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One to Watch: Dow Chemical Cuts Energy Costs by $9 Billion

By Editorial Dept | Fri, 07 December 2012 19:41 | 0

Dow Chemical Co. (DOW) has cut its energy costs by an impressive $9 billion through green investments, which translates into $7 billion in net profit.

It’s been a long road--15 years of energy efficiency planning, to be exact—but it’s now paying off, and the company has the capacity to measure its savings and the figures to prove it.

More than anything, this shows how green investments can reduce costs and improve the bottom line exponentially, if you have enough patience.

Dow Chemical has spent around $2 billion since 1994, but this $2 billion turned into $9 billion in savings for a $7 billion profit. And the company is only getting started.

So far, Dow Chemical’s patience has resulted in new, energy efficient ways to produce chemicals and reduce waste water.

It takes an amazing amount of energy to produce Dow’s chemicals, and reducing energy costs has been a rather urgent goal for the company. Even more so now that the past quarter has seen its stock down 7%.

Despite its poor showing last quarter, though, we are optimistic for Dow Chemical.

We’re also talking about the world’s second-largest producer of ethylene—out paced only by Saudi Basic Industries. And in terms of diversification, Dow Chemical is hard to beat: It’s in to everything from automotive oil and gas to electronics and medical supplies, electronics and feedstock. When one sector slumps, another is bound to…

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