Alberta Petrochemicals Incentive Program (APIP)

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.

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?

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.

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.

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.