Dow Chemical and an arm of the Russian energy company Gazprom plan to work together on greenhouse gas reduction projects across the globe. They say they will identify projects for third parties that could cumulatively cut millions of tons of carbon dioxide emissions through the implementation of Dow technologies.
The deal links Dow with Gazprom Marketing & Trading, a London-based subsidiary of the big Russian company. The firms say they will seek projects that qualify for Clean Development Mechanism or Joint Implementation status under the United Nations Framework Convention on Climate Change.
Gazprom says it has already participated in several such projects, in Russia and elsewhere, that have generated carbon credits. Carbon reduction projects entitle participants to a credit, called a certified emission reduction, for each ton of carbon dioxide that doesn't enter the atmosphere. The credits, which can be bought and sold, are worth roughly $16 per ton today.
Dow says its contribution to the venture will be energy efficiency and other technologies that reduce carbon emissions. A spokesman points to amine-based technology for capturing flue gas carbon dioxide as one possible way for Dow to participate. The company is already involved in amine-based carbon capture projects in the U.S. and Europe (C&EN, April 6, page 5).
Rich Wells, Dow's vice president of energy and climate change, says the deal with Gazprom will provide a channel to market for Dow products and technologies. Dow says the certified emission reductions that come out of the projects could be used to meet Dow's own carbon reduction obligations in Europe.
Late in 2007, Dow and Gazprom signed an agreement to study chemical plants in Europe and Russia that would be based on Russian natural gas. The Dow spokesman says the earlier agreement has no connection to the carbon reduction pact.