Canada Oil and Gas Investments in Clean Technology
The construction of Dow’s net-zero complex in Fort Saskatchewan, Alberta may present opportunities for U.S. companies.
Recently, U.S.-based chemical company Dow Inc. announced plans to build a net-zero carbon emissions ethylene and derivatives complex in Fort Saskatchewan, Alberta – the first of its kind in the world. This construction reflects the oil and gas industry’s increasing shift towards emission-reducing technology.
The addition of this complex to Dow’s manufacturing infrastructure will help the company achieve carbon neutrality objective while promoting healthy financial growth. It is an extension to Dow’s previous carbon mitigation success with Texas-9 in Freeport, Texas, which yielded a 15% increase in ROI and a 60% lower conversion cost. Dow’s Board of Directors expects that the project would decarbonize at least 20% of the company’s ethylene capacity while driving earnings before taxation and amortization (EBITDA) up to USD 800 million by 2030. When construction finishes in 2027, this project will enable the company to maintain a steady global supply of 3.2 million metric tons of low-to-zero-carbon derivatives.
This announcement means good news for the Albertan economy and energy sector, as it transforms itself from a carbon-driven industrial base. Dow’s project has the potential to create one of the province’s largest job-creating investments in over a decade. Its decision to begin construction in Fort Saskatchewan stems from the site’s high-yield energy and feedstocks position. Dow’s secondary motivation is also to retrofit existing infrastructures with state-of-the-art carbon elimination procedures.
In addition to serving as Alberta’s support for circular hydrogen technologies, Dow’s net-zero complex hopes to accelerate the adoption of emissions-avoiding solutions across the Canadian oil and gas industry.
For more information about net-zero emissions in Canada and how the U.S. Commercial Service assists U.S. exporters, please visit https://www.trade.gov/canada or: Contact Commercial Specialist Connie Haider