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Released July 26, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Dow Incorporated (NYSE:DOW) (Midland, Michigan) is on track to reach a final investment decision (FID) on the first phase of its multi-billion-dollar "Alberta Path2Zero" ethylene and polyethylene project by the end of this year, company executives said Tuesday.
Chief Executive Officer Jim Fitterling discussed the Fort Saskatchewan, Alberta, project while outlining Dow's long-term growth outlook during the company's second-quarter earnings conference call.
The project would result in the world's first ethylene and derivatives complex with net-zero carbon-dioxide (CO2) emissions, Fitterling said.
"By 2030, the complex will decarbonize 20% of our global ethylene capacity, while expanding our global polyethylene supply by 15%, and tripling polyethylene at our Alberta site," Fitterling said.
"We are on track to secure partner agreements and subsidies during the second half of this year and we are targeting board and regulatory approval along with a final investment decision by year-end," he continued.
Construction is expected to begin in 2024, Fitterling said, who added the project would occur in two phases.
"Phase I will add approximately 1,300 kilotons of ethylene and polyethylene capacity annually by 2027," he said. "Phase II will contribute another 600 kilotons annually by 2029. We expect to spend on average roughly (US)$1 billion annually on the project beginning next year through the project's completion."
The project would take advantage of Alberta's feedstock cost advantage, "which provides Dow with lower ethane costs compared to the rest of the world, even more advantaged than the U.S. Gulf Coast," he said.
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 the just-ended second quarter, Dow reported net income of US$501 million, down from US$1.68 billion in the same quarter of 2022. Sales for the just-ended quarter totaled US$11.4 billion, down from US$15.6 billion a year earlier.
In a press release, Fitterling attributed the sharp drop in sales to a "challenging near-term macro environment" that impacted all of Dow's business segments. Dow is in the midst of a US$1 billion cost reduction program this year.
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).
Chief Executive Officer Jim Fitterling discussed the Fort Saskatchewan, Alberta, project while outlining Dow's long-term growth outlook during the company's second-quarter earnings conference call.
The project would result in the world's first ethylene and derivatives complex with net-zero carbon-dioxide (CO2) emissions, Fitterling said.
"By 2030, the complex will decarbonize 20% of our global ethylene capacity, while expanding our global polyethylene supply by 15%, and tripling polyethylene at our Alberta site," Fitterling said.
"We are on track to secure partner agreements and subsidies during the second half of this year and we are targeting board and regulatory approval along with a final investment decision by year-end," he continued.
Construction is expected to begin in 2024, Fitterling said, who added the project would occur in two phases.
"Phase I will add approximately 1,300 kilotons of ethylene and polyethylene capacity annually by 2027," he said. "Phase II will contribute another 600 kilotons annually by 2029. We expect to spend on average roughly (US)$1 billion annually on the project beginning next year through the project's completion."
The project would take advantage of Alberta's feedstock cost advantage, "which provides Dow with lower ethane costs compared to the rest of the world, even more advantaged than the U.S. Gulf Coast," he said.
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 the just-ended second quarter, Dow reported net income of US$501 million, down from US$1.68 billion in the same quarter of 2022. Sales for the just-ended quarter totaled US$11.4 billion, down from US$15.6 billion a year earlier.
In a press release, Fitterling attributed the sharp drop in sales to a "challenging near-term macro environment" that impacted all of Dow's business segments. Dow is in the midst of a US$1 billion cost reduction program this year.
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).
