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1999–2009

SPECIAL 10TH ANNIVERSARY PUBLICATION Created 10 years ago, Alberta’s Industrial Heartland Association is a unique model of partnership for economic growth • Today the area known as the Industrial Heartland is the world’s most attractive location for petrochemical, chemical, oil, and gas investment • Key partners cooperate to plan a safe, environmentally sound, and productive industrial area, which is connected to an ever-growing industrial complex built on unparalleled financial and logistical advantages.


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Building for the Future

Congratulations to the Alberta Industrial Heartland Association on their 10th Anniversary. We’ve seen a lot of changes in Alberta’s Industrial Heartland over the past decade, and during that time Shell’s landscape at Scotford has changed too. From the construction and start-up of our Upgrader – Alberta’s first in 25 years – to our current Upgrader Expansion 1 project, we’ve grown together and the region has prospered. We’re happy to help you celebrate this important milestone today, and we’re excited by what the future holds in the Heartland. Here’s to many more decades of success.

www.shell.ca/scotford


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Alberta’s industrial heartland association #202 9906-102 St. Fort Saskatchewan, Alberta T8L 2C3 www.industrialheartland.com

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executive director Neil Shelly Tel: 780-998-7453

inquiries@industrialheartland.com

economic development officer Jana Tolmie-Thompson Tel: 780-998-7453

Deep roots Alberta’s Industrial Heartland has a long and rich history of being a good environment for industry by Candice G. Ball

inquiries@industrialheartland.com

JUNEWARREN PUBLISHING

Adding value

PRESIDENT & CEO Bill Whitelaw

All of Canada benefits by attraction of value-added industries to Alberta’s Industrial Heartland

PUBLISHER Agnes Zalewski EDITOR Chaz Osburn

EDITORIAL ASSISTANCE Joseph Caouette, Marisa Kurlovich, Kelley Stark ART DIRECTOR Bill Harris PRODUCTION MANAGER Michael Gaffney Publications Manager Audrey Sprinkle Publications SUPERVISOR Rianne Stewart CREATIVE SERVICES SUPERVISOR Matt Davis GRAPHIC DESIGNER Cathlene Ozubko CREATIVE SERVICES Rachel Dash-Williams, Birdeen Jacobson, Rawan Kemaldean, Tony Konkolus, Aaron Parker, Natasha Paterson Ad Traffic Coordinator Alanna Staver ACCOUNT MANAGER Michael Goodwin Senior Marketing Coordinator Alaina Dodge-Foulger OFFICES Calgary #300, 5735 - 7 Street NE Calgary, Alberta T2E 8V3 Tel: 403-265-3700 Fax: 403-265-3706 Toll Free: 1-888-563-2946 Edmonton 6111 - 91 Street NW Edmonton, Alberta T6E 6V6 Tel: 780-944.9333 Fax: 780-944-9500 Toll Free: 1-800-563-2946

by Tricia Radison

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Fort Saskatchewan Big spaces and huge opportunity in this city by Rebecca Dika

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Lamont County Finding good fits and forging symbiotic relationships by Rebecca Dika

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Strathcona County Balance and diversity bring flavour to this community by Rebecca Dika

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Sturgeon County Progressive attitude with an eye on sustainability by Rebecca Dika

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Benefits abound Signs of what’s possible when you work together are clearly visible in the Heartland by Rebecca Dika

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Laying the foundation AIHA builds on success to meet the challenges of today and tomorrow by Darrell Stonehouse

alberta’s industrial heartland




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Message from the Premier

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alberta’s industrial heartland



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On behalf of the Government of Alberta, I congratulate Alberta’s Industrial Heartland Association (AIHA) on ten years of achievement and success. Since 1999, Alberta’s Industrial Heartland Association has demonstrated the power of collaboration between municipalities, government, and industry.

Minister

Working in partnership, the Alberta government and the AIHA share a common goal to create a world-class integrated hydrocarbon processing cluster in Alberta’s heartland based on our vast oilsands resource. By promoting the Industrial Heartland and working together to support moving bitumen up the value chain into refined products and petrochemicals, I believe we can provide significant, longterm benefits to Alberta’s economy and that of the rest of Canada. Alberta’s continued success owes a great deal to the knowledge and expertise of organizations such as the AIHA that advocate on behalf of the petrochemical industry. I commend your hard work, knowing that your contributions have helped build a stronger Alberta. Your dedication and commitment to excellence is a credit to you and your industry. Congratulations, once again, on achieving this important milestone. I wish you all the best in your future endeavours.



10th anniversary

Sincerely yours, Iris Evans, Minister, Alberta Finance and Enterprise


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Message from the Chair

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On behalf of the Board of Directors, it is with great pleasure and pride that we celebrate the 10th anniversary of the forming of Alberta’s Industrial Heartland Association.

Not only is Alberta’s Industrial Heartland strong and vibrant due to the partnership and cooperation of the four member municipalities, but it is equally so because of the strong links and ties we have with many other stakeholders from a broad cross-section of interests.

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It has been with the involvement of such a diverse group of agencies, associations, private industry, and companies we have the good fortune to work with that has provided us the opportunity for exploring new initiatives for economic growth and diversity in the region. These drivers are paramount in ensuring the future sustainability of region.

The often repeated adage that “together we are stronger” is certainly applicable in this region we are proud to call our home, whether it relates to our personal residence and/or our place of work and business. Some of the significant accomplishments we have been able to achieve together during the past 10 years include: • Complementary Area Structure Plans by the four member municipalities • Eco-Industrial Master Plan • Land Trust Society • Voluntary Resident Property Purchase Program • Industrial Collaboration to Address Resident Interests

Despite any challenges we experience today and for the immediate future with respect to maintaining what exists and attracting new business and investment, the future for development in Alberta’s Industrial Heartland still looks very strong and promising. We look forward to continuing and enhancing our partnerships with our many stakeholders as we work with one another to advance our region’s vision and common goals for the future. May the next 10 years be every bit as successful as the first 10.

Jim Sheasgreen Chair, Alberta’s Industrial Heartland Association Mayor, City of Fort Saskatchewan

North West Upgrading provides a Made-in-Alberta solution with more value-added processing in the province. Benefits for Alberta include: • Value: We are a local “Downstream Solution” for Alberta’s bitumen production • Economic Advantage: Our project will generate billions of dollars of taxes for Alberta • CO2: We will be a leader in reducing CO2 emissions • Diesel Supply: Our most important product is ultra low sulphur diesel - the fuel that powers every sector of our economy

2800, 140 - 4th AVE S.W. Calgary, Alberta, Canada T2P 3N3 | toll free: 1-888-833-3708

info@northwestupgrading.com | www.northwestupgrading.com alberta’s industrial heartland



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When the forefathers of Alberta’s Industrial Heartland Association (AIHA) sat down 10 years ago to work out a coordinated plan for industrial development, they could not have dreamed of the success the Heartland would become. Building upon the natural advantages the area has to offer, the coordinated efforts of the AIHA partners has resulted in an awareness by the global community that Alberta’s Industrial Heartland is the place to be. If you look across the landscape of the Heartland, you will see a virtual United Nations of investors that have staked their claim to be part of the potential the area has to offer. With over $80 billion in proposed developments now on the books, Alberta’s Industrial Heartland is approaching a critical mass where the synergies among operations will be greater than the sum of the individual parts. And it is these synergies that will lead to even further development and growth that capitalizes on the value added potential of our natural resources. A recently completed study has demonstrated that the Heartland area can build upon its legacy as a hydrocarbon-processing center to become a world-class chemical cluster producing a wide variety of products and services. The story of development in the Heartland goes beyond the economic opportunities and recognizes the quality of life the region has to offer its citizens. The AIHA’s member municipalities have approached this opportunity with a sustainable development concept in mind and includes consideration for all aspects of the development and its impacts on the community and environment. These efforts and commitment towards sustainable development has resulted in the completion of the first phase of an Eco-Industrial Master Plan for the area. This plan is designed to anticipate and prepare for the coming development and to avoid the congestion and conflicts that have afflicted other regions that have experienced rapid growth. This plan incorporates concepts into municipal planning for the area including transportation, land-use, utility, and social support needs. As we look toward the future, we can only guess as what the next 10 years will bring to the region; however, the future is looking bright. It is my pleasure to work with the dynamic team of individuals that make up the AIHA, as well as our many stakeholders. Their legacy over the past 10 years has proven that by working cooperatively, great things can be achieved.

