The Opportunity
Investor Overview
Alberta’s Industrial Heartland is Canada’s largest hydrocarbon processing center. Our unique region offers world class facilities that can produce global scale quantities, and are responsible for 43% of our national basic chemical manufacturing industry. Alberta’s Industrial Heartland is ideally located in the province of Alberta, offering attractive and extensive opportunities in multiple sectors.
Specific Investment Opportunities
- Electrical co-generation
- Phenol production for resin in composite board products
- Hydrogen transfer, hydrogen fuel cells, hydrogen production
- Ethanol Amines
- CO2 capture, aggregation, and sequestration
- Warehousing and packaging
- Natural gas and natural gas liquids fractionation
- Polypropylene/propylene
- Ethylene/polyethylene
- Fertilizer
- Electricity
- Logistics and infrastructure
Within the province, over $141.5 billion in projects are planned, underway, or have recently been completed (Government of Alberta’s Inventory of Major Projects, June 2021). Of this, the chemical and petrochemical sector accounts for $7.2 billion, $25.8 billion is allotted to the oil and gas sector, and a $31.6 billion in the oil sands sector.
Within Alberta’s Industrial Heartland, the diverse range of feedstock from natural gas liquids and refining by-products provide secondary and tertiary derivative manufacturing opportunities. The potential is great for those interested in accessing this feedstock to produce refined petroleum products and petrochemicals. Investors benefit from Alberta’s extensive oil sands—a secure crude oil source for both domestic and international refineries.
The region also provides easy access to global markets through its efficient transportation infrastructure. Additionally, investors benefit from strong support for research and development and a thriving business atmosphere strengthened by a recognized export and investment culture.
Investment potential also exists in the area of producing and sharing resources. Deregulated energy has reduced innovation barriers and enhanced prospects for advancements in co-generation to enable producers to share resources. Alberta’s Industrial Heartland’s industrial cluster creates ideal conditions for establishing utility islands and eco-industrial development. The region encompasses over 20 major facilities in a large area, but virtually all interconnected in one way or another. Sharing resources through business and community cooperation is leading to increased economic gains, improved environmental quality, and enhanced human resources. Tremendous opportunity exists within the region to increase and enhance the eco-industrial concept.
Investment Incentives
Alberta Petrochemicals Incentive Program
The Alberta Petrochemicals Incentive Program will enhance certainty and flexibility for investors and cut red tape to attract investment into Alberta’s petrochemicals sector. Alberta has a tremendous opportunity to capitalize on the growing global petrochemical sector and diversify the province’s economy, with our abundant natural gas reserves and a competitive, investor-friendly business environment.
Key features include:
- A 5 or 10-year program period, depending on the scope of the project, during which eligible projects must be built and operational to receive funding.
- An open and transparent approach, whereby every project submitted that meets the program’s criteria will receive funding once built and operational.
- Grants worth 12% of a project’s eligible capital costs will be issued to companies after projects are operational. Grants allow companies to account for the full value of the incentive provided when calculating their project’s return on investment.
Click HERE to download the APIP Fact Sheet or visit the Government of Alberta website to learn more.
AIHA Heartland Incentive Program
The Heartland Incentive Program is a novel incentive program offered by the five member municipalities of Alberta’s Industrial Heartland Association (AIHA) to encourage industrial development in Alberta’s Industrial Heartland (AIH). Municipalities located in Alberta’s Industrial Heartland offer incentives to new projects or expansions within the energy value chain that locate within Alberta’s Industrial Heartland. The program provides incentives valued between 1.0 – 2.5 per cent of the project’s total capital cost, but specific incentive opportunities range depending on the municipality.
An eligible project must:
- Be physically located within Alberta’s Industrial Heartland
- Be within the energy value chain or associated infrastructure
- Be either a new construction or expansion project
- Have a capital cost greater than $50 million CAD
- Employ at least 250 construction workers or 15 permanent staff after construction concluded
- Not be transitioning development from one Alberta Industrial Heartland municipality to another
- Meet other legal and financial requirements as outlined in specific municipal bylaws
Click HERE to download the HIP Fact Sheet.
Investment Lives Here
Investment in Alberta’s Industrial Heartland currently exceeds $40 billion. Given the region’s locational advantage, diverse range of feedstock, access to global markets, and strong R&D sector, investment potential is limitless. Recognizing these benefits, several companies have plans for multi-billion dollar facilities.
Sturgeon Refinery – North West Redwater Partnership
The North West Redwater Partnership, a joint venture between North West Refining and Canadian Natural Resources Ltd, is proceeding with phase one of a 50,000 bbl/day bitumen refinery at an estimated cost of $9.7 billion. Finished products will include ultra-low sulphur diesel, naptha, low sulphur VGO, butane, and propane.
Inter Pipeline Ltd.
Inter Pipeline’s Heartland Petrochemical Complex is currently under construction in Strathcona County. This PDH facility will convert low-cost locally sourced propane into more valuable polymer grade propylene.
Alberta Carbon Trunk Line (ACTL)
The ACTL has the world’s largest capacity pipeline for CO₂ from human activity, capable of transporting up to 14.6 million tonnes of CO₂ per year. The ACTL system currently captures CO₂ at the North West Redwater Partnership (NWR) Sturgeon Refinery and Nutrien’s Redwater Fertilizer Facility. The CO₂ is safely transported to mature oil fields in Central Alberta for use in enhanced oil recovery (EOR) before permanent storage.
