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Rocky Mountain Clean Fuels’ synthetic diesel facility near Carseland, Alberta. (Rocky Mountain Clean Fuels)
$20 MILLION

Alberta invests in synthetic diesel facility in Wheatland County

Dec 12, 2024 | 1:14 PM

Through the Alberta Petrochemicals Incentive Program (APIP), the Government of Alberta is investing more than $20 million into Rocky Mountain Clean Fuels’ synthetic diesel facility in Wheatland County, and all in an effort to continue bringing more investments and jobs to the province.

The grant is intended to support a synthetic diesel plant near Carseland, east of Calgary, that would use natural gas and natural gas liquids to produce synthetic diesel, naphtha and wax.

“Alberta is the economic engine of Canada, and our job creation and diversification is key to this. We are committed to making Alberta a world leader in petrochemicals and APIP is helping to attract investment, like this Rocky Mountain Clean Fuels project, as we capitalize on opportunities throughout the province,” said Minister of Energy and Minerals Brian Jean.

Officials say naphtha is a petroleum fraction that can be used for gasoline blend stock and diluent. The wax — Fischer Tropsch paraffin wax to be specific — can be used for lubricants, hot melt adhesives, paints and coatings.

The government says APIP has played a role in attracting billions of dollars in investment to the province and that Rocky Mountain Clean Fuels is critical to the province’s push for energy diversification and efforts to lower emissions.

APIP funds up to 12 per cent of an eligible project’s capital costs, only paid out following the completion of construction. For larger projects such as this one, the grant is paid out over three years.

APIP was established in October 2020 to help grow the petrochemical manufacturing sector in the province. Three other projects have received funding through the program: Inter Pipeline’s Heartland Petrochemical Complex; Dow Canada’s Fort Saskatchewan Furnace expansion; and Air Products’ Net-Zero Hydrogen complex.

“APIP is helping make our province, including rural areas, an attractive jurisdiction for investment. In addition to the good-paying jobs created for construction and operations, the facility will generate economic spinoffs in the Carseland region,” commented Chantelle de Jonge, MLA for Chestermere-Strathmore.

Rocky Mountain Clean Fuels recently opened its $173 million facility and production started at the end of November. The facility is currently producing about 220 barrels per day (bpd) of synthetic diesel, naphtha and wax, and is expected to produce 500 bpd at full capacity, Alberta officials report. They add that the project has created 900 jobs between construction and operations.

Future expansions may include increasing daily fuel output; integrating hydrogen production; incorporating carbon capture, utilization and storage technologies; and adding renewable feedstock to further enhance sustainability.

“The Rocky Mountain Clean Fuels Enhanced GTL® technology is well-suited to provide significant added value to Alberta’s abundant natural gas resource,” said Doug Geeraert, president and CEO, Rocky Mountain Clean Fuels Inc.

“The Government of Alberta has shown its commitment again towards practical entrepreneurial-driven solutions that make this province a leader in energy innovation worldwide. Rocky would like to thank the Alberta government for its tremendous support.”

This project is the first to receive APIP funding that is not in the Edmonton region.

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