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Dow to Build First Net-Zero Carbon Emissions Ethylene and Resin Site
October 06, 2021

Dow announced it will build the world's first net-zero carbon emissions integrated Ethylene cracker and derivatives site at its Fort Saskatchewan, Alberta site in Canada with respect to scope 1 and 2 carbon dioxide emissions.

The organic, brownfield investment project will more than triple the company's Ethylene and Polyethylene (PE) capacity from the Fort Saskatchewan site while retrofitting existing assets to net-zero carbon emissions. The new brownfield ethylene cracker is expected to add approximately 1.8 million MT of capacity in a phased manner through 2030 and will enable the company to produce and supply approximately 3.2 million MT of certified low- to zero-carbon emissions PE and Ethylene derivatives for customers and joint venture partners around the globe.

The project would build the company's previous success in reducing the carbon emissions intensity of its manufacturing fleet. Fort Saskatchewan was selected for its competitive energy and feedstocks position that also features access to available third-party CO2 infrastructure. The production process at the site will convert cracker off-gas into hydrogen as a clean fuel to be used in the production process, and carbon dioxide that would be captured onsite to be transported and stored by adjacent third-party CO2 infrastructure.

Dow said the project will come while maintaining its enterprise-level commitment to keep capital expenditures at or below depreciation and amortization (D&A) levels. It also expects to allocate approximately $1 billion of capex annually

The investment, which is subject to approval by Dow's Board of Directors and various regulatory agencies, would decarbonize approximately 20% of its global ethylene capacity while growing PE supply by about 15% and supporting approximately $1 billion of EBITDA growth across the value chain by 2030. It is also estimated the project can be completed with an approximately 15% lower capital intensity than the company's Texas-9 cracker and derivative units.

The investment also aligns with Dow's broader targets to achieve carbon neutrality by 2050, eliminate plastic waste in the environment and increase its positive impacts on customers, business, and society. It also supports Dow's commitment to reduce its net annual carbon emissions by an additional 15%, reducing net annual carbon emissions by approximately 30% by 2030 (since 2005).

By Brian Balboa for The Plastics Exchange.

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