Dow Chemical to build net-zero emissions ethylene complex in Alberta

Dow Chemical Company said that it will build a net-zero carbon emissions integrated ethylene cracker and derivatives complex at Fort Saskatchewan, Alberta Canada as part of its efforts to achieve carbon neutrality by 2050.

The project will increase the company’s ethylene and polyethylene production capacity at its Fort Saskatchewan location by more than three times. It will involve retrofitting existing assets to achieve zero carbon emissions.

The American chemical company said that brownfield, organic investments will greatly boost its production of ethylene, polyethylene, and derivatives in Alberta.

Dow Chemical Company intends to decarbonize its global assets by investing approximately $1 billion each year in a site-by-site manner.

The company estimates that the new brownfield ethylene cracker will increase ethylene production by nearly 1.8 million metric tonnes in phases till 2030.

Driven by the investments in derivatives capacity and site retrofit, Dow Chemical Company will be able to produce around 3.2 million metric tons of certified low-to zero-carbon emissions polyethylene and ethylene derivatives for its joint venture partners and customers around the world.

Dow Chemical Company to build net-zero carbon emissions ethylene and derivatives complex at Fort Saskatchewan. Photo courtesy of Dow.

Jim Fitterling — Dow Chemical Company Chairman and CEO 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 is conditional on approval of the company’s board as well as regulatory agencies. It will decarbonize Dow Chemical Company’s global production of ethylene by nearly 20%, while increasing polyethylene supply by almost 15%.

According to Dow Chemical Company, the production process used at the Fort Saskatchewan site will convert the cracker off-gas into hydrogen as a clean fuel. The produced clean hydrogen will be subsequently used in the manufacturing process.

Additionally, carbon dioxide will be captured on-site and transported for storage at by nearby third-party CO2 infrastructure.