Dow to increase core earnings by $3 billion by 2030

Key Points

·         Dow to invest in a new net-zero carbon emissions facility in Alberta, Canada.

·         Dow expects to provide about $1 billion of capital spending for the project annually.

Dow Inc said on Wednesday that it plans to increase its core earnings by $3 billion a year over the next decade and invest in building a new net-zero carbon emissions facility in Alberta, Canada.

Dow Chief Executive Officer Jim Fitterling called the project a “no-regrets” move and said the facility is expected to create about $1 billion of additional earnings before interest, tax, depreciation and amortization (EBITDA) per year by 2030.

The chemicals maker has joined the companies who have recently announced cutting emissions and reducing carbon footprint.

Dow’s ethylene and polyethylene capacity from Fort Saskatchewan, Alberta site would more than triple from the new facility.

The company expects to provide about $1 billion of capital spending for the project annually.

To reduce Scope 2 emissions—emissions from the power a company uses for operation—Dow signed eight new renewable power purchase agreements. More than 600,000 metric tons of carbon dioxide equivalent would be reduced per year.

Last year, Dow said it would reduce its net annual carbon emission by 5 million tons by 2030 and aim to be carbon neutral by 2050.

UN has warned to reduce the world’s net emissions to zero by 2050 to control the rise in global temperatures to no more than 1.5 degrees Celsius.

With inputs from Reuters

Picture Credits: Reuters