Inter Pipeline Ltd. has been tapped for a $408 million grant under the Alberta Petrochemicals Incentive Program.
The grant will support the Heartland Petrochemical Complex (HPC), an integrated propane dehydrogenation and polypropylene production facility, which is expected to be operational in early 2022.
Christian Bayle, Inter Pipeline’s chief executive, said the provincial grant recognizes the significant contribution the facility has had and will continue to make to the Alberta economy.
“HPC's construction has created thousands of well-paid technical, manufacturing and construction jobs over its multi-year build and has been a symbol of hope during difficult economic times for the province,” he said in a news release.
“In total we expect that roughly $3 billion or three quarters of the project construction spend will be invested directly into materials and services provided by Alberta businesses.”
Companies are eligbile to obtain a grant worth 12 per cent of their eligible capital costs when building new plants for petrochemical, hydrogen, fertilizer or fuel products, or expanding existing ones under the Alberta Petrochemicals incentive program.
The program was designed to compete against similar programs offered by American states like Louisiana and Pennsylvania, which have seen significant investment in petrochemicals.