Alberta Petrochemicals Incentive Program
Highlights
This program is designed specifically for businesses like yours in the petrochemical sector. It offers grants worth 12% of your project’s eligible capital costs once your project is operational. This can significantly improve your return on investment and provide a substantial financial boost.
Key Benefits:
- Certainty and Flexibility: Every project that meets the criteria will receive funding, ensuring a fair and transparent process.
- Long-Term Support: Depending on your project size, you have up to 10 years to complete and become operational.
- Economic Growth: By participating, you contribute to Alberta's economic diversification and job creation, benefiting the wider community.
The application process is straightforward, with clear stages to guide you. This program not only offers financial support but also positions your business as a key player in Alberta's growing petrochemical industry.
Financing Details
Type of Financing:
- Grant: The program offers grants covering up to 12% of eligible capital costs for establishing new petrochemical manufacturing facilities or expanding existing ones in Alberta.
Repayment Terms and Interest Rates:
- Repayment Term: Projects must be built and operational within a 5 or 10-year program period, depending on the project scope, to receive funding.
- Interest Rates: Grants worth 12% of eligible capital costs are issued to companies after projects are operational, aiding in calculating the project's return on investment.
Eligible Expenses:
- Eligible expenses include manufacturing and processing capital expenditures related to the project.
Ineligible Use of Funds:
- Funds cannot be used for all capital costs associated with the project, only specific manufacturing and processing expenditures.
Fees:
- No specific fees are mentioned in the provided context for this program.
Qualifications
- Must be physically located in Alberta.
- Capital investment must be at least CAD $50 million.
- Facility must use natural gas, natural gas liquids, or petrochemical intermediaries (e.g., ethylene, propylene, benzene) in manufacturing its products.
Project must create permanent jobs in Alberta.
- Disqualifications:
- Projects not physically located in Alberta.
- Capital investments less than CAD $50 million.
- Facilities not using natural gas, natural gas liquids, or petrochemical intermediaries in manufacturing.
- Projects that do not create permanent jobs in Alberta.
Description
This program offers your business a grant worth 12% of your project's eligible capital costs. This money can be used to build or expand petrochemical facilities in Alberta. The grant is available once your project is operational, ensuring you have the funds when you need them most.
You can use the grant for various capital expenditures related to manufacturing and processing. This includes costs for equipment and construction that are essential to your project. The program is designed to align with typical investment cycles, making funding available throughout the program's duration.
The program period is flexible, offering a 5 or 10-year timeframe depending on your project's scope. Smaller projects (capital investments between CAD $50 to $150 million) must be completed within five years, while larger projects (over $150 million) have up to ten years. This flexibility ensures that your business can plan and execute projects effectively, with the assurance of financial support.
Program Steps
Register for an APIP Account:
- Visit the Electronic Transfer System (ETS) website.
- Follow the Registration Guide to complete your registration.
Submit Advance Notification:
- Log into your ETS account.
- Provide company information, project location, project type, and estimates for total costs, eligible capital costs, and job creation.
Prepare Documentation:
- Business Plan
- Project Timing
- Technology Configuration
- Proponent’s Capability
- Economic Benefits to Alberta
- Environmental Performance
- Class 3 Capital Cost Estimate
Submit Qualification and Grant Agreement:
- Provide detailed project information through the ETS.
- Submit the prepared documentation.
- Await the Government of Alberta's review and grant agreement.
Complete Project:
- Ensure the project is built and operational within the specified time frame (5 or 10 years depending on project size).
Request Payment:
- Once the project is operational, submit a payment request through the ETS.
- Follow the Reporting Guidelines for instructions on report submissions and payment requests.
Receive Grant Funds:
- For smaller projects (CAD $50 to $150 million), receive grant funds within one year of project completion.
- For larger projects (greater than $150 million), receive grant payments in equal installments over 3 years.