Alberta Petrochemicals Incentive Program
AB, Canada
Large-scale project grants for Alberta companies
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|minCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateOctober 30, 2020
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Alberta
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|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.
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 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
Build a methanol plant using natural gas as feedstock
$ 6,000,000
Expand a renewable diesel production facility
$ 6,000,000
Construct a large-scale bioplastic manufacturing facility
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
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.
grant_single_labels|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.
grant_single_labels|register
- Step 1: 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.
- Step 2: 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.
- Step 3: 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.
grant_single_labels|otherInfo
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
Boosting Alberta's Petrochemical Industry
The Alberta Petrochemicals Incentive Program (APIP) is a strategic funding initiative aimed at boosting the growth of the petrochemical sector within Alberta, Canada. The program seeks to attract significant capital investment into new and expanded facilities, leveraging the province's natural gas reserves to diversify and strengthen its economic landscape.
Insights into the Alberta Petrochemicals Incentive Program
The Alberta Petrochemicals Incentive Program is a pivotal component of Alberta's broader strategy to transform the province into a leading global hub for petrochemical production. This program offers grants to companies looking to construct or expand petrochemical facilities, thereby enticing substantial investments with its investor-friendly environment and competitive natural resource base. Alberta, with its abundant natural gas reserves, stands as a prime candidate for such economic diversification, harnessing the potential to significantly increase its industrial output.
The program is structured to provide up to 12% of a project's eligible capital costs in grants, paid after the projects reach operational status. This approach allows companies to integrate the value of the incentive directly into their return on investment calculations, making Alberta a more attractive destination for new and expanding facilities. Importantly, the program runs over a 5 to 10-year period, depending on the project's scope, with flexibility built into the funding timeframe to align with typical investment cycles.
Project eligibility criteria ensure that investments meet certain standards conducive to long-term economic benefits. Facilities must use natural gas or petrochemical intermediaries and contribute to job creation within Alberta, paving the way for sustainable economic progress. Furthermore, the program supports both new infrastructure and the augmentation of existing facilities, broadening the scope for potential investment projects.
The application process involves a structured three-stage procedure. It begins with an "Advance Notification" stage, where prospective applicants can determine their eligibility and estimate potential funding. This is followed by the "Qualification and Grant Agreement" stage, requiring a detailed business plan and economic justification, finally culminating with the "Payment and Reporting" stage, where grant distributions are made based on project completion.
In recent years, Alberta has witnessed major investments in the petrochemical sector through this program, contributing to strengthening the province's industrial capacity. Significant investments include substantial grants to Inter Pipeline's propane-to-polypropylene plant, Air Products' hydrogen production facility, and the expansion of Dow Canada's ethylene production. These projects exemplify the program's role in amplifying Alberta's economic momentum.
As Alberta continues to expand its economic landscape through petrochemical investments, the APIP provides a robust framework for investors. By offering financial incentives that effectively reduce initial capital burden, the program underscores Alberta's commitment to fostering a diverse and resilient economic base, embracing the potential for growth in petrochemical manufacturing and further employment generation in the province. The Alberta Petrochemicals Incentive Program thus serves as a conduit for economic evolution, catalyzing industrial growth and reinforcing the province's position in the global petrochemical market.
