Northern Petrochemical Corporation announced it will build a $2.5 billion carbon-neutral ammonia and methanol production facility near Valleyview, Alberta.
According to a press release from the Government of Alberta, the facility will be the first of its kind in Canada and plans to use carbon capture and storage to produce exceptionally low-carbon products to be used in the energy, agriculture and chemical industries.
Expected to be located in the Greenview Industrial Gateway, the facility is expected to provide over 4,000 jobs during construction and 400 permanent jobs once it is operational.
Alberta Premier Jason Kenney said the project will add momentum to Alberta’s economic recovery. “Northern Petrochemical’s decision to invest $2.5 billion in ammonia and methanol production shows that Alberta’s natural gas vision and our bold petrochemical strategy is working to create jobs while diversifying our economy, and ensuring a future for our resource industries.”
Geoff Bury, President and CEO of Northern Petrochemical Corporation says his company searched nationally and globally for a location suitable for the operation and finally decided that Alberta would be the best location for the project.
“New developments here are a strong signal that Grande Prairie and the MD of Greenview are committed to this industry and have the motivation to help bring these projects to life,” said Bury. “The Greenview Industrial Gateway and the Alberta Petrochemicals Incentive Program (APIP) are both examples of the right infrastructure and supports in Alberta to create jobs and grow a cleaner energy future.”
The Northern Petrochemical project will be the first major investment in the Greenview Industrial Gateway which offers companies a set of integrated services, including carbon capture, utilization and storage, transportation by rail and access to significant natural gas feedstocks.
Greenview Industrial Gateway offers full capacity rail provided by CN, and pipeline and utility infrastructure, connecting the industrial hub to the Ports of Kitimat, Prince Rupert as well as Asian markets. It is situated on 2000 acres, directly on the Montney Natural Gas deposit and harnesses one of the pre-eminent sources of geothermal energy in Western Canada.
“Our economic growth strategy is now paying off,” said Travis Toews, President of the Treasury Board, Minister of Finance and MLA for Grande Prairie-Wapiti. “The Northern Petrochemical project announced today will contribute to real economic growth with tangible benefits to the region and province.”
The Alberta Petrochemicals Incentive Program (APIP), introduced in 2020, was designed to encourage investments in petrochemical facilities and help diversify Alberta’s natural gas sector. The Alberta Industrial Heartland Association estimates that there is an opportunity to grow the sector by more than $30 billion by 2030, resulting in tens of thousands of jobs for Albertans.
Municipal District of Greenview Reeve Tyson Olson said “Processing natural gas to carbon-neutral, value-added products at the source is the right path to lower overall emissions in the future. This project might be based on industry, but with the overall attention to creating an eco-industrial development, it is one that Greenview can be proud of.”
According to the Kenney government, this investment is made possible through Alberta’s Recovery Plan, the provincial government’s plan to create jobs and diversify the economy, in part by expanding Alberta resources’ use to support more industries.