Neil Shelly, Executive Director, Alberta’s Industrial Heartland Association

Connecting with communities for the future Inter Pipeline Fund congratulates the Alberta Industrial Heartland Association for 10 years of excellent work promoting the Heartland’s development into Canada’s largest hydrocarbon-processing region. We look forward to strengthening our connections with the Heartland communities as we build together for a successful future. www.interpipelinefund.com



10th anniversary


Congratulations Alberta Industrial Heartland Association on your 10th Anniversary.

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Major established and proposed industries • Access Pipeline • Agrium Inc. – Fort Saskatchewan and Redwater • Air Liquide Canada Ltd. • Air Products Canada Ltd. • Alberta Envirofuels Inc. • Alcan Smelters & Chemicals Ltd. • AltaLink LP • ALTERNrg • ATCO Gas • ATCO Midstream • Aux Sable Canada LP • BA Energy Inc.* • BP Canada Energy Co. • Bunge Canada • Canadian Bioenergy Corp.* • Canadian National Railway • Canadian Pacific Railway • Canexus Chemicals Canada LP • Dow Agrosciences Canada • Dow Chemical Canada Inc. • Enbridge Pipelines Inc. • Evonik Degussa Canada Inc. • Fort Hills Sturgeon Upgrader* • Gemini Corp. • Gibson Energy Partnership Ltd. • Gulf Chemical & Metallurgical Canada Corp. • HAZCO Environmental Services Ltd. • Horton CBI Ltd. • Imperial Oil • Keyera Energy • Kinder Morgan Canada Inc. • King Tech Maple Resources Inc. • Marsulex Inc. • Maxim Deerland Power Corp. • MEGlobal • North West Upgrading Inc.* • NUCRYST Pharmaceuticals • Pembina Pipeline Corp. • Petro-Canada – Refinery • Petrogas Marketing Ltd. • Praxair Inc. • Prospec Chemicals • Provident Energy Ltd. • Scaw Metals Group - AltaSteel Ltd. • Shell Canada Refinery, upgrader and chemicals • Sherritt International Corp. • StatoilHydro Canada Ltd.* • Sulzer Metco (Canada) Inc. • Total E&P Canada Ltd.* • TransCanada Pipelines LTD. • Triton Projects Inc. • Umicore Canada Inc.

* proposed

Alberta’s Industrial 10 Heartland: A unique place to live and work Alberta’s Industrial Heartland is a geographic area and a regime of municipal plans and policies that encourages, facilitates, and plans industrial development while mitigating the impact of heavy industry. It does so under an “eco-industrial” philosophy reflecting the interests of the community, the environment, and industry, while contributing positively to partner communities and resident quality of life. The region itself is 533 square kilometres, or about 205 square miles in size, and is located within Greater Edmonton. While adjacent to one of Canada’s largest cities, the Heartland offers the peace and beauty of the country. COUNTY OF THORHILD NO. 7

Redwater

LAMONT COUNTY STURGEON COUNTY Bon Accord Gibbons

INDUSTRIAL HEARTLAND Bruderheim

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FORT SASKATCHEWAN STRATHCONA COUNTY

EDMONTON

ELK ISLAND NATIONAL PARK

Sherwood Park COOKING LAKE BLACKFOOT PROVINCIAL RECREATION AREA

BEAVER COUNTY LEDUC COUNTY

This map shows the Industrial Heartland in relation to Edmonton, Alberta’s capital city.

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Alberta’s Industrial Heartland region has a long and rich history of being a good environment for industry by CANDICE G. BALL

Larry Wall

Vern Hartwell

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photography by Joey Podlubny

Alberta’s Industrial Heartland region is more than a world-class industrial centre with investments of over $30 billion in petroleum, petrochemical, and chemical processing facilities. It is a proven, productive environment for large- and mid-size manufacturing industries. Development in the Industrial Heartland didn’t just happen coincidentally. Every step of the way has been strategically planned. And while much of the credit for the huge increase in economic activity can be traced to the creation of the Alberta’s Industrial Heartland Association (AIHA) 10 years ago and its success in developing strategic partnerships and alliances, it’s important to recognize the region has been home to industry growth stretching back more than 50 years. To understand the Industrial Heartland’s unique environment, one first needs to realize the history of the region has very deep roots. In fact, they stretch back to 1947 when Sherritt Gordon Mines Ltd. decided to undertake a process known as hydrometallurgical ore processing. The process may sound extremely complicated, and it was revolutionary at the time—a new method of mineral processing designed to eliminate sulphur dioxide emissions. Sherritt Technologies was formed to develop a nickel and cobalt processing plant based on the technology that would use feedstock from the company’s nickel, copper, and cobalt mine in Lynn Lake, Manitoba. In 1954, the company opened the Sherritt Pressure Hydrometallurgical Plant, now known as Corefco in Fort Saskatchewan, Alberta. Again, the choice for the location was strategic and deliberate.

To refine the ore, an abundant source of natural gas was needed. As important, the area was located on a Canadian National Railway (CNR) line—a precondition in an agreement between Sherritt and CNR for the rail company to build a link to Lynn Lake. These advantages did not go unnoticed by others. Companies such as Dow Chemical— whose operations in Fort Saskatchewan today form one of the largest petrochemical facilities in Canada—and BP Energy, to name a few, were attracted by a ready supply of gas and water, as well as by the existence of underground salt caverns ideal for storing natural gas. “Dow Chemical Canada Inc. has been operating in the Heartland since 1961,” says Joe Deutscher, site operations director for Dow Chemical Canada’s sites in Fort Saskatchewan and Prentiss, Alberta. “The initial focus was on serving the agriculture and pulp and paper industry. In an effort to support the boom in Alberta construction, the site also started producing foamed plastic building insulation. In the late 1970s, the growth in demand for chemicals moved the Fort Saskatchewan site into new territory with the start-up of several world-scale petrochemical plants serving the needs of a global industry. Over the years, we have been able to evolve our operations thanks in part to our close proximity to feedstock supplies, major transportation routes, and a highly skilled workforce. There is a collaborative environment in this region that sees neighbouring industries working together with one another and alongside our surrounding municipalities and government organizations. All of these factors have contributed to our success and will be a cornerstone for us into the future.”


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Key dates in the formation of AIHA

FALL

The Fort Saskatchewan Regional Industrial Association (FSRIA) expanded its membership and invited representatives from the four partner municipalities to be part of its Business and Economic Committee.

Sherritt has had a major presence in Fort Saskatchewan since 1954 and continues to be a key industry in the Industrial Heartland.

The region’s fledgling chemical-petrochemicaloil cluster began to grow and mature, and the seeds to attract additional investment began to be sown. In 1993, the Fort Saskatchewan Regional Industrial Association (also known as FSRIA, the precursor to the Northeast Capital Industrial Association) expanded its membership and invited representatives from the four partner municipalities to be part of the association’s Business and Economic Committee. It was the industries that recognized a joint partnership with the municipalities could improve the outlook and image for the area’s future. It was with industry that the vision of the Heartland was created. “Early in 1998, [the FSRIA committee] challenged the municipalities of Fort Saskatchewan, Strathcona, Lamont, and Sturgeon counties to make their land-use planning and business policies similar from municipality to municipality and to work together to make a good investment piece for industry to invest in the region,” says Larry Wall, the AIHA’s first executive director, who now works for Total E&P Canada Ltd.

