Dow Delays $6.4 Billion Path2Zero Project Amid Market Uncertainty

April 24, 2025

Chemical giant postpones net-zero emissions facility in Canada, citing tariff concerns and $290M quarterly loss

Chemical producer Dow will delay its massive Path2Zero ethylene project in Canada to save $1 billion until market conditions improve, the company said in a quarterly earnings release April 24.

CEO Jim Fitterling cited uncertainty related to tariffs as a key reason for the cost-cutting move.

“Markets worldwide are awaiting additional clarity into how the tariff and global trade negotiations will land,” said Fitterling in a news release. “In the meantime, we remain focused on managing a disciplined and balanced capital allocation approach over the cycle. These collective actions help to ensure Dow’s financial flexibility and our long-term competitiveness.”

The company reported a $290 million net loss in the first quarter, compared with a $538 million profit in the year-ago period.

First-quarter sales declined 3% to $10.4 billion.

Lower prices in industrial intermediates and infrastructure segment offset gains in performance materials and coatings, the company said.

Dow expects increased macroeconomic and geopolitical volatility to persist in the near term, a company spokesperson told Chemical Processing.

“The long-term strategic rationale of our Path2Zero project remains strong, and we are committed to completing this project and working constructively with all our partners,” the spokesperson said.

The project was slated to become the world’s first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility. The facility would decarbonize 20% of Dow's global ethylene capacity.

The company was scheduled to begin construction on the CAD $8.9 billion ($6.4 billion) plant in 2024.

About the Author

Jonathan Katz | Executive Editor

Jonathan Katz, executive editor, brings nearly two decades of experience as a B2B journalist to Chemical Processing magazine. He has expertise on a wide range of industrial topics. Jon previously served as the managing editor for IndustryWeek magazine and, most recently, as a freelance writer specializing in content marketing for the manufacturing sector.

His knowledge areas include industrial safety, environmental compliance/sustainability, lean manufacturing/continuous improvement, Industry 4.0/automation and many other topics of interest to the Chemical Processing audience.

When he’s not working, Jon enjoys fishing, hiking and music, including a small but growing vinyl collection.

Jon resides in the Cleveland, Ohio, area.