The development is set to become operational in stages. Credit: Fluor/Business Wire.

US-based engineering and construction company Fluor Corporation has been awarded two contracts by Dow to build a net-zero ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada.

The project is claimed to be the world’s first net-zero (scope 1 and 2 emissions) integrated ethylene cracker and derivatives complex.

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The reimbursable service contracts carry a total value of more than $3bn.

The contracts include engineering, procurement, and construction (EPC) management for a new ethylene cracker unit, as well as added utilities, power, and infrastructure amenities.

Dow’s existing production facilities will also be expanded and retrofitted as part of the programme.

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Fluor Energy Solutions president Jim Breuer said: “This programme represents a major step towards Dow’s commitment to decarbonise its global footprint.

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“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.”

The project, which is part of Dow’s Path2Zero programme, aims to reduce the greenhouse gas emissions of its manufacturing facilities while expanding capacity and providing its customers with low-emission products.

The integrated ethylene cracker and derivatives complex is expected to reduce the carbon footprint of the company’s worldwide ethylene output by approximately 20% while increasing polyethene capacity by nearly two million tonnes annually.

Fluor received the project’s front-end engineering and design contract in February this year, with work starting a few months later in July.

The project is expected to become operational in stages, with the first phase to come online in 2027 and the second phase in 2029.