March 7, 2019 6:40 pm
Updated: March 7, 2019 6:47 pm

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.


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.

Story continues below

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

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.

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.

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.

© 2019 The Canadian Press

Report an error


Want to discuss? Please read our Commenting Policy first.