Dow to increase core earnings by $3 billion by 2030
By Shubhangi on Oct 07, 2021 | 05:37 AM IST
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