Dow delays plans for $8.9B net-zero project in Alberta's Industrial Heartland

CBC News

· Posted: Apr 24, 2025 12:50 PM EDT | Last Updated: 7 minutes ago

The planned operation of a multi-billion dollar, net-zero petrochemical task adjacent Edmonton volition beryllium delayed arsenic chemic steadfast Dow Inc. looks to conserve currency amid unfavourable marketplace conditions, the institution said Thursday.

Dow's Path2Zero facility — to beryllium built successful Fort Saskatchewan successful Alberta's Industrial Heartland — was archetypal announced successful 2021 and garnered financial backing from the national and provincial governments successful 2023. 

The $8.9 cardinal carbon-neutral task was touted as the world's archetypal net-zero emissions integrated ethylene cracker and derivatives site. Its plans to boost accumulation of ethylene progressive constructing a caller installation and retrofitting an existing plant. 

Dow Inc. said connected Thursday that it expects extended unit connected net arsenic uncertainty from U.S. President Donald Trump's erratic commercialized policies adds to macroeconomic volatility.

Construction volition beryllium delayed until marketplace conditions improve, CEO Jim Fitterling said successful a post-earnings call.

"This determination supports our near-term currency travel and adjusts the task timing to align with the marketplace recovery," Fitterling said. "We stay committed to the semipermanent strategical rationale of the task and the maturation upside that it volition alteration successful targeted applications similar unit pipe, ligament and cablegram and nutrient packaging."

The institution said it was focused connected ensuring the project's returns are higher than its superior cost. "And due to the fact that of that, present is the clip to hold operation earlier spending ramps up." 

With the task stalled, Dow expects its full endeavor capital expenditure for 2025 to beryllium $2.5 billion, compared to its original program of $3.5 billion.

Dow, on with different chemicals firms, has been struggling with higher feedstock and vigor costs alongside weak request and prices for its products, particularly successful markets specified arsenic Europe.

The institution said it expects to spot delays successful acquisition and concern decisions — from some consumers and corporations — until negotiations connected tariffs are finalized. 

The U.S.-based institution said it chose Alberta for the task due to the fact that it offers cost-competitive earthy state arsenic good arsenic outgo vantage ethane, a cardinal feedstock for ethylene production. 

"Our manufacture is successful 1 of the astir protracted down cycles successful decades," Fitterling said.

"Now — with the uncertainty astir wherever tariffs are going to land, with the interaction that's having connected demand — that's driving our little for longer [earnings] outlook."

The enlargement task would person produced and supplied astir 3 cardinal tonnes of debased to zero-carbon emissions polyethylene and ethylene derivatives for customers astir the globe, according to Dow.

The Alberta Petrochemicals Incentive Program has committed astir $1.8 cardinal to the project. The national authorities volition beryllium contributing up to $400 cardinal from Canada's c capture, utilization and retention concern taxation recognition arsenic good arsenic the cleanable hydrogen concern taxation credit.

According to erstwhile reporting, operation was to statesman successful 2024, with signifier 1 expected to beryllium completed by 2027 and signifier 2 successful 2029.