Linde takes final investment decision on $2bn blue hydrogen complex for plastics production in Canada

Linde, an industrial gases company, has announced it will invest over $2 billion in creating and operating a blue hydrogen production and air separation complex for Dow, a major chemicals company, in Alberta, Canada. This new facility will be part of Dow’s Path2Zero project in Fort Saskatchewan and is set to become the largest clean hydrogen project in Canada and one of the largest in the world when it is completed in 2028.

The hydrogen produced will be used as a high-temperature fuel in the production of ethylene, a key component in making polythene, the most widely used plastic globally. The project will also incorporate carbon capture technology to help reduce the plant’s emissions to net zero.

Linde's decision to proceed with this project comes after finalizing a long-term hydrogen supply agreement with Dow. Although Linde hasn’t specified the exact amount of hydrogen the new facility will produce, it will use advanced technology to prevent over two million tonnes of CO2 emissions each year.

Dow aims to increase its ethylene production by an additional two million tonnes annually by 2029 and will retrofit its existing facilities to achieve net-zero emissions. The Alberta government has supported the Path2Zero project with C$1.8 billion in incentives, along with C$400 million in tax credits from the federal government for carbon capture and clean hydrogen infrastructure. Dow's own investment in the project totals C$6.5 billion.