Dow announced that its board of directors has approved an investment of $6.5 billion to increase capacity at the company's Fort Saskatchewan, Alberta, Canada, site. This investment will update the facility to be in line with the company’s Path2Zero project. Dow aims to build the world's first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives facility.  

The project includes building a new ethylene cracker and increasing polyethylene capacity by two million metric tons per year (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% of Dow's global ethylene capacity.

The board's approval enables the company to begin construction in 2024. Capacity additions are expected to come online in phases. The first phase will start in 2027, adding approximately 1,285 kilotons per year (KTA) of ethylene and polyethylene capacity. The second phase, starting in 2029, will add an additional 600 KTA of capacity.

"The opportunity to decarbonize our assets while driving growth is central to Dow's business strategy. All our stakeholders benefit from this investment – 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," said Dow Chair and CEO Jim Fitterling.

Dow strategically chose its Fort Saskatchewan site for this investment. Western Canada offers highly cost-competitive natural gas 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. The region also features access to existing CO2 transportation 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.

Danielle Smith, Premier of Alberta said, "This investment by Dow is further evidence of the opportunity that exists in Alberta. We are proud that Dow has chosen to build and launch their project here. This project does not just mean net-zero emissions, it means more jobs and a stronger economy. I look forward to the next steps, including construction starting next year."

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