Dow Enters Into Renewable Power Purchase Agreements
Dow announced that it has signed eight new renewable power purchase agreements (RPAs) spanning Europe and the Americas. The power supplied by the new agreements is expected to reduce Dow's scope 2 emissions by more than 600,000 metric tons of CO2e per year.
The new RPAs provide cost competitive access to an additional 132 megawatts (MW) of clean power capacity from wind and solar, with zero capital investment from the Company, bringing Dow's total access to more than 850 MW of clean energy, well ahead of its 2025 Sustainability Goal aligned to power from renewable sources.
"Dow's ambition to be the most sustainable materials science company in the world includes making efforts to reduce our greenhouse gas emissions. As one of the leading purchasers of clean power in the chemical industry and among the top 20 clean energy purchasers of corporations globally, we continually pursue opportunities to move our sites to cleaner, more cost-effective power while ensuring reliable operations," said Jack Broodo, president, Dow Feedstocks and Energy business. "These agreements will keep Dow competitive now and into the future as we continue to deliver products and innovations that ultimately keep carbon emissions out of the environment."
The RPAs include:
• In Europe, six agreements have enabled eight Dow sites across Spain, U.K., Sweden, France, and Germany to transition to 100 percent green electricity. Several other Dow sites across Europe have also transitioned to a cleaner grid power mix or are importing renewable power to complement the self-generation needed to assure reliable operations.
• In Latin America, Dow has signed a long-term agreement in Brazil with Casa dos Ventos aligned to the construction of a new wind power plant in Rio Grande do Norte state. The agreement provides Dow's site in Cabangu, Brazil, with access to cost competitive capacity for wind-generated electricity, with the assurance of 60 MW of continuous renewable power, which will supply power for silicon metal production.
• In North America, a long-term agreement with Capital Power Corporation in Alberta, Canada will provide clean power capacity, replacing approximately 40 percent of the energy demand at Dow's Prentiss, Alberta site for polyethylene production. The RPA with Capital Power, supplied through the company's Whitla 2 wind farm project, supports grid diversity and provides greater access to renewable power for both industry and consumers in Alberta.
These agreements build on four RPAs Dow signed in 2020, which provided the Company with access to additional solar and wind capacity to reduce Dow's scope 2 emissions by 225,000 metric tons of CO2e.
Also in 2020, Dow announced its intention to reduce net annual carbon emissions by an additional 15 percent, reducing net annual carbon emissions by approximately 30 percent by 2030 (since 2005) on its path toward achieving net CO2 neutrality by 2050. In support of achieving this target, the Company continues to transition more sites and operations to cleaner power.
Last year, Dow obtained approximately 25 percent of its purchased electricity consumption from renewable sources. Dow's comprehensive "INtersections" ESG report provides more detail on the Company's continued efforts to reduce emissions around the world.