That challenge was taken up by the leadership of Vern Hartwell—Strathcona’s mayor at the time—on the political level along with the other leaders in the four municipalities. The team engaged a professional facilitator to conduct a workshop in which participants completed an analysis of strengths, weaknesses, opportunities, and threats, and established a foundation for a strategic plan. From that “we did something that’s very different,” says Hartwell. “We actually formed a corporation with four shareholders.” Over the next nine months, a committee formed with representation from the four municipalities and the provincial government. Their task was to develop a business plan with a five-year investment attraction strategy. The plan addressed how the municipalities could work together on transportation, infrastructure, and land and use planning, and how they could communicate a common message. The municipalities adopted that business plan. The AIHA, which officially began in 1999, established a funding program with the municipalities investing upfront on a proportional basis to each respective industrial tax base. ❯

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Signing of an inter-municipal protocol that would lead to Alberta’s Industrial Heartland Association (AIHA).

JANUARY

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january

A business and economics team of the FSRIA team engaged a professional facilitator to conduct a workshop in which participants looked at the strengths, weaknesses, opportunities, and threats, and established a foundation for a strategic plan for planned economic growth in the region.

’98 FALL

National search for first executive director of the AIHA.

AIHA operations commence.

alberta’s industrial heartland

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The role that industry plays in the Industrial Heartland is critical to the region’s success and prosperity.

Dow Chemical has been evolving in the Industrial Heartland since setting up operations in 1961.

“We did something that’s very different.” — Larry Wall, first executive director, Alberta’s industrial heartland association

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In a nutshell, its mission was to serve as an economic development vehicle to improve the regional economy via the attraction and retention of industrial developments primarily in the chemical, petrochemical, and oil and gas sectors. “The idea was they would invest into the association, to fund these activities,” Wall says of the municipal partners. “As revenues started to flow as a result of those investment activities, a portion would go back to repay the initial contributions from the municipalities.” Next, the association hired Wall as its first executive director. “He actually hit the floor running, which was wonderful,” says Hartwell. “Larry met with almost all of our targeted potential investors within the first year.”

The AIHA was established to: • Be a responsive, one-window approach in serving industrial investors. • Be a catalyst for promotion of industry, industry products, and industry opportunities. • Provide support for industrial competitiveness. • Provide facilitation of issue identification and resolution. • Be a vehicle for communicating accurate information about industrial operations. Initially, the AIHA was successful in attracting power cogeneration to existing facilities. Then the AIHA undertook a major study entitled the Eco-Inventory and Opportunity Analysis, which set the parameters on which the Heartland focused its marketing and promotion plan. Included in the analysis was a breakdown of feedstocks and chemicals produced by companies in the region. The study went further in identifying existing product and byproduct exchanges within the region. Studies to optimize the AIH’s proximity to the oilsands—a resource growing not only in importance for Alberta but also all of North America—followed. The advantages of upgrading Alberta resources in Alberta soon became clear. Shortly after the shift in focus to upgrading facilities, Wall met two men who also advocated integrated development and recognized the viability of upgrading in the Heartland— Al Hyndman of BA Energy and Rob Pearce of North West Upgrading Inc. “Those two early merchant upgraders, by maturing their concepts, gave a lot of credibility to this whole idea of economic value being generated for upgrading proponents by building within a developed area,” Wall recalls. Today, the region is far different than it was over 50 years ago when Sherritt first set up shop. Alberta’s Industrial Heartland now boasts over 40 industries with investments of over $30 billion in petroleum, petrochemical, and chemical processing facilities. It is a proven, productive environment for heavy and medium industries. And the future looks bright. “Without a doubt, it is an international success story,” concludes Hartwell. “To the best of my knowledge, no one has done it like this.” ●


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Numerous construction cranes dot the horizon at Shell’s Scotford facility, showing the magnitude of the project. The North Saskatchewan River is in the foreground.

Adding value All of Canada benefits by attraction of value-added industries to Alberta’s Industrial Heartland by tricia radison

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photography by JOEY PODLUBNY


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If Albertans are to reap the full economic benefits of their natural resources, attracting companies interested in value-added opportunities has to be a priority. This applies to Alberta’s Industrial Heartland. “There are a number of reasons why companies would choose to locate in Alberta’s Industrial Heartland,” observes Dr. Laurie J. Danielson, executive director of the Northeast Capital Industrial Association. “Apart from existing infrastructure and industries, established transportation systems for product movement, land that is already zoned for heavy industry, access to utilities, and a labour pool, there is a network of companies working with other associations, government organizations, and community groups at the provincial, regional, and local levels to address environmental, health, safety, infrastructure, and community issues to promote sustainable industrial growth and high quality of life.” Peter St. George, general manager, Shell Scotford Upgrader, acknowledges the opportunities the Industrial Heartland offer. “When Shell decided in 1999 to build our upgrader in Alberta’s Industrial Heartland, we knew it offered a business-friendly environment, countless synergies, and a strategic ❯

alberta’s industrial heartland

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PHOTO: SHELL

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“When Shell decided in 1999 to build our Upgrader in Alberta’s Industrial Heartland, we knew it offered a businessfriendly environment, countless synergies, and a strategic location. Today, we are very pleased to operate a refinery, chemicals plant, and upgrader in this region, and with our upgrader expansion, we plan to be here for decades to come.” — Peter St. George, General Manager, Shell Scotford Upgrader

“Figuring out where to build an upgrader is a huge decision. Many questions must be answered — not least of which is do they want us here? In our case, that wasn’t an issue. Alberta’s Industrial Heartland Association made it clear, right off the bat, that we would indeed be welcome in the region. Alberta’s Industrial Heartland Association must be applauded for playing a critical role in our decision to build our upgrader in Sturgeon County—and for attracting other world-class industrial development to the region.” — NEil Camarta, Senior Vice-President of OilSands, Petro-Canada

“The CEDA Group of Companies is one of the premier industrial contractors operating in North America with an Alberta-first approach. The Alberta Heartland is where our business started and remains one of our key strategic focus areas. CEDA is proud to be part of the communities that make up the Alberta Heartland—it is where we live and where we work. CEDA congratulates the business and community leaders for their vision that has made the Alberta Heartland one of the best places in the world to live and do business.” — Ian Martin, Vice-President, Business Development, CEDA Group of Companies

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Shell’s Scotford Upgrader is a long-term expansion that is projected to ultimately produce 700,000 bpd.

location,” he says. “Today, we are very pleased to operate a refinery, chemicals plant, and upgrader in this region, and with our upgrader expansion, we plan to be here for decades to come.” Alberta’s Industrial Heartland Association (AIHA) has created an environment in which companies can thrive. That environment dovetails with the priorities of several important Alberta government departments: • The Department of Energy’s efforts to develop a strategy to increase value-added opportunities from Alberta’s energy resources and developing a comprehensive energy strategy for the development of Alberta’s renewable and non-renewable energy sources and for conservation of energy use. • The Department of Finance and Enterprise, whose mission is to provide expert economic, financial, and fiscal policy advice to government and effective tax and regulatory administration to enhance Alberta’s present and future prosperity. • Alberta Environment and Infrastructure and Transportation, which also plays an important role in attraction and retention of industrial development. Says Neil Camarta, senior vice-president of oilsands at Petro-Canada: “Figuring out where to build an upgrader is a huge decision. Many questions must be answered—not least of which is, do they want us here? In


supporting the aiha and industry in alberta

our case, that wasn’t an issue. Alberta’s Industrial Heartland Association made it clear, right off the bat, that we would indeed be welcome in the region. Alberta’s Industrial Heartland Association must be applauded for playing a critical role in our decision to build our upgrader in Sturgeon County—and for attracting other world-class industrial development to the region.”

