-3.2 C
Sofia
Wednesday, December 20, 2023

Opinion: Canada’s petrochemical industry reaping new investments

Published Dec 19, 2023  •  2 minute read

Deputy Prime Minister Chrystia Freeland announces the $8.8 billion DOW Path2Zero Fort Saskatchewan project, Wednesday Nov. 29, 2023. Alberta Minister of Energy and Minerals Brian Jean and Alberta Premier Danielle Smith are visible in the background. Photo by David Bloom /Postmedia

After reflecting on more than two decades without any major new investments, the Chemistry Industry Association of Canada (CIAC) embarked on a bold new course for the industry. Our members made a commitment to contribute to a public policy environment capable of driving a growing and responsible chemistry and plastics industry while supporting Canada in the shift to a low-carbon and circular economy.

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles by David Staples, Keith Gerein and others, Oilers news from Cult of Hockey, Ask EJ Anything features, the Noon News Roundup and Under the Dome newsletters.
  • Unlimited online access to Edmonton Journal and 15 news sites with one account.
  • Edmonton Journal ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
  • Support local journalism.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles by David Staples, Keith Gerein and others, Oilers news from Cult of Hockey, Ask EJ Anything features, the Noon News Roundup and Under the Dome newsletters.
  • Unlimited online access to Edmonton Journal and 15 news sites with one account.
  • Edmonton Journal ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
  • Support local journalism.

REGISTER TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

Article content

Our objective was to find and secure the “missing” $30 billion in new investment opportunities that should have come to Canada, given more than $300 billion in new chemistry investments in the United States in previous years.

Article content

With that context, 2023 represents a milestone year of accomplishments towards that objective.

In late 2022, Polykar officially opened a new 50,000-square-foot, state-of-the-art plant in Edmonton. The new facility includes a cutting-edge recycling operation, positioning the company to actively participate in Alberta’s efforts to divert plastic waste from landfills.

Kicking off 2023, in March, Inter Pipeline’s $5-billion Heartland Polymers facility in Strathcona County entered commercial operation. This operation is North America’s first integrated propane dehydrogenation and polypropylene facility and is also one of the lowest greenhouse gas-emitting propylene production facilities in the world.

Also in early 2023, Nova Chemicals announced it had completed construction of its $3-billion expansion in Lambton County, Ont. That investment expands ethylene capacity at the company’s Corunna site by 50 per cent. A new polyethylene production facility was also constructed in nearby Rokeby, Ont. increasing the company’s polyethylene capacity in the region by more than 60 per cent.

Article content

On Nov. 29, Dow Canada announced a final investment decision to construct the world’s first net-zero (Scope 1 and 2 emissions) integrated ethylene cracker and derivatives facility in Fort Saskatchewan. Scheduled for completion in 2030, this multibillion-dollar investment will triple output from the site, while decarbonizing nearly 20 per cent of Dow’s global ethylene capacity and growing the company’s global polyethylene supply by approximately 15 per cent.

In addition to the above announcements, CIAC is currently tracking over 20 additional chemistry and plastics related projects, with an estimated value of more than $20 billion and that are either under construction or proposed in Canada. These projects include applications such as battery chemicals for electric vehicles, ammonia and methanol production, hydrogen production, carbon capture and storage, plastics recycling, and energy storage.

How has this happened? Radical change through renewed commitments, such as The Alberta Petrochemicals Incentive Program and complementary supports for carbon capture and storage, various Government of Canada programs such as the Strategic Investment Fund and the Net Zero Accelerator, along with the recently announced Investment Tax Credits to support decarbonization; and other complementary and material actions by the provinces of Ontario, Quebec, and British Columbia.

Through these efforts, Canada is now able to position itself as among the top global investment destinations of choice for supporting both the industry’s growth and decarbonization objectives.

As we enter 2024, there is great confidence that Canada’s chemistry sector is positioned to close the entire $30-billion gap of missing investments, all while making significant contributions towards a low-carbon and circular economy in Canada.

Bob Masterson is president and CEO of the Chemistry Industry Association of Canada.

Article content

Michael Maren
Michael Maren
Former marine biologist who likes to spend as much time in the tropics as possible, due to a horrible time I once had in Alaska. Brrrr.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles