Celanese Low-Carbon ECO-CC Products Available Through U.S. Department of Energy Procurement Grant Program

Rhea-AI Summary

Celanese Corporation (CE) secures approval as a Utilization Procurement Grants vendor from the U.S. Department of Energy, offering low-carbon acetic acid under the ECO-CC product name. The company aims to support municipalities in meeting sustainability goals by providing circular solutions. Celanese's product offerings have shown significant reductions in greenhouse gas emissions and passed DOE's life cycle analysis review. This approval allows Celanese to work with value-chain partners to extend product usage opportunities to eligible U.S. government entities nationwide.

Insights

Environmental Sustainability Analyst

The approval of Celanese Corporation by the DOE as a Utilization Procurement Grants vendor marks a significant step in the integration of sustainable practices within the chemical industry. Celanese's introduction of low-carbon acetic acid, branded as ECO-CC, represents a notable advancement in carbon capture and utilization (CCU) technologies. This aligns with broader environmental goals, such as those outlined in the Paris Agreement, aiming to reduce greenhouse gas emissions and mitigate climate change impacts.

The utilization of recycled CO2 as a raw material in over 90% of Celanese's Acetyl Chain product offerings can potentially lead to a substantial decrease in the carbon footprint of various applications. This innovation not only supports sustainability but also offers municipalities and government entities an opportunity to comply with increasingly stringent environmental regulations. By becoming an UPGrants vendor, Celanese is poised to expand its market reach within the public sector, which could result in increased demand for its low-carbon products.

However, the scalability and economic viability of CCU technologies must be critically evaluated. While the reduction in life cycle greenhouse gas emissions is commendable, the costs associated with CCU implementation and whether these can be competitively priced in the market are crucial factors for widespread adoption.

Market Research Analyst

Celanese's designation as an UPGrants vendor by the DOE is likely to influence its market positioning positively. The unique offering of low-carbon acetic acid under the ECO-CC product name could differentiate Celanese from competitors in the specialty materials and chemicals sector. This differentiation may translate into a competitive advantage as demand for sustainable products increases among public and private sector consumers alike.

Given the growing emphasis on sustainability in procurement policies, especially within government agencies, Celanese's new product line could see a rise in sales volume. However, it is essential to monitor how this impacts the company's financials, especially in terms of profit margins. The production costs of ECO-CC products compared to traditional acetic acid will be a key factor in determining the long-term success of this initiative.

Additionally, investors should consider the potential for regulatory incentives or subsidies that could benefit Celanese as a result of this DOE approval. Such incentives could offset production costs and enhance the company's profitability.

Energy Sector Analyst

The DOE's endorsement of Celanese's CCU technology underscores the growing importance of carbon capture initiatives within the energy sector. Celanese's CCU project in Clear Lake, Texas, which aims to capture 180,000 metric tons of CO2 and produce 130,000 metric tons of low-carbon methanol annually, showcases the potential for significant emissions reduction in industrial processes.

While this technology is promising, it is important to consider the energy requirements for CCU operations. The efficiency of carbon capture processes and the source of hydrogen used for the chemical conversion of CO2 into methanol are critical factors that could affect the overall carbon reduction claims. If the hydrogen used is derived from fossil fuels, this could partly offset the benefits of the CCU process.

Investors and stakeholders should also evaluate the long-term sustainability of such projects, including the stability of government support and policy, which can greatly influence the future of energy-related initiatives.

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, announced it has been approved by the U.S. Department of Energy (DOE)’s Office of Fossil Energy and Carbon Management as a Utilization Procurement Grants (UPGrants) vendor. Celanese is now the only producer offering low-carbon acetic acid under the ECO-CC product name, which positions the company to help municipalities meet the growing demand for more sustainable and circular solutions.

As the U.S. economy moves toward a lower carbon future, the DOE is seeking to support states, local governments, public utilities and agencies to procure commercial or industrial products derived from anthropogenic carbon emissions. This includes Celanese low carbon acetic acid, which uses the ECO-CC product name because it is manufactured using carbon capture and utilization (CCU) technology. These product offerings have demonstrated significant net reductions in life cycle greenhouse gas emissions and passed a critical DOE review of the product’s life cycle analysis. As an UPGrants vendor, Celanese has already begun working with our value-chain partners to extend product usage opportunities to eligible U.S. government entities nationwide.

“By using recycled CO2 as a raw material, we unlock the potential to offer lower carbon footprint options with carbon capture content across more than 90 percent of our Acetyl Chain product offerings,” said Kevin Norfleet, global sustainability director, Acetyls at Celanese. “Our ECO-CC solutions are uniquely positioned to help UPGrants eligible entities reduce their carbon footprint in applications including waste-water treatment, de-icing, fertilization, interior painting and more.”

Earlier this year, Celanese announced the operation of its CCU project at its Clear Lake, Texas, site as part of its Fairway Methanol joint venture with Mitsui & Co., Ltd. The project is expected to capture 180,000 metric tons of carbon dioxide (CO2) industrial emissions and produce 130,000 metric tons of low-carbon methanol annually. The CCU project takes CO2 industrial emissions that would otherwise be emitted into the atmosphere from both Celanese and third-party sources and applies reduced-carbon-intensity hydrogen to chemically convert the captured CO2 into a methanol building block used for downstream production. This low-carbon input is then used to reduce traditional fossil fuel-based raw materials, such as acetic acid ECO-CC, and can help produce a wide range of end products across most major industries.

To learn more about CCU technology at Celanese, watch our CCU video or visit https://www.celanese.com/en/sustainability-offerings.

About Celanese

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 13,000 employees worldwide and had 2022 net sales of $9.7 billion. For more information about Celanese Corporation and its product offerings, www.celanese.com.

About Mitsui

Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries.

Mitsui identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.

Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition.

Visit www.mitsui.com for more information.

About Fairway Methanol LLC

The Clear Lake methanol unit was commissioned in October 2015 as a joint venture between Celanese and Mitsui & Co., Ltd. The unit utilizes abundant, low-cost natural gas in the U.S. Gulf Coast region as a feedstock. The joint venture operates as Fairway Methanol LLC, with both Celanese and Mitsui maintaining a 50/50 ownership.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212398005/en/

Investor Relations

Brandon Ayache

+1 972 443 8509

brandon.ayache@celanese.com

Media Relations - Global

Brian Bianco

+1 972 443 4400

media@celanese.com

Source: Celanese Corporation

FAQ

What is Celanese Corporation's ticker symbol?

Celanese Corporation's ticker symbol is CE.

What approval did Celanese Corporation receive from the U.S. Department of Energy?

Celanese Corporation received approval as a Utilization Procurement Grants vendor from the U.S. Department of Energy.

What product is Celanese offering under the ECO-CC name?

Celanese is offering low-carbon acetic acid under the ECO-CC product name.

How does Celanese's product help reduce carbon footprint?

Celanese's product offerings have demonstrated significant net reductions in life cycle greenhouse gas emissions.

What is the purpose of the CCU project at Celanese's Clear Lake, Texas, site?

The CCU project at Celanese's Clear Lake, Texas, site aims to capture industrial CO2 emissions and produce low-carbon methanol annually.