Upgrading There are currently six companies considering bitumen upgrading in the Heartland. North West Upgrading is proposing to build a three-phase project by 2018 with a bitumen processing capacity of 150,000 barrels per day (bpd). Total E&P Canada is planning a three-phase, 340,000 bpd project slated for completion in 2022 and StatoilHydro has announced plans to build a 243,000 bpd facility by 2022. BA Energy’s Heartland Upgrader, projected at 150,000 bpd, is currently on hold. The two biggest projects are the expansion of Shell’s Scotford Upgrader, a long-term expansion projected to ultimately produce 700,000 bpd, and the Fort Hills Sturgeon Upgrader that Petro-Canada is involved with, another three-phase project proposed to produce 350,000 bpd. (Another project, the Northern Lights upgrader, was put on hold last year when then-owner Synenco announced it was ❯

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alberta’s industrial heartland

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choosing the hearTland

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“There are a number of reasons why companies would choose to locate in Alberta’s Industrial Heartland. Apart from existing infrastructure and industries, established transportation systems for product movement, land that is already zoned for heavy industry, access to utilities, and a labour pool, there is a network of companies working with other associations, government organizations, and community groups at the provincial, regional, and local levels to address environmental, health, safety, infrastructure, and community issues to promote sustainable industrial growth and high quality of life.” — Dr. Laurie J. DanielsoN, Executive Director, Northeast Capital Industrial Association

“Through the AIHA, critical information that might affect the operation of the air shed is obtained in an appropriate manner. Without the association, there would be all kinds of representatives from the counties and Fort Saskatchewan discussing all kinds of things and if issues were raised, we would not be made aware of them.” — Keith Purves, Chairman, Fort Air Partnership

“The Alberta Research Council highly values its relationship with the Alberta’s Industrial Heartland Association. Our mutual goals for technology deployment and the sustainable development of the Heartland continue to create value and opportunity for all Albertans. Since inception, the AIHA and its representatives have been pillars of the community and valued colleagues. ARC looks forward to our continued association with AIHA long into the future.” — Dr. Ian Potter, Vice President, Energy, Alberta Research Council

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While industrial activity is running at a feverish pace in the Industrial Heartland, smaller projects, such as at this oilfield in Sturgeon County, abound.

weighing its strategic options. Their shares have since been sold to Total E & P Canada.) These are the kind of projects and global companies that in turn will attract other industries. The AIHA recently co-sponsored a study of valueadded opportunities that can take advantage of upgrader feedstocks. The study identified more than 75 potential petrochemical products that could be manufactured and marketed as part of a petrochemical cluster in the Heartland. Encouraging these types of projects to be built in the province is one of the roles of the AIHA and its partners, and it’s a responsibility they take seriously. Working together and with the provincial and federal governments, the partners in the Heartland are focused on pulling out all the stops to give industry the competitive advantage it needs, lowering risk and increasing reward. “We’ve worked with the association for a number of years in partnership with the Alberta government and ourselves, promoting the merits of investing in the petrochemical industry in Canada,” says Dr. John Margeson of Industry Canada. “Our mandate is to try to attract investment to Canada and theirs is to their region of the province, but


albertan ingenuity supporting albertan industry

basically the same sort of messaging was used by both of us in fulfilling that task.” “The Heartland,” Margeson continues, “has a more focused objective, so they are closer to the actual clients than we are, so it’s good to have them involved. They’ve been excellent partners over the last decade we’ve been working with them and hopefully will be for the next decade.” When viewed as a whole, the upgraders will serve as a cornerstone of diversified refining and petrochemical industries that will evolve over time, with the critical mass of new infrastructure setting the standard for global competition. The AIHA is now working with the City of Edmonton, Edmonton Economic Development Corporation, and the provincial government to develop a strategy to create a world-scale petrochemical cluster in the region.

Far-reaching impact The impact of the projects in the Industrial Heartland is being felt far beyond the region’s borders. Consider the total taxes paid by an upgrader project: the local municipality receives about 5 per cent, the province ❯ alberta’s industrial heartland

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The North Saskatchewan River runs through the Industrial Heartland.

receives about 37 per cent, and the federal government receives about 58 per cent, according to Gerald Gabinet, manager of economic development and tourism for Strathcona County. By studying markets closely, tracking economic conditions such as the price of natural gas, and opening its chequebook, the AIHA was able to determine the benefits to being close to the oilsands operations and put together a plan to take advantage of that. Oilsands activity accounts for more than two-thirds of investment in the province. In fact, over $100 billion in oilsands investment is projected to generate over $1 trillion worth of economic activity.

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Access to key pipeline and transportation systems are often cited as critical reasons that industry is attracted to the region. So is lifestyle; the proximity to Edmonton and its urban advantages allow companies to offer a better quality of the life than is possible in more remote areas, increasing their ability to attract and retain employees. And then there’s the growing City of Fort Saskatchewan. With almost 17,000 residents, the city is intent on attracting the kinds of businesses that can provide existing and future industries in the three counties with everything they need to succeed. “We call ourselves the Gateway to Alberta’s Industrial Heartland because we are the largest population base adjacent to industry and the area where there is available light and medium industrial land for service and supply industry,” says Terry Stacey, economic development director for the City of Fort Saskatchewan. The AIHA takes a proactive approach to development, providing industry with assurance that the Heartland is aware of and on top of the potential opportunities and challenges of its open invitation to industry. Through careful planning, the association works to mitigate the impacts of development, manage issues, promote sustainability as well as development, build relationships, and keep the lines of communication open between all parties. “The philosophy we take within the Heartland is moving towards the triple bottom line and balanced sustainable development within the area,” AIHA executive director Neil Shelly explains. That means taking the needs of the communities, the environment, and industry into consideration when planning development. ●


Alberta’s Industrial Heartland

CONGRATULATIONS Edmonton Economic Development Corporation would like to congratulate Alberta’s Industrial Heartland on their 10th Anniversary. Edmonton has enjoyed a great working relationship with the Heartland as well as with the four municipalities that have partnered to form the Heartland: Strathcona County, City of Fort Saskatchewan, Sturgeon County and Lamont County. hydrocarbon processing region, fulfilling a key role in the Alberta’s hydrocarbon industry. EEDC would like to wish Alberta’s Industrial Heartland continued success in their future. We look forward to continuing our work together in building Greater Edmonton’s diverse future.

For more information on EEDC, contact: Kent McMullin, Managing Director, Industry Development Edmonton Economic Development Corporation Phone: 780.424.9191 or 1.800.661.6965 Email: info@edmonton.com www.edmonton.com

The city where traditional ideals have shifted. Where you can succeed professionally and personally. Canada’s new powerhouse.


Congratulations to the Alberta Industrial Heartland Association on your 10th Anniversary! CEDA International Corporation is a leading provider of specialized industrial construction, maintenance and “turn-around” services to oil refineries, petrochemical plants, utility plants and pulp and paper operations. CEDA has been servicing the industry for over 35 years with innovative specialty services CEDA offers a diverse range of specialty services including catalyst handling, chemical cleaning, hazardous materials emergency response, dredging and dewatering, high-pressure water blasting and vacuuming, mechanical services, electrical maintenance, construction, power system testing and commissioning, fireproofing and sandblasting, as well as heavy equipment welding. CEDA continues to provide unmatched quality, value and service to all of our clients. Part of our success is due to our ongoing commitment to provide innovative solutions to meet our client’s needs.

