US chemical producer Dow has pressed pause on its plan to construct the world’s first net-zero chemical plant in Canada, broadcaster CBC experiences.
It was planning to take a position US$6.5bn on the ethylene plant in Fort Saskatchewan, close to Edmonton in Alberta.
The undertaking to develop its present facility was first introduced in 2021. It secured funding from provincial and federal governments in 2023 (see additional studying).
The Alberta Petrochemicals Incentive Programme dedicated round US$1.3bn to the undertaking. The federal authorities mentioned it could contribute as much as US$288m from its carbon seize and clear hydrogen tax credit score scheme.
To this point, the corporate has been finishing up web site preparation, putting in utilities and erecting administrative buildings.
The plant would have produced about 3 million tonnes of polyethylene and ethylene derivatives a yr for export.
Dow chief govt Jim Fitterling mentioned in an earnings name yesterday the corporate was anticipating issues from Donald Trump’s tariff chaos, and that the undertaking can be delayed till market circumstances enhance.
“This determination helps our near-term money move and adjusts the undertaking timing to align with the market restoration,” Fitterling mentioned. “We stay dedicated to the long-term strategic rationale of the undertaking and the expansion upside that it’s going to allow in focused purposes like stress pipe, wire and cable and meals packaging.”
The primary part of the “Path2Zero” plant was anticipated to be completed by 2027, with the second part following in 2029.
Dow and different chemical substances companies have additionally been hit by larger feedstock and power prices, in addition to weak demand in Europe.
The selection of Alberta for its pioneering plant was partly pushed by the supply of low-cost pure gasoline and ethane.
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Additional studying:
- Dow to construct $6.5bn net-zero plastics plant in Alberta
The put up Trump tariff chaos makes Dow pause $8.4bn plant in Canada appeared first on World Building Evaluate.
