Carlos Soares has sold enough flooring to furnish all the residences, businesses and public facilities in a medium-sized city since starting Divine Flooring in 1999. 

But now the Calgary entrepreneur will expand into manufacturing luxury flooring using a key Alberta hydrocarbon that will create a more sustainable product and reduce reliance on imports. 

“People walk on luxury vinyl floors every day in their homes, malls, stores, hotels— it is the fastest growing category in our industry over the past decade,” says Soares, whose business employs 165 people and 250 contractors in Calgary, Edmonton, Vancouver and Chicago.  

“Billions of square feet of new floor coverings are manufactured and installed every year around the world.” 

While luxury vinyl products mimic the look of natural woods, they generally contain polyvinyl chlorides or PVCs, a synthetic plastic polymer used to create flexibility and durability.  

PVCs are difficult to recycle and take a lot of energy to produce. Most PVC production is in Asia, with roughly half of the world’s capacity in China. 

Soares has discovered a more environmentally friendly alternative to PVCs produced at the Heartland Polymers plant near Edmonton. 

Opened by Inter Pipeline Ltd. in July 2022, the facility produces polypropylene plastic pellets directly from locally sourced propane, a first of its kind in North America. Polypropylene is one of the world’s most widely used recyclable plastics.  

By converting about 22,000 barrels per day of propane into polypropylene instead of using it as fuel, Heartland says it cuts up to one million tonnes of greenhouse gas emissions annually — the equivalent of about 217,000 cars. 

“Polypropylene is our secret sauce. It can do all the things PVCs do,” says Soares.  

“But it is made in Alberta and it is a low-emission product free of chemicals that make it tough to recycle.” 

Soares and his partners in a venture called PolyCo have started construction on a $45 million facility in Balzac, about 25 kilometres north of downtown Calgary, to manufacture luxury flooring using Heartland polypropylene.  

A second-generation Canadian and entrepreneur, he wants to give back to the place where he grew up in a meaningful way. 

“My grandparents moved to Canada from Portugal in 1967 and this country has given our family so much. My father started his own welding shop in 1974 and ran it for years with old-school values. He always taught me to do the right thing and don’t compromise on quality,” he says.  

“That’s what we want to do with this proposal. We are putting more Canadians to work to make a more sustainable product and strengthen our local economy.” 

Carlos Soares, president of Divine Flooring. Photo for the Canadian Energy Centre

Production at the plant is scheduled to start in the third quarter of 2027. It will employ 100 people when it reaches full capacity, initially producing 28 million square feet of flooring every year. A second phase will eventually bring the plant’s total capacity to 50 million square feet annually. 

The plant will be a “zero waste” facility, where all the dust and trimmings from the process will be swept up and put back into future production. 

In July, Emissions Reduction Alberta awarded the project $5 million through its Advanced Materials Challenge, a competition funding innovative low-emission products in the province. 

The funding is part of $49 million in ERA grants to 18 projects, determined after independent review by a team of experts in science, engineering, business development, commercialization, financing and greenhouse gas quantification.

Together, the projects have a total estimated value of $198 million.  

ERA’s goal is to accelerate projects that can improve the economy and the environment, says Justin Riemer, the agency’s CEO.  

“In the case of the PolyCo project, it highlights how to better utilize the supply chain we have here in Alberta. Everything this plant will need to source is literally within a three-hour drive,” he says.   

ERA has provided more than $1 billion in grants to more than 300 projects valued at $7 billion in 16 years across the province. 

“Of all the completed projects who’ve received funding, 50 per cent have been commercialized, which is a much better success rate than venture capital gets,” says Riemer, who has led ERA for three years.  

“It’s important to have this funding available because a lot of financial infrastructure in this country is risk-adverse to trialing and commercializing innovation technology.” 

The agency’s grants are financed through Alberta’s Technology Innovation and Emissions Reduction (TIER) fund, which collects contributions from the oil and gas sector under the province’s carbon pricing and trading system. 

