More jobs could soon be on the way.
As a part of the Made in Alberta strategy, Premier Rachel Notley announced Tuesday (Jan.22) that a Calgary-based company is on track to invest $2 billion in an upgrading facility in the Industrial Heartland.
"We’re taking the bull by the horns and fighting to get full value for our oil," Notley said. "We’re making sure the next generation of Albertans have the opportunities they deserve in a stronger, more resilient, more diversified province.”
Value Creation Inc. would help create more than 2,000 construction jobs and another 200 full-time positions once the facility is up and running.
The facility will upgrade diluted oil sands bitumen into a higher-value crude blend that can flow easier through pipelines. This provides significant cost savings while increasing pipeline capacity by up to 30 per cent and providing access to more refineries around the world that cannot currently accept Alberta’s oil sands bitumen.
Once completed, it would be the first commercial-scale partial upgrader in the world to use the new technology. The partial upgrading technology is expected to reduce greenhouse gas emissions by 16 per cent per barrel compared to current processes used to extract bitumen.
A letter of intent was signed last week that includes a $440 million loan guarantee from the province.
The project is expected to generate roughly $2.5 billion in revenue for the province over the 30-year life of the project. Strathcona County is expected to receive about $280 million in municipal tax revenue over that time.
The plant is expected to be operational in 2022.