Dow said today it has made a final investment decision to build the world's first net-zero CO2 emissions integrated ethylene cracker and derivatives complex in Alberta, Canada.
The $6.5bn project includes construction of a new ethylene cracker at the existing Fort Saskatchewan site and increasing polyethylene (PE) capacity at the site by 2mn metric tonnes (t)/yr, as well as retrofitting the site's existing cracker to net-zero CO2 emissions.
The project will use Linde's air separation autothermal reformer technology to convert the site's cracker off-gas to hydrogen, which will be used as a clean fuel to supply the site's furnaces. CO2 emissions will also be captured and stored, reducing existing emissions by approximately 1mn t/yr of CO2, while abating emissions from the addition of the site's new capacity.
The project will proceed in two phases, with construction starting in 2024. The first phase, including 1.285mn t/yr of ethylene and PE capacity, would start up in 2027. The second phase, to start in 2029, would add approximately 600,000 t/yr of capacity.
The investment is expected to deliver $1bn of EBITDA growth per year at full run rates, while decarbonizing Dow's global ethylene capacity, the company said.
Dow selected the Fort Saskatchewan site due to Western Canada's cost-competitive natural gas relative to other regions, as well as cost-advantaged ethane. Dow said it expects the site to be one of the company's most cost-competitive in the world. The region also has access to existing CO2 transportation and storage infrastructure.
The governments of Canada, Alberta and Fort Saskatchewan made subsidies and incentives to support the project.
Linde has been selected as the industrial gas partner for the supply of clean hydrogen and nitrogen for the site, and Fluor was selected for front-end engineering and design. Wolf Midstream will provide CO2 transportation and Ravago will provide third-party logistics for finished products from the site.
Dow currently has approximately 1.3mn t/yr of ethylene capacity at its Fort Saskatchewan site, and approximately 1.3mn t/yr of PE capacity split between two sites in Alberta.
