Xylem Lands Design-Build-Operate Water Contract at Dow's Fort Saskatchewan Path2Zero Complex
According to Chemical Engineering, Xylem Inc. has signed a long-term design-build-operate agreement with Dow to provide advanced water treatment systems at Dow’s large-scale industrial complex in Fort Saskatchewan, Alberta, supporting the company’s Path2Zero project.
A Full-Cycle Water Management Contract
The agreement, reported by Chemical Engineering on June 8, 2026, covers end-to-end water management across the Fort Saskatchewan site. Xylem will treat raw water for industrial use, convert cooling and process water into reusable, high-quality supply, and operate the system long-term. The project is expected to be operational by August 2028.
“This agreement represents a major milestone for Xylem,” said Rodney Aulick, EVP and President of Water Solutions and Services at Xylem. “It demonstrates how we’re advancing total water management for industry by integrating supply, treatment and reuse into one seamless solution.”
Dow Canada’s President, Skya Kruithof, confirmed the strategic importance of the arrangement: “Xylem’s ability to provide water efficiently, reliably and with consistent quality is critical to supporting safe operations as we advance our Path2Zero program.”
The agreement expands an existing long-standing collaboration between Xylem and Dow, with the new scope tied to increased operations at the Path2Zero complex.
What It Means for Subcontractors
- Construction window is open. An August 2028 operational target means engineering, civil, mechanical, and piping subcontractors in Alberta’s Industrial Heartland should be watching for procurement activity in the near term. US-based subcontractors with Canadian operations or cross-border project experience in the region should also track this corridor.
- Design-build-operate models are growing. This contract structure, where a single vendor owns engineering, construction, and long-term operations, is a signal that large industrials increasingly prefer integrated delivery. Subcontractors who can offer bundled services, or who partner with prime contractors offering that model, will have an edge.
- Water reuse infrastructure is a real growth segment. Multi-stage treatment systems for industrial reuse require specialized mechanical, instrumentation, and process piping work. Field service companies with experience in water treatment plant construction should position themselves with primes like Xylem ahead of projects like this one.
- Fort Saskatchewan is active. Dow’s Path2Zero project is a major capital program in Alberta’s Industrial Heartland. Subcontractors already operating in that corridor should track related procurement activity across utilities, civil works, and process systems tied to the broader complex buildout.
