Fluor Secures Two Contracts for World’s First Net-Zero Ethylene Cracker and Derivatives Complex

3+ Billion Dollar Contract Fluor Secures Two Contracts for World’s First Net-Zero Ethylene Cracker and Derivatives Complex

2023-12-06 Source: Press release Fluor 2 min Reading Time

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Dow has awarded Fluor with two contracts for developing the world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada. The scope of work includes engineering, procurement and construction management for a new ethylene cracker unit and for the associated utilities, power and infrastructure facilities. It also includes the expansion and retrofit of Dow’s existing manufacturing facilities.

The world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada.(Source: Business Wire) — The world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada.
(Source: Business Wire)

Texas/USA – As previously announced and recognized in the third quarter on a confidential basis, Fluor Corporation was awarded two contracts from Dow for the construction of the world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada.

The reimbursable services contracts represent a total value of more than 3 billion dollars and consist of engineering, procurement and construction management for a new ethylene cracker unit and for the associated utilities, power and infrastructure facilities. The overall program also includes the expansion and retrofit of Dow’s existing manufacturing facilities.

Dow announced in November that its board of directors declared the Final Investment Decision for the project, which is part of Dow’s Path2Zero program, intended to lower the greenhouse gas emissions of its manufacturing facilities while growing capacity and delivering low-emissions products to customers.

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“This program represents a major step towards Dow’s commitment to decarbonize its global footprint,” said Jim Breuer, group president of Fluor’s Energy Solutions business segment. “We have a long history of successful project execution with Dow, and we are grateful to be given the opportunity to support their objective to be a leader in sustainable chemicals production.”

Dow’s net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex is projected to decarbonize approximately 20 % of the company’s global ethylene capacity while growing its polyethylene capacity by approximately two million metric tonnes per annum.

“Fluor has been a great partner over decades and this project builds on Dow’s very successful Texas-9 and associated projects, delivering more than 15 % return on invested capital since its 2017 start-up,” said Ron Huijsmans, Dow’s Global Mega Project Director. “We are excited to have Fluor on board again to deliver a similar or even better project outcome.”

In February, Fluor was awarded the front-end engineering and design contract for the project. Construction began in July on early works and the program is expected to come online in phases, with the first phase starting up in 2027 and the second phase starting up in 2029.

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