“TEAMWORK! Together we achieve the extraordinary” Servicing the Industry for over 35 Years www.cedagroup.com 1.877.875.CEDA (2332)


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Fort Saskatchewan Big spaces and huge opportunity in this city by Rebecca Dika

How does it feel to be smack in the middle of the largest hydrocarbon petrochemical region in Canada? Ask Jim Sheasgreen, and he’ll tell you: “Good. It feels good.” Sheasgreen, mayor of the City of Fort Saskatchewan, and chair of Alberta’s Industrial Heartland Association, Board of Directors, has confidence the city will handle explosive industry potential with aplomb. Managing record amounts of growth and development is one of the hallmarks of the city’s administration, Sheasgreen says. Industry giants such as Dow Chemical, Sherritt International, and Agrium, have been partners and players here since the 1950s and 1960s, says Sheasgreen. The bulk of heavy industrial development will happen outside Fort Saskatchewan’s city limits, he notes. “Almost all of our heavy industrial land is allocated,” he explains. “We have focused our efforts in attracting medium and light supply and service industries.” Fort Saskatchewan has kept pace with increased requirements for infrastructure and everything that meets quality of life demands for its nearly17,000 residents. The city has seen population grow between five and eight per cent annually for many of the past few years. To be sure, residents enjoy amenities that are second to none, such as outstanding sports and recreation facilities, an array of parks and green spaces, and a long, winding trail system set atop the North Saskatchewan River. This city looks markedly different than it did even five years ago. What were once empty fields on the south side of highways 15 and 21 are now home to the spectacular Dow Centennial Centre, new housing developments, and a commercial power centre with the usual complement of big box stores and restaurants. What Fort Saskatchewan will look like in the future is something administrators take seriously, says Sheasgreen. “Fort Saskatchewan will always be a great place to live, work, and play.” ●

Contact information

Terry Stacey Economic Development Director Phone: (780) 992-6231 Fax: (780) 992-1375 Email: tstacey@fortsask.ca

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We’re proud to help celebrate the decade that’s been. And the decade that’s about to be. Enbridge is a Canadian leader in energy transportation and distribution. We are proud to support Alberta’s Industrial Heartland Association’s 10th Anniversary. Visit enbridge.com to learn more about our community involvement.


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Lamont County Finding good fits and forging symbiotic relationships by Rebecca Dika

Lamont County is on the precipice of change. With a tradition rich in agriculture and community, the municipality is facing a metamorphosis. Sifting through the possibilities is an enviable task, but making the right choices is a task not to be taken lightly, says Reeve Wayne Woldanski. “We’ve got very strong roots in farming, positive citizenry, and quality of life,” he points out. Administrators are working now to balance the burgeoning oil industry just around the corner. Maintaining that authentic flavour while benefiting from economic opportunities is an integral component of the municipality’s master plan, says Woldanski. “We’re looking closely at industry and how it can assist us in creating a strong symbiotic relationship between industry, the county, and our neighbouring municipalities,” Woldanski says. In the fall of 2007, Lamont County expanded its Alberta’s Industrial Heartland region tenfold to more than 197 square kilometres to make room for anticipated growth in the area, says economic development officer Jordan Rumohr. Current and announced industries include Canexus Chemicals, Triton Fabrication, AlterNRG, Maxim Energy, Hazco, and AltaLink. “We’re making people aware we’re interested,” says Woldanski. “We are actively looking for firms that will complement our region and how to proceed with development in a responsible fashion.” The towns of Bruderheim, Lamont, and Mundare and villages of Andrew and Chipman serve the county’s 8,500 residents. Thanks to its handy commute to Edmonton and nearby industrial projects, the county is proactive about housing. More than 2,500 new residential lots and houses are on tap for the county. The county’s new comprehensive Guide to Country Living helps transplanted city dwellers get used to the rural, small-town life. Woldanski has a promise, though. “We will remember our roots, keep them, and feed them,” he says. “We will only consider projects that are a good fit in keeping our county as a wonderful place to live.” ●

Contact information

Jordan Rumohr Economic Development Officer Phone: (780) 895-2233 Fax: (780) 895-7404 Email: Jordan.r@lamontcounty.ca

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Congratulations to the Alberta’s Industrial Heartland Association on 10 years of value-added service. Total E&P Canada Ltd. is committed to the Alberta Vision through Oil Sands Upgrading in Alberta’s Industrial Heartland.

About Total Total is the world’s fourth largest publicly-traded integrated oil, gas and chemicals company operating in more than 130 countries with 95,000 employees. Total is dedicated to developing the world’s energy requirements in a responsible and sustainable manner.

www.total-ep-canada.com


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Balance and diversity bring flavour to this community by Rebecca Dika

Balance and diversity go hand in hand in Strathcona County. Take the issue of population. While other Alberta centres have been all over the boards in recent years, Strathcona County numbers are increasing at a consistent three per cent per year. More than 85,000 residents enjoy life in Strathcona County. It’s a county with plenty of shopping, restaurants, top-notch sporting venues, recreational facilities, and more. Sherwood Park’s Festival Place, a 500seat theatre hosting world-class performers, wouldn’t be out of place in a city twice its size, notes the county mayor, Cathy Olesen. Diversity is also key. It’s the foundation of any sound model of economic development, and even a quick visit shows that the county has it in spades. Don’t be mistaken: Strathcona County is pro-business. With its history in agriculture and oil and gas, the shape of industry is shifting to include manufacturing, food processing, and steel products. Strathcona County is home to the largest oil refining complex in Canada, Imperial Oil and Petro-Canada near 34th Avenue, as well as laying claim to being the home of North America’s third-largest petrochemical complex. Major employers also include Shell Canada Ltd., Alberta Envirofuels, AltaSteel, Everall Construction, and Weatherford Artificial Lift Systems. “We have a very diverse community,” reports Olesen. Forming the bulk of the demographics is the mid-30s crowd, and that is reflected in the municipality’s services. “One of our highest valued amenities—perhaps the most treasured— is our trail system,” she says. The Heritage Parkway Trail System runs more than 85 kilometres, mostly through Sherwood Park, the county’s major urban centre. Stunning Millennium Place in Sherwood Park offers two pools, a gym, two soccer fields, and twin arenas. Still, Olesen says the county is most proud of its bent to sustainability. “We have 107 conservation easements protecting 1,276 hectares of private land,” she points out. These easements mean the land will stay intact and undisturbed. “We’re proud of our economic growth and industry base but we’ve balanced that with environmental concerns,” says Olesen. “That’s the flavour of this community.” ●

Contact information

Gerry Gabinet Economic Development Manager Phone: (780) 464-8257 Fax: (780) 464-8444 Email: gabinet@strathcona.ab.ca

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Sturgeon County Progressive attitude with an eye on sustainability by Rebecca Dika

Contact information

Jim Newman Economic Development Manager Phone: (780) 939-0625 Fax: (780) 939-3003 Email: jnewman@sturgeoncounty.ab.ca

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Using an enhanced tax base to build a long-lasting, outstanding community isn’t an easy job, but it is the onus of Sturgeon County administrators, says Mayor Don Rigney. “Six years ago, we initiated changes to ensure our long-term sustainability,” says Rigney. To do this, the county acquired 1,200 acres of land for use by heavy industry and marketed the land to the energy sector. Rigney believes it was the catalyst for all that has happened since. Access Pipeline is now operational. North West Upgrading Inc. has received regulatory approval. Total, the world’s fourth-largest publicly traded energy company, acquired Synenco Energy Inc.’s 60 per cent interest in the Northern Lights Upgrader; Suncor Energy Inc. acquired land in Sturgeon as part of its long-term plan; and Petro-Canada is in the process of receiving regulatory approval for the Fort Hills Sturgeon Upgrader. “If Petro-Canada’s upgrader is built as proposed, we expect it will initially double our tax revenues, which will lead to improved municipal service and perhaps even property tax reductions,” Rigney says. Approximately 19,000 people live in Sturgeon County alongside major employers including Edmonton Garrison Canadian Forces Base, Agrium, Evonik Degussa, Dow Agro Sciences, Bunge Canada Ltd., and Provident Energy. But with two new upgraders on tap, things are going to change. The $7-billion North West Upgrader will employ 2,500 during construction, with a permanent workforce estimated between 200 and 250. The $18-billion Fort Hills Upgrader is expected to employ 4,500 during peak construction, with a permanent workforce of 500. “We’re working on affordable housing initiatives for the mobile workforce and the permanent workforce that will replace them,” says county economic development manager Jim Newman. Last year, Sturgeon County invested $13 million on infrastructure, master planning, and industrial land purchases. “That’s significant, considering our tax assessment is around $12 million per year,” notes Newman. “We are being progressive, not reactive.” ●


THE TOWN OF GIBBONS

wishes the Alberta Industrial Heartland Association and its members a very Happy 10th Anniversary

You are always welcome with friendly neighbourhoods, booming businesses and an all around warm-hearted community.

