Dow Announced Plan for World's First Net Zero Carbon Emissions Ethylene and Derivatives Complex

The company also believes that this project can be completed with around 15% less capital intensity than Dow's industry-leading Texas-9 cracker and derivative units

Dow Announced Plan for World's First Net Zero Carbon Emissions Ethylene and Derivatives Complex

On 6th October, Dow announced its plan 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, upon completion, would more than triple  Dow's ethylene and polyethylene capacity from its Fort Saskatchewan, Alberta site, while making it world’s first net-zero carbon emission plant.

The company is expecting the new brownfield ethylene cracker to add approximately 1.8 million metric tons of capacity in a phased manner through 2030 along with derivative capacity and investing in retrofitting of the plant. The new plant will allow 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.

Chairman and CEO Jim Fitterling said, “This investment builds on Dow's strong leadership position and allows us to meet the increasing needs of customers and brand owners seeking to lower the carbon footprint of their products. Our advantaged position and disciplined approach to capital investment makes us well positioned to lead the industry in decarbonizing, growing and accelerating Dow's path toward carbon neutrality."

The investment, which is subjected to approval from Dow’s Board of Directors and various regulatory agencies, would decarbonize approximately 20% of Dow's global ethylene capacity while growing polyethylene supply by about 15% and supporting approximately USD 1 billion of EBITDA growth across the value chain by 2030. The company also believes that this project can be completed with around 15% less capital intensity than Dow's industry-leading Texas-9 cracker and derivative units.

Dow’s most recently commissioned cracker, Texas-9 in Freeport, Texas, is delivering more than 15% return on invested capital since startup and currently operates at 65% lower conversion cost. The plant also has up to 60% lower CO2 emissions intensity than the average cracker in Dow's fleet as well as 20% lower capital cost than the industry.

Dow is one of the top 20 global corporations for clean energy purchases, with more than 850 MW. The latest investment plan aligns with Dow’s target of carbon neutrality by 2050, and its commitment to reduce its net annual carbon emissions by an additional 15%, reducing net annual carbon emissions by approximately 30% by 2030 (since 2005).