Dow embeds water reuse in major expansion to reduce freshwater demand

Industrial facilities including chemical plants, semiconductor manufacturers, and food producers use on-site systems to capture, treat and reuse process water, significantly reducing freshwater demand.

If you're planning for future growth, it's worth asking whether your water strategy is ready to grow with you.

For many industrial operators, water availability is becoming just as important as energy, labor and raw materials when planning future expansion. Regulatory requirements are evolving, water-stressed regions are becoming more common and communities increasingly expect industry to manage resources responsibly. Yet production targets continue to rise.

Dow's decision to include integrated water cycle management as part of its Path2Zero expansion demonstrates what that looks like in practice. By treating and reusing water already moving through its operations, the company is helping reduce freshwater demand while supporting one of Canada's largest industrial expansion projects.

More broadly, the project reflects a shift happening across industry. Water scarcity is often discussed as an environmental issue. For manufacturers planning long-term growth, it's increasingly an operational planning issue. The organizations that build water resilience into expansion plans today will be better positioned to grow tomorrow.

The challenge

Why does freshwater availability put industrial expansion at risk?

Large industrial facilities depend on a reliable supply of high-quality water for cooling, process chemistry, equipment maintenance and day-to-day operations. As facilities grow, that demand grows as well.

At the same time, many industrial regions are facing increased pressure on water resources. For operators planning future capacity, the challenge isn't simply securing enough water today. It's ensuring water availability remains reliable, affordable and sustainable over the life of an expanding facility.

Path2Zero is Dow's initiative to build the world's first net-zero Scope 1 and 2 carbon emissions integrated ethylene cracker and derivatives facility. While the project is widely recognized for its decarbonization ambitions, it also depends on ensuring long-term access to reliable water resources. Integrating water reuse into the site's design helps align growth, decarbonization and water stewardship objectives from the outset.

Historically, many organizations have responded to growing demand by securing additional water supply. While that approach can address immediate needs, it often leaves fewer opportunities to improve efficiency, recover valuable water resources and optimize performance across the entire water cycle.

Dow saw an opportunity to approach the challenge differently: build water reuse into the foundation of growth rather than treating it as a future upgrade.

That shift reflects a broader trend across industry. Leading manufacturers are looking beyond individual treatment systems and asking how the entire water cycle can operate more efficiently. Increasingly, the answer starts with treating water not as a resource that moves through a facility once, but as a resource that can be recovered, reused and managed strategically over time.

The approach

How does integrated water cycle management reduce freshwater demand at scale?

Dow and Xylem have worked together across multiple sites for years. That trusted relationship provided the foundation for a broader collaboration. Under the agreement announced on June 8, 2026, Xylem will design, build and operate an integrated water system at Dow's Fort Saskatchewan industrial complex, helping manage the site's full water cycle through a single long-term partnership. The system is expected to be operational by August 2028.

The system will treat raw water for industrial use while also converting water from cooling and industrial processes into high-quality reusable supply using advanced treatment technologies. Rather than viewing process water as a waste stream, the system helps transform it into a valuable operational resource.

This agreement demonstrates how Xylem’s advancing total water management for industry by integrating supply, treatment and reuse into one seamless solution. Strong customer relationships are central to how we work, and this partnership is a powerful example.

By working with a single partner across the water cycle, Dow can simplify system management while maintaining consistent performance and water quality throughout the site. As Skya Kruithof, President of Dow Canada, said: "The Xylem team's ability to provide water efficiently, reliably and with consistent quality is critical to supporting safe operations as we advance our Path2Zero program."

The integrated water reuse system at Fort Saskatchewan is designed to significantly reduce freshwater demand by converting process water into a reliable, high-quality reusable supply—giving Dow the confidence to continue scaling operations without water becoming a growth constraint.

The outcome

The integrated reuse capability transforms water that might otherwise be discharged into a valuable production resource. Every gallon recovered is a gallon that does not need to be sourced, treated from scratch or discharged.

The project is designed to help strengthen operational resilience, support water stewardship goals and provide confidence that water availability will not become a limiting factor as production expands.

Perhaps more importantly, it demonstrates a growing reality across industry: water management is no longer simply a utility function. It's becoming a strategic capability that can influence growth, operational reliability and long-term competitiveness.

Frequently asked questions

What industries use water reuse systems to reduce freshwater consumption? Chemical plants, semiconductor manufacturers, food and beverage producers and power generation facilities are among the largest adopters of industrial water reuse. Because these industries use significant amounts of water for cooling, processing and cleaning, recovered water can become a valuable alternative to freshwater supplies.

How does industrial water reuse work? Water reuse systems collect process water and wastewater, treat them through multiple stages to achieve the required quality standards and return the water to industrial processes. This reduces freshwater demand and limits the amount of water requiring disposal.

What is the benefit of integrated water management for large industrial sites? Integrated water management connects supply, treatment and reuse within a single operating framework. This approach can improve visibility across the water cycle, support consistent performance and create opportunities to continuously improve water efficiency as operations evolve.

How much freshwater can industrial facilities save through on-site water recycling? Savings vary depending on the industry and system design. Closed-loop systems have helped many industrial facilities reduce freshwater use by as much as 70%. Some semiconductor facilities have achieved water recovery rates exceeding 90%, while food and beverage processors commonly recover 75% to 90% of process water.

What challenges do manufacturers face when implementing water reuse at scale? Common challenges include maintaining consistent water quality, integrating new systems with existing infrastructure and ensuring reliable long-term performance. Working with an experienced water partner can help simplify implementation and ongoing operations.

Water resilience is becoming a growth strategy

Industrial organizations have spent decades finding new ways to improve productivity, optimize resources and build resilience into their operations. Water is increasingly becoming part of that conversation.

The facilities best positioned for future growth will be those that can balance production demands with resource availability, regulatory expectations and sustainability commitments. Water reuse is helping make that balance possible.

What Dow's Fort Saskatchewan project demonstrates isn't simply the value of a single water system. It demonstrates what can happen when water is considered part of the growth strategy from the beginning rather than a constraint to address later.

We work alongside industrial organizations every day to help them manage water more efficiently, reduce risk and build resilience for the future. By combining treatment, reuse and operational expertise, we help turn water challenges into opportunities for stronger performance and sustainable growth.