$11.5 billion investment will create up to 8,000 construction jobs
Canada has just gotten its first major investment tax credits project courtesy of Dow.
Dow is investing $11.5 billion to build the world's first net-zero emissions ethylene cracker and derivatives site in Fort Saskatchewan in Alberta.
“When we announced our major investment tax credits – a pillar of our government’s economic plan – we said that they would attract new investment and create great careers for Canadians,” said Chrystia Freeland, deputy prime minister and minister of finance. “With hundreds of new Canadian jobs on the way, today’s investment by Dow in Fort Saskatchewan is proof that our economic plan is delivering for Canadians.”
Dow’s investment will create 400 to 500 permanent Canadians jobs, as well as up to 8,000 construction jobs at peak.
And labour requirements tied to Canada’s investment tax credits will require the company to pay prevailing union wages and provide apprenticeship training opportunities in order to receive the maximum tax credit rates. These labour requirements will require businesses to pay prevailing union wages and provide apprenticeship opportunities in order to receive the maximum credit rates for the:
- Carbon Capture, Utilization, and Storage investment tax credit;
- Clean Technology investment tax credit;
- Clean Hydrogen investment tax credit; and,
- Clean Electricity investment tax credit.
Recently, the federal government announced the Fall Economic Statement Implementation Act, 2023, which would deliver the Carbon Capture, Utilization, and Storage investment tax credit; and, Clean Technology investment tax credit.
Dow and greenhouse gas emissions
With the investment, Dow will expand and retrofit its Fort Saskatchewan facility to become net-zero, which will significantly reduce Scope 1 and 2 greenhouse gas emissions from its operations.
Dow will use carbon capture, utilization, and storage technology to reduce existing emissions, as well as to abate all new emissions resulting from the project’s increased production capacity. The company will also enhance its operations to produce clean hydrogen, which will be used as a clean fuel supply for the site’s furnaces.
Combined, these technologies will reduce emissions by approximately 1 million metric tonnes of CO2e per year. The implementation of these clean technologies will be supported by up to $400 million from Canada’s Carbon Capture, Utilization, and Storage investment tax credit and Clean Hydrogen investment tax credit, according to the federal government.
“Alberta has been an important manufacturing hub for Dow for more than 60 years and we’re excited to bring this first-of-its-kind net-zero emissions facility to the region to ensure an even brighter future for Dow in Canada,” said Jim Fitterling, chair and CEO of Dow. “Government support is critical to projects of this size and complexity, and the support we’ve received locally, provincially, and federally was an important factor in Dow’s selection of Fort Saskatchewan for this investment.”
Environmental, Social and Governance (ESG) factors have become a cornerstone in the decision-making process for both investors and employees, according to a previous report.
Over the past three years alone, more than 90 clean growth projects valued at a total of more than $50 billion, including private investment, are underway or will soon move forward into construction across Canada, according to the federal government.