Dow announces first net-zero carbon emissions ethylene and derivatives complex in Alberta

Midland, MI-based Dow has announced plans to build the world’s first net-zero carbon emissions integrated ethylene cracker and derivatives site with respect to scope 1 and 2 carbon dioxide emissions.

The project would more than triple Dow’s ethylene and polyethylene capacity from its Fort Saskatchewan, AB, site, while retrofitting the site’s existing assets to net-zero carbon emissions. The organic, brownfield investment would significantly increase Dow’s capacity of advantaged ethylene, polyethylene and derivatives manufactured across Alberta — all while maintaining Dow’s enterprise-level commitment to keep capital expenditures at or below depreciation and amortization (D&A) levels. The company expects to allocate approximately $1 billion of capex annually — or approximately 1/3 of its D&A levels – to decarbonize its global asset base in a phased, site-by-site approach.

Dow expects the new brownfield ethylene cracker to add approximately 1.8 million metric tons of capacity in a phased manner through 2030, and along with derivatives capacity and site retrofit investments, will enable the company to produce and supply approximately 3.2 million metric tons of certified low- to zero-carbon emissions polyethylene and ethylene derivatives for customers and joint venture partners around the globe.

The investment, which is subject to approval by Dow’s board of directors and various regulatory agencies, would decarbonize approximately 20 percent of Dow’s global ethylene capacity while growing polyethylene supply by about 15 percent by 2030. Further, Dow estimates that the project can be completed with an approximately 15 percent lower capital intensity than Dow’s industry-leading Texas-9 cracker and derivative units.

The production process at Fort Saskatchewan 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.

The products produced at the site will be used across the globe to help deliver low- to zero-carbon emissions solutions to meet customers’ sustainability needs. Dow is focused on serving high growth markets that support human well-being, drive industrial efficiency, and enable the world’s energy transition.

Dow selected the Fort Saskatchewan site for this investment as the region offers a highly competitive energy and feedstocks position. The region also features access to available third-party CO2 infrastructure.

This investment 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.