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Federal government pledges $49M for $3.5B plastics project in Alberta

Inter Pipeline's Heartland Petrochemical Complex is shown under construction in Fort Saskatchewan, Alta., on Thursday, January 10, 2019. Canada's slow-growing petrochemical industry is headed for its biggest surge of expansion spending in five years in 2019, thanks in large part to incentive programs by federal and provincial governments. THE CANADIAN PRESS/Jason Franson

A $3.5-billion project to turn Alberta propane into plastic pellets for the manufacture of consumer products is to receive $49 million from the federal government.

Ottawa says the money provided to Calgary-based Inter Pipeline Ltd. through the $1.6-billion Strategic Innovation Fund will help secure jobs and support the environmentally cleaner production of plastic products.

READ MORE: Inter Pipeline green-lights $3.5B petrochemical project to produce plastic

The facility is already under construction in Strathcona County, just northeast of Edmonton, with completion scheduled for late 2021.

READ MORE: Tower as tall as CFL football field begins complex move out of Edmonton

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Watch below: (From January 2019) A massive tower constructed in Edmonton will hit the highway Sunday night, heading to its destination, a new industrial complex near Fort Saskatchewan. Julia Wong reports.

Click to play video: 'Massive tower hits the highway to Fort Saskatchewan'
Massive tower hits the highway to Fort Saskatchewan

The company is to increase jobs for post-secondary students and women in trades, while continuing to fund research and spending $10 million to find ways to reduce plastic waste.

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The Inter Pipeline project was given $200 million in provincial royalty credits in 2016, while Calgary-based Pembina Pipeline Ltd. was handed $300 million in credits for a similar proposal.

READ MORE: Pembina going ahead with polypropylene plant joint venture with Kuwaiti firm

Last month, Pembina announced it had decided with its partner, Kuwait’s Petrochemical Industries Co., to go ahead with a $4.5-billion polypropylene project also to be located northeast of Edmonton.

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