Good afternoon, Mr. Chair. Through you, I would like to extend my warmest regards to the other members of the committee.
I am proud to speak to the committee about Dow Canada. Dow operates two manufacturing sites in Alberta, located in Fort Saskatchewan and Lacombe County. The Alberta sites convert natural gas feedstock into ethane, ethylene and finally, polyethylene to be shipped to customers around the world. Our main product in Alberta, polyethylene, is sold to customers worldwide to make durable industrial goods as well as packaging and consumer products.
In Ontario, we have two manufacturing sites, one in West Hill in Scarborough and one near Sarnia. These facilities produce emulsions and speciality plastic resin, respectively.
On November 29, Dow's board of directors approved a final investment decision for the world's first net-zero scope 1 and scope 2 emissions ethylene and derivatives complex in Fort Saskatchewan, Alberta. Economically speaking, this brownfield investment enables Dow to deliver two million metric tons per annum, effectively tripling our current domestic production. At its peak, we expect 7,000 new construction jobs will be created.
Environmentally speaking, this investment will eliminate one million tonnes of CO2 even with our added growth. We will do this by converting hydrogen from cracker off-gas as a clean fuel while capturing and storing the remaining CO2. This investment paves the way for growth in Dow's entire packing and specialty plastics portfolio. This first-mover advantage gives us the ability to lead in capturing the growing demand for low-carbon solutions for Dow. It puts Dow out in front in delivering the first world-scale, fully integrated site with net-zero scope 1 and scope 2 emissions.
Dow's investment will leverage approximately $3 billion of additional investment from third party companies for circular hydrogen, CO2 capture and other infrastructure assets critical to the project expansion. Dow has announced that Linde was selected as the industrial gas partner for the supply of clean hydrogen and nitrogen for the site. Fluor was selected for the front-end engineering and design. Dow is partnering with Wolf Midstream, which will provide CO2 transportation along the Alberta trunk line.
Last month, Dow CEO Jim Fitterling joined Premier Smith at the CERA conference in Houston to talk about this investment. He noted that reducing carbon emissions in an energy-intensive industry takes the right investments, the right policies and the right partners.
Our Fort Saskatchewan Path2Zero project will serve as a leading example that industrial decarbonization not only is possible but also can be profitable when we work together. Fort Saskatchewan is strategic and advantaged because we have access to low-cost ethane. There is existing rail and export infrastructure that will be expanded to support these new global sales. We have government support, including subsidies that are offsetting a portion of the cost of our investment. It is also one of the few places in the world where existing infrastructure for carbon transportation and storage exists. This is a key reason why we have a first-mover advantage in low-carbon solutions.
Certainty in the investment environment we are operating in is certainly a key essential advantage. Therefore, I am here today to offer Dow Canada's support for Bill C-59 and the carbon capture, utilization and storage tax credit that it creates. These were first announced in budget 2021. It is high time we adopt them.
Similar measures were introduced, debated, adopted, implemented and deployed under the United States Inflation Reduction Act in less than two months.
I also offer our hearty support for the creation of a similar tax credit for the deployment of hydrogen technology. Similar to the CCUS tax credit, this was first mentioned in the previous budget. We are anxiously waiting to see it in next week's budget implementation act in association with next week's budget.
We urge Parliament to pass this bill expeditiously so that the certainty required to rely on these investment tax credits can be built directly into our investment models. These tax credits will help support the decarbonization of our operations in Fort Saskatchewan and our return to operation by 2030.
I want to repeat a key point. These credits will lead to absolute emissions reductions. In order for Canada to meet our emissions reduction goals, we need to see transformative investments like the one being made by our company. It is through advents in the chemistry sector that these deep emissions reductions will occur.
I welcome any questions the committee may have.