Synthetic diesel facility near Carseland, Alta., officially completed

Alberta Premier Danielle Smith and MLA Brian Jean at a hydrogen fuel announcement in Nisku, Alta. on March 27, 2024. (Cam Wiebe/CTV News Edmonton)

The government of Alberta announced, Dec. 11, an investment greater than $20 million in Rocky Mountain Clean Fuels' synthetic diesel facility located near Carseland.

Investment in the facility is through the Alberta Petrochemical Incentive Program (APIP). Throughout the construction process of the facility, more than 900 jobs were created. Production through the facility officially started as of Nov. 27.

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Brian Jean, minister of energy and minerals, said the grant will be distributed to Rocky Mountain Clean Fuels over a period of three years beginning in 2025.

"This is the first project to receive program grant funding outside of the Edmonton area, and it shows that it can be accessed by companies throughout the province, including in different parts of rural Alberta," he said.

"This will help Alberta become a top global producer of petrochemicals. The Carseland project is also a good example of diversification, using natural gas and natural gas liquids as feedstock to produce synthetic diesel, naphtha and wax."

Jean added APIP provides successful applicants 12 per cent back of a project's eligible capital costs.

Any facility which utilizes natural gas as a feedstock is able to apply. This includes producers of fertilizer, petrochemicals, hydrogen and fuel plants.

Future expansions to the facility suggest it may increase its maximum daily fuel output, integrate hydrogen production, incorporate carbon capture, utilization and storage and add renewable feedstock.

This facility is the first commercial small-scale gas to liquids (GTL) plant in Canada.

Doug Geeraert, president and CEO of Rocky Mountain Clean Fuels, said he believes expansion and growth to the facility will carry on for many years going forward.

"The plant, first envisioned in 2010, is now built. It has been through a lengthy commissioning period, during which time production and product quality has been tested and revisions have been made to plant design," he said.

"The unique plant design and patented technologies bring together a suite of process modifications that we call Enhanced GTL … these modifications bring well-needed solutions to the challenge that the energy transition faces, and provides provided the genesis for this small-scale GTL facility."

Wheatland County Reeve Amber Link explained the $173-million facility investment into the region is among the most significant in recent history.

She added Rocky Mountain Clean Fuels is the first to utilize Wheatland County's Tax Incentive Bylaw for non-residential properties – a bylaw designed to attract developments such as Rocky Mountain Clean Fuels and their facility to the local region.

"Our total tax assessment base it around $4 billion, so a $173 million increase to that is significant. The county currently receives about 60 per cent of our total revenue from oil and gas, and oil- and gas-related businesses. Every year we see that number eroded a little bit, primarily due to federal and global pressures on our energy industry," said Link.

"Wheatland County identified that it was critical to diversify our economy. It is projects like this that demonstrate that it is possible to take traditional energy and leverage that through innovative technology to create a more sustainable product."