Dow (DOW) To Retrofit FCDh Technology Into Plaquemine Cracker
Zacks Investment Research | Aug 21, 2019 06:59AM ET
Dow Inc. (NYSE:DOW) said that it will retrofit its proprietary fluidized catalytic dehydrogenation (FCDh) technology into one of its crackers in Plaquemine, LA, to make on-purpose propylene. The move is part of its low capital intensity, high-return incremental growth investments.
The FCDh technology retrofit will allow reliable and cost-efficient supply of more than 100,000 metric tons of additional propylene at full run-rate, enabling Dow to address rising customer demand for its businesses across major end-markets such as consumer, infrastructure and packaging.
The retrofit also improves the company’s ability to source the most advantaged feedstocks. The project is expected to start production by end-2021.
The FCDh technology can reduce energy usage and greenhouse gas emissions by up to 20% and lower capital outlay by up to 25%. This will improve overall sustainability vis-à-vis traditional propane dehydrogenation technologies.
Dow expanded the ethylene capacity of the same Plaquemine cracker in 2016 by more than 225,000 metric tons. It also added the capability to crack ethane while keeping the flexibility to crack propane, butane and naphtha.
Dow’s shares are down around 14% over the past three months, compared with the roughly 10.2% decline recorded by its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.