The US-based company said it chose Alberta for the project because it offers competitive prices for energy and raw materials and has access to third-party carbon storage facilities that will help the project achieve emissions. net zero. Dow says it will be the first such facility in the world. The project would more than triple Dow’s ethylene and polyethylene capacity at its Fort Saskatchewan site, while upgrading existing site assets to produce net zero carbon emissions.
The project will help Dow produce approximately 3.2 million metric tonnes of certified low carbon polyethylene and ethylene derivatives.
Ethylene, often made from natural gas as a raw material, is a building block of plastic and can be found in a range of products, from bottles and textiles to medical devices and clothing.
The company did not disclose a total investment figure for the project, which is dependent on obtaining approvals from the board of directors and regulatory authorities.
But Alberta Premier Jason Kenney said the project could become the biggest investment in the province in more than a decade.
“If this project receives regulatory approval and a positive final investment decision, it will lead to a multi-billion dollar investment in our economy and huge job opportunities in the construction and operation phases.” Kenney said in a statement.
Last year, Dow said that by 2030, it would reduce its annual net carbon emissions by five million metric tonnes from its 2020 benchmark, a 15% reduction, and set a target to be carbon neutral by 2050.
The chemicals maker, which was once part of DowDupont, joins a growing list of companies that have announced plans to reduce their emissions and carbon footprint following pressure from investors.
Net zero plans require companies to reduce their carbon dioxide emissions and offset any remaining emissions using projects that capture the gas.