“ERA receives about 10 per cent of the TIER contributions,” Riemer says.   

“Through these competitions, we have managed to see successful commercialization of technologies across a broad array of sectors beyond oil and gas including forestry, agriculture, power generation, critical minerals and even nuclear.”  

For Soares, the vote of confidence given by the agency in the proposal was crucial. 

“This ERA grant is huge for this project to go ahead but so was the decision. It gives us the confidence the government is behind the project and wants to see it materialize,” he says.  

“They are serious about real ideas that can produce sustainable and affordable products right here.” 

Soares is unapologetic in having his project funded by carbon levies collected from oil and gas. 

“We produce oil and gas more responsibly than anywhere in the world in Alberta and I’m proud of that even though I don’t work directly in the industry,” he says.  

“The fact that oil and gas contribute to grants that help create more sustainable products and technologies demonstrates the province’s commitment to doing things better.” 

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A major rail hub in Alberta’s Industrial Heartland will double in size to support a new carbon-neutral plastic production facility, turning the terminal into the largest of its kind in the country.

Cando Rail & Terminals will invest $200 million at its Sturgeon Terminal after securing Dow Chemical as an anchor tenant for its expanded terminal, which will support the planned $8.9 billion Path2Zero petrochemical complex being built in the region northeast of Edmonton.

“Half of the terminal expansion will be dedicated to the Dow project and handle the products produced at the Path2Zero complex,” says Steve Bromley, Cando’s chief commercial officer.

Steve Bromley, chief commercial officer with Cando Rail & Terminals.

By incorporating carbon capture and storage, the complex, which began construction this spring, is expected to be the world’s first to produce polyethylene with net zero scope 1 and 2 emissions.

The widely used plastic’s journey to global markets will begin by rail.

“Dow stores their polyethylene in covered railcars while waiting to sell it,” Bromley says.

“When buyers purchase it, we will build unit trains and those cars will go to the Port of Prince Rupert and eventually be shipped to their customers in Asia.”

A “unit train” is a single train where all the cars carry the same commodity to the same destination.

The expanded Cando terminal will have the capacity to prepare 12,000-foot unit trains – or trains that are more than three-and-a-half kilometers long.

Construction will start on the expansion in 2025 at a 320-acre site west of Cando’s existing terminal, which 20 industrial customers use to stage and store railcars as well as assemble unit trains.

Bromley, a former CP Rail executive who joined Cando in 2013, says the other half of the terminal’s capacity not used by the Dow facility will be sold to other major projects in the region.

The announcement is the latest in a series of investments for Cando to grow its operations in Alberta that will see the company spend more than $500 million by 2027.

The company, which is majority owned by the Alberta Investment Management Corporation previously spent $100 million to acquire a 1,700-railcar facility in Lethbridge along with $150 million to build its existing Sturgeon terminal.

Cando Rail’s existing Sturgeon Terminal near Edmonton, Alberta. Photo courtesy Cando Rail & Terminals

“Alberta is important to us – we have 300 active employees in this province and handle 900,000 railcars annually here,” Bromley says.

“But we are looking for opportunities across North America, both in Canada and the United States as well.”

Cando released the news of the Sturgeon Terminal expansion at the Alberta Industrial Heartland Association’s annual conference on Sept. 19.

“This is an investment in critical infrastructure that underpins additional growth in the region,” says Mark Plamondon, the association’s executive director.

The announcement came as the association marked its 25th anniversary at the event, which Plamondon saw as fitting.

“Dow’s Path2Zero came to the region because of the competitive advantages gained by clustering heavy industry. Competitive advantages are built from infrastructure that’s already here, such as the Alberta Carbon Trunk Line, which transports and stores carbon dioxide for industry,” he says.

