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This is Part Four of Postmedia’s How Canada Wins series.
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A part of this region’s short term and long term economic success is linked to the current prosperity and future investment in Alberta’s Industrial Heartland (AIH).
In a one-on-one interview with Alberta’s Industrial Heartland Association’s executive director Mark Plamondon, The News asked what’s needed now and going forward to continue the area’s development and boost investment. The interview has been edited for length and clarity.
Q: For both the short and long term, what’s needed for infrastructure to support Alberta’s Industrial Heartland?
A: The main assets that will help drive additional development in Alberta’s Industrial Heartland ironically aren’t in Alberta’s Industrial Heartland — they’re on route and at the Port of Prince Rupert.
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We’ve been telling the federal government that the regulatory framework and how long it takes to get stuff done is something that could be improved upon for the benefit of the competitiveness of Alberta’s Industrial Heartland. So, port assets and infrastructure and additional of debottle-necking improvements to the rail network between the Heartland and Port of Prince Rupert, that’s the best thing that could happen in the short and longterm because none of this happens quickly.
The diversity of markets is a standard sort of business risk mitigation strategy, you want to have as a diverse of geographies as you possible can and a diverse customer base. That way, you’re not exposed to the swings of one market, one geography or one customer. Having substantial connectivity to the West Coast, really expanding those port assets, means we can move more products to the Asian markets. It will benefit Alberta and Canada because it leads to market diversification.
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Q: What kind of federal or provincial regulations or policies would be beneficial to change, improve, or stop to ensure more investment and growth?
A: Some of the incentives that are already in place are very meaningful and effective. The Alberta Petrochemical Incentive Program from the Government of Alberta is a very transparent, criteria-based incentive program that’s very effective. Coupled that with the municipal Heartland Incentive policy that municipalities in the AIH offer and pair that with some of the investment tax credits and accelerated capital cost allowances at the federal level.
All of those stacked together are a meaningful suite of incentives and we want to see those continued or extended. With a new prime minister and federal cabinet, and with a potential federal election coming up, these incentives are important to ensure we’ve got a competitive framework here in the Heartland.
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Q: How has the introduction of the Designated Industrial Zoning (DIZ) by the province help make the area more competitive? DIZ was announced in 2022 as a pilot idea and was fully implemented after September 2024.
A: A Designated Industrial Zone is intended to streamline the regulator framework if a project proponent is constructing their facilities in Alberta’s Industrial Heartland. It has substantially reduced the amount of time needed to move projects forward. The scrutiny is still there but the time it takes to move it through the process is much faster.
It really levels the playing field from a regulatory standpoint between ourselves and the Golf Coast. Years ago, I say we would have lagged behind, but with DIZ, I’d say we’re a leader.
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Q: When Dow Canada announced its $10 billion Path2Zero Project, $10 billion, net-zero petrochemical project, one of the top concerns was having a labour force to support the build. Where are we on bolstering the future need labour force to support future investment and projects in the AIH?
A: Labour, the availability of manpower, is crucial and you need it to build these types of facilities and to ensure future investment. There is a gap there between the needs of new demand and attrition offset by the supply of new labour, whether that’s through new entrance or immigrant. The gap can be filled through the mobility of labour, whether that’s mobilization within the province or interprovincially — people will move to where the work is, or international participation as the workforce needs continue to require it.
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Q: Keeping in mind that planning for ATCO’s Yellowhead Mainline pipeline into the Heartland is underway, which will deliver 1,200 terajoules or 1.1 billion cubic feet of natural gas into AIH per day, what kind of future energy loads or other energy supports will be needed in the Heartland?
A: We’re so fortunate here in the AIH that we’re just on the doorstep of all of this low-cost natural gas and having the capability for carbon management through carbon capture and storage projects.
There was an article that just came out saying there is substantially more natural gas in Alberta than previously thought, so then the conversation then becomes what infrastructure is needed to bring that into this region for additional processing. As demand grows, that infrastructure will be built.
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Q: With more than $45 billion in capital investment, that has resulted in 30,000 direct and indirect jobs over the last 10 years, what are your thoughts on the pace of growth for the AIH?
A: We are on a substantial growth profile right now. The Industrial Heartland has had a lot of recent announcements that illustrates the kind of advantages here. Of course, Dow’s Path2Zero is the big one, but then there’s Linde’s clean hydrogen project, Pembina’s RFS IV expansion (a propane-plus fractionator at its Redwater complex), Plains Midstream’s fractionator expansion, and Keyera’s expansion at its NGL processing and storage facility.
You can just see all of the activity that’s happening in Alberta’s Industrial Heartland. We are on a substantial growth curve right now. It’s driven by this low-cost feedstock in addition to the carbon management capability of this region, which is very attractive.
A: How much potential does the AIH have in capturing the next $45 billion in investment?
Q: We have tremendous land availability that is designed and planned for heavy industrial development, so land won’t be a constraint. As the Designated Industrial Zone grows, you’ll continue to see world-leading technology development for environmental management. Put that together with the carbon management capability, I think the future is very bright for Alberta’s Industrial Heartland.”
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