Petrochemicals Diversification Program Application Archive

The Petrochemicals Diversification Program was announced on February 1, 2016  as part of the government’s continued action on the economy, helping to create jobs, attract investment and diversify Alberta’s economy. The application deadline was April 22, 2016.

The program will encourage companies to invest in the development of new Alberta petrochemical facilities by providing up to $500 million in incentives through royalty credits.

The application is below along with the questions pertaining to the application process.

Petrochemicals Diversification Program applicationPDF icon (competitive process and guidelines)

Petrochemicals Diverstification Program February 2016 fact sheetPDF icon

General Questions

How many applications were received and were final decisions made?
Is there any plan to extend the application deadline and has the submission time been adjusted to reflect daylight savings time?
Can we apply prior to making our final investment decision? Is there a penalty for gaining approval under the program and then not proceeding with the facility?
In the case of international companies, who should fill out the application? Are expert/professional consultants able to do that? Are we able to access any support from the Alberta Government?
Besides the program application, do we need to submit any other applications for the business license in order to receive other approvals for the project? If so, when is the best time to do so?
Please explain “economic benefits to Alberta” Is there an evaluation criteria list? Should I hire a consultant?
Who do I contact if I have more questions?

Royalty credit questions

Please explain how the royalty credits work - can they be sold or transferred? If a company is joint venturing with a gas supplier, is the gas supplier eligible for royalty credits?
What is the frequency of royalty credit payments from Alberta Energy to the approved facility?
The program allows approved projects to earn royalty credits for up to 36 months after facility start-up. What happens in the case of circumstances such as plant disruption when feedstock is not being consumed?
How far forward can Earned Royalty Credits be carried in Alberta Energy’s royalty liability accounts? Is there an expiry date on earned royalty credits?

Page Specific Questions

Page 3: Program Approval Decisions - It says "TBD" but do you have an expected date? Will it be in 2016?
Page 4: Can a secondary facility put in an application on its own and be eligible for royalty credits or must a secondary facility be part of an application that includes a primary facility? What about economic information?
Page 5: Application Information document states that applications must not be more than 200 pages per facility. Some technical application reports can be long. How can we include our supporting evidence while meeting the page limit?
Page 5 “Confidentiality and FOIP” Please explain FOIP rules about company proprietary information.
Page 7: Overview of Evaluation - A sentence refers to internal and external approvals. What does "internal" approval mean?
Page 9: For each criterion, the proponent must ‘Provide a self-evaluation, giving justification for ratings’. Can you provide clarity on what is expected or required?
Page 10: Business Plan - the sentence says: "Indicate intended non-arm's length relationships relative to the project". What does “non-arm's length relationships" mean?
Page 11: If a project is at the initial stage in every aspect - engineering design, regulatory approvals and financing approvals - compared with other competing applications, will this put us at a disadvantage in the evaluation process?
Page 13: Proponent's Capability- When making an application for an integrated propylene and polypropylene facility under common ownership, can we request a total of $400 million in royalty credits to reflect an integrated Primary and Secondary facility?