{"id":61143,"date":"2023-11-29T10:52:26","date_gmt":"2023-11-29T18:52:26","guid":{"rendered":"https:\/\/energi.media\/?p=61143"},"modified":"2023-11-29T10:52:26","modified_gmt":"2023-11-29T18:52:26","slug":"dow-green-lights-fort-saskatchewan-integrated-ethylene-cracker-and-derivative-site","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/dow-green-lights-fort-saskatchewan-integrated-ethylene-cracker-and-derivative-site\/","title":{"rendered":"Dow green lights Fort Saskatchewan integrated ethylene cracker and derivative site"},"content":{"rendered":"

On Tuesday, Dow announced that its board of directors has declared final investment decision on the company’s Fort Saskatchewan<\/span> Path2Zero investment to build the world’s first net-zero\u00a0<\/sup>Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility in Fort Saskatchewan.<\/p>\n

The $6.5 billion project excluding governmental incentives and subsidies, includes building a new ethylene cracker and increasing polyethylene capacity by 2 million MTA as well as retrofitting the site’s existing cracker to net-zero Scope 1 and 2 emissions. The investment is expected to deliver $1 billion of EBITDA growth per year at full run rates over the economic cycle while decarbonizing 20 per cent of Dow’s global ethylene capacity.<\/p>\n

Jim Fitterling<\/span>, Dow Chair and CEO said “The opportunity to decarbonize our assets while driving growth is central to Dow’s business strategy.”\u00a0 He added “All our stakeholders benefit from this investment \u2013 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.”<\/p>\n

According to a press release issued by Dow, this new capacity will enable the company to capture growing customer demand in high-value markets, such as packaging, infrastructure and hygiene, among others, with potential additional value captured from commercializing low and zero-emissions products.<\/p>\n

Karen S. Carter<\/span>,\u00a0Dow President, Packaging & Specialty Plastics said “With this strategic investment and our commitment to transform plastic waste to create circular and renewable solutions, we are poised to achieve even greater reductions in emissions, empowering our customers to make significant strides in their sustainability efforts.”<\/p>\n

The board’s approval enables the Company to begin construction in 2024. Capacity additions are expected to come online in phases, with the first phase starting up in 2027, adding approximately 1,285 KTA\u00a0of ethylene and polyethylene capacity, and the second phase starting up in 2029, adding an additional approximately 600 KTA of capacity.<\/p>\n

To achieve net-zero Scope 1 and 2 emissions, the\u00a0Fort Saskatchewan<\/span>\u00a0Path2Zero project will deploy Linde’s\u00a0air separation and autothermal reformer technology to convert the site’s cracker off-gas to hydrogen, which will be used as a clean fuel to supply the site’s furnaces. In addition, carbon dioxide emissions will be captured and stored, reducing existing emissions by approximately 1 million MTA of CO2<\/sub>e while abating all emissions from the addition of the site’s new capacity.<\/p>\n

Dow says it selected the Fort Saskatchewan<\/span>\u00a0site for this investment as\u00a0Western Canada<\/span>\u00a0offers highly cost-competitive natural gas relative to other regions, as well as cost-advantaged ethane, a key feedstock for ethylene production. At full run-rates, the site is expected to be one of Dow’s most cost-competitive in the world.<\/p>\n

The region also features access to existing CO2<\/sub>\u00a0transportation and storage infrastructure with available capacity to fully support decarbonization of the project. It is home to a high-class workforce and Dow has been part of the community for more than 60 years.<\/p>\n

“This investment by Dow is further evidence of the opportunity that exists in\u00a0Alberta,” said Alberta Premier, Danielle Smith.\u00a0 “This project does not just mean net-zero emissions, it means more jobs and a stronger economy.”<\/span><\/p>\n

Additionally, the governments of\u00a0Canada<\/span>,\u00a0Alberta<\/span>, and\u00a0Fort Saskatchewan<\/span>\u00a0have made subsidies and incentives available to support this project and to drive innovation in low-emissions manufacturing in\u00a0Canada<\/span>. It will be the first project to access\u00a0Canada’s<\/span>\u00a0new ITC program.<\/p>\n

Diego Ordonez<\/span>, Dow Canada President said “Our collaboration with government officials, the community of\u00a0Fort Saskatchewan<\/span>, our Indigenous neighbours, and the host of partner companies involved has been key to enabling this investment to move forward.”<\/p>\n

Dow’s investment leverages approximately\u00a0$2 billion<\/span>\u00a0of investment from third-party companies for circular hydrogen, CO2<\/sub>\u00a0capture, and other infrastructure assets critical to the project execution. Earlier this year, Dow\u00a0announced<\/a>\u00a0that Linde had been selected as its industrial gas partner for the supply of clean hydrogen and nitrogen for the site, and Fluor\u00a0was selected for front-end engineering and design. Additionally, Dow is partnering with Wolf Midstream, which will provide CO2\u00a0<\/sub>transportation along the\u00a0Alberta<\/span>\u00a0trunk line, and with Ravago which will provide third-party logistics for finished products from the site.<\/p>\n

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On Tuesday, Dow announced that its board of directors has declared final investment decision on the company’s Fort Saskatchewan Path2Zero investment to build the world’s first net-zero\u00a0Scope 1 and 2 emissions integrated ethylene cracker and [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":61144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[18,322,1886,14,606,1380],"class_list":{"0":"post-61143","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-alberta","9":"tag-business","10":"tag-ccus","11":"tag-featured","12":"tag-industry","13":"tag-plastics"},"acf":[],"yoast_head":"\nDow - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"Dow says it selected the Fort Saskatchewan\u00a0site for this investment as\u00a0Western Canada\u00a0offers highly cost-competitive natural gas.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/dow-green-lights-fort-saskatchewan-integrated-ethylene-cracker-and-derivative-site\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dow - 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