Alberta Premier Rachel Notley announced that the Provincial Government has agreed to support the construction of an upgrading facility near Edmonton.
On Jan. 22, Notley along with Columba Yeung, chairman and CEO of Value Creation Inc. and Value Chain Solutions Inc. announced the plans for Value Creation Inc. to build a $2 billion upgrader in Strathcona County.
In a letter of intent, the province has agreed to support the facility with a $440 million loan guarantee.
The investment is being made as part of the provinces Made-in-Alberta plan to support the province’s energy sector through increases upgrading and refining of Alberta’s oil and gas.
“Albertans have been talking about this for decades,” said Notley.
“We’re making sure the next generation of Albertans have the opportunities they deserve in a stronger, more resilient, more diversified province,” she said.
The new facility will upgrade diluted oil sands bitumen into a higher-value crude blend. The crude blend will be able to flow easier through pipelines to refineries.
The facility will be using new green technologies that are expected to reduce the greenhouse gas emission by 16 per cent compared with the current technology.
The project, which is already underway, is projected to employ 2,000 construction workers and will employ 200 full-time staff once it is up and running.
The plant is estimated to be operational in 2022.
