Calgary

Notley spurs upgrader project with promise of $440M loan guarantee

The province said it's signed a letter of intent for a loan guarantee for Calgary-based Value Creation Inc., which hopes to build the project in Alberta's Industrial Heartland in Strathcona County.

It's part of a larger government strategy that could see $3B doled out to diversify Alberta's energy sector

Premier Rachel Notley made the announcement on Tuesday, part of a larger program that could dole out $3 billion. (Monty Kruger/CBC)

Alberta announced $440 million to help build a planned partial upgrader in the province on Tuesday, part of a larger $3-billion program meant to support crude, bitumen and petrochemical upgrading in the province. 

The government said it's signed a letter of intent for a loan guarantee for Calgary-based Value Creation Inc., which hopes to build the project in Alberta's Industrial Heartland in Strathcona County. 

The company plans to invest $2 billion in the project, which would turn bitumen into higher grade crude that can more easily flow through pipelines.

"Upgrading more of our resources here at home means more jobs and more investment in our local communities, with new value chains that will help diversify our economy for generations to come," said Mark Plamondon, the executive director of Alberta's Industrial Heartland Association, in a news release. 

Promise of GHG reductions

Value Creation claims its partial upgrading technology is more efficient that other methods and could reduce greenhouse gas emissions by up to 16 per cent. 

"The new upgrading facility will use 77,500 barrels per day of diluted bitumen to produce what will be this upgraded product, a form of medium synthetic crude and also ultra-low sulphur diesel," said Premier Rachel Notley.

The province says the project is expected to create more than 2,000 construction jobs and another 200 full-time positions once the facility is up and running.

It's projected to generate approximately $2.5 billion in revenue to the province over its 30-year lifespan.