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Northern Petrochemical CEO Geoff Bury announced his company's plans to build a $2.5 billion methanol and ammonia production facility on Wednesday, alongside Premier Jason Kenney (Photo: Shaun Penner / EverythingGP)
By Shaun Penner
Energy Diversification

Petrochemical plant announcement adding to Grande Prairie region’s economic diversity

Nov 11, 2021 | 7:00 AM

Northern Petrochemical’s announcement of plans to construct a $2.5 billion methanol and ammonia production facility in the Greenview Industrial Gateway south of Grande Prairie shined yet another light on the diversified economy the region possesses.

The company announced plans to construct the facility Wednesday, which is hoped to be operating by 2026. The plant would operate as a net-zero, carbon-neutral facility through carbon sequestration, and will utilize natural gas from the region as a feedstock to produce the blue methanol and ammonia.

READ MORE: $2.5 billion carbon-neutral ammonia and methanol production facility to be built at Greenview Industrial Gateway

Premier Jason Kenney, who was on hand for Wednesday’s announcement at Evergreen Park, says another multi-billion-dollar investment into diversified energy projects in the region is a sign the Grande Prairie area is positioning itself to function as a hub for more projects in the future, alongside its oil and gas sector.

“I think it says the Grande Prairie region is set for a period of sustained economic growth,” said Kenney. “Marrying the traditional strength of the oil and gas reserves, with technology in a way that diversifies our economy.”

This investment comes just a few years after a proposal brought forward by Nauticol Energy to construct a $2 billion methanol plant in the County of Grande Prairie, near the Weyerhauser and International Paper mills.

Kenney says these, along with sectors like oil and gas, forestry, hard mining, and agriculture, have made the Grande Prairie region a bright spot in the province’s economic recovery.

But, he says projects like Northern Petrochemical’s will fill a gap in the region’s economy.

“Altogether, the northwest has been one of the bright spots during four or five pretty tough years for Alberta,” said Kenney. “But, if you were missing something in this region, it was probably industrial level, value-added, manufacturing of energy products.”

The methanol and ammonia, according to Northern Petrochemical CEO Geoff Bury, will be targeted for export to countries such as Japan, South Korea and China.

The premier also had high praise of local municipal leadership for the creation of the Greenview Industrial Gateway (formerly known as the Tri-Municipal Industrial Partnership), noting the efforts of councils, administrators and industry of the MD of Greenview and the City and County of Grande Prairie to attract a wide range of industry to the region.

He suggests those efforts will ripple into many other economic benefits for the region.

“If I was a real estate investor, after announcements like this one today, I would be buying in Grande Prairie. I would be buying in the M.D. of Greenview.”

The Greenview Industrial Gateway, or GIG, is located south of the city along Highway 40. The project has become a solo venture for the MD of Greenview, after originally inking an agreement with the County and City of Grande Prairie to pursue the project together.

After five years of a lot of work and recruitment, Greenview Reeve Tyler Olsen is excited to finally have an anchor tenant for the project.

“This is the next crucial step. The most crucial point right now, to have someone in there to help move it forward,” said Olsen. “With them in there, it only attracts more.”

While Greenview decided to make the GIG hub a solo venture back in November, County of Grande Prairie Reeve Leanne Beaupre is happy to see a big step forward be taken in the project.

“To see this come to fruition, regardless of who is driving the bus on this project, is really satisfying,”

Beaupre also feels this project shows yet again how important the region’s economy is in the provincial context.

“You see that diversification, you see the opportunities here in this region,” said Beaupre. “It’s really important that people understand how diversified and how important this area is going to be to the province of Alberta and to the country.”

City of Grande Prairie Mayor Jackie Clayton echoes Beaupre’s sentiments.

“It’s just a great sign of what the future shows for this region.”

Construction on the project is expected to begin in 2023 and will create an estimated 4,000 construction jobs and 400 full-time jobs once the plant is operational.

by Shaun Penner