Congratulations to AIHA on 10 years of public development.

Town of

Redwater

www.town.redwater.ab.ca

A prosperous, growing community home to over 2100 people and 100 commercial and industrial businesses. Highlights of our community: • 10 minutes to Alberta’s Industrial Heartland • 30 minutes to northeast Edmonton • Housing, schools, hospital, churches, parks & shopping • Emergency services located within the town: fire, ambulance & RCMP • Recreation facilities – hockey arena, curling rink, swimming pool, 9-hole golf course, ball diamonds & Redwater sand hills natural area east of town.

Visit our website for a detailed look at what Redwater can offer you!

As a proud member of the community, Access Pipeline would like to congratulate Alberta’s Industrial Heartland Association on their 10th Anniversary. Suite 950, 333 - 5th Ave SW Calgary, AB T2P 3B6

www.accesspipeline.com

tel: (403) 264-6514 toll free: 1-866-987-3838


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The Dow Centennial Centre, which has become the hub of events in Fort Saskatchewan, is an example of the benefits that a community in the Industrial Heartland can reap by having a robust business climate. The $22 million project was completed in 2004.

Benefits abound Signs of what’s possible when you work together are clearly visible in the Heartland by Rebecca Dika

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photography by Joey Podlubny


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When looking at the benefits of doing business in Alberta’s Industrial Heartland, a vibrant economy, healthy tax base, robust infrastructure, and good jobs are apparent. The CEDA Group of Companies, one of the premier industrial contractors operating in North America with an Alberta-first approach, recognizes that all too well. “The Alberta Heartland is where our business started and remains one of our key strategic focus areas,” notes Ian Martin, vice-president of business development for the CEDA Group of Companies. “CEDA is proud to be part of the communities that make up the Alberta Heartland—it is where we live and where we work.” To be sure, economic benefits are extremely important; studies conducted for Alberta’s Industrial Heartland Association (AIHA) in recent years bear that out. Research by Applications Management Consulting and PricewaterhouseCoopers revealed that for every hectare of industrial land developed, approximately 10 new jobs are created, 6 new home are built, an additional $24,000 is spent in the community annually, and $30,000 is generated in annual municipal revenue, such as tax, utility, and user fees. ❯

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Provident Energy was a major supporter of this recreation centre in Redwater—another example of how businesses support communities in the Heartland region.

Infrastructure improvements and the region’s ecoindustrial philosophy have done much to contribute to the safety and wellbeing of residents, while contributing to community sustainability.

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The unique AIHA partnership has generated billions of dollars in investments in petroleum, petrochemical, metals, and minerals processing industrial facilities, illustrating how the Industrial Heartland has become a proven, productive environment for large manufacturing industries. An important benefit of the Heartland partnership is that it serves as a “responsive, one-window approach in serving industrial investors” whereby one call provides access to information on business operations, land use, development, and environmental approval processes. Participation of stakeholders from the community, government, and industry creates a forum to discuss and seek solutions to the challenges of development and operations. Thanks to complementary land use plans and existing heavy industrial zoning, companies also avoid having to go through a long series of approvals on the municipal level. Ultimately, it’s easier to build an upgrader or any other major industrial project in the Heartland than in other locations. Nearness to key roadways such as Highway 16 and the recently announced new section of the Anthony Henday ring road that will be completed around Edmonton, as well as excellent rail access, are other benefits. Shawn Smith, director of Oil Sands Infrastructure for Canadian Pacific Railway (CP), notes that Alberta’s Industrial Heartland is connected to CP’s 14,000-mile rail network that services the principle business centres of Canada and the U.S. Northeast and Midwest. Plus agreements with other


Top-notch rail access, coupled with close proximity to key roadways, is one of the important benefits of conducting business in Alberta’s Industrial Heartland.

carriers extend Heartland shipper’s reach east of Montreal, throughout the United States, and into Mexico. CP, Smith explains, not only serves the existing and expanding Athabasca Oil Sands Project Upgrader at Scotford as well as Shell Canada operations at Scotford; it also operates its Scotford Transfer Facility at Elk Island to meet the needs of area shippers by providing a rail to truck transfer facility location. Last year, CP announced plans for an expansion of its network (totalling 21.5 kilometres) in Alberta’s Industrial Heartland that would serve customers to the north and west of its existing line, providing inbound and outbound operations on either side of the North Saskatchewan River. The extension will connect upgrader development while minimizing the need for trucks on local roads. Two logistics centres and two new rail yards for assembly of trains are proposed. The Canadian National Railway is also a major transportation player in the region. Industries are connected to CN’s 15,250-mile transcontinental railroad at Edmonton with direct western rail service to Vancouver, Kitimat, and Prince Rupert and east to Winnipeg, Chicago, Toronto, Montreal, and Halifax. Through CN’s subsidiary the Illinois Central and CN-IC and Kansas City southern Heartland manufacturers also have rail service to the U.S. Midwest, Gulf of Mexico, and south to Mexico City and Veracruz. This year, CN opened its new Oil and Gas Logistics Centre located in the Heartland’s Scotford area. From this site the capability exists to rail anything from pipe, machinery, equipment, sulphur, and diesel to end markets.

A decade ago when the AIHA was formed, few could have predicted that it would become an internationally respected model of what happens when governments, industry, and residents work together. Infrastructure improvements and the region’s eco-industrial philosophy have done much to contribute to the safety and well-being of residents, while contributing to community sustainability. In Strathcona County, the addition of Heartland Hall has brought improved fire protection and better emergency response times for industries and residents. The capital and future operating costs are supported from taxes resulting from industry’s investment in the Alberta Industrial Heartland area. A testament to the benefits of the AIHA approach is illustrated in the Dow Centennial Centre in Fort Saskatchewan. The recreation and culture facility has become the hub of the community. Completed in 2004, the $22-million project is a jewel that few communities of this size could hope to hold. Over $7 million in funding came through grants, sponsorship, and fundraising. Another benefit apparent in Heartland communities is also in Fort Saskatchewan. The blue-bag recycling program, funded by Shell Canada, promotes the importance of recycling and allows residents to receive free bags for their recycled items. Dow Canada supports the efforts of its workers in the Industrial Heartland through its Employee Involvement Program, which provides ❯ alberta’s industrial heartland

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grants of up to $500 to support organizations with which Dow employees volunteer. Dow’s 2007 Community Grants Program provided funds to 13 different community organizations, including funding for French language materials at the Fort Saskatchewan library and equipment for local seniors organizations. In Redwater, industry stepped up to the plate when the town was facing a major renovation project on its aging hockey arena and curling rink, the Provident Recreation Centre. The 35-year-old facility was tagged for a $7.5million renovation. Today, the renovated facility is an impressive one. At about $450,000, the Redwater facility has been the Provident Energy’s biggest community undertaking. Agrium has committed to $50,000 in funds for the youth centre. In Gibbons, Provident Energy has donated more than $250,000 for the new kids’ spray park. Petro-Canada, the Town of Gibbons, and the provincial government supported the project as well. “We’ve had a very good working relationship with all our industrial partners,” says Gary Spitzig, director of marketing for the Town of Gibbons. “They’re always looking at what they can do to work with and help the community.” Consider the innovative Sharing the Harvest program. For the past two years, Petro-Canada has donated the use of 160 acres for grains production. Farmers supplied the equipment, expertise, and time; PetroCanada donated 3,000 litres of fuel; Dandy Oil Products, the trucks; and a host of agricultural companies worked together to sow and harvest a quarter-section of barley. Over the last two seasons, Sharing the Harvest has contributed approximately $130,000 to the Canadian Food Grains Bank.

