- Dow and X-energy collaborate on intent to provide process heat and power at one of Dow's U.S. Gulf Coast facilities by ~2030
- Dow is first manufacturer to announce intention to develop small modular nuclear technology options
- Dow intends to take a minority equity stake in X-energy
MIDLAND, Mich. and ROCKVILLE, Md., Aug. 9, 2022 /PRNewswire/ -- Dow (NYSE: DOW), the world's leading materials science company, and X-energy, a nuclear energy innovation company, today announced that they have signed a letter of intent which will help Dow advance its carbon emissions reduction goals through the development and deployment of X-energy's advanced small modular nuclear technology in the U.S.
Dow and X-energy will collaborate with the intent to deploy X-energy's Xe-100 high-temperature gas reactor technology at one of Dow's U.S. Gulf Coast sites – which is expected to be operational by approximately 2030. The Xe-100 reactor plant would provide cost-competitive, carbon free process heat and power to the Dow facility. Dow also intends to take a minority equity stake in X-energy, working with the company to deploy small modular nuclear technology.
"Advanced small modular nuclear technology is going to be a critical tool for Dow's path to zero-carbon emissions and our ability to drive growth by delivering low-carbon products to our customers," said Jim Fitterling, Dow chairman and chief executive officer. "X-energy's technology is among the most advanced, and when deployed will deliver safe, reliable, low-carbon power and steam. This is a great opportunity for Dow to lead our industry in carbon neutral manufacturing by deploying next-generation nuclear energy."
X-energy's Xe-100 is a Generation IV, high-temperature gas reactor built on decades of research, development and operating experience. Each reactor is engineered to operate as a single 80 megawatts (MW) electric unit and is optimized as a four-unit plant delivering 320 MW electric. The reactor can provide clean, reliable and safe baseload power to an electricity system or support industrial applications with 200 MW thermal output per unit of high pressure, high temperature steam. Click here to see how the Xe-100 reactor works.
"Nuclear energy has always offered the promise of broad economy-wide decarbonization. Today's announcement marks an important step in turning that aspiration into reality," said Clay Sell, X-energy chief executive officer. "Dow has a remarkable 125-year history of bringing innovative solutions to the market, and their leadership is a critical driver in meeting decarbonization goals in the energy intensive industrial sector. X-energy is proud to combine our leading nuclear technology with Dow's production capabilities to deliver a global materials supply chain that is safer, cleaner, and greener than ever before."
The United States Department of Energy has recognized that advanced small modular nuclear reactor technology is a key part of the Department's goal to develop safe, clean and affordable nuclear power options. In 2020, X-energy was selected by the U.S. Department of Energy's Advanced Reactor Demonstration Program to deliver a four-unit Xe-100 plant in Washington state, which will make it among the first operational grid-scale advanced reactor plants in North America.
Small modular nuclear represents a key technology to enable energy-intensive industries to decarbonize. And this announcement marks an additional step in Dow's efforts to deliver 30% reduction in scope 1 and 2 carbon emissions since 2005 by 2030, on its path to achieving carbon neutrality by 2050. In 2021, Dow announced plans to build the world's first net-zero (scope 1 and 2 emissions) carbon emissions integrated ethylene cracker and derivatives site in Fort Saskatchewan, Alberta.
It also builds on Dow's efforts to continue transitioning its sites and operations globally to cleaner power. Last year, the Company expanded its access to renewable power to more than 900 MW and obtained more than 25% of its purchased electricity from renewable sources. Today, Dow is among the top 20 users of clean energy among global corporations.
Dow's comprehensive "INtersections" ESG report provides more detail on the Company's continued efforts to reduce carbon emissions around the world.
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $55 billion in 2021. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.
X-energy is a nuclear energy innovation company focused on the development of next-generation, zero-carbon nuclear energy. Based in Rockville, Maryland, X-energy designs and deploys advanced nuclear reactors and manufactures its proprietary TRISO-X fuel to improve the delivery of safe, affordable energy to people around the world. To learn more please visit https://x-energy.com or connect with us on Twitter, LinkedIn or Instagram.
Certain statements in this report are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; the continuing global and regional economic impacts of the coronavirus disease 2019 ("COVID-19") pandemic and other public health-related risks and events on Dow's business; any sanction, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflict between Russia and Ukraine; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe; size of the markets for Dow's products and services and ability to compete in such markets; failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war including the ongoing conflict between Russia and Ukraine; weather events and natural disasters; disruptions in Dow's information technology networks and systems; and risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities.
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
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