Dow Reaches FID for Alberta 'Path2Zero' Ethylene/Polyethylene Project

Researched by Industrial Info Resources (Sugar Land, Texas)--Dow Incorporated (NYSE:DOW) (Midland, Michigan) said Tuesday it has reached a final investment decision (FID) on its Path2Zero investment in Fort Saskatchewan, Alberta. The company plans to build what it says will be the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives plant.

The US$6.5 billion project--excluding government incentives and subsidies--includes a new ethylene cracker designed to increase polyethylene capacity by 2 million metric tons per year as well as retrofitting the site's existing cracker to net-zero Scope 1 and 2 emissions, Dow said in a press release.

Scope 1 emissions are direct greenhouse gas (GHG) emissions that occur from sources that are controlled or owned by an organization, while Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling, according to the U.S. Environmental Protection Agency (EPA).

"The opportunity to decarbonize our assets while driving growth is central to Dow's business strategy," said Dow Chief Executive Officer Jim Fitterling. "All our stakeholders benefit from this investment--creating value for our customers and shareholders, new opportunities for our employees, economic growth for the community, and fewer greenhouse gas emissions for the environment."

The project will decarbonize 20% of Dow's global ethylene capacity and deliver $1 billion of earnings before interest, taxes, depreciation and amortization per year at full run rates, according to the company.

Dow plans to begin construction in 2024, with the first phase starting up in 2027, adding 1,285,000 tons per year of ethylene and polyethylene capacity, and the second phase starting up in 2029, adding 600,000 tons per year.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can click here for the "Alberta Path2Zero" project reports and click here for the related plant profile. For more information, see October 25, 2023, article - Dow: Alberta Zero-Carbon Ethylene/Polyethylene Project Set for Year-End FID.

Dow said it picked the Fort Saskatchewan site for the project "as Western Canada offers highly cost-competitive natural gas relative to other regions, as well as cost-advantaged ethane, a key feedstock for ethylene production."

The project will use Linde plc's (NYSE:LIN) (Woking, England) technology to convert the site's cracker off-gas to hydrogen, which will be used as a fuel to supply the site's furnaces, according to Dow. Fluor Corporation (NYSE:FLR) (Irving, Texas) was selected to provide front-end engineering and design.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).