Investment Team
Mark
Plamondon
Executive Director
Mark Plamondon is a seasoned business executive with over 22 years of experience and expertise regarding the management, operation, optimization and financial analysis of mineral processing operations. Mark possesses an engineering degree from the University of British Columbia and an MBA from the University of Alberta. As Executive Director of Alberta’s Industrial Heartland Association, Mark leads the organization’s business development strategy and works with his team to build and enhance relationships with investors, governments, and other stakeholders across the globe.
Chris
Malayney
Director of Business Development
Chris Malayney is currently the Director of Business Development at Alberta’s Industrial Heartland Association. Chris has a background in economics and finance – previously working in roles related to market fundamentals, project economics and regulation. Chris possess a Bachelor of Arts in Economics from the University of Alberta and holds the designation of Energy Risk Professional (ERP) from the Global Association of Risk Professionals.
Jihad
Traya
Business Development & Feedstock Strategist
Jihad Traya has over 20 years of progressive energy markets experience in a wide range of functions including planning, fundamentals analysis, trading, risk management and consultancy. He carries a wealth of short- and long-term forecasting experience in the oil, refined products, natural gas, NGL and LNG sectors. He has undertaken numerous blue-chip client advisory engagements that have covered a wide range of strategic development matters across North America and select worldwide countries.
Christina
Kehrig
Manager, Business Development – Sustainability
Christina Kehrig is the Business Development Officer at Alberta’s Industrial Heartland Association. She has nearly 20 years of experience working in economic development across all three levels of government, and is passionate about helping companies invest and grow in Alberta. Christina holds a Bachelor of Arts in Economics from the University of Alberta.
Sarah
Styles
Manager, Business Development – Infrastructure & Diversification
Sarah Styles is a Business Development officer at Alberta Industrial Heartland Association, helping shape and implement AIHA’s ongoing analysis of reginal/provincial/national infrastructure and AIHA’s investment attraction activities. Prior to joining AIHA, Sarah had worked in various industries including petrochemical, energy and railway sectors. Sarah obtained her Master of Science degree in Chemical Engineering from University of Alberta, where she completed her research on an asphalt upgrading project.
Reports
Alberta’s Industrial Heartland region is strategically located to capitalize on energy and chemical sector advantages in the province of Alberta. Learn more about these opportunities and market outlook in the reports below.
Economic Impact Study – Alberta’s Industrial Heartland Final Report
Regional Labour Profile – Alberta’s Industrial Heartland Final Report
Investor Brochure
Companies in Alberta’s Industrial Heartland
Alberta’s Industrial Heartland would not be the thriving economic powerhouse it is today without the partnership of the many companies that have invested their time and effort into the area. Take a look at our list of Company Summaries to learn more about the many services currently operating within Alberta’s Industrial Heartland.
Alberta’s Hydrocarbon Processing Opportunities (IHS)
This report completed by IHS compiled and ranked Alberta’s Industrial Heartland’s feedstock advantages. The report is based on four existing studies which were done in the past, and identifies advantaged petrochemical development opportunities in Alberta.
About
A global energy consulting firm, provides best-in-class critical information, decision support tools, and insights essential to the global energy sector.
Canadian Crude Oil and Natural Gas Production and Supply Costs Outlook (CERI)
This report examines the production and supply costs of Canada’s conventional crude oil and natural gas industries from 2016-2036. The parameters of this study includes shale gas, tight gas, coalbed methane, as well as tight and offshore oil production in Canada.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public
Canadian Natural Gas Market Review (CERI)
This report analyzes the history of Canada’s natural gas upstream industry in order to examine the future of Canada’s natural gas upstream industry. It also reviews the effects that the innovations made in horizontal drilling and hydraulic fracturing technology, the recent drop in oil and natural gas prices, and policy developments have made on the market.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public.
Economic Potentials and Efficiencies of Oil Sands Operations: Processes and Technologies
This report seeks to inform about how the growth of the oil sands industry may be stunted if the current costs and emissions challenges are not quickly and urgently addressed. Within this report, six different technological pathways that will enable the oil sands industry to reduce costs and emissions are explored.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public.
Competitive Analysis of the Canadian Petrochemical Sector
This study builds upon CERI’s September 2015 study, “Examining the Expansion Potential of the Petrochemical Industry in Canada”, reviewing the availability of Canadian petrochemical feedstock for the C1 through C3 value chains through 2030 in order to compare Canada’s competitive position to other petrochemical producers.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public.
Examining the Expansion Potential of the Petrochemical Industry in Canada
This report indicates that feedstock price and feedstock availability are the principle considerations in determining whether a region is cost competitive due to oil-based feedstocks being predominantly used by the rest of the world in their petrochemical production, compared to Canada and the Middle East, who use natural gas. This report also examines the challenges that Canada faces in order to expand its petrochemical sector.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public.
Market Review of Natural Gas Liquids in Western Canada
This report considers the qualitative and quantitative analysis to understand how different market factors could foster or constrain Western Canadian NGL’s market development. An in-depth analysis of Western Canadian NGL market strengths, weaknesses, opportunities and threats (SWOT) at the industry level as well as for each commodity was conducted. A large contributing part of the study were interviews with businesses, governments, regulatory agencies and associations which shared their views regarding the further development of the market.
About
The Canadian Energy Research Institute (CERI) is a not-for-profit research establishment which provides relevant, independent and objective economic research in energy and environmental issues to benefit business, government, academia and the public.
Public-Interest Benefit Evaluation of Partial-Upgrading Technology
This report examines how a partial upgrade of Alberta’s bitumen could increase returns for investors, as well as provide important benefits to Alberta from a social and economic perspective.
About
The University of Calgary is a public research university whose School of Public Policy is Canada’s leading and most cited policy school. The School of Public Policy advances practical and focused policy research that is independent, credible, and based on hard data.