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Alberta

Multi-billion Dow Chemical investment pegs Alberta as a top spot for low carbon plastics production

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The announcement Dow will construct the world’s first net-zero carbon emissions ethylene and derivatives complex, in Fort Saskatchewan, Wednesday November 29, 2023.

From the Canadian Energy Centre

By Will Gibson

Net zero petrochemical complex seen as a signpost for future investment in Alberta’s Industrial Heartland

Dow Chemical’s Nov. 28 announcement confirming it will invest $8.8 billion to build a net zero petrochemical complex near Edmonton was close to a decade in the making for Fort Saskatchewan Mayor Gale Katchur. 

“Now that they’ve finally announced the project, I’m one of the happiest mayors around,” says Katchur, who was first elected in October 2010. 

“What Dow is building will inspire other industries with innovation and technology like this. Dow has been a cornerstone for our community for the past 60 years. This investment ensures they are going to be around for a lot longer.” 

The project, which has support from the municipal, provincial and federal governments, will increase Dow’s production of polyethylene, the most widely used plastic in the world. 

Welcomed by the community 

By capturing and storing carbon dioxide emissions and generating hydrogen on-site, the complex will be the world’s first ethylene cracker with net zero emissions from operations.  

“I remember speaking to Dow executives during their regional visit some years back. They were curious about potential public concerns, given the visibility of their visit and the nature of their business,” Katchur says. 

“My response was clear: the primary concern in our community is the pace of progress. People here recognize and appreciate the petrochemical industry. We understand the benefits that it brings.” 

Competitive advantages 

Katchur’s joy is shared by Mark Plamondon, executive director of Alberta’s Industrial Heartland Association, who sees the Michigan-based multinational’s decision as an endorsement of the region’s competitive advantages. 

“Dow is a global company and could put their capital anywhere in the world,” says Plamondon, whose group attracts global investment in heavy industry to the 582-square-kilometre region northeast of Edmonton.  

“What this demonstrates is Dow can meet both their economic and environmental goals by investing in this region. That sends a real message.” 

Bob Masterson, CEO of the Chemistry Industry Association of Canada, sees Dow’s decision to build the facility as a signal of where the industry will make large investments in the future. 

“In the short term, you are looking at the province’s largest construction project requiring more than 7,000 high-skill, high-paying jobs for the next seven to 10 years,” says Masterson, whose Ottawa-based group represents chemistry and plastics producers across Canada.  

Alberta a top destination for low carbon chemical production 

“What Dow’s decision really says is Alberta is a top destination for the chemistry industry to invest. One of the top chemical producers in the world is making this investment in Canada,” he says. 

“When you look at the bigger picture, the only real rival for low-carbon investment of this kind is the U.S. Gulf Coast, where you have the same access to natural gas liquids as a feedstock and supportive public policy environment.” 

The Industrial Heartland region is particularly attractive for companies looking to invest in low-carbon products, Masterson says. 

“Alberta has an abundant low-carbon feedstock in natural gas liquids to produce hydrogen and the geological space to sequester carbon. These natural assets can encourage investment and support low-carbon chemistry industry,” he says.  

“One of the largest petrochemical companies on the planet believes it can build a low-carbon chemistry plant based on these assets. Other companies will see they can generate and extract that value out of those resources in a very sustainable and responsible manner.” 

Filling space on the Alberta Carbon Trunk Line 

In addition to geological and natural resources, the region already possesses critical infrastructure to woo investment in low-carbon production, such as the Alberta Carbon Trunk Line (ACTL), the world’s largest CO2 pipeline.  

Dow has signed an agreement with ACTL owner Wolf Midstream to utilize space on the system.  

ACTL is the foundation of a hub that captures CO2 from an oil refinery and fertilizer plant and moves it for permanent storage in a nearby depleted oil field.  

The pipeline currently transports 1.6 million tonnes of CO2 per year but is built to transport 14.6 million tonnes of CO2 per year.  

“The infrastructure is in place already. The trunk line has plenty of surplus capacity to transport additional emissions,” Plamondon says.  

“That just adds to the value proposition for potential facilities that are moving to low-carbon production.” 

