INTERVIEW: Firm advances on methanol-ammonia project in Canada

TORONTO (ICIS)–Canadian company Northern Petrochemical Corp has secured land at a site in oil and gas-rich Alberta province for a planned “blue” methanol-ammonia project, CEO and president Geoff Bury told ICIS in an interview on Thursday.

If it goes ahead, the project will be located at the “Greenview Industrial Gateway” (GIG) site near Grand Prairie in northwest Alberta.

While the company has not yet purchased the land, it has “an agreement in place to purchase it”, Bury said.

Regarding capacities, he indicated 1.2m tonnes/year of methanol and 800,000 tonnes/year of ammonia.

Northern is working towards a final investment decision in H2 2023, with a potential start of production in 2027, he said.

He did not disclose financial details.

Bury also said that current moves to make Alberta legally sovereign were not affecting the company’s investment decision.

“This [sovereignty move] is more symbolic, we do not consider that a project risk,” he said.

Danielle Smith, a leading Conservative politician in the race to succeed Alberta premier (governor) Jason Kenney, is advocating a “Free Alberta” platform, with an “Alberta Sovereignty Act” that would allow the province to refuse to enforce federal laws.

From a constitutional law perspective, this “nullification” of federal laws would make Alberta an independent state.

Kenney resigned in May but carries on as premier until his United Conservative Party elects a successor, with results expected on 6 October.

Calgary-based Northern has no existing production. It was set up as a special-purpose company to develop the methanol-ammonia project.

FOUR PROJECTS AT GREENVIEW
Meanwhile, GIG executive director Kyle Reiling said that he expects GIC to attract “at least” four major petrochemical operations.

GIG offered a “closed-loop industrial system”, providing a complete infrastructure for manufacturing companies, he said.

Its advantages include access to feedstock, water, electricity, an integrated transportation network, and the ability for carbon sequestration in a carbon capture hub, he said.

Canada’s chemical industry sees carbon capture, utilisation and storage (CCUS) as important for attracting chemical investments.

Dow last year chose Alberta as location for a planned net-zero carbon emissions ethylene and derivatives complex, partly because of the province’s existing and planned carbon-capture infrastructure.

GIC’s Reiling noted that Northern Petrochemical and another company, Cerilon, already secured land at GIC.

Cerilon, which is planning a gas-to-liquids (GTL) facility, did not respond to an ICIS request for comment.

Al Greenwood contributed to this article

Thumbnail photo: Geoff Bury, CEO and president of Calgary-based Northern Petrochemical Corp