Linde to Supply Clean Hydrogen to Dow's Net Zero Emission Cracker

Engineering firm Linde has signed a long-term agreement to supply clean hydrogen to Dow Inc’s Fort Saskatchewan Path2Zero Project.

Linde will invest more than $2 billion to build, own, and operate a world-scale integrated clean hydrogen and atmospheric gases facility in Alberta, Canada, the company said in a news release.

Linde’s new on-site complex will use autothermal reforming, combined with Linde’s proprietary HISORP carbon capture technology, to produce clean hydrogen and will also recover hydrogen contained in off-gases from Dow’s ethylene cracker, according to the release.

In the first phase, Linde will supply the clean hydrogen, nitrogen and other services to support Dow’s net-zero emissions integrated ethylene cracker and derivatives site. Linde’s new facility will also supply clean hydrogen to existing and new industrial customers seeking to decarbonize their operations. In total, Linde’s complex will capture carbon dioxide emissions for sequestration of over two million metric tons each year.

Upon completion in 2028, Linde’s new complex in Alberta will be the largest clean hydrogen production facility in Canada, and one of the largest globally, the company said. It will also be Linde’s largest single investment and its second new world-scale clean hydrogen project.

“Linde is helping to build a more sustainable future,” Linde CEO Sanjiv Lamba said. “This landmark project aligns with our strategy of developing high-quality projects with secured off-take. Our technology, experience and execution are enabling the transition to a cleaner economy. We are proud to partner with Dow in its mission to decarbonize its Fort Saskatchewan site and are appreciative of the support of the Province of Alberta and the Federal Government”.

“Our business strategy to decarbonize our assets and drive growth while enabling higher shareholder returns is central to Dow’s long-term success,” Dow Chair and CEO Jim Fitterling said. “Having support from collaborators and partners across the value chain is essential. We’re glad to have Linde as a partner on this industry-leading project”.

Dow made a final investment decision on the $6.5 billion Fort Saskatchewan Path2Zero project in November 2023. The project aims to build the world's first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives facility in Alberta.

The project includes building a new ethylene cracker and increasing polyethylene capacity by 2 million metric tons per annum (mtpa) as well as retrofitting the site's existing cracker to net-zero scope 1 and 2 emissions, Dow said in an earlier news release. Dow expects its investment to deliver $1 billion of EBITDA growth per year at full run rates over the economic cycle while decarbonizing 20 percent of Dow's global ethylene capacity.

Dow plans to add capacity in phases, with the first phase starting up in 2027, adding approximately 1.285 million mtpa of ethylene and polyethylene capacity, and the second phase starting up in 2029, adding an additional approximately 600,000 mtpa of capacity.

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