Inter Pipeline has won a second funding award through the Alberta Petrochemicals Diversification Program.
Premier Rachel Notley announced on Friday the company will receive up to $70 million in future royalty credits for a facility being considered that would convert propylene produced from Alberta propane into higher value products including acrylic acid, which is used in consumer products like adhesives, diapers, floor polishes and paints.
The new facility would cost about $600 million to build, the province said in a statement.
The project is in the conceptual stage and the government funding is one step toward a positive final investment decision, Inter Pipeline spokesman Steven Noble told JWN.
The company is currently constructing the Heartland Petrochemical Complex near Edmonton, a $3.5-billion propane dehydrogenation and polypropylene facility that has $200 million in committed funding through the same provincial program.
Assuming a positive final investment decision in 2020, construction is expected to begin on the acrylic acid and propylene derivatives facility in 2021.
It’s the fourth petrochemical project awarded funding support by Notley’s government.
In February, partners Pembina Pipeline and Petrochemical Industries Co. of Kuwait announced they will proceed with a $4.5-billion PDH/PP project near Edmonton. This project has up to $300 million of committed Alberta royalty credits.
Also in February, the province announced up to $80 million in royalty credits for a new methanol plant in Grande Prairie being developed by Calgary-based Nauticol Energy.