On October 30, the Government of Alberta launched the Alberta Petrochemical Incentive Program (APIP). The goal of the program is to aggressively compete with jurisdictions in Asia, the Middle East, and those in the US Gulf Coast, many of which offer similar incentives for petrochemical manufacturers.
Alberta’s Industrial Heartland Association served as a strategic contributor to the development of the program and believes it will bolster the Heartland’s ability to attract projects that produce low-emissions advanced chemistry products under robust environmental, social and governance conditions.
“The Alberta Petrochemicals Incentive Program is a meaningful incentive program that will strengthen Alberta’s value proposition for large-scale petrochemical investments. As Canada’s largest hydrocarbon processing region and a critical partner in Canada’s energy future, Alberta’s Industrial Heartland is focused on capturing a potential $30 billion in new, diversified, value-add investments by 2030,” says Mark Plamondon, Executive Director of Alberta’s Industrial Heartland Association. “As an investment attraction tool, APIP will increase our region’s competitiveness and enhance our ability to attract petrochemical investment projects that diversify Alberta’s economy.”
APIP offers a direct financial incentive on new petrochemical or fertilizer facilities, or on expansions to existing ones.
High-level details include:
- Once a project is up and running, companies that have successfully applied will receive grants worth 12 per cent of their eligible capital costs.
- The grant will be issued in the final step in the process, ensuring that only projects already built and employing Albertans receive funds.
- Prior to the grant, companies will need to show their project meets the program requirements by detailing the scope and expected cost of the project
- The application window for small projects (between $50 million and $150 million in capital costs) will be open for five years. Applications for larger projects will be open for 10 years.
Visit the Government of Alberta website to learn more.