Alberta Contributes $80mn To New Methanol Plant
The government of Alberta will contribute $80mn to the first phase of a new C$2bn (US$1.5bn) methanol plant at Grande Prairie, premier Rachel Notley announced February 20.
The funding will come in the form of future royalty credits, under the province’s Made-in-Alberta energy strategy, that will be applied to phase one of the Nauticol facility, which will see three identical phases – each producing 1mn mt/yr of methanol from 100mn ft3/day of natural gas – built starting in 2020, with the first phase expected to be operational in 2022. The project was first announced by Nauticol last October.
“As we fight to get top dollar for the resources owned by all Albertans, Nauticol’s major investment in the Peace region means thousands of good jobs and more upgrading of our raw resources into the products the world needs right here at home,” Notley said. “By seizing these opportunities today, we’re making sure our kids and grandkids have new opportunities in a stronger, more diversified energy sector.”
Nauticol CEO Mark Tonner said the plant will be Canada’s largest methanol facility, dwarfing Alberta’s only other methanol plant at Medicine Hat, a 600,000 mt/yr facility owned by Methanex.
“This world-scale project will expand Alberta’s petrochemical value chain by transforming the region’s abundant natural gas resources into a highly valued product that will reach growing global methanol markets,” Tonner said.