Dow Inc. (NYSE:DOW) has approved a $6.5 billion investment in its Fort Saskatchewan Path2Zero project, aligning with its goal of achieving carbon neutrality by 2050.
The initiative involves constructing a new ethylene cracker and expanding polyethylene capacity by two million metric tonnes annually, anticipating $1 billion annual profit growth at full capacity, according to the global chemical company.
Commencing construction in 2024, with phases operational in 2027 and 2029, Dow aims to capture demand in high-value markets like packaging and infrastructure.
The project is the world's first net-zero Scope 1 and 2 emissions ethylene complex, contributing to Dow's commitment to a 15% reduction in net annual carbon emissions by 2030. Technologies such as Linde's air separation and autothermal reformer will convert cracker off-gas to hydrogen, serving as a clean fuel, while carbon dioxide emissions will be captured and stored, reducing emissions by approximately one million metric tonnes.
The Fort Saskatchewan site was chosen strategically for its cost-competitive natural gas and ethane, positioning it as one of Dow's most competitive globally.
"The opportunity to decarbonize our assets while driving growth is central to Dow's business strategy,” Jim Fitterling, Dow’s CEO said in a statement.
“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."
“This project does not just mean net-zero emissions, it means more jobs and a stronger economy,” Alberta premier Danielle Smith said.
The project is supported by the federal government of Canada along with the province of Alberta and municipality of Fort Saskatchewan, along with $2 billion in third-party investments.