Energy management and consumption

Energy management (GRI 302-103)

Our Hydrocarbons & Energy business oversees energy management at Dow. Many of our initiatives around carbon and emissions are also managed by the Energy business. The business is led by a Global Energy & Climate Change director and a team of regional directors and energy managers who define the best integrated asset and commercial strategies for major sites and company exposures. The Energy Technology Center supports our efforts to optimize energy use and emissions through the implementation of energy efficiency projects within our sites. The Energy business manages a portfolio of power and steam production assets, as well as fuel, steam and power purchases.
 

Dow operates combined heat and power plants to provide power and steam to a significant portion of our operations. Our Hydrocarbons & Energy business manages the power and steam procurement for the remainder in a way that balances sustainability, affordability and reliability.
 

In 2020, we added three solar Power Purchase Agreements in Kentucky, Texas and Brazil. This expanded our access to renewable power by 50% to 800 MW of capacity, surpassing Dow’s 2025 Sustainability Goal of obtaining 750 MW of its power demand from renewable sources.

Our decision to add more than 300 MW of solar capacity not only reduces company emissions by more than 200,000 metric tons versus previous grid sourcing, but also supports grid diversity with industrial contracts that bring new renewable capacity online, enhancing residential access to renewable power as well.

  • In Kentucky, Dow’s agreement supports LG&E and KU Energy’s ongoing efforts to enhance renewable offerings for residential, commercial and industrial customers to help meet their various renewable energy goals. The project adds 200 MW of capacity to the region.
  • In Brazil, the installed capacity of the new Jacarandá  plant for Atlas Solar is 187 MW. While Dow’s Aratu site uses the majority of this energy, a significant portion is unclaimed and available to consumers in the region. This sets the foundation for further expansion, economic and social development in the region through Atlas’ investment.

 

Energy consumption

Enery consumption within the organization

Energy intensity (GRI 302-3)

Energy consumption (GRI 302-1)

  • Total energy consumption is aggregated as the sum of purchased fuels (primarily natural gas), off-gas from our manufacturing processes, purchased electricity, and purchased steam minus any steam and power generated by Dow but sold to third parties or to the grid.
  • Energy intensity is aggregated energy consumption reported at the facility level (net fuel, power, steam and other utilities) consumed in the production of products.

Energy consumption outside of the organization (GRI 302-2)

Energy consumption outside of Dow is estimated using primary data for purchased quantities of raw materials and representative datasets for cumulative energy demand from the Ecoinvent v3 database. The purchased raw materials coincide with those used in the estimation of Scope 3, Category 1 GHG emissions. Other categories of energy consumption outside the organization are assumed to be significanty smaller based on prior estimates using Economic Input Output model data and were not estimated for 2020.

 

External energy consumption (Million GJ)