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Global materials science firm Dow Inc has declared a final investment decision on its $6.5 billion Fort Saskatchewan Path2Zero project, which aims to build the world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives facility in Alberta, Canada.
The project includes building a new ethylene cracker and increasing polyethylene capacity by 2 million metric tons per annum (mtpa) as well as retrofitting the site’s existing cracker to net-zero scope 1 and 2 emissions, Dow said in a news release Tuesday. Dow expects its investment to deliver $1 billion of EBITDA growth per year at full run rates over the economic cycle while decarbonizing 20 percent of Dow’s global ethylene capacity.
Dow said it can begin construction in 2024 and add capacity in phases, with the first phase starting up in 2027, adding approximately 1.285 million mtpa of ethylene and polyethylene capacity, and the second phase starting up in 2029, adding an additional approximately 600,000 mtpa of capacity.
To achieve net-zero scope 1 and 2 emissions, the Fort Saskatchewan Path2Zero project will deploy Linde’s air separation and 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, according to the release. Further, carbon dioxide emissions will be captured and stored, reducing existing emissions by approximately 1 million mtpa of carbon dioxide equivalent while abating emissions from the addition of the site’s new capacity.
Dow selected the Fort Saskatchewan site for the project as Western Canada offers highly cost-competitive natural gas relative to other regions, as well as cost-advantaged ethane, a key feedstock for ethylene production. At full run-rates, the company expects the site to be one of its most cost-competitive in the world. The region also features access to existing carbon dioxide transportation and storage infrastructure with available capacity to fully support the decarbonization of the project, according to the release.
Dow said it utilized the subsidies and incentives available from the governments of Canada, Alberta, and Fort Saskatchewan, noting that Path2Zero will be the first project to access Canada’s investment tax credit program.
The project leverages approximately $2 billion of investment from third-party companies for circular hydrogen, carbon capture, and other infrastructure assets. Dow tapped Linde as its industrial gas partner for the supply of clean hydrogen and nitrogen for the site, while Fluor was selected for front-end engineering and design. In addition, Dow is partnering with Wolf Midstream, which will provide carbon dioxide transportation along the Alberta trunk line, and with Ravago, which will provide third-party logistics for finished products from the site.
Submarine Cable Agreement for Offshore Wind
Meanwhile, Dow and Shanghai Qifan Cable Co., Ltd. have signed a memorandum of understanding (MoU) to jointly engage in developing innovative solutions for submarine cables, to support the development of offshore wind power. Under the MoU, Dow would deliver Endurance compounds used in the insulation of Qifan Cable’s heating, ventilation and air conditioning (HVAC) and high-voltage direct current (HVDC) submarine cables.
“In response to the global energy transition, Dow has introduced a series of high-performance solutions that support emerging needs in sustainable energy sources such as offshore wind power”, Asia Pacific Commercial Vice President of Dow Packaging and Specialty Plastics Bambang Candra said. “This partnership with Qifan Cable represents the full recognition of Dow’s submarine cable products, and at the same time, it also helps us advance our manufacturing operations. We continue to improve our product innovation to suit varying application needs while expanding cooperation with industry partners, to support the realization of global decarbonization goals”.
“In the field of submarine cable materials, Dow has industry-leading innovation capabilities and cutting-edge product technologies”, Qifan Cable Chairman Zhou Guihua said. “Through our solid alliance with Dow, it will further strengthen our competitive advantage in the submarine cable market and promote closer cooperation in the value chain. We are delighted to drive the development of offshore wind power with Dow”.
To contact the author, email rocky.teodoro@rigzone.com
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