Dow Invests in Path2Zero Project for World's First Net-Zero Emissions Ethylene Cracker Facility in Canada

Dow recently announced the final investment decision by its board of directors for the Path2Zero project located in Fort Saskatchewan, Alberta, Canada. This investment will establish the world's first integrated ethylene cracker and derivatives production facility with net-zero emissions in Fort Saskatchewan.

Project Overview:
The project is set to involve a total investment of $6.5 billion and includes the construction of a new ethylene cracker and a polyethylene facility with an annual capacity of 2 million tons, as well as modifications to the existing cracker unit to achieve net-zero emissions.

Dow plans to commence construction on the project in 2024. The new facility is expected to be commissioned in phases, with the first phase scheduled for production in 2027, adding approximately 1.285 million tons per year of ethylene and polyethylene capacity. The second phase is projected to commence production in 2029, adding approximately 600,000 tons per year of capacity.

The Path2Zero project in Fort Saskatchewan will incorporate Linde's air separation and self-heat recuperation technologies, converting the cracker unit's flue gas into hydrogen, which will be used as a clean fuel source for on-site furnaces. Additionally, carbon dioxide emissions will be captured and stored, reducing the existing emissions by approximately 1 million tons per year of carbon dioxide equivalent and mitigating all emissions from the new capacity at the site.

Advantages of the Location:
Dow's selection of Fort Saskatchewan as the investment site is attributed to the region's cost competitiveness in terms of natural gas, which is a key raw material in ethylene production. The facility is expected to become one of Dow's most cost-competitive plants globally when operating at full capacity. The region also benefits from existing carbon dioxide transportation and storage infrastructure, providing ample support for the project's decarbonization efforts.

Dow's Commitment to Clean Energy:
As one of the world's top 20 clean energy users, Dow has access to over 900 megawatts of clean energy capacity. More than 25% of Dow's manufacturing sites are already fully or partially powered by renewable energy sources.

As the largest ethylene producer globally, Dow aims to achieve a net reduction of 5 million tons of carbon emissions annually by 2030, representing a 15% reduction from the 2020 baseline. The company has also set a target of achieving carbon neutrality by 2050. Dow has developed a comprehensive roadmap to achieve these goals, including optimizing production facilities and processes, increasing renewable energy procurement, investing in carbon capture, utilization, and storage technologies, developing low-carbon technologies and innovative materials, and collaborating on carbon reduction initiatives across the value chain.

Dow's investment in the Path2Zero project in Fort Saskatchewan marks a significant milestone in the company's commitment to sustainability and decarbonization. By establishing the world's first net-zero emissions ethylene cracker facility, Dow is taking a leadership role in the transition towards a low-carbon future. The project's innovative technologies and strategic location in Fort Saskatchewan position it as a cost-competitive and environmentally responsible production facility. Dow's ambitious carbon reduction targets and comprehensive roadmap demonstrate its dedication to driving positive change in the industry and contributing to a more sustainable world.