Dow Chemical announced in late November that they made a final investment decision (FID) to build a new “net-zero” integrated ethane steam cracker and associated polyethylene (PE) derivatives plants (see schematic below) at its Fort Saskatchewan site in Alberta. The company estimates total capital spend for the key growth project at USD $6.5 billion, but they will also receive governmental support totaling more than $1.5 billion in cash and tax incentives. Dow is partnering with several other companies that will invest an additional $2 billion-$3 billion for related infrastructure. The all-in total capital cost for the project looks to be in the $10+ billion range.
Featured Articles
- Analyst Insight
Construction Under Way on Dow’s New Net-Zero Steam Cracker in Alberta
Construction under way on Dow’s new net-zero steam cracker in Alberta
- Analyst Insight
Linde to Build, Operate $2 Billion Clean Hydrogen Facility at Dow’s Path2Zero Project in Alberta
Linde will invest more than $2 billion to build, own and operate a world-scale integrated clean hydrogen and atmospheric gases facility at Dow’s Fort Saskatchewan Path2Zero Project n Alberta, Canada, the company announced August 27.
- Blog
Wish You Were Here - Delay to Dow's Alberta Cracker Expansion Creates Uncertainty for Energy Suppliers
Alberta’s petrochemical industry received bad news in late April when Dow, one of the world’s largest petrochemical companies, announced that it was delaying construction on an immense expansion of its ethane cracker in Fort Saskatchewan, AB, only a little more than a year after sanctioning the project. Although the length of the delay remains uncertain, the slowdown has created unwanted ripples across other projects that were tied to the expansion, especially for companies working to provide a substantial increase in ethane and natural gas supplies that will be required by the project. In today’s RBN blog, we take a closer look at the delay and what it might mean for Alberta’s energy industry.
