The contract projects a 15-year contract term with the pricing arrangement based on cost factors determined by both companies. GreatPoint Energy’s technology is expected to provide a stable, long term and domestic supply of natural gas as well as offer significant competitive advantages to Dow Chemical.
Moreover, hydromethanation is a catalytic process that does not rely on combustion and therefore does not produce the nitrogen oxide (NOx), sulphur oxide (SOx) and particulate emissions typically associated with the burning of carbon feedstock. Instead, the process captures nearly all of the impurities found in coal, petroleum coke and biomass and converts them into valuable chemical-grade byproducts, while allowing for the capture and sequestration of carbon dioxide (CO2).
“We view Dow Chemical as the technical leader in the development and scale-up of catalytic chemical processes and we are extremely pleased to have them as an investor and potential purchaser of natural gas from our facilities,” said Andrew Perlman, GreatPoint Energy chief executive officer. “This potential gas agreement will also enable us to move forward with the development of large scale facilities in North America.”
“As one of the largest industrial users of natural gas, Dow Chemical is highly committed to finding reliable, competitive sources of clean energy,” said Rich Wells, vice president of energy for Dow Chemical. “As we continue to evaluate future natural gas supplies, we are pleased to be working with GreatPoint Energy in developing an alternative approach to natural gas production which we believe will be highly attractive.”
Daniel Goldman, GreatPoint Energy’s executive vice president and chief financial officer, who led the negotiations with Dow Chemical, commented, “having Dow Chemical as a potential major purchaser of natural gas further validates our technology and enables financing structures that will reduce our cost of production. We are extremely pleased to have reached agreement with Dow Chemical on this important arrangement.”
