World's first net-zero ethylene facility gets $1.25 bn worth of green bonds

ESG Today writes that the world's first net zero Scope 1 and 2 emissions ethylene plant is said to be built in Alberta, Canada and it will be worth 6.5 billion USD. For the project, Dow will build a new production facility to expand the production of polyethylene by 2 million tons per year, while the company will also retrofit an existing unit to reach its net-zero goals.

Dow officials say that the company aims to become fully carbon neutral across all Scopes by 2050, while reducing Scope 1 and 2 emissions by 5 million tons by the next decade.

Jeff Tate, Chief Financial Officer at Dow, said that "this green bond offering marks a foundational opportunity for investors to participate in Dow’s strategy to decarbonize and drive circularity while growing earnings over the cycle. We expect the proceeds of this instrument to primarily support our project to build the world’s first net-zero Scope 1 and 2 emissions ethylene and derivates complex in Alberta, which achieved the critical milestone of final investment decision from our Board in November 2023."

Sustainable production processes, energy efficiency and renewable energy are among the areas in which Dow will invest to ensure it reaches net-zero emissions within the deadlines set by the company.