Alberta Petrochemicals Incentive Program (APIP)
$120,000,000.00
Grant
Description:
The Alberta Petrochemicals Incentive Program (APIP) is a key part of Alberta’s Recovery Plan and the Natural Gas Vision and Strategy to turn the province into a top global producer of petrochemicals. It financial incentives in the form of grants to encourage private sector investment in new or expanded Alberta-based petrochemical manufacturing facilities, including those producing value-added, petrochemical, hydrogen, fertilizer, and fuel products.
Comments on Funding:
The Maximum Grant amount that the project is eligible to receive is CAD$120 million. The maximum annual amount of grants that the company is eligible to receive for every 12 months of operation is CAD$40 million (CAD$120 million / 3).
November 1, 2030
Eligibility:
Applicants must:
1. Be physically located within Alberta.
2. Be projects that process natural gas, natural gas liquids (ethane, propane, butane etc.), or petrochemical intermediates into different petrochemical intermediates, petrochemicals products, hydrogen, fertilizers or fuels.
2. Produce an ingredient not mentioned in #2 but is a core input to manufacture of the petrochemical products, fertilizers or fuels.
3. Be both new greenfield petrochemicals facilities, as well as brownfield expansions/debottleneckin.
4. Have a minimum investment in capital dollars of CAD $50 million.
5. Be a project that creates at least one or more of new and incremental permanent jobs in Alberta’s petrochemical sector.
6. Be a standalone hydrogen projects and projects that produce fuels from natural gas and natural gas liquids must capture the carbon dioxide by-product generated from the production process.
Application Steps:
Applicants must:
1. First have to register for an APIP account through the ETS. They have to follow the Registration Guide to help complete their registration.
2. Apply to the program through the Electronic Transfer System (ETS)
The application and grant process is broken down into three stages:
Stage 1: Advance Notification [this stage allows interested companies to learn if their project will be eligible for the program, and to determine a high-level estimate of how much grant funding they may be eligible to receive]
Stage 2: Qualification and Grant Agreement [at this stage, companies will be required to provide more information about the proposed project, including: Business Plan; Project Timing; Technology Configuration; Proponent’s Capability; Economic Benefits to Alberta, and Environmental Performance]
Stage 3: Payment [the company is required to declare in writing to the Department the project’s In-Service Date and that the project complies with the conditions of the grant agreement].
Currently only the first stage, Advance Notification, is open for applicants on the ETS. Stage 2 will be opened shortly, once project applicants have been invited from the program to apply for the qualification stage.
Documentation Needed:
Applicants must:
For Stage 1: Advance Notification, provide the following:
1. Company information;
2. Project location;
3. Project type;
4. Estimates for total costs, eligible capital costs, and job creation.
For Stage 2: Qualification, provide more information about the proposed project including:
1. Business Plan;
2. Project Timing;
3. Technology Configuration;
4. Proponent’s Capability;
5. Economic Benefits to Alberta, and
6. Environmental Performance
For Stage 3: Payment,
1. Declare in writing to the Department the project’s In-Service Date and that the project complies with the conditions of the grant agreement for the proponent to receive grant payments.
2. Provide the Department with bank account details to be used for payment.
Other Things to Note:
The program is open to applications starting from November 1, 2020 until November 1, 2030. No further applications under the program will be accepted after the application window closes on November 1, 2030.
1. Projects with a capital investment of between $50 million to $150 million will have until November 1, 2025 to apply to the program.
2. Projects with a capital investment of more than $150 million will have until November 1, 2030 to apply to the program.
3. At the end of the tenth year, the program application period ends and no new applications to the program will be accepted.
About the author
Maurice
