails a sophisticated analysis that combines direct costs with indirect costs (or hidden costs) and employs lifecycle assessments alongside hypothetical "what-if" scenarios. By doing so, it is possible to craft well-informed policy strategies that not only advocate for environmental sustainability but also consider economic viability and political feasibility.

Electrification of the chemical industry encompasses a multifaceted approach. The focus lies on identifying and implementing electrified reactions and separations, fostering the design of new, more efficient processes, and ensuring seamless grid integration. Such innovation is necessitated by the policy landscape, which encompasses legislation, international treaties, and incentives for investment, leading to the creation of guidelines for energy conversion and supportive expenditures in the form of incentives, taxation, and credits.

To drive the chemical industry's shift towards decarbonization, policies and systems must prioritize the development and deployment of electrification in processes at varying temperature sable to support demonstrating and deploying pilot scales for electrification of selected low-temperature (below ~300 °C) reaction and separations units, high-temperature (above ~300) reactors for endothermic chemical conversions, and developing/demonstrating tools for identification of electrification opportunities for individual processes/plants, both existing and new.

In the U.S., the regulation of GHG emissions, including Scope 1 and 2, is underpinned by various federal laws and regulations. The most significant is the Clean Air Act (CAA), which, through mechanisms such as the New Source Performance Standards (NSPS), sets limits on emissions from new and modified sources in specific sectors. This legal framework establishes a robust baseline for addressing emissions directly associated with the chemical industry's operations.

However, the challenge of Scope 3 emissions—which encompass all other indirect emissions that occur in a company's value chain, such as those from the transportation of goods, business travel, and waste disposal—remains less directly regulated. These emissions are not governed by federal laws in the same stringent manner as Scope 1 and 2 emissions. Management and reporting of Scope 3 emissions are largely propelled by voluntary corporate sustainability practices, frameworks like the Greenhouse Gas Protocol, and the evolving demands of investors and consumers for greater corporate responsibility in mitigating climate change impacts. State-level initiatives also significantly contribute to the regulatory landscape, with several states adopting GHG emissions reporting requirements, cap-and-trade programs, or emission reduction targets surpassing federal mandates.

Who is to implement these changes? The responsibility lies with a coalition of stakeholders, including industry leaders, policymakers, technologists, researchers, laboratories, think tanks, and the workforce, all geared toward transforming the industry. The collective actions aim to transition the chemical industry towards a sustainable model while ensuring that the policies create jobs, bolster the economy, and fortify energy security, thereby propelling us toward the vision of a decarbonized future.

Electrification must reliably supply energy, mitigating short-term risks such as blackouts and long-term risks like oil/gas market and petrochemical shocks due to geopolitical unrest. Moreover, this must be achieved while ensuring affordability, as the cost - both in terms of average expenditure and price volatility - significantly impacts the feasibility and acceptance of such a transition. Notably, in developing countries, energy equity, which is access combined with affordability and sustainability, becomes paramount.

Sustainability remains a non-negotiable aspect of this transition, with a focus on reducing emissions of NOx, SOx, CO2, and other pollutants. It requires a well-to-gate assessment of lifecycle GHG emissions, from feedstock production through to the point of production, ensuring that upstream and onsite processes align with stringent emission benchmarks. The Clean Air Act is a federal law that regulates air emissions from mobile and stationary sources, and hazardous air pollutants.

This holistic, multi-dimensional approach allows for the understanding of the broad spectrum of factors influencing the decarbonization of the chemical industry. It enables stakeholders to make informed decisions that balance environmental objectives with economic and social considerations, ultimately guiding the industry towards sustainable practices that align with global climate goals. Through such a methodical and inclusive analytical process, the industry can identify optimal pathways for reducing emissions, enhancing energy efficiency, and adopting renewable energy sources, thereby contributing significantly to the global effort to mitigate climate change.

The policy factors capturing this initiative are exemplified in various legislative frameworks, such as Section 45, which incentivizes electricity produced from renewable resources. Crucially, Section 45V is particularly relevant as it provides a credit for the production of clean hydrogen, with the level of credit based on carbon intensity. Such incentives are designed to stimulate the advancement and adoption of low-carbon technologies. This establishes a direct link between the policy frameworks and the operational aspects of decarbonization, ensuring that there is a tangible incentive structure for companies to innovate and reduce their carbon footprint. Nevertheless, does the regulation cover novel technologies?

The integration of these processes with the existing energy grid also poses a significant challenge, requiring robust systems-level analyses to ensure that new electrified processes can be scaled up without compromising the stability of the grid. This involves not only technical considerations but also regulatory frameworks that facilitate such integration, enabling the grid to handle the variable nature of renewable energy sources.

As the narrative of decarbonization unfolds, the deployment of advanced technological solutions like electric heaters, microwave reactors, plasma technology, and electrolysis units is crucial for transforming the chemical industry. These technologies offer reduced emissions, enhanced reaction rates, and energy efficiency, revolutionizing traditional processes.

The evaluation of these technologies through TRLs is essential to gauge their maturity and integration feasibility into industrial settings. This necessitates supportive policies for research and development to upgrade their TRLs. The question is whether the right policies are in place to advocate and upgrade their TRL through research and development.

The practicality of technology implementation involves integrating new technologies into existing systems, considering energy input fluctuations, feedstock variability, and incentives. This requires comprehensive systems-level analyses, including process dynamics simulation, material and energy balance assessment, and environmental impact evaluation. Process intensification efforts might integrate reaction and separation steps, adopt novel catalysts, and explore alternative pathways to increase yield and reduce waste.

In terms of policy implications, the transition towards electrification must be underpinned by robust support mechanisms. These measures help offset the higher initial costs associated with deploying advanced technologies, bridging the gap between current practices and a more sustainable future.

In parallel with technological advancements, research institutions play a crucial role in advancing the state-of-the-art in electrification technologies. Academic and industrial research must continue to explore novel pathways for chemical synthesis and evaluate policies in place.

To maximize the impact of these technologies, grid integration policies and strategies must be developed that can accommodate the variable output from renewable energy sources, including solutions such as smart grids and energy storage systems. Policy effectiveness must be developed and measured via mathematical scenario-based models, roles and responsibilities must be set clearly, the roadmap for energy transition must be delineated, and robust monitoring of progress must be ensured.

Moreover, the decarbonization effort should be inclusive, ensuring that the benefits of a cleaner industry are shared widely. This considers the broader vision of sustainability that encompasses improved public health, environmental justice, creating jobs, and resilience against climate change impacts.

In conclusion, the electrification of the chemical industry represents a challenge but is necessary to further increase profitability and address climate change. It requires an integrated approach that combines quantified systematic methodology for comparing various scenarios considering technological innovation with robust policy support, economic incentives, and societal engagement. By focusing on technology readiness, investing in research and development, and fostering an adaptive regulatory environment, the chemical industry can not only comply with carbon emission regulations but also lead the way toward a more sustainable future for all.