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|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Mining, quarrying, and oil and gas extraction
- 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|projects
Three eligible projects have been funded under the Alberta Petrochemicals Incentive Program:
- Inter Pipeline’s propane-to-polypropylene plastic facility
- Air Products’ natural gas to hydrogen production facility
- Dow Canada’s expansion of its ethylene production facility
grant_single|admissibleProjectsExample
$6,000,000
Edmonton
Construct a propane-to-propylene plant to diversify chemical production.
$6,000,000
Calgary
Expand an existing chemical plant to increase ethylene production capacity.
$6,000,000
Red Deer
Establish a hydrogen production facility using natural gas reforming.
$6,000,000
Leduc
Construct a large-scale bioplastic manufacturing facility in Leduc.
$6,000,000
Fort McMurray
Expand a renewable diesel production facility in Fort McMurray.
$6,000,000
Medicine Hat
Build a methanol plant using natural gas as feedstock in Medicine Hat.
grant_single_labels|admissibility
The eligibility criteria for this grant include:
- Project must be physically located in Alberta
- Capital investment must be at least (CAD) $50 million
- Facility must use natural gas, natural gas liquids, or petrochemical intermediaries
- Project must create permanent jobs in Alberta
grant_eligibility_criteria|who_can_apply
There are eligible types of companies for the Alberta Petrochemicals Incentive Program grant:
- Companies looking to invest in new or expanded market-driven petrochemical facilities in Alberta.
- Companies with projects involving natural gas, natural gas liquids, or petrochemical intermediaries (ethylene, propylene, benzene, etc.) in the manufacturing process.
- Companies committed to creating permanent jobs in Alberta through their eligible projects.
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
Eligible expenses for this grant include costs related to manufacturing and processing capital expenditures.
- Manufacturing capital costs
- Processing capital costs
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 stage
- Determine project eligibility
- Get high-level estimate of grant funding
- Step 2:
- Qualification and Grant Agreement
- Provide detailed project information
- Minimum Class 3 capital cost estimate required
- Enter into a grant agreement if eligible
- Step 3:
- Payment and Reporting
- Payment schedule based on project size
- Grant payments disbursed based on project completion
Apply to this program
Alberta Petrochemicals Incentive Program (APIP)
The Alberta Petrochemicals Incentive Program (APIP) is a grant program designed to attract investment in new or expanded market-driven petrochemical facilities in Alberta. Companies can receive grants worth 12% of a project's eligible capital costs once the project is operational, aiming to enhance the province's petrochemical sector and economic diversification.
About the Alberta Petrochemicals Incentive Program (APIP)
The Alberta Petrochemicals Incentive Program (APIP) is a pivotal component of Alberta's Recovery Plan and Natural Gas Vision and Strategy, focusing on transforming the province into a leading global petrochemical producer. This initiative offers grants to incentivize companies to invest in new or expanded petrochemical facilities, leveraging Alberta's abundant natural gas reserves and competitive business environment.
The key features of the program include a 5 or 10-year program period based on the project scope, transparent and open eligibility criteria, grants covering 12% of eligible capital costs post-operational status, and a streamlined funding process aligned with investment cycles. Eligible projects, with a minimum capital investment of CAD $50 million, must be located in Alberta and use natural gas or petrochemical intermediaries in manufacturing, aiming to create permanent jobs in the province.
Companies can apply for APIP through the Electronic Transfer System (ETS) and go through a three-stage application process: Advance Notification, Qualification and Grant Agreement, and Payment. The payment schedule varies based on the project size, with smaller projects receiving grant funds after completion within five years and larger projects receiving installments over three years post-operational status.
In addition to supporting new initiatives, APIP integrates with previous petrochemical programs in Alberta, offering opportunities for companies that participated in the Petrochemical Diversification Program (PDP) to continue leveraging incentives for their projects. The program aims to boost Alberta's petrochemical sector growth, create job opportunities, and significantly contribute to economic diversification and sustainability in the province.