Cleaner power

An indoor playground in Sherwood Park’s Millenium Place has been supported by Shell Canada for the past seven years. The Shell Edu-tainment Centre features a climbing wall, soft centres for climbing and jumping, and an interactive activity tree for tinier tots. Shell was a major sponsor of 2007 Western Canada Summer Games in Sherwood Park, and has been very involved in Canada Day celebrations there for the past three years. Petro-Canada has been major supporters of the Sherwood Park library and a number of cultural events throughout the county. Partnership in the AIHA has been invaluable in buoying the region, say those who work directly with the AIHA. “The Alberta Research Council highly values its relationship with the Alberta’s Industrial Heartland Association,” says Dr. Ian Potter, vicepresident, Energy, Alberta Research Council. “Our mutual goals for technology deployment and the sustainable development of the Heartland continue to create value and opportunity for all Albertans. Since inception, the AIHA and its representatives have been pillars of the community and valued colleagues. ARC looks forward to our continued association with AIHA long into the future.” Adds Strathcona County mayor Cathy Olesen: “One of the fundamentals of this partnership is that we market Canada, Alberta, the region, and the Heartland, in that order. We are solidly behind each other…. We support each other’s success.” The AIHA, says Jim Sheasgreen, the board chair, is a true pioneer in municipal cooperation. “We’re not shy about reminding anyone that this area over the last 10 years has become the largest hydrocarbon processing region in the country. There’s a reason for that.” ●

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36 10th anniversary


Jacobs has been part of the Edmonton community since 1977. Congratulations to the Alberta Industrial Heartland Association on its 10th Anniversary. We are proud to continue to support this organization in the years to come.

Congratulations to the Alberta Industrial Heartland Association on your 10th Anniversary and notable successes! North American Construction Group is the premier provider of mining, heavy construction, industrial, piling and pipeline services in Canada. WE’RE MORE THAN JUST BIG EQUIPMENT. The difference is in our unique talent and knowledge, combined with an unmatched history of over 50 years as an industry leader.

Congratulations to the Alberta Industrial Heartland Association on your 10th anniversary Port Metro Vancouver is Canada’s largest and most diversified port. Maintaining relationships to respond to your needs, developing supply chain improvements with our partners and ensuring port capacity, now and in the future, are just some of the contributions you can expect from Port Metro Vancouver. For more information, visit portmetrovancouver.com


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10 Laying the foundation AIHA builds on success to meet the challenges of today and tomorrow by Darrell Stonehouse photography by Joey Podlubny

The success of the Alberta’s Industrial Heartland as a model for partnership and the economic growth benefiting all of Canada can be attributed to several key initiatives including, but not limited to: • Complementary Area Structure Plan development (CASP) • Eco-Industrial Master Plan • The Industrial Heartland Collaboration to Address Resident Interests (IHCARI) • Land Trust Society and the Voluntary Resident Property Purchase Program (VRPP Program) Understanding these initiatives is important because they underscore the progress of the Alberta’s Industrial Heartland Association (AIHA) over the past 10 years. As well, they lay the groundwork to meet the environmental and economic challenges facing Alberta and the world today and into the future.

CASP In September 1999, the four Heartland municipalities undertook the development of an Area Structure Plans for the Heartland region. Collectively, these plans formed the Complementary Area Structure Plan for the region. The goal was to ensure future growth in the region occurred in a coordinated and responsible manner. Input for this plan was obtained from residents, industry, and business. These plans were developed by applying eco-industrial planning principles. ❯

The AIHA has a number of initiatives to help communities in the Industrial Heartland region respond to the pressures of growth and the impact on such issues as land use and development.

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Construction activity abounds in the Industrial Heartland.

The goal of the EcoIndustrial Master Plan is to encourage development while at the same time lessening the social and environmental impacts of industrial growth on the four municipalities and surrounding area.

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There are four primary goals to CASP: • Ensuring coordinated land-use development for the next 20 to 50 years. • Ensuring industrial development is handled in a safe, consistent, coordinated manner among the four partners. • Ensuring safe and environmentally sound development. • Ensuring coordinated provision of roads, utilities, and other municipal services. By working together, it was realized that continued growth and diversity in the region would be paramount to sustaining economic viability. The municipal plans complement each other, helping to emphasize the consistency and linkages between the four municipal partners (Fort Saskatchewan, Lamont, Strathcona, and Sturgeon counties) as well as establishing mutually beneficial relationships among key stakeholders and facilitating their commitment to the plans.

Eco-Industrial Master Plan The goal of the Eco-Industrial Master Plan is to encourage development while at the same time lessening the social and environmental impacts of industrial growth on the four municipalities and surrounding area. “The premise of the Eco-Industrial Master Plan is basically to anticipate growth and growth pressures and to do what we can to mitigate them beforehand,” says Neil Shelly, the AIHA’s executive director. The eco-industrial plan focuses on four main areas where the municipalities can have a significant influence: transportation, utilities, land-use planning, and social needs and impacts. It sets out infrastructure plans, land-use and environmental plans, industry integration plans, community and social infrastructure plans, and a communications plan to get ❯


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Congratulations! Air Liquide Canada congratulates the AIHA for 10 years of success. We are proud to have been a part of your growth.

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Congratulations to Alberta’s Industrial Heartland Association on your 10th anniversary.

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information out to the public. It also sets out performance goals and ways to measure whether reality matches up with these goals. Mitigating the impact of growing industrial development on people is one of the major priorities for the AIHA. As new facilities are built, more workers will be using local roads and bridges, adding to traffic concerns in the area. The AIHA has launched a transportation study to review transportation plans from the four partner municipalities. Over time, new industrial facilities will be built and ensuring safe and effective transportation routes will mitigate problems. The eco-industrial network model builds on interconnectivity of infrastructure needs, as well as product and byproduct exchanges. This is something that has developed naturally in the area. Already, there have been payoffs—and again, those benefits stretch far beyond the region. The partners continue to take steps to enhance the competitive advantage of doing business in the Heartland and ultimately attract value-added industry. Lamont County, for example, recently increased available heavy industrial land from 4 sections to 40 and is in the process of building its own reservoir. “I think there is a lot of opportunity here from creating synergies with those upgraders and working down the chemical chain through the midstream and downstream operations,” says Wayne Woldanski, reeve of Lamont County.

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Ensuring environmentally sound development is a key goal of the AIHA’s Complementary Area Structure Plan.

IHCARI IHCARI is a unique process in which area residents, industries, municipalities, and the provincial government are working collaboratively to resolve concerns related to the cumulative operations and expansion of industry. The emphasis is on finding practical solutions addressing resident issues and interests. Development of the process began four years ago, when several prominent industry members began discussions with the AIHA to find practical, fair ways to address concerns about the cumulative impact of industrial activity and development in the Industrial Heartland Policy area. With some initial funding from industry, the association hired professional consultants to initiate broader consultations with other industry members and associations, local residents, local municipal governments, and the Government of Alberta. The consultations led to the establishment of a committee in 2005 to identify issues and a process to define and address them. The committee identified eight issue areas—voluntary property purchases, land use planning, noise, traffic concerns, groundwater quality, emergency preparedness and response, air quality, and the cumulative effects of industrial activity and development. But the two considered most urgent were voluntary property purchases, under which qualified residents who wish to relocate from the Heartland area can apply to have their property purchased at fair prices, and land use planning in the Heartland area. Action plans were released to the public in 2007 outlining the priorities needing to be addressed as development moves forward.

Land Trust Society and the VRPP Program

While plans for a petrochemical cluster in the Industrial Heartland are preliminary, it makes sense from an environmental perspective and may shape future development.

The partners continue to take steps to enhance the competitive advantage of doing business in the Heartland and ultimately attract value-added industry.

