CKPC To Produce Highly Recyclable Plastics In Canada

Through its Strategic Innovation Fund, Canada will invest US$36 million to support construction of the new US$3.3 billion polypropylene complex in Sturgeon County, Alberta.

Canada Kuwait Petrochemical Corporation (CKPC), a joint venture between Pembina Pipeline Corporation and Kuwait’s Petrochemical Industries Company K.S.C. (PIC), will receive US$36 million from the government of Canada to support the construction of a new US$3.3 billion polypropylene complex in Sturgeon County, Alberta. The federal investment is being made through the Strategic Innovation Fund, a program designed to attract and support high-quality business investments in Canada’s most dynamic and innovative sectors.

Alberta, Canada
Polypropylene (PP) is one of the world’s most commonly used building blocks in the manufacturing industry and is fully recyclable. PP is an ideal foundation for products found in daily life including automobile parts, food storage containers, and medical devices. (Image: CKPC)

“This project brings Canada and Kuwait together in a highly strategic investment that adds value to our natural resources,” said Stuart Taylor, Chairman, CKPC. “It will create thousands of jobs and new opportunities for Canadians. Combined support of the Government of Canada, the Province of Alberta and Sturgeon County helped make this project possible in a global market that is extremely competitive. Attracting such a valued partner as PIC, is a testament to the worth that our resources and our industry can bring to Canada and the world.”

As part of Canada’s US$1.1 billion plan to support jobs and workers in Canada’s oil and gas sector, this investment will help create 200 new jobs while securing 1,910 construction jobs for the life of the project. In addition, it is estimated that across Canada 13,800 indirect and induced jobs will be supported by the construction of the facility, and an estimated 1,500 indirect and induced jobs will be supported by the plant’s ongoing operations, based on Conference Board of Canada models.

“Our government is stepping up to support innovation and job creation in Canada’s resource industries,” said Navdeep Bains, Canada’s Minister of Innovation, Science and Economic Development. “CKPC’s [US$3.3 billion] investment further demonstrates Canada and Alberta are great places to invest. The project will help open new markets and opportunities for Canada’s resource industries, while creating more jobs across the province.”

CKPC will take abundant Canadian propane and increase its value through the production of highly recyclable polypropylene. Since Canada currently produces no polypropylene, this strategic project will open up an entirely new chain of opportunities and markets for Canada. By reducing current transportation of propane to current offshore markets and then returning to Canada as end use products, approximately 180,000 tons of carbon dioxide emissions will be reduced per year.

Thanks in part to this federal support, CKPC will also invest in the skills of the future by increasing its number of co-op positions for post-secondary students, invest in increased opportunities for women in trades and will further invest US$15 million in additional research and development. CKPC will also invest $US5.2 million in efforts to reduce plastic waste as a contribution to Canada’s environmental goals.

“Our government is working with the hard-working men and women in Alberta’s oil and gas sector to create new jobs, opportunities, and markets for Canada’s resources,” said Amarjeet Sohi, Canada’s Minister of Natural Resources. “That’s why we’re proud to support CKPC’s project that will take low-priced Canadian propane and produce high-quality polypropylene right here in Alberta and secure thousands of jobs in the process.”

In addition to the Strategic Innovation Fund, there are hundreds of programs and services to help businesses innovate, create jobs and grow Canada’s economy. With its simple, story-based user interface, the Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes.