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The
chemicals maker, once part of DowDupont, joins a growing list of
companies that have announced plans to cut emissions and reduce
carbon footprint following pressure from investors.
Near-term investments in packaging, specialty plastics, coatings
and some other businesses are expected to generate about $2
billion of additional earnings before interest, tax,
depreciation and amortization (EBITDA), and the new ethylene and
derivatives complex is expected to deliver about $1 billion of
EBITDA per year by 2030.
The new facility would more than triple Dow's ethylene and
polyethylene capacity from its Fort Saskatchewan, Alberta site,
and the company expects to allocate about $1 billion of capital
spending annually for the project.
Dow also said it signed eight new renewable power purchase
agreements across Europe and Americas to reduce its Scope 2
emissions, or emissions from the power a company uses for its
operations, by more than 600,000 metric tons of carbon dioxide
equivalent per year.
Dow had last year set a target to be carbon neutral by 2050.
United Nations scientists say the world's net emissions must
fall to zero by 2050 to limit the rise in global temperatures to
no more than 1.5 degrees Celsius versus pre-industrial levels.
Net zero plans require companies to decrease carbon dioxide
emissions and offset any remaining emissions using projects that
capture the gas.
(Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb
Chakrabarty)
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