As a result of the sale or current development and the potential for massive development in the near future, residents in the four municipalities making up the Heartland have been working together to deal with cumulative effects of industry on their lives. One way the municipalities and industry ❯

alberta’s industrial heartland

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stakeholders are managing impact to residents located in the Heartland was the establishment of the Land Trust Society. The counties of Strathcona and Sturgeon both contributed $1 million to provide funding to move forward with Land Trust Society initiatives. Industry stakeholders have also contributed several millions of dollars over the years. The Land Trust Society administers the VRPP Program under the guidance of a seven-member board of directors. It is represented by one director, two industry, two municipal, and two public members representing sponsors who have committed to investing directly or indirectly to the program. The objective of the VRPP Program is to provide an equitable, efficient, and economical process of acquiring properties from rural landowners currently located within the Alberta’s Industrial Heartland Policy Area. This program is available to residents on a voluntary basis if they wish to relocate outside the policy area. To date, the Land Trust Society has purchased five properties, along with one remaining property to be acquired by the end of 2008. Two out of the five properties purchased by the Land Trust Society, under the two previous rounds of the VRPP Program, have been sold. The proceeds from these land sales contribute to future land purchases under the VRPP Program. “I am extremely happy with the implementation of our Land Trust initiatives this year,” says Pamela K. Bunnin, the program manager. “We have been preparing a new strategic plan for the operations of the Land Trust Society, as well as, the administration of the VRPP Program. This plan is expected to be reviewed and approved by our board of directors by the end of 2008.”

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Moving forward In 2007, Premier Ed Stelmach announced the Cumulative Effects Management framework. This is a new approach to address cumulative effects on the environment, with Alberta’s Industrial Heartland region being selected as the pilot project region. The approach has been outlined in a series of comprehensive, science-based targets, outcomes, and actions. The plan lays out clear targets for air quality, puts in place a water management framework to ensure water quality and quantity are protected, and establishes guidelines to protect the land in the region. The targets, outcomes, and actions apply to all major industrial users in the region. “In the past, the government would say to a developer for your situation, ‘You are allowed this much water or this much emissions,’” says the AIHA’s Shelly. “It didn’t consider the total effects of all development. The problem with this you could start to bump up against environmental limits.” The AIHA is also involved in the Fort Air Partnership, an effort to provide independent and accurate data on air quality in the area. The Fort Air Partnership decides what air monitoring needs to be done, where it needs to be done, and how it is done. It also provides the expertise to review the data produced through monitoring. Keith Purves, public volunteer member and chairman of the Fort Air Partnership, says the AIHA brings a voice to the table on the management and operations of a regional airshed by expressing the views of and sharing information about the challenges that the association’s partners face. “Through the AIHA, critical information that might affect the operation of the airshed is obtained in an appropriate manner,” he says. “Without the association, there would be all kinds of representatives from the counties and Fort Saskatchewan discussing all kinds of things and if issues were raised, we would not be made aware of them.”


Bitumen to petrochemicals “Alberta’s Industrial Heartland is brimming with investment opportunities as demand for petrochemicals, fuel, and other refined petroleum products continues to grow,” points out Dr. Fred duPlessis, president of consulting firm FdP and Associates. “The diverse range of provincial feedstock from natural gas liquids and refining byproducts provide secondary and tertiary derivative manufacturing opportunities. The potential is great for those interested in accessing this feedstock to produce refined petroleum products and petrochemicals. Investors benefit from Alberta’s extensive oilsands—a secure crude oil source for both domestic and international refineries.” While the current priority at AIHA is preparing for the growth in oilsands upgrading expected in the region, ahead lie plans for a massive petrochemical cluster. By 2020, the Alberta government believes the oilsands will produce 3.6 million barrels per day of bitumen, with two million barrels upgraded into refined products. By 2030, it expects production to climb to five million barrels per day, with three million refined into fuels or chemicals in the province. The province hopes as upgrading, refining, and petrochemical production grows in the Industrial Heartland, individual operations will integrate with one another, with one operation’s waste becoming feedstock for another operation. For example, off gases from upgrading bitumen can be used for petrochemical feedstock or coke left over from upgrading or refining can be gasified and used for feedstock as well. Plans for the petrochemical cluster are very preliminary, but the AIHA is already looking ahead. This will be a key factor as the upgrader projects, and potentially beyond that into a petrochemical cluster concept, whereby

the interconnectivity between industries will become one of the major drawing factors to the Heartland for investors. The cluster plan makes sense from an environmental perspective. A recent study predicted total emissions for standalone projects were 150 per cent greater than when facilities are integrated. Water demand for standalone projects is 164 per cent greater than when facilities are integrated. Finally, much attention is being paid to the region for its potential as a key CO2 capture storage point. And again, the AIHA is playing a key role. “I think it’s ideal because AIHA is driven from the municipality standpoint rather than from the industry standpoint,” Dr. Bill Gunter of the Alberta Research Council (ARC) says of his working relationship with the AIHA. “The people in those jobs, their responsibilities are mainly to the public, so they have the public’s interests in the forefront.” Gunter is principle scientist of carbon capture and storage at the ARC. He describes his job as “looking at opportunities for reducing the environmental impact with the oil and gas industry, which is focused mainly on CO2 emissions. This particular area [the Industrial Heartland] is one of the more attractive areas for capturing CO2 and storing it in the deep geological formations. To do that, you have to talk to interested parties, and it’s certainly much easier if there is an organization available that can help with those introductions and discussions.” Gunter concludes that the AIHA provides him with a platform to discuss the work he’s doing with interested parties. “I think it’s an organization that has a huge opportunity to make a tremendous impact in the development of the oilsands.” ●

Land Trust Society A L B E R T A ’ S

I N D U S T R I A L

H E A R T L A N D

Earlier this year, the Alberta’s Industrial Heartland Land Trust Society hired Pamela K. Bunnin to join their team, as the Program Manager. Ms. Bunnin has over 17 years of combined experience in the transportation and telecommunications sectors. She has had the opportunity to work in the areas of facilities and contract management, strategic planning, project management, regulatory, security, communications, municipal affairs, and policy implementation. Pamela’s primary responsibilities include the management of the Land Trust Society land holdings, administer rounds of the “Voluntary Residential Property Purchase” (VRPP) program and implement a new Strategic Plan currently being developed. The Land Trust Society administers a VRPP program to facilitate the voluntary relocation of residents to outside this heavy industrial area. We receive financial support through capital contributions and annual membership fees. The Land Trust Society membership and capital contributors are comprised of municipalities and various industries located within the Alberta’s Industrial Heartland Policy area. The Land Trust Society has completed two voluntary purchase programs and has helped several families relocate outside the Heartland. We will be completing one final land purchase by the end of 2008. Our organization owns and manages these industrial properties on an interim basis then resells these land holdings to industry stakeholders and land investors. The proceeds from our land sales are used to administer future rounds of the VRPP program. For more information on industrial properties available for purchase, please contact Ms. Pamela K. Bunnin – Program Manager @ (780) 998-7453 or via email at pamela@industrialheartland.com.

Special Thanks to all our supporters of the Alberta’s Industrial Heartland Land Trust Society. Suite #202, 9906 – 102 Street, Fort Saskatchewan, Alberta, T8L 2C8

Pamela K. Bunnin

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ADVERTISERS’10 INDEX

Access Pipeline Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Air Liquide Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Air Products and Chemicals Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Alberta Finance & Enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Alberta Research Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Alberta’s Industrial Heartland Association . . . . 45 & outside back cover ATB Financial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 & 21 Brownlee LLP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Canadian National Railways. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 CEDA International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Challenger Geomatics Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Edmonton Economic Development Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 23 Enbridge Pipelines Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 EPCOR Alberta. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Harold Walters-Remax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Inter Pipeline Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Jacobs Canada Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Ledcor CMI Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 NC Services Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 North American Construction Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 NorthWest Upgrading Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Petro-Canada Oilsands Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Port Metro Vancouver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Praxair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Progress Land Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Remsat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Shell Canada Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inside front cover Stewart Weir & Co Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inside back cover Total E&P Canada Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Town of Bon Accord. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Town of Gibbons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Town of Redwater. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 TransCanada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 WorleyParsons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Co

46 10th anniversary


Complete Survey Services... Total Engineering Solutions.

Congratulations to Alberta’s Industrial Heartland on your 10th year! Community Development |Industrial Development | Utility Development | Resource Development

www.swg.ca


Celebrating 10 years of regional cooperation. www.fortsask.ca www.lamontcounty.ca www.strathconacounty.com www.sturgeoncounty.ab.ca

www.industrialheartland.com


Alberta Industrial Heartland Association