Dow’s plan to build a new ethylene and derivatives complex at its site in Fort Saskatchewan, Alberta, Canada, received unusually swift and broad political backing because of its focus on carbon-neutral production, said Chemweek.
“Especially in a polarized political environment, it is remarkable that this project was able to go through all the processes,” Smith said March 20 in Houston at the World Petrochemical Conference (WPC) by S&P Global. “I think the fact that Dow is leading with the emissions question [is] what has depoliticized it. […] It doesn’t matter what political party you're from – if we can have not only great jobs, but also do it in a way that reduces emissions, that is just a value proposition that makes it, I think, politics-proof. And that's something, I think, that we have to consider in this world of uncertainty.”
Jim Fitterling, Dow’s CEO, praised the Canadian authorities for their efforts. “The different parts of the government, whether at the provincial or at the federal level, really worked closely together to help us get things done,” he said. “So we had our permits in place before we ever made a final investment decision. Those are things that we're trying to get right here in the United States, and get that process sped up, but that's not a small task, and I think Canada being very intimately engaged at a lot of different levels with our team actually helped make that a very smooth process.”
Dow announced the “net-zero” carbon dioxide emissions project in October 2021, and made a final investment decision in November 2023. Construction begins this year, with the first phase expected to start in 2027, adding approximately 1.285 million metric tons per year (MMt/y) of ethylene and PE capacity. The second phase will start in 2029, adding a further 600,000 metric tons per year of capacity.
“In our board discussions, it was becoming evident that the world was demanding a reduction in CO2 emissions,” Fitterling said. “We had a discussion at the board meeting without the rest of the management team in the room, and the consensus among us was, we're not going to be able to build another cracker and derivatives complex without it being zero carbon emissions. During COVID, we went away and did a lot of work, and said, how do we take our whole footprint to zero carbon emissions, and we built a master plan.”
Several factors contributed to Dow’s decision to locate the project at its site in Fort Saskatchewan, said Fitterling. The company had for years been considering how to expand the facility, in part because ethane and natural gas prices there are the lowest in North America. Alberta also a petrochemical incentive program offering tax rebates of up to 12% on the capital cost. Since 2020, the region has also had a 240-kilometer pipeline, the Alberta Carbon Trunk Line, capable of gathering, compressing and delivering up to 14.6 million metric tons per year of CO2 for sequestration in depleted oil reservoirs. The opportunity to tie the project in with carbon capture and sequestration was crucial.
”We’re very happy to have a first-mover advantage, and to be doing it in Fort Saskatchewan,” said Fitterling. “I think it will be kind of a case for what we can do and replicate here in the US Gulf Coast once we’ve got it proven and up and running.”
We remind, circular plastics now account for 13.5% of the content in new plastic products manufactured in Europe, according to industry association Plastics Europe (Brussels). The association today published its biennial “The Circular Economy for Plastics: A European Analysis” report, which noted that the figure means the European plastics sector is more than halfway toward the interim ambition of Plastics Europe’s Plastics Transition roadmap to use 25% of plastics from circular sources in new products by 2030.
mrchub.com