The Reuters Dow Chemical logo appears on a board above the floor of the New York Stock Exchange on December 22, 2015, hours after opening in New York, USA. Reuter / Lucas Jackson
By Arthi S. Nair
(Reuters) – Dow Inc. on Wednesday unveiled plans to increase its core revenue to এক 1 billion a year, with the investment in Alberta, Canada, to create a new net-zero carbon emissions ethylene and derivatives facility.
The chemical maker, once part of Daudpunt, joins the growing list of companies that have announced plans to reduce emissions and reduce carbon footprint due to pressure from investors.
Describing the new project as a “no regrets” move, Dow CEO Jim Fitterling said he expects the facility to generate about ১ 1 billion in additional revenue each year before 2030, before interest, taxes, devaluation and measurement (EBITDA).
EBITDA is expected to generate about 2 2 billion to expand the production capacity of chemicals and materials used in packaging, specialty plastics, coatings and other businesses, the company said.
The new project will triple Dow’s ethylene and polythene capacity at the Alberta site Fort Saskatchewan, while rebuilding the site’s existing resources for net-zero carbon emissions. The Dow expects to allocate about 1 1 billion a year in capital expenditures to decarbonize its global resources site-by-site.
The project will help Dow produce about 2.2 million metric tons of certified low-to-zero-carbon emissions polythene and ethylene derivatives.
Dow said it chose Fort Saskatchewan because the region offers competitive energy and feedstock prices and has access to third-party carbon storage facilities that will help the project reach net-zero emissions.
Alberta Premier Jason Kenney said the project could be the largest investment in the province in more than a decade. Alberta is Canada’s main energy-producing province but its economy has collapsed due to the volatility of oil prices in recent years.
“If the project gets regulatory approval and a positive final investment decision, it will create a multi-billion dollar investment in our economy and huge job opportunities at both the construction and operating levels,” Kenny said in a statement.
Each year, Dow Scope 2 emits more than 1,000,000 metric tons of carbon dioxide emissions, or eight new renewable power purchase agreements to offset the energy that a company uses to manage it.
Last year, Dow said it would reduce its net annual carbon emissions by 50 million metric tons by 2020, in contrast to the 2020 baseline, which would be reduced by 15% and set a goal of becoming carbon neutral by 2050.
For a net zero plan, companies need to reduce carbon dioxide emissions and offset the remaining emissions using gas-captured projects.
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