Shares of Dow Inc. (NYSE: DOW) inches down in pre trading session on Tuesday as Linde (NYSE: LIN) has been chosen as the firm’s industrial gas partner for the provision of clean hydrogen and nitrogen for its projected net-zero carbon emissions1 integrated ethylene cracker and derivatives plant in Fort Saskatchewan, Alberta, Canada. Final investment choices for both the Dow and Linde projects are subject to approval by the boards of directors of both businesses as well as different regulatory bodies. Final funding choices are expected in the fourth quarter of this year for a possible phase 1 beginning in 2027.
Dow’s business vice president, Energy and Climate, Edward Stones stated that Linde’s collaboration is important in allowing Dow to go forward with its objectives to decarbonize our Fort Saskatchewan facility while developing our company. Customers want Dow to assist them reduce the carbon impact of their goods, and this is a key step in that regard.
The proposed Fort Saskatchewan production process would convert cracker off-gas into hydrogen as a clean fuel to be utilized in the ethylene production process, while carbon dioxide will be collected onsite and transported and stored by neighboring third-party carbon storage infrastructure partners.
“The Dow net-zero Fort Saskatchewan project will be a milestone project in global industrial decarbonization,” said Dan Yankowski, Linde’s senior vice president Americas. “Linde’s engineering, large-project execution, and operations expertise, combined with our long-standing relationship, uniquely positions us to support Dow as it takes an important step towards achieving its decarbonization goals.”
Dow (NYSE: DOW) Beats Quarterly Profit
Dow Inc. (NYSE: DOW) surpassed Wall Street projections for first-quarter earnings and revenue on Tuesday, thanks to lower natural gas costs, a major raw ingredient for its chemicals. Average natgas prices fell by almost 40% during the quarter as a milder-than-usual winter in the United States resulted in lower fuel usage by homes and businesses.
Dow CEO Jim Fitterling stated that the business fared well despite “challenging macroeconomic conditions” by using advantageous feedstock locations.
Weaker demand in other industries, along with signals of a worldwide economic downturn, has hampered demand for Dow, which distributes chemicals to industries ranging from vehicles to food packaging to electronics.
To combat decreased demand and inflationary pressures, the firm announced 2,000 job cuts in January.
On Tuesday, Dow said its ambitions to save $1 billion by 2023 were “progressing.”
Net sales declined roughly 22% to $11.85 billion in the quarter as a result of reductions in all operational sectors. According to Refinitiv IBES statistics, revenues exceeded analysts’ expectations of $11.35 billion.
