Fort Saskatchewan Path₂Zero

Dow has outlined a clear path to decarbonize our manufacturing facilities while growing and delivering low carbon products to customers. Dow’s proposed Fort Saskatchewan Path₂Zero expansion project will create the world’s first net-zero carbon emissions integrated ethylene cracker and derivatives site with respect to scope 1 and 2 carbon dioxide emissions.

This project, which is subject to approval by Dow’s Board of Directors and various regulatory agencies, will:

• Include a brownfield expansion and retrofit of Dow’s existing manufacturing site in Fort Saskatchewan.
• Decarbonize approximately 20 percent of Dow’s global ethylene capacity while growing polyethylene supply by about 15 percent.
• Triple Dow’s ethylene and polyethylene capacity from the site, while retrofitting the site’s existing assets to net-zero carbon emissions.
• Add approximately 1.8 million metric tonnes of ethylene capacity in a phased manner through 2030.
• Create approximately 7,000-8,000 jobs during peak construction and approximately 400-500 full-time jobs once operational.
• Produce and supply approximately 3.2 million metric tonnes of certified low- to zero-carbon emissions polyethylene and ethylene derivatives for customers and joint venture partners around the globe.
• Build on Dow’s strong leadership position and allow us to meet the increasing needs of customers and brand owners seeking to lower the carbon footprint of their products.
• Build upon the progress Dow has already made by reducing net annual carbon emissions by an additional 15 percent, and net annual carbon emissions by approximately 30 percent by 2030 (since 2005).
• Highlight Alberta’s growing global leadership in emissions-reducing technology like carbon capture utilization and storage.

The project must be designed, operated and decommissioned in accordance with municipal, provincial and federal environmental regulations and laws. Dow will be conducting specific studies to assess environmental effects associated with key environmental concerns such as: air quality, noise, water, traffic, and waste.

For this expansion project, Dow will apply for:

• An amendment to our existing Alberta Environmental Protection and Enhancement Act approval; and
• An amendment to our existing Alberta Water Act License to Divert and Use Water approval.

Air Quality

Air emissions must meet the requirements of the Alberta Ambient Air Quality Objectives and Guidelines established by Alberta Environment and Parks (AEP). Dow plans to ensure that air emissions are minimized from the operating equipment.

• Regional air quality is expected to be maintained with potential air emissions identified and controlled.
• A core feature of the project is a net-zero carbon emissions expansion including retrofit of existing site assets.

Noise

Dow will continue to participate in the Regional Noise Management Plan (RNMP) which is managed by the Northeast Capital Industrial Association (NCIA) to ensure industry in Alberta’s Industrial Heartland complies with Alberta Energy Regulator Directive 038 noise requirements

Water Use

Dow is aware of the vital importance of clean water to the province, and is planning to commission a facility which minimizes water use. Surface water will be collected and managed on the project. The collected surface water will be used in the plant when possible.

• Water use is expected to increase but is expected to remain within current water license, closer to maximum volume.
• Some increase of wastewater to the North Saskatchewan River is possible, but is anticipated to be within existing permitted levels.

Traffic

There will be an increase in traffic flow primarily during the construction phase of the project. This traffic flow will involve the movement of equipment, materials and workers. Dow will work with municipal and provincial authorities to minimize the disturbance to residents and commuters in the area.

Waste

Dow will work to minimize waste and all waste generated will be disposed of appropriately and within government regulations and requirements. In addition to these issues, other issues such as the potential effects of the project on land, historical resources and groundwater will be assessed as part of the AEP approval process.