“Stunning” – Dow Plans Major Petrochemical Expansion and Go Net Zero in Alberta – .

0
10
“Stunning” – Dow Plans Major Petrochemical Expansion and Go Net Zero in Alberta – .


Dow intends to modernize the plastic natural gas complex to make it the world’s first net zero carbon petrochemical plant

Content of the article

CALGARY – Dow Chemical Co. plans to triple the size of an Alberta petrochemical plant and take the facility to net zero emissions in a major project that experts say will cost more than $ 10 billion , which represents the largest capital investment in the province in 15 years.

Advertising

Content of the article

Dow on Wednesday announced plans to build a 1.8 million tonne per year ethane cracker at its existing Fort Saskatchewan petrochemical complex near Edmonton and to triple the facility’s ethylene and polyethylene production.

At the same time, the Midland, Michigan-based company intends to upgrade the natural gas-to-plastic processing complex to make it the world’s first net-zero-carbon petrochemical plant by capturing gases from installation and pumping them into an existing collection system. carbon pipeline.

“This investment builds on Dow’s strong leadership position and enables us to meet the growing needs of customers and brand owners looking to reduce the carbon footprint of their products,” said the President and CEO of Dow, Jim Fitterling, in a statement.

Advertising

Content of the article

The company’s board of directors has yet to formally approve the project, and Dow has not provided a cost estimate for the project. But experts estimate it should cost between $ 6 billion and $ 10 billion, given the prices associated with similar projects in other jurisdictions.

“They didn’t give a dollar figure, but you’re not going to build an ethane and polyethylene cracker plant for less than $ 6 billion, I don’t think so, and I would expect that. it’s a lot more, ”said Bob Masterson, CEO of the Chemical Industry Association of Canada, which represents petrochemical companies.

“If we look at a similar facility, the Shell facility in Pennsylvania, you’re looking at an investment of $ 10 billion for the ethylene cracker and polyethylene production,” he said, adding that the announcement of Dow was “absolutely astounding and positive news.” for Alberta.

Advertising

Content of the article

Masterson said the last ethane cracker built in Canada was completed 20 years ago, when Dow and Nova Chemicals Corp. have teamed up to build one at a factory in Joffre, Alta.

Alberta officials are not disclosing any details of Dow’s planned investment, but said it was the largest capital investment in the province in 15 years, meaning it would likely eclipse the cost. $ 5 billion from Heartland $ 5 billion from Inter Pipeline Ltd. propane-plastic petrochemical complex.

“Today’s announcement from Dow is great news for the Alberta economy. If this project comes to fruition, it could represent one of the largest job-creating investments in Alberta in over a decade, ”Alberta Premier Jason Kenney said in the same release.

Advertising

Content of the article

“By choosing Alberta to host the world’s first net zero carbon ethylene plant, Dow is highlighting our growing global leadership in emission reduction technologies such as carbon utilization and storage, and Alberta is open for business.

The UCP and the previous NPD government attempted to attract additional petrochemical investment through tax incentives, including a 12% rebate on investment costs, as part of an effort to diversify the economy far purely upstream oil and gas investments.

Alberta’s Associate Natural Gas Minister Dale Nally declined to say what incentives are offered to Dow for the project, but said the province has received additional bids for petrochemical projects.

Advertising

Content of the article

“Our goal is to take the petrochemical industry and grow it by $ 30 billion by 2030 and it’s a giant leap in that direction,” Nally said of the Dow announcement.

When presenting Dow to investors, Fitterling said that Alberta “is clearly a pioneer” in carbon capture and that the company chose to build the project and renovate it to zero net in the province due to existing carbon capture infrastructure and carbon pipeline, government incentives and carbon taxes.

“In Canada, right now, you have a price of $ 40 a tonne for carbon. It’s going to go to over $ 100 a tonne in the period we are talking about this investment, and there is an existing carbon main line that we have contracted to be able to take our CO2, so you have that infrastructure in place, ”he said. said Fitterling.

Advertising

Content of the article

He said the company supports a “market-based price” for carbon in the United States that would lead to similar investments in the United States.

“It works in Europe. It works in Canada. We think it can work here, but we need to get a little deeper into politics, ”Fitterling said.

Dow plans to spend $ 1 billion per year to “decarbonize its global asset base in a phased, site-by-site approach.”

The additional ethane cracker is also expected to increase demand for natural gas in Alberta from 200 million cubic feet per day to 400 million cubic feet per day, said Cameron Gingrich, managing director of Calgary-based consulting firm Incorrys.

“We send a lot of gas down the pipeline with a lot of ethane in the gas,” he said.

• E-mail : [email protected] | Twitter:

Advertising



LEAVE A REPLY

Please enter your comment!
Please enter your name here