Dow's Blue Hydrogen Project Hits a Two-Year Roadblock
Alberta, Wednesday, 17 September 2025.
Dow’s $11.5 billion blue hydrogen initiative in Alberta faces a two-year delay due to market issues. This delay poses challenges for the hydrogen sector’s growth and sustainability goals.
Market Conditions Cause Delay
Dow Inc’s ambitious $11.5 billion Path2Zero project in Alberta, focused on blue hydrogen, is now experiencing a delay of up to two years. Originally announced in April, this delay has been attributed to weak market conditions, affecting the hydrogen sector’s growth and sustainability objectives [1][2].
Understanding Blue Hydrogen
Blue hydrogen, the backbone of Dow’s project, involves producing hydrogen from natural gas while capturing and storing the carbon emissions. This method aims to reduce carbon dioxide emissions by about 1.5 million tonnes annually [1][2]. The facility, managed by industrial gas major Linde, was set to fuel an ethylene cracker, replacing natural gas and expanding Dow’s ethylene and polyethylene capacities [1].
Economic Challenges and Strategic Decisions
CEO Jim Fitterling highlighted that the delay might extend into 2027 or beyond due to current market conditions and economic uncertainties, including US tariffs [1]. He explained that this pause allows Dow to continue engineering work and secure long-lead equipment while delaying significant construction activities. This strategic move is expected to save Dow $1 billion in capital spending in 2025 [1][2].
Impact on Associated Projects
The delay also impacts Linde’s $2 billion investment in a large-scale blue hydrogen and atmospheric gases production facility to support Dow’s development. Despite the postponement, Linde remains committed to its $7 billion sales-of-gas project pipeline, relying on contract protections for customer-induced delays [1][2].
Industry Implications
This delay is a testament to the challenges the hydrogen sector faces amidst fluctuating demand and economic uncertainties. It highlights the importance of strategic planning and flexibility in navigating the evolving market landscape [1][2].