Dow's Board Approves Investment For Path2Zero Project; To Begin Construction In 2024

(RTTNews) - Dow (DOW) said its board has declared Final Investment Decision on the Fort Saskatchewan Path2Zero investment to build a net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility in Alberta, Canada. The $6.5 billion project includes building a new ethylene cracker and increasing polyethylene capacity by 2 million MTA as well as retrofitting the site's existing cracker to net-zero Scope 1 and 2 emissions. The company expects the investment to deliver $1 billion of EBITDA growth per year at full run rates.

The approval enables Dow to begin construction in 2024. The company anticipates capacity additions to come online in phases, with the first phase starting up in 2027, adding approximately 1,285 KTA of ethylene and polyethylene capacity, and the second phase starting up in 2029, adding an additional approximately 600 KTA of capacity.

Dow's investment leverages approximately $2 billion of investment from third-party companies for circular hydrogen, CO2 capture, and other infrastructure assets.