“Having that level of integration can turn inputs into one operation into outputs for another. Competitive advantages for one become advantages for others. Cando’s investment will attract others just as Dow’s Path2Zero was a pull for additional investment.”

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When Dow, one of the world’s largest chemical producers, plans to commit billions to build a state-of-the-art new complex, it has a comprehensive checklist of factors to consider and a list of suitors around the globe competing for the investment.

In 2023, after a lengthy review, Dow Canada president Diego Ordonez says Alberta made the most sense as the location for a new US$6.5-billion net-zero scope 1 and 2 emissions petrochemical complex.

The plant, to start operations in 2027, will produce polyethylene, the most widely used plastic.

“Even without a coastline, Alberta is in a great spot. There is a real demand for its energy as feedstock to manufacture the chemicals the world needs to continue to prosper,” says Ordonez, a self-described “renegade accountant” who has spent 35 years with Dow across the globe.

“We have operations around the world, so you have a list of possible locations when you are looking at the conditions that are necessary for this type of facility. You need a reliable supply of the raw material ethane, which you obtain through natural gas, and it has to be cost-competitive today and in the foreseeable future.”

The project also needs a site with a proven safety and reliability track record, he says.

Alberta’s Industrial Heartland region, near Edmonton, ticked all those boxes – including proximity to the right geology and infrastructure for carbon capture and storage (CCS), he says.

Reducing emissions with carbon capture and storage

A “significant factor” that supported Dow´s decision to invest in Canada was the financial support committed by the Alberta and federal governments through Alberta’s Petrochemicals Incentive Program and Canada’s CCS Investment Tax Credit, Ordonez says.

Dow’s project will feature Canada’s largest “blue” hydrogen production facility, under a more than $2 billion contract signed in August with Linde Canada. “Blue” hydrogen is the term for hydrogen generated from natural gas with operations that include CCS to reduce emissions.

Linde’s facility will be built to capture more than two million tonnes of carbon dioxide per year, or the annual equivalent of taking about 475,000 gasoline-powered vehicles off the road.

World plastics demand to triple by 2060

Reducing emissions from petrochemical projects is important as demand for plastics continues to grow.

“Petrochemicals are the building blocks of modern society. Clothing, tires, digital devices, packaging, detergents, healthcare and countless other everyday items that enable modern life are made from petrochemicals,” says a new report from Wood Mackenzie, a global consultancy specializing in analyzing energy data.

“With growing global populations and rising income levels, demand for petrochemicals is projected to increase.”

The Global Plastics Outlook, published by the Paris-based Organisation for Economic Co-operation and Development, forecasts the use of plastics globally will nearly triple by 2060, driven by economic and population growth.

New ethane supply

The announcement of more petrochemical production in Alberta is supported by increasing ethane supply.

Pipeline operator Wolf Midstream announced in July it will invest $1 billion to expand the capacity of its northeast Alberta Natural Gas Liquids system, bringing up to 60,000 barrels per day of ethane needed that will help meet growing petrochemical demand.

“What we are seeing with these large-scale investment decisions is companies are comfortable with the value proposition in Alberta. We have created or are creating economies of scale,” says Mark Plamondon, executive director of Alberta’s Industrial Heartland Association.

“We have the lowest cost feedstocks in North America and are competitive in the world on price. But we also have appeal with our carbon capture and sequestration infrastructure so companies can achieve both economic and environmental objectives. It is a one-two punch that is a game changer for us.”

Policy matters

But policy matters as much as steel in the ground, something Ordonez sees as differentiating Canada from other jurisdictions with clusters of heavy industries.

“Canada has market-based carbon pricing at both the federal and provincial level. That was an essential piece for us to decide to invest,” he says. “There is nothing similar in place in the USA or the Middle East.”

And work by industry has also resulted in government and regulatory support to support new investments in petrochemicals.

“For these investments to take place, you need a good active collaboration between industry and government. We have seen that in Alberta, and it has resulted in significant investments for Alberta,” says Greg Moffatt, executive vice-president of the Chemistry Industry Association of Canada.

