DOW TEXAS OPERATIONS FREEPORT
Large load · 2301 N BRAZOSPORT BLVD., Freeport, TX
Dow Texas Operations Freeport is one of Dow's U.S. Gulf Coast chemical sites, which Fengate describes as the largest integrated chemical manufacturing complex in the Western Hemisphere. Its power and steam system includes Diamond Infrastructure Solutions, a Dow and Macquarie vehicle that holds non-product power and steam assets at Freeport and four other Gulf Coast sites, plus two third-party cogeneration plants owned by Fengate Asset Management that supply the complex. In May 2026 Diamond sought bids to retire two legacy cogeneration plants and replace them with new baseload power and steam facilities targeted for 2032.
Overview
In December 2024 Macquarie Asset Management announced a partnership with Dow to launch Diamond Infrastructure Solutions. Diamond is comprised of certain non-product producing assets (power and steam production, pipelines, environmental operations and general site infrastructure) located at five of Dow’s manufacturing sites in the U.S. Gulf Coast, Freeport among them. A fund managed by Macquarie Asset Management would acquire an initial 40% stake in those assets, with an option to raise it to 49% within six months of closing, and Dow expected initial cash proceeds of approximately $2.4 billion. The stated purpose is opening access to Dow’s Gulf Coast sites to third-party customers.
Profile
- Third-party cogeneration at Freeport
- Two cogeneration plants outside Dow’s own operations supply power and steam to the Freeport complex. The Freeport Energy Center is a 260-megawatt cogeneration plant owned and managed by Fengate Asset Management. Freeport Power Limited, which owns a 440-megawatt cogeneration facility nearby, is also Fengate's. In December 2025 Fengate acquired the remaining equity interest in Freeport Power Limited, increasing its stake to 100% after buying 50% in November 2024 under its partnership with Ironclad Energy. Fengate said its two facilities continue to provide reliable and cost-effective power and steam to the site, which it described as the largest integrated chemical manufacturing complex in the Western Hemisphere.
- Replacement plan and May 2026 RFQ
- In May 2026 Diamond Infrastructure Solutions announced a request for quotes to modernize power and steam supply at the Freeport site. The project will retire two legacy cogeneration plants and replace them with advanced assets providing baseload power and critical steam supply. The new facilities are expected to begin operating in 2032, will be designed to integrate with existing transmission infrastructure, and will accommodate future fuel flexibility. Diamond said it expects to advance the project later in 2026 following evaluation, and the RFQ was open to qualified respondents through June 25, 2026.
Facility
- Activity
- Integrated chemical manufacturing
- Industry
- Manufacturing
- Site type
- Facility
- Operating status
- Operating
Related records
Timeline
- Dec 9, 2024
- Macquarie Asset Management announced partnership with Dow to launch Diamond Infrastructure Solutions
Macquarie Asset Management announces partnership with Dow to launch Diamond Infrastructure Solutions | Macquarie Group
- Dec 15, 2025
- Fengate acquired the remaining equity interest in Freeport Power Limited, increasing its stake to 100%
Fengate acquires remaining stake in 440-megawatt Texas cogeneration asset - Ironclad Energy Management, LLC
- May 12, 2026
- Diamond Infrastructure Solutions announced a request for quotes to retire two legacy cogeneration plants at Freeport
Diamond Infrastructure RFQ: Freeport, TX Power and Steam Modernization - BIC Magazine