With the right policy environment that addresses decarbonization and workforce development, Alberta is well-positioned to be North America’s backbone for energy security and supply chain resiliency for hydrogen, liquid natural gas (LNG), carbon capture utilization and storage (CCUS), plastics, and more.
New petrochemical projects will not be built without an emphasis on the energy transition. Our members support the expansion of the Alberta Petrochemical Incentive Program (APIP) to include CCUS projects.
In a highly competitive global market, an expansion of APIP to include CCUS projects would help ensure Alberta is the number one jurisdiction for our members to invest in.
APIP is the right policy tool to decarbonize industry:
- No picking of winners and losers.
- Transparent and streamlined compared to other federal and provincial incentives.
- No risk to government through the APIP framework as payments aren’t made until projects are already in service.
Should the over $22B of our projects be built, Alberta needs skilled labour available for the 20,250 of construction and 658 of operational employment opportunities. While industry, post-secondary, and labour groups have an important role to play in developing our workforce, the Alberta government needs to take additional actions to enhance overall labour availability and training.
Policies should focus not just on attracting skilled labour today, but providing long-term labour market sustainability through increased post-secondary and primary educational opportunities for the workforce of the future.
While the value-added industry offers an opportunity for Alberta to diversify its economy, it also provides us with the opportunity to diversify our workforce through attracting non-traditional demographics to the energy sector.
Expanding Equipment Eligibility
Previously eligible critical equipment for our projects, such as rail terminals, were not carried over to the current Alberta Petrochemicals Incentive Program (APIP) from its predecessor Petrochemical Diversification Program. The restoration and expansion of equipment eligibility would continue to improve Alberta's ability to attract new projects.
Advancing investment Support timelines
Currently, projects are eligible to receive investment support over a period of three years following one year of full operations. As projects are already cash-positive for the government under the Alberta Petrochemicals Incentive Program (APIP) before projects begin their operations, our members would like to see investment supports begin once projects become cash-positive for the Alberta government over a condensed funding period of two years. This advancing of investment supports would boost Alberta's competitive advantage while continuing to protect the taxpayer.