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Alberta’s Industrial Heartland Association (AIHA) is celebrating its silver anniversary this year.

Over its 25 years, the association has built impressive legacy of attracting more than $45 billion in capital investment and more than 40 companies to the region, providing fuels, fertilizers, power, petrochemicals and more to provincial and global consumers.

The 582-sq.-km. area, just northeast of Edmonton, has become one of the world’s most attractive places for chemical, petrochemical, oil, and gas investment.

And the future for investment continues to be bright.

“I like to call the Alberta Industrial Heartland region the heartbeat of Alberta,” said Dave Diduck, Chair of the AIHA and Reeve of Lamont County, describing the region as a world-class regional cluster of industries.

“It generates significant revenue for the province, creates good-paying, stable jobs for thousands of Albertans, supports local communities, and truly demonstrates the opportunity of the Alberta Advantage. Without the Heartland, the province of Alberta would not be where it is right now.”

Alberta’s Industrial Heartland is a pre-zoned, heavy industrial area, and Canada’s largest hydrocarbon processing region.

Founded in 1999, the AIHA is a non-profit organization created to attract investment to the region. It has five municipal partners with land within the Heartland – City of Fort Saskatchewan, Lamont County, Strathcona County, Sturgeon County and City of Edmonton, as well as associate members including the towns of Bruderheim, Gibbons and Redwater.

Mark Plamondon, executive director of the AIHA for the last seven years, said the region offers opportunity for businesses that prioritize responsible investment.

“The opportunity for companies to meet both their environmental and their economic goals here in the Heartland really positions this region very well from a growth perspective going forward because companies are more and more focused on that,” he said.

“Of course, you need to have a strong economic business case but you also need to be able to either decarbonize your production or produce a product in a more environmentally-sustainable manner than maybe historically.

A key objective for the AIHA is improving the business case for the Industrial Heartland. That means identifying infrastructure pinch points and working with governments to alleviate them. It also includes identifying the competitive landscape from a tax and incentive standpoint compared to other jurisdictions, working with governments to understand where there is a lack of competitiveness.

Plamondon said over the last 10 years about $15 billion in investment has been added.

“Going forward, we’re fortunate that Dow (Chemical) announced the final investment decision of their large-scale, world’s first net zero ethylene manufacturing production here in the Industrial Heartland. They announced a cap number in US dollars, but that excluded some auxiliary sites like hydrogen production, etc., so we think that investment will exceed $10 billion Canadian,” he said.

“There’s a number of companies looking at hydrogen and ammonia production facilities for exports to Asian markets. If one of those goes or two of those go, that brings another amount of capital into this region of an additional $15 or so more billion.”

Plamondon said the surge in investment interest has been driven by the region’s low-cost feed stock competitive advantage in the Industrial Heartland coupled with carbon capture sequestration capability.

“This region really is an economic engine for the region, for the province and for the country,” he said.

In addition to its technical advantages, Lamont County Reeve Diduck noted the Industrial Heartland also offers incentive programs, carbon capture technology, streamlined regulatory approvals, a favourable tax structure and stable and democratic governance.

“The association has evolved into a dedicated and professional team with the knowledge and expertise to converse, negotiate, and attract industry to Alberta’s Industrial Heartland,” he said.

“The availability of carbon capture technology and infrastructure within the Heartland, such as Alberta Carbon Truck Line, is a key tool that AIHA uses to promote future growth and expansion in the region.

“As the Alberta Industrial Heartland continues to expand, the cluster of world-class industries in the region will expand and the industries will be able to draw on each other for support, exchange feed stocks, and create synergies.”

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From the clothes on your back to the containers for household products to the pipes and insulation in your home, plastics are interwoven into the fabric of day-to-day life for most Canadians.

