Alberta’s economy has momentum and we are focused on even more job creation and diversification as we continue to be the economic engine of Canada.
Through APIP and by leveraging our skilled work force and business-friendly environment, Alberta’s government is working to turn the province into an international hub for petrochemical investment.
“We are helping build a thriving petrochemical sector to expand the natural gas industry and diversify our economy. Critical suppliers like Dow play an important part in those diversification efforts. Through APIP, we will cement Alberta’s place as a global hub for petrochemicals and attract new investments to keep Albertans working and our economy growing. So far, the program has received more than a dozen applications, representing over $28 billion in job-creating investment.”
The expansion project, which has now completed construction, cost approximately $300 million, and supported over 2,000 construction jobs over the past two years.
Expanding Dow’s existing furnace systems will allow for an additional 130,000 tonnes of ethylene production per year and help increase demand for natural gas. Through APIP, the project will receive an approximately $32.5 million grant, or 12 per cent of eligible capital costs spread out over three years, with the first grant to be paid out in the near future.
“We’re proud to be taking the next step in our journey to expand our footprint in Alberta. The Industrial Heartland region presents an enormous opportunity for us to develop an environmentally sustainable, low-carbon future for the plastics that support day-to-day life around the world.”
“Alberta’s Petrochemical Incentive Program (APIP) provides meaningful financial support for large-scale value-add petrochemical investments in Alberta and it adds to the strong value proposition already offered in Alberta’s Industrial Heartland (AIH). Dow’s facility expansion in AIH is an excellent example of the types of projects APIP helps to attract which creates economic opportunity and good local jobs for Albertans.”
Last fall, Dow announced a proposal to expand their Fort Saskatchewan facility into one of the world’s largest, and first net-zero, ethylene production facilities. That proposed project is expected to be one of the largest private sector investments in Alberta history and will support more good jobs for Albertans.
“Dow Canada is an important part of Alberta’s Industrial Heartland, and an important part of our province’s diversifying economy. The expansion of Dow’s facility clearly demonstrates the opportunity presented by the region, and marks another strong step forward in the global reputation of our growing petrochemical sector. This is good news for all of Alberta.”
APIP is attracting billions of dollars in investment through petrochemical projects, helping to strengthen and diversify our provincial economy and create new jobs for thousands of Albertans.
- APIP offers companies a grant worth 12 per cent of their eligible capital costs when building new plants for petrochemical, hydrogen, fertilizer or fuel products, or expanding existing ones.
- The program was designed to put Alberta on a level playing field and compete against similar programs offered by American states like Louisiana and Pennsylvania, which have seen significant investment in petrochemicals.
- According to the Chemistry Industry Association of Canada, Alberta’s chemicals sector, comprised predominantly of petrochemicals, was valued at $15.9 billion and employed about 35,605 people directly and indirectly in 2021.
- The Alberta Industrial Heartland Association estimates that Alberta’s petrochemical industry could attract $30 billion in total investments between 2020 and 2030.