Dow Chemical has hit pause on construction of its $11.6-billion Path2Zero petrochemical project northeast of Edmonton, citing persistent global economic uncertainty and volatility.
The company announced Thursday it will delay field mobilization for the Industrial Heartland site to better align with current market conditions. The move is expected to save Dow approximately $1 billion. While home office engineering and procurement work will continue, construction activity will slow considerably.
Path2Zero was pitched as the world’s first net-zero ethylene cracker and derivatives site with Scope 1 and 2 emissions eliminated. The project includes a hydrogen-powered ethylene cracker and a carbon capture and sequestration system, intended to decarbonize 20 per cent of Dow’s global ethylene capacity and add two million tonnes per year of polyethylene production.
Originally announced in 2021 and greenlit in 2023, construction began in 2024, with operations expected to start in phases between 2027 and 2029. The project was backed by both federal and provincial support, including tax credits and an Alberta grant worth $1.8 billion.
The delay comes as businesses navigate unpredictable markets, exacerbated by U.S. tariffs and geopolitical shifts. Experts say companies are reluctant to commit capital to long-term projects under these conditions.
Despite the pause, Dow has reaffirmed its long-term commitment to the project. The Alberta government echoed that optimism, emphasizing the project’s economic importance and job potential, with 8,000 construction jobs and 500 permanent roles on the line.
Meanwhile, Canadian Utilities Ltd. confirmed that the $2-billion Yellowhead Mainline pipeline, planned to supply natural gas to the Dow facility, remains on track. Construction is slated to begin in 2026, with the line operational by late 2027.
