Dow unveils plans for net-zero ethylene plant for Alberta

Dow Inc. unveiled plans on Wednesdayto buildanet-zero carbon emissions ethylene and derivatives facility near Edmonton, marking what the provincial government sayscould be the largest investment in the province in more than a decade.

The U.S.-based company said it chose Albertafor the project as it offers competitive energy and feedstock pricesand has accessto third-party carbon storage facilities that will help theproject reach net-zero emissions.Dow says it will be the first facility of its kind in the world.

Theproject would more than triple Dow's ethylene and polyethylene capacity at its Fort Saskatchewansite,while retrofitting the site's existing assets to producenet-zero carbon emissions.

The project will help Dow produce about 3.2 million metrictonnes of certified low- to zero-carbon emissions polyethylene andethylene derivatives.

Ethylene, often made using natural gas as a feedstock,is a building block in plastic and can be found in a range of products, from bottles to textiles to medical devices and clothing.

The company has not disclosed a total investment figure for the project, which is dependent on obtaining board and regulatory approvals.

But Alberta Premier Jason Kenney said the project could becomethe largest investment in the province in more than a decade.

"If this project receives regulatory approval and a positivefinal investment decision, it will lead to a multibillion-dollarinvestment in our economy and huge job opportunities in both theconstruction and operating phases," Kenney said in a statement.

Last year, Dow said that by 2030, it would reduce its net annual carbon emissions by five million metric tons versus its 2020 baseline, amounting to a 15 per centreduction, and set a target to becarbon neutral by 2050.

The chemicals maker, once part of DowDupont, joins a growing list of companies that have announced plans to cut emissions andreduce carbon footprints following pressure from investors.

Net-zero plans require companies to decrease carbon dioxideemissions and offset any remaining emissions using projects thatcapture the gas.