Alberta Petrochemicals Incentive Program (APIP)

Q: How much funding can be received?

Alberta Petrochemicals Incentive Program (APIP) Funds up to 12% of admissible expenses.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Alberta Petrochemicals Incentive Program (APIP) a grant, loan, or tax credit?

Alberta Petrochemicals Incentive Program (APIP) is a Grant and Funding

Q: Who are the financial supporters of the Alberta Petrochemicals Incentive Program (APIP)?

Alberta Petrochemicals Incentive Program (APIP) is funded by Government of Alberta

Q: Who is eligible for the Alberta Petrochemicals Incentive Program (APIP) program?

To be eligible for the Alberta Petrochemicals Incentive Program (APIP) program, you must: • The project must be physically located in Alberta. • The capital investment must be at least CAD $50 million. • The facility must use natural gas, natural gas liquids, or petrochemical intermediaries in the manufacturing of its own products.

Q: Who can I contact for more information about the Alberta Petrochemicals Incentive Program (APIP)?

You can contact Government of Alberta.

Q: Where is the Alberta Petrochemicals Incentive Program (APIP) available?

The Alberta Petrochemicals Incentive Program (APIP) program is available the province of AB.

Last Update: July 22, 2025

AB, Canada

Large-scale project grants for Alberta companies

At a glance

Eligible Funding

Min. $50
Up to 12% of project cost

Timeline

Open Date : October 30, 2020

Financing Type

Grant and Funding

Eligible Industries

Manufacturing

Funds Providers

Unspecified

Program status

Open

Overview

Get a grant to cover up to 12% of the costs involved in creating a new petrochemical manufacturing facility in Alberta, or expanding on an existing one, where the capital investment is at least $50 million.

Financing terms and conditions

The Alberta Petrochemicals Incentive Program (APIP) provides financial support to projects through grants calculated based on eligible capital costs. This approach encourages investment by providing a predictable incentive structure for investors in Alberta's petrochemical sector.

Grants cover 12% of a project’s eligible capital costs.
The grant amount is calculated based on the capital cost estimate provided during the application process and will not increase if actual costs exceed estimates.
The grant amount will be reduced if the project is completed under budget, in proportion to the lower capital costs.
Grant payments for smaller projects are made within one year after the project’s completion.
Large projects receive grant payments in equal installments over three years, once operational.
The grant amount is decided and locked once a grant agreement is signed at Stage 2 of the application process.

Activities funded

The Alberta Petrochemicals Incentive Program (APIP) focuses on attracting investment into the development and expansion of petrochemical facilities in Alberta. The activities eligible for this grant are chiefly centered around capital projects that leverage Alberta's natural gas resources to build and expand manufacturing capacity.

Construction of new petrochemical manufacturing facilities utilizing natural gas or petrochemical intermediaries.
Expansion projects on existing petrochemical facilities to increase production capacity.
Projects focused on brownfield sites that involve redevelopment of previously used industrial land for new petrochemical production.

Examples of admissible projects:

$ 6,000,000

Construct a propane-to-propylene plant to diversify chemical production

$ 6,000,000

Establish a hydrogen production facility using natural gas reforming

$ 6,000,000

Expand an existing chemical plant to increase ethylene production capacity

$ 6,000,000

Expand a renewable diesel production facility

$ 6,000,000

Build a methanol plant using natural gas as feedstock

$ 6,000,000

Construct a large-scale bioplastic manufacturing facility

Eligibility

Eligibility for the Alberta Petrochemicals Incentive Program (APIP) is based on specific criteria related to the project's characteristics and requirements.

The project must be physically located in Alberta.
The capital investment must be at least (CAD) $50 million.
The facility must use natural gas, natural gas liquids, or petrochemical intermediaries in the manufacturing of its products.
The project must create permanent jobs in Alberta.
Both new facilities and expansions of existing facilities (brownfields) are eligible.

Who is eligible?

The Alberta Petrochemicals Incentive Program is aimed at companies seeking to invest in new or expanded petrochemical facilities in Alberta. To be eligible, projects must be physically located in Alberta, involve a capital investment of at least CAD $50 million, and create permanent jobs in the province. Eligible projects may include new facilities, brownfield developments, or expansions of existing facilities. Companies should utilize natural gas, natural gas liquids, or petrochemical intermediaries in manufacturing processes.

Who is not eligible

According to the Alberta Petrochemicals Incentive Program guidelines, companies not physically located in Alberta are not eligible for the grant.

Companies not physically located in Alberta

Eligible expenses

The Alberta Petrochemicals Incentive Program (APIP) supports projects focused on advancing Alberta's petrochemical sector. Eligible projects are those that build or expand petrochemical facilities using natural gas resources while creating jobs in the province.

Establishment of new petrochemical facilities located in Alberta.
Expansion of existing facilities using natural gas, natural gas liquids, or petrochemical intermediaries.
Development projects with a minimum capital investment of CAD $50 million.
Initiatives creating permanent jobs in the Alberta region.
Implementation of projects that utilize natural gas in manufacturing processes.

Eligible geographic areas

The Alberta Petrochemicals Incentive Program supports projects physically located within the province of Alberta. This geographical specificity ensures that investments contribute to the local economy and job market.

Projects must be based in Alberta.

Selection criteria

The Alberta Petrochemicals Incentive Program (APIP) has evaluation and selection criteria that determine a project's eligibility for the grant. The criteria are outlined below:

Projects must be physically located in Alberta.
Capital investment must be at least (CAD) $50 million.
The facility must use natural gas, natural gas liquids, or petrochemical intermediaries in manufacturing.
Projects must create permanent jobs in Alberta.
New facilities, brownfields, and expansions on existing facilities are eligible.

How to apply

Advance Notification

Register for an APIP account via the Electronic Transfer System (ETS).
Submit an advance notification to indicate interest in the program.
Provide preliminary details about the project, including company information, project location, project type, estimates for total costs, eligible capital costs, and job creation.

Qualification and Grant Agreement

Provide detailed information about the proposed project, including your business plan, project timing, technology configuration, proponent’s capability, economic benefits to Alberta, and environmental performance.
Submit a minimum Class 3 capital cost estimate, which will be used to calculate the grant amount.
If eligible, enter into a grant agreement with the Government of Alberta.

Payment and Reporting

Complete the project according to size-specific timelines (5 years for smaller projects, 10 years for larger projects).
Request payments and submit required reports using the ETS after the project is operational.

Additional information

Here are additional relevant details for this grant:

There is an open and transparent approach for funding; every eligible project will receive funding once operational.
Grants account for 12% of a project's eligible capital costs and are awarded once the project is operational.
The payment schedule varies based on the project's size, with different terms for projects below and above CAD $150 million.
The Alberta Industrial Heartland Association forecasts substantial sector growth and job creation potential in the province.
APIP offers better alignment with typical investment cycles by making funding available throughout the program’s duration.
The grant program includes specific requirements for payment and reporting, adjusted based on the project's size.
Three projects have been funded under this initiative, highlighting its potential impact in the sector.

Apply to this program

Frequently Asked Questions about the Alberta Petrochemicals Incentive Program (APIP) Program

Here are answers to the most common questions about the Alberta Petrochemicals Incentive Program (APIP). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.