Alberta Petrochemicals Incentive Program (APIP)
The Alberta Petrochemicals Incentive Program (APIP) is a key part of the Natural Gas Vision and Strategy to turn the province into a top global producer of petrochemicals. It provides grants to companies to attract investment in new or expanded market-driven petrochemical facilities.
Offered by Ministry of Energy and Minerals
Amount
Grants worth 12% of a project’s eligible capital costs
Quick eligibility check
Who can apply
The full eligibility criteria are available in the Program Guideline document. Applicants should always refer to the Program Guideline when making decisions on a project or seeking information on the program.
Project eligibility
Eligible projects must meet these criteria, as well as those outlined in the Program Guideline:
- 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 such as ethylene, propylene, benzene etc. in the manufacturing of its own products.
- The project must create permanent jobs in Alberta.
Both new facilities, as well as brownfields and expansions on existing facilities, will be eligible for the program.
Projects not approved under the PDP may also apply for APIP. All APIP projects follow the rules governing APIP, including the determination of the total grant amount.
About the funding
- A 5 or 10-year program period, depending on the scope of the project, during which eligible projects must be built and operational to receive funding.
- An open and transparent approach, whereby every project submitted that meets the program’s criteria will receive funding once built and operational.
- Grants worth 12% of a project’s eligible capital costs will be issued to companies after projects are operational. Grants allow companies to account for the full value of the incentive provided when calculating their project’s return on investment.
- Better alignment with typical investment cycles by making funding available throughout the program’s duration.
Show all funding details
If the project’s capital costs calculated in Stage 2 increase as the project goes through construction, the size of the grant will not be increased. However, if the project comes in under budget, the size of the grant will be decreased proportionally to the lower cost.
Stage 3: Payment and Reporting
The payment schedule will depend on the size of the project. Smaller projects (with total capital investments between CAD $50 to $150 million), must be completed and operational within 5 years of the opening of applications (October 30, 2020). These smaller projects will receive their grant funds within one year of the project’s completion.
Larger projects (with total capital investments greater than $150 million), must be completed and operational within 10 years of the application opening. These projects will receive grant payments in equal instalments over 3 years.
Not all capital costs associated with a project are eligible for reimbursement as part of the grant process. Costs eligible for reimbursement under APIP are related to manufacturing and processing capital expenditures.
Applicants should refer to the Program Guideline to determine which costs will be eligible.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Aboriginal Entrepreneurship Program: Access to Capital | Grant | Individual Indigenous entrepreneurs may receive up to $99,999 in funding assistance and eligible Indigenous community businesses may receive up to $250,000 (non-repayable equity contribution | Open |
| Aboriginal Business Investment Fund | Grant | Up to $750,000 | Open |
| Alberta Indigenous Opportunities Corporation — Capacity Support | Grant | No fixed amount | Open |
| Economic Development Initiative (EDI) in the Prairie provinces | Grant | PrairiesCan is investing $3.2 million through the EDI over 5 years for projects (total programme envelope | Open |
