Alberta - A Leading Investment Location for the Chemical Sector

Alberta's Industrial Heartland (AIH) is a $25 billion neighbourhood, the hub of a competitive, world-class petrochemical manufacturing sector with a world market. Home to one of the largest petrochemical and refining clusters in North American and one of the world's largest ethylene plants, the region abounds in opportunities for petrochemical and innovation investment. An abundance of primary and secondary resources, favourable operating costs, low taxes and the confidence demonstrated by huge investments contribute to a long-term window on sustained economic growth.

The critical mass of world-class industry players, including Dow Chemicals, Shell Chemicals Canada, Shell Canada Products, Degussa Canada, and smaller related industries and support businesses is at the centre of an extensive network of pipeline, truck, and rail transportation links to the U.S. market place.

Located in the Greater Edmonton area, Alberta's Industrial Heartland is directly linked to the world's largest ethylene cracker, Nova Chemicals, and derivative facilities operated by Nova and Dow Chemicals and Fort McMurray's massive oil sands development. Oil sands marketable production in 2002 reached 740 300 (billion barrels per day), of bitumen and upgraded synthetic crude oil. This represented 48.4 per cent of Alberta's and 31.8 per cent of Canada's total crude production. Alberta's oil sands promise a secure 50- to 100-year supply of feedstock for petrochemical investment. Industry projections suggest the Alberta oil sands will produce half of all Canadian crude oil by 2005.

Outstanding Industrial Growth

• Recently completed projects, current and announced projects within and abutting the Alberta’s Industrial Heartland region are valued in excess of $9 billion
• The Alberta’s Industrial Heartland has a diversified industrial base and industrial supply and servicing sector
• The region offers close proximity to the Athabasca Oil Sands having reserves that rival Saudi Arabia
• The Greater Edmonton region is the supply centre for energy and resource development projects in northern Alberta and northern Canada

Opportunities for the Chemicals Sector

• Oil upgrading and refining
• Ethylene and polyethylene (fence line))
• Propylene and polypropylene (fence line)
• Aromatics
• Ethylene cracker – based upon byproduct feedstock from heavy oil upgrading
• Metals and minerals processing (northern Canadian mines)
• Natural and refinery gas fractionation and storage

Eco-Industrial Developments

• Electrical co-generation
• CO₂ capture and sequestration for enhanced oil recovery
• Phenol production for resin in composite board products
• Ethyl hexyls nitrate as phenol formaldehyde diesel cetane enhancer
• Hydrogen transfer
• Ethanol amines
• Spent hydro-cracking catalyst recovery - nickel and vanadium
• Chemical derivative, secondary and tertiary processing of other products currently produced in Alberta's Industrial Heartland (aromatics)
• Waste heat recovery, conversion and utilization
• Greenhouse, fish farm production
• District heating for light industrial park

Chemical derivative, secondary and tertiary processing (fenceline, value-adding, etc.)

• PVC plastic molding
• Polypropylene plastic molding
• Polyethylene plastic molding
• Polystyrene
• Polyester fabric
• Ethylene derivatives
• Propylene derivatives

Major Companies Invest With Us

• Shell Chemicals Mono Ethylene Glycol Plant - $340 million (30-50 permanent jobs and approximately $100 million in annual operating expenditures)
• Air Liquide - $150 million Electrical Cogeneration Plan and Air Separation and Process Facility
• Williams Energy - $110 million Propylene Fractionation, Upgrade and Storage Plant
• Shell Canada, Refinery Upgrade - $400 million; Heavy Oil Upgrader $2.3 billion; Hydrogen Gas Separation Plant $160 million; diesel hydro-treater $200 million, ATCO Power Co-generation plant $140 million
• Announced projects include Nova’s propane and NGL pipeline from fort Saskatchewan to Joffree, BA Energy Upgrader and Terasen Pipelines’ Heartland Terminal Project

Physical Strategic Advantages of the Area

• Alberta's largest processing centre for the petroleum and petrochemical industry upgrading resources on their way to export markets
• An integral part of the North American pipeline networks carrying oil, natural gas, ethane, and ethylene to processing plants and markets
• Logistically well connected with overland distribution systems to transport products to North American and offshore markets
• Large portions of land zoned for heavy industrial investment
• Underground (salt cavern) storage for hydrocarbons

Cost Advantages

• The KPGM 2004 Competitive Alternatives Report ranked the Greater Edmonton region, among the most cost-competitive cities to do business.
• Alberta offers competitive manufacturing wage costs that are among the lowest in Canada
• Alberta enjoys a feedstock and energy advantage over the U.S. Gulf Coast

Skilled and Productive Labour Force

• Drawing from Greater Edmonton’s expanding population of almost one million people, Alberta's Industrial Heartland can supply the necessary workforce of engineers, scientists, technologists, operators, trades people and support personnel needed to help companies thrive
• The region has one of the most effective apprentice programs in Canada for trades personnel
• Albertans are among the best-educated people in North America. During 2002, 53 per cent of Albertans over 25 years of age reported holding a post-secondary certificate, diploma or university degree.‛
• Competitive manufacturing wage costs among the lowest in Canada
• Alberta's hourly manufacturing wages are very competitive with those of the United States. When benefits such as medical insurance are considered, Canadian wage costs are much lower than American total wage costs. When you take into consideration the favourable Canadian currency rates, you have an undeniable financial advantage

Market Access/Transportation

• Pipelines - interconnected with points across North America by an extensive pipeline system carrying a wide range of chemicals products
• Rail - closely integrated with North America's major railways and intermodal facilities, in addition to three west-coast ports for international transportation
• Road - Major improvements are being undertaken to facilitate the most effective market access through the regional road system

Positive Open Business and Political Environment

• Leadership/commitment of municipalities, focused on major industry
• Cooperative and responsive municipalities
• Proactive provincial and federal governments
• Competitive tax rates
• Communities welcome industry
• Cooperative industrial associations
• Cooperation on many other initiatives with City of Edmonton and area

Technology Infrastructure

• The Government of Alberta has committed approx. $30 million as part of the "Supernet" program designed to acquire high-speed, high bandwidth telecommunications connections to world markets
• Alberta's education system offers a high concentration of skilled knowledge workers

Research and Development

• The Alberta Research Council is world renowned for its scientific excellence, business knowledge, superb facilities and global contacts
• The University of Alberta is one of the most research-intensive universities in Canada and home to Canada's nano-technology research center.
• The university's external research receives over $170 million in funding each year

Quality of Life

• For modest insurance premiums, Albertans can take advantage of an exceptional range of medical services. The Alberta Heritage Foundation for Medical Research funds the highest calibre of biomedical and health research in the province
• Alberta has a diverse arts and culture community, and numerous organizations provide festivals events and attractions for Albertans and out-of-province visitors

Contact

Larry Wall, Executive Director
Alberta’s Industrial Heartland Association
Toll-Free: 1 888 414-0032
International: 01-780-414-0066
E-mail: inquiries@industrialheartland.com
Web site: www.industrialheartland.com