The Fort Saskatchewan Path2Zero Expansion Project involves building an integrated ethylene cracker and derivates complex in Alberta, Canada.
The brownfield investment seeks to develop the first net-zero Scope 1 and 2 greenhouse gas emissions complex of its kind in the world.
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Fort Saskatchewan Path2Zero is being developed by Dow Chemical Canada. The project entails an investment of $6.5bn excluding governmental incentives and subsidies.
The Final Investment Decision (FID) on the project was made by the Dow Board of Directors in November 2023. Fort Saskatchewan Path2Zero is expected to be developed in two phases.
Construction works for Phase I commenced in April 2024. Complete detailed design and equipment procurement for the complex will be completed around 2025.
Phase I is expected to commence operations in 2027, with Phase 2 starting expected in 2029.
Once fully operational, the facility will decarbonise approximately 20% of the global ethylene capacity of Dow and increase polyethylene supply by about 15%.
It is expected to produce around 3.2 million metric tonnes of certified low- to zero emissions polyethylene and ethylene derivatives.
Fort Saskatchewan Path2Zero Location
The Fort Saskatchewan Path2Zero Expansion Project will be located near Edmonton, in Alberta’s Industrial Heartland. The project will involve a brownfield expansion and retrofitting Dow’s existing manufacturing site in Fort Saskatchewan.
The Fort Saskatchewan site, spread across 2,128 acres, is one of the largest petrochemical complexes in Canada.
The site was selected as the Western Canada region provides cost-competitive natural gas compared to other regions, and cost-advantaged ethane, necessary for ethylene production.
Dow expects the site to become one of its most cost-competitive sites at full run rates.
Fort Saskatchewan Path2Zero New Infrastructure
The existing infrastructure at the site will undergo key retrofitting to meet net-zero carbon emission requirements.
Existing components include a water intake facility, an energy systems and environmental operation facility, an administration building, and maintenance and emergency facilities.
It also has a solution polyethylene production facility, an existing rail infrastructure, and ethylene cracker facility.
Third-party assets include a pump house, a water treatment facility, an air separation unit, two hydrogen/carbon unit, a cogeneration plant, logistics, a rail car wash and loading facility.
The new assets for Fort Saskatchewan Path2Zero project will include hydrogen-fuelled ethylene cracker; off-site carbon sequestration; power & steam cogeneration; and control centres with office, storage, and maintenance facilities.
The expansion will also include polyethylene production facility for expanded production and site infrastructure upgrades including roads, rail and utilities.
Dow will also develop emergency response plans aligned with industry procedures and standards. The expansion will be under continuous monitoring with 24/7 staffed operations.
Operational Details
Firstly, ethane would be separated from natural gas liquids. Other components will be transported to the power and steam cogeneration facility.
The ethane will undergo cracking to produce ethylene. The technology produces carbon dioxide, which will be transported to the sequestration facility.
The ethylene cracker will produce add approximately 1.9 million metric tonnes per annum (mmta) in phases through 2030.
The produced ethylene will be used for polyethylene production. The polyethylene and ethylene will be transported to customers via rail.
Phase 1 will add approximately 1,300 kilo tonnes per annum (kta) of net-zero emissions of ethylene/polyethylene. The second phase will add approximately 600kta of net-zero emissions of ethylene and polyethylene.
The project will also remove around 1 million tonnes per annum (mmmta) of carbon dioxide emissions.
Canadian Utilities will supply gas supply to Alberta, including the project, through The Yellowhead Mainline.
During peak construction, the project will create approximately 6,000-7,000 jobs and approximately 400-500 full-time jobs during operations.
Power Requirement
As the expansion will require additional power, the project will need additional electricity generation and transmission infrastructure.
The power infrastructure, subject to approvals, will consist of two new 240 kV substations, two new 35 kV substations, two new 15 kV substations and their interconnecting transmission lines.
Two new steam turbine generators with a combined capacity of 75MW will be located within the proposed new ethylene cracker. On site transmission lines will connect the site to the power grid.
The steam produced by the ethylene cracker located at SE 1/4 Sec 13-55-22 W4M will be used to generate additional power for the project.
The new transmission lines will be developed separately and owned by regional transmission facility owner AltaLink Management.
Contractors Involved
The critical turbomachinery packages for the Fort Saskatchewan Path2Zero Project will be delivered by Mitsubishi Heavy Industries Compressor International (MCO-I).
The contract scope includes two condensing steam turbine generator packages and three compressor packages- a propylene refrigerant compressor package, an ethylene refrigerant compressor package, and a steam turbine-driven cracked gas compressor (CGC) train.
Overall, the supply will include four API 617 centrifugal compressors and three API 612 steam turbines.
In January 2024, Burckhardt Compression was awarded a contract to supply labyrinth compressors for the project. The compressors will be delivered by Burckhardt in 2025.
Fluor was awarded two reimbursable services contracts for scopes representing a True Interest Cost (TIC) value of more than $3bn.
The first contract involves Front-End Engineering and Design (FEED) for the contract.
The second contract involves the Engineering, Procurement, and Construction Management (EPCM) contract for the ethylene cracker unit and for other utilities, power, and infrastructure.
TechnipEnergies was selected for the delivery of technology, engineering, and procurement services for the net-zero Scope 1 and 2 emissions integrated ethylene cracker.
In August 2024, Linde signed a long-term agreement with Dow to supply clean hydrogen to Path2Zero. In Phase 1, Linde will deliver clean hydrogen, nitrogen, and other services for the project.