And that reliance is projected to grow both in Canada and around the world in the next three decades

The Global Plastics Outlook, published by the Paris-based Organisation for Economic Co-operation and Development (OECD), forecasts the use of plastics globally will nearly triple by 2060, driven by economic and population growth.  

The use of plastics is projected to double in OECD countries like Canada, the United States and European nations, but the largest increases will take place in Asia and Africa. 

“The demand for plastics reflects how essential they are in our lives, whether it is packaging, textiles, building materials or medical equipment,” says Christa Seaman, vice-president, plastics with the Chemical Industry Association of Canada (CIAC), which represents Canada’s plastics producers.  

She says as countries look to meet climate and sustainability goals, demand for plastic will grow. 

“Plastics in the market today demonstrate their value to our society. Plastics are used to make critical components for solar panels and wind turbines. But they also can play a role in reducing weight in transportation or in ensuring goods that are transported have less weight in their packaging or in their products.” 

Canada produces about $35 billion worth of plastic resin and plastic products per year, or over five per cent of Canadian manufacturing sales, according to a 2019 report published by the federal government.  

Seaman says Canadian plastic producers have competitive advantages that position them to grow as demand rises at home and abroad. In Alberta, a key opportunity is the abundant supply of natural gas used to make plastic resin.  

“As industry and consumer expectations shift for production to reduce emissions, Canada, and particularly Alberta, are extremely well placed to meet increased demand thanks to its supply of low-carbon feedstock. Going forward, production with less emissions is going to be important for companies,” Seaman says.  

“You can see that with Dow Chemical’s decision to spend $8.8 billion on a net zero facility in Alberta.” 

While modern life would not be possible without plastics, the CIAC says there needs to be better post-use management of plastic products including advanced recycling, or a so-called “circular economy” where plastics are seen as a resource or feedstock for new products, not a waste. 

Some companies have already started making significant investments to generate recyclable plastics.  

For example, Inter Pipeline Ltd.’s $4.3 billion Heartland Petrochemical Complex near Edmonton started operating in 2023. It produces a recyclable plastic called polypropylene from propane, with 65 per cent lower emissions than the global average thanks to the facility’s integrated design. 

Achieving a circular economy – where 90 per cent of post-consumer plastic waste is diverted or recycled – would benefit Canada’s economy, according to the CIAC.  

A Deloitte study, commissioned by Environment & Climate Change Canada, estimated diverting or reusing 90 per cent of post-consumer plastic waste by 2030 will save $500 million annually while creating 42,000 direct and indirect jobs. It would also cut Canada’s annual CO2 emissions by 1.8 megatonnes.  

Right now, about 85 per cent of plastics end up in Canada’s landfills. To reach the 90 per cent diversion rate, Seaman says Canada must improve its infrastructure to collect and process the plastic waste currently being landfilled. 

But she also says the industry rather than municipalities need to take responsibility for recycling plastic waste.  

“This concept is referred to as extended producer responsibility. Municipalities have the responsibility for managing recycling within a waste management system. Given the competing costs and priorities, they don’t have the incentive to invest into recycling infrastructure when landfill space was the most cost-effective solution for them,” she says.  

“Putting that responsibility on the producers who put the products on the market makes the most sense…The industry is adapting, and we hope government policy will recognize this opportunity for Canada to meet our climate goals while growing our economy.” 

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Dow Chemical’s Nov. 28 announcement confirming it will invest $8.8 billion to build a net zero petrochemical complex near Edmonton was close to a decade in the making for Fort Saskatchewan Mayor Gale Katchur. 

“Now that they’ve finally announced the project, I’m one of the happiest mayors around,” says Katchur, who was first elected in October 2010. 

“What Dow is building will inspire other industries with innovation and technology like this. Dow has been a cornerstone for our community for the past 60 years. This investment ensures they are going to be around for a lot longer.” 

The project, which has support from the municipal, provincial and federal governments, will increase Dow’s production of polyethylene, the most widely used plastic in the world. 

