Dow announced it has selected Linde as its industrial gas partner for the supply of clean hydrogen and nitrogen for its proposed net-zero carbon emissions integrated ethylene cracker and derivatives site in Fort Saskatchewan, Alberta, Canada.
Final investment decisions for both the Dow and Linde projects are subject to approval by both companies’ respective Board of Directors and various regulatory agencies. Final investment decisions are expected in the fourth quarter of this year for a potential start-up of phase 1 in 2027.
Under the parties’ framework agreement, Linde will complete the design and engineering for a Linde-owned and operated world-scale air separation and auto thermal reformer complex. This complex would be integrated with Linde’s existing operations in Fort Saskatchewan.
“Linde’s partnership is critical in enabling Dow to advance its plans to decarbonize our Fort Saskatchewan site while growing our business,” said Edward Stones. “Our customers are looking to Dow to help lower the carbon footprint of their products, and this is an important step in that direction.”
Dow’s net-zero carbon emissions ethylene cracker and derivatives complex would decarbonize approximately 20 percent of its global ethylene capacity while growing its global polyethylene supply by about 15 percent and supporting approximately $1 billion of EBITDA (earnings before interest, taxes, depreciation and amortization) growth across the value chain by 2030.
The proposed production process at Fort Saskatchewan will convert cracker off-gas into hydrogen as a clean fuel to be used in the ethylene production process and carbon dioxide will be captured onsite to be transported and stored by adjacent third-party carbon storage infrastructure partners.
“The Dow net-zero Fort Saskatchewan project will be a milestone project in global industrial decarbonization,” said Dan Yankowski. “Linde’s engineering, large project execution and operations expertise, combined with our long-standing relationship, uniquely positions us to support Dow as it takes an important step towards achieving its decarbonization goals.”