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

Alberta announced $440 million to help build a planned partial upgraderin 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 fora loan guarantee forCalgary-based Value Creation Inc., which hopes to build the project in Alberta's Industrial Heartland in StrathconaCounty.

The company plans to invest $2billion inthe 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.

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