Alberta

30 million contraband cigarettes valued at $25 million dollars seized in Alberta

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New release from Alberta Gaming Liquor and Cannabis (AGLC)

Record setting contraband tobacco seizures result from AGLC investigations

Alberta Gaming Liquor and Cannabis (AGLC) recently concluded several investigations which netted two of the largest contraband tobacco seizures in Alberta history.  The combined total of the contraband tobacco seized was 154,800 cartons of contraband cigarettes (30.7 million individual cigarettes).  These seizures are a result of the work conducted by AGLC’s Tobacco Enforcement Unit with the assistance of provincial law enforcement agencies.

  • In a January 2024 investigation, approximately 43,500 cartons (8.7 million individual cigarettes) were seized.  This equates to $7 million in retail value with a provincial tax avoidance of $2.4 million.  This included the seizure of 15,000 grams of contraband shisha.
  • In April of 2024, 60 wrapped pallets were seized from a warehouse setting netting a total of 111,300 cartons of contraband cigarettes (22 million individual cigarettes) which equates to over $18 million in retail value with a provincial tax avoidance of $6.6 million.
  • Criminal Charges are pending in both cases.

“These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue. AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta.”

  • Gary Peck, Vice President, Regulatory Services, AGLC

“Contraband tobacco hurts law abiding businesses that follow the rules, and it costs Albertans millions each year from lost tax revenue. Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law.”

  • Dale Nally, Minister of Service Alberta and Red Tape Reduction

Over the last nine months, AGLC’s Tobacco Enforcement unit has seized an estimated 35 million contraband cigarettes and 115,000 grams of contraband shisha from across the province. The total potential lost tax revenue is estimated to be more than $10.1 million.

Contraband tobacco:

  • is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
  • comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
  • can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.

In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.

Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522 or Crime Stoppers at 1-800-222-TIPS (8477).

Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal  investigations  related to the possession, distribution and trafficking of contraband tobacco products. In 2022-23, provincial revenue from tobacco taxes was approximately $522 million.

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Alberta

Pharmacist-led clinics improve access to health care: Lessons from Alberta

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News release from the Montreal Economic Institute

In Canada, 35 per cent of avoidable emergency room visits could be handled by pharmacists.

Emulating Alberta’s pharmacist-led clinic model could enhance access to primary care and help avoid unnecessary emergency room visits, according to a new study from the Montreal Economic Institute.

“Pharmacists know medication better than anyone else in our health systems,” explains Krystle Wittevrongel, senior public policy analyst and Alberta project lead at the MEI. “By unlocking their full potential in prescribing and substituting medications, Alberta’s pharmacist-led clinics have helped avoid tens of thousands of unnecessary emergency room visits.”

Pharmacists in Alberta have the largest prescribing authority in the country, including the ability to prescribe schedule one drugs with special training.

Unlike in Ontario and Manitoba, Alberta pharmacists are authorized to substitute prescribed medications, which can help address issues such as adverse reactions caused by interaction with other treatments.

The study explains that this can help reduce pressure on hospitals, as prescription-related issues account for more than 10 per cent of emergency room visits.

Alberta’s first pharmacist-led clinic, in Lethbridge, sees between 14,600 and 21,900 patients per year since opening in 2022.

It is expected that there will be 103 such clinics active in the province by the end of 2024.

The researcher also links the success of the pharmacist-led clinic model in Alberta to pharmacists’ expanded scope of practice in the province.

Among other things, Alberta pharmacists are able to order and interpret lab tests, unlike their counterparts in British Columbia, Ontario, and Newfoundland and Labrador.

A 2019 peer-reviewed study found that pharmacists could handle 35 per cent of avoidable emergency room visits in Canada.

“By enabling pharmacists to play a larger role in its health system, Alberta is redirecting minor cases from emergency rooms to more appropriate facilities,” said Wittevrongel. “Just imagine how much faster things could be if pharmacists could take care of 35 per cent of the unnecessary load placed on Canada’s emergency rooms.”

The MEI study is available here.

* * *

The MEI is an independent public policy think tank with offices in Montreal and Calgary. Through its publications, media appearances, and advisory services to policy-makers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship. 

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