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Released October 25, 2023 | sugar land
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Researched by Industrial Info Resources (Sugar Land, Texas)--Dow Incorporated (NYSE:DOW) (Midland, Michigan) is still on track to reach a final investment decision (FID) on the first phase of its multi-billion-dollar "Alberta Path2Zero" ethylene and polyethylene project by the end of this year, company executives said Tuesday.
Chief Executive Officer Jim Fitterling discussed the Fort Saskatchewan, Alberta, project while outlining Dow's long-term growth outlook during the company's third-quarter earnings conference call.
The project would result in the world's first ethylene and derivatives complex with net-zero carbon-dioxide (CO2) emissions.
"We expect a final investment decision by yearend, pending completion of subsidies and incentives with the Canadian federal government," Fitterling said.
"The project will enable Dow to capture sustainable growth opportunity, while also delivering on our 2030 greenhouse gas emissions reduction targets and advancing our long-term goal of carbon neutrality by 2050," he added. "Construction is planned to begin next year, with Phase I startup in 2027 and Phase II expected in 2029."
He said the company expects to spend an average of US$1 billion annually on the project through its completion.
Phase I will add approximately 1,300 kilotons of ethylene and polyethylene capacity annually by 2027, and Phase II will contribute another 600 kilotons annually by 2029, according to Dow's earnings-related presentation. Dow has selected Fluor Corporation (NYSE:FLR) (Irving, Texas) for front-end engineering and design.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing project and plant databases can click here for the "Alberta Path2Zero" project reports and click here for the related plant profile.
Fitterling also announced the September startup of a new methylene diphenyl diisocyanate (MDI) distillation and prepolymers facility at Dow's manufacturing site in Freeport, Texas. "This new facility replaces Dow's existing capacity in La Porte, Texas, and expands supply by an additional 30% at the site to support high-value demand growth in polyurethane systems, while also reducing our greenhouse gas emissions by more than 45% compared to the La Porte asset."
Subscribers can click here for the MDI/prepolymers project report, click here for a profile on the La Porte plant, and click here to read a project report on Dow's closing of the polyurethane area at the La Porte plant.
For the third quarter, Dow reported net income of US$327 million, down from US$760 million in the same quarter of 2022. Sales for the third quarter totaled US$10.7 billion, down from US$14.1 billion a year earlier.
In a press release, the company attributed the sharp drop in sales to "slower global macroeconomic activity" that impacted all of Dow's business segments. Dow is in the midst of a US$1 billion cost reduction program this year.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Chief Executive Officer Jim Fitterling discussed the Fort Saskatchewan, Alberta, project while outlining Dow's long-term growth outlook during the company's third-quarter earnings conference call.
The project would result in the world's first ethylene and derivatives complex with net-zero carbon-dioxide (CO2) emissions.
"We expect a final investment decision by yearend, pending completion of subsidies and incentives with the Canadian federal government," Fitterling said.
"The project will enable Dow to capture sustainable growth opportunity, while also delivering on our 2030 greenhouse gas emissions reduction targets and advancing our long-term goal of carbon neutrality by 2050," he added. "Construction is planned to begin next year, with Phase I startup in 2027 and Phase II expected in 2029."
He said the company expects to spend an average of US$1 billion annually on the project through its completion.
Phase I will add approximately 1,300 kilotons of ethylene and polyethylene capacity annually by 2027, and Phase II will contribute another 600 kilotons annually by 2029, according to Dow's earnings-related presentation. Dow has selected Fluor Corporation (NYSE:FLR) (Irving, Texas) for front-end engineering and design.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing project and plant databases can click here for the "Alberta Path2Zero" project reports and click here for the related plant profile.
Fitterling also announced the September startup of a new methylene diphenyl diisocyanate (MDI) distillation and prepolymers facility at Dow's manufacturing site in Freeport, Texas. "This new facility replaces Dow's existing capacity in La Porte, Texas, and expands supply by an additional 30% at the site to support high-value demand growth in polyurethane systems, while also reducing our greenhouse gas emissions by more than 45% compared to the La Porte asset."
Subscribers can click here for the MDI/prepolymers project report, click here for a profile on the La Porte plant, and click here to read a project report on Dow's closing of the polyurethane area at the La Porte plant.
For the third quarter, Dow reported net income of US$327 million, down from US$760 million in the same quarter of 2022. Sales for the third quarter totaled US$10.7 billion, down from US$14.1 billion a year earlier.
In a press release, the company attributed the sharp drop in sales to "slower global macroeconomic activity" that impacted all of Dow's business segments. Dow is in the midst of a US$1 billion cost reduction program this year.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
