Reimagining sustainable growth
Alberta stepped up measures toward sustainable growth to navigate the economic challenges last year. Despite the uncertain outlook for the global economy, the province is projected to grow by 2.6% in 2023.
Traditionally known as Canada’s supplier of oil and gas, Alberta’s economic strength lies mainly in its energy sources, including bitumen. As such, Dow Chemical announced last December a $6.8 billion project to build the world’s first netzero petrochemical production facility.
Joining the global effort to fight climate change and aligning with the federal government’s goal of becoming net-zero by 2050, Alberta has committed to becoming a sustainable economy through diversification.
“One of the things that I’m most excited about in Alberta in the coming years is the planned diversification happening on all industrial fronts,” Alberta Premier Danielle Smith
said.
Highlighting the importance of evolving into a zeroemissions economy by 2050, Canada’s Minister of Energy and Natural Resources Jonathan Wilkinson, said, “Regions which have historically been large producers of oil and gas need to know what future opportunities are resulting from the momentum to move to a low carbon environment; and how such regions can utilize their resources to continue being relevant in a world that is looking to decarbonize.”
With the projected growth in demand for hydrogenoperated systems and transportation, Alberta welcomed the announcement from Air Products that it will build a $1.2 billion net-zero hydrogen facility in the province. When completed, it will contribute to Canada’s electricity supply from non-emitting sources.
“The future of Canada’s electricity is an ‘all of the above’ situation where we will use hydrogen, wind, solar, and carbon capture alongside traditional means of generating electricity,” said Electricity Canada President and CEO Francis Bradley.
Alberta’s chemical and plastic industry is also evolving into a low-carbon, circular economy.
“Alberta has leveled the playing field with jurisdictions like Pennsylvania and the U.S. Gulf Coast when it comes to having the right investment conditions. It has some of the best geological resources for carbon capture and storage,” said Chemistry Industry Association of Canada President and CEO Bob Masterson.
Alberta is also committed to supporting research that will advance its sustainable transformation efforts and develop new technologies to decarbonize its economy.
“Our region is very innovative in using technology to develop our abundant energy resources,” said Invest Alberta Corp. CEO Rick Christiaanse.
A testament to that commitment is the nearly decadelong commercial scale deployment of carbon capture, utilization and storage (CCUS) technology, which captures carbon emissions from existing energy systems and uses it either for other processes or safely stores it in underground geologic formations.
“In addition to the two operational CCUS projects, there are 25 additional proposed hubs that could be developed across Alberta, representing an investment opportunity worth billions of dollars for interested investors,” Christiaanse also said.
Through its McNeil Centre for Applied Renewable Energy, Concordia University of Edmonton, one of the province’s oldest post-secondary institutions, has become a “partner in Alberta’s goal of becoming a sustainable economy,” said CUE President and Vice-Chancellor Dr. Tim Loreman.
For over a decade, universities like CUE have partnered with local industries to understand ways to apply renewable energy, solar, wind, and geothermal, in everyday business operations.
In forestry and agri-food, Mondi acquired Hinton Pulp mill last year and will spend more than $400 million to upgrade the facility to develop sustainable paper and packaging products. Meanwhile, McCain Foods Ltd. will spend a record $445 million to expand its potato processing plant.
To support its goal to diversify the economy, Alberta is leaning into tourism development, capitalizing on the iconic Canadian Rockies, six UNESCO world heritage sites, prehistoric fossil beds, and vibrant and diverse cultures. Alberta’s visitor economy was worth approximately $10.7 billion last year, making it the province’s top service sector.
“We’re working with different levels of government, tourism entrepreneurs and private investors to bring forward new attractions, new Indigenous product, and new boutique accommodations which represent a huge opportunity for investment and development,” said Travel Alberta CEO David Goldstein.
Alberta’s Minister of Tourism and Sports Joseph Schow also said: “Alberta’s unique story, picturesque mountain vistas, rolling prairies, and warm embrace leave everyone with a desire to come back, whether it’s for business or vacation.”