Fluor Wins Work on Dow Canada Cracker Complex

23.02.2023 - US-based international contractor Fluor has been awarded a reimbursable contract to provide front-end engineering and design (FEED) and engineering, procurement and construction management (EPCM) services for Dow’s proposed cracker and derivatives project in Canada.

Dow is planning to build what it said will be the world’s first net-zero carbon emissions (Scope 1 and 2) ethylene cracker in Fort Saskatchewan, Alberta.

Fluor said it anticipates the EPCM scope of the contract will be granted in 2023 pending a final investment decision by Dow’s management board. The project is also subject to approval by various regulatory agencies.

The complex would decarbonize roughly 20% of Dow’s global ethylene capacity, while expanding PE supply by about 15%, also supporting approximately $1 billion of EBITDA growth across the chemical and plastic producer’s value chain by 2030.

Dow announced its plans for Fort Saskatchewan in October 2021, saying it chose the site because of the availability of carbon capture infrastructure, competitive feedstocks and attractive government partnerships.

The cracker will add about 1.8 million t/y of ethylene capacity in a phased manner through 2030, along with about 3.2 million t/y of PE and ethylene derivatives that will be certified low- to zero-carbon emissions for customers and joint venture partners worldwide.

Dow announced last month that it will be closing certain, smaller-scale plants, particularly in Europe, as it takes action to save $1 billion this year after a disappointing financial performance in 2022. It will also cut about 2,000 jobs worldwide.

Author: Elaine Burridge, Freelance Journalist