Welcomed by the community 

By capturing and storing carbon dioxide emissions and generating hydrogen on-site, the complex will be the world’s first ethylene cracker with net zero emissions from operations.  

“I remember speaking to Dow executives during their regional visit some years back. They were curious about potential public concerns, given the visibility of their visit and the nature of their business,” Katchur says. 

“My response was clear: the primary concern in our community is the pace of progress. People here recognize and appreciate the petrochemical industry. We understand the benefits that it brings.” 

Competitive advantages 

Katchur’s joy is shared by Mark Plamondon, executive director of Alberta’s Industrial Heartland Association, who sees the Michigan-based multinational’s decision as an endorsement of the region’s competitive advantages. 

“Dow is a global company and could put their capital anywhere in the world,” says Plamondon, whose group attracts global investment in heavy industry to the 582-square-kilometre region northeast of Edmonton.  

“What this demonstrates is Dow can meet both their economic and environmental goals by investing in this region. That sends a real message.” 

Bob Masterson, CEO of the Chemistry Industry Association of Canada, sees Dow’s decision to build the facility as a signal of where the industry will make large investments in the future. 

“In the short term, you are looking at the province’s largest construction project requiring more than 7,000 high-skill, high-paying jobs for the next seven to 10 years,” says Masterson, whose Ottawa-based group represents chemistry and plastics producers across Canada.  

Alberta a top destination for low carbon chemical production 

“What Dow’s decision really says is Alberta is a top destination for the chemistry industry to invest. One of the top chemical producers in the world is making this investment in Canada,” he says. 

“When you look at the bigger picture, the only real rival for low-carbon investment of this kind is the U.S. Gulf Coast, where you have the same access to natural gas liquids as a feedstock and supportive public policy environment.” 

The Industrial Heartland region is particularly attractive for companies looking to invest in low-carbon products, Masterson says. 

“Alberta has an abundant low-carbon feedstock in natural gas liquids to produce hydrogen and the geological space to sequester carbon. These natural assets can encourage investment and support low-carbon chemistry industry,” he says.  

“One of the largest petrochemical companies on the planet believes it can build a low-carbon chemistry plant based on these assets. Other companies will see they can generate and extract that value out of those resources in a very sustainable and responsible manner.” 

Filling space on the Alberta Carbon Trunk Line 

In addition to geological and natural resources, the region already possesses critical infrastructure to woo investment in low-carbon production, such as the Alberta Carbon Trunk Line (ACTL), the world’s largest CO2 pipeline.  

Dow has signed an agreement with ACTL owner Wolf Midstream to utilize space on the system.  

ACTL is the foundation of a hub that captures CO2 from an oil refinery and fertilizer plant and moves it for permanent storage in a nearby depleted oil field.  

The pipeline currently transports 1.6 million tonnes of CO2 per year but is built to transport 14.6 million tonnes of CO2 per year.  

“The infrastructure is in place already. The trunk line has plenty of surplus capacity to transport additional emissions,” Plamondon says.  

“That just adds to the value proposition for potential facilities that are moving to low-carbon production.” 

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A key artery in the network supplying Michigan, Ontario and Quebec with essential petroleum products has cleared a critical hurdle to continue operations. 

In December, Michigan’s Public Service Commission approved a US$500 million project to replace about seven kilometres of the existing Line 5 pipeline underwater in the Straits of Mackinac with a new pipeline housed in a concrete tunnel far beneath the lakebed. 

“The commission recognized the reality, which is the public needs the Line 5 tunnel and the products it transports,” says Jason Hayes, director of environmental policy at the Mackinac Centre for Public Policy.  

“This is how it is supposed to work, although it took more than three years to get there.” 

An energy lifeline 

The existing Enbridge Line 5 pipeline has operated since 1953. It moves up to 87 million litres of crude oil and natural gas products for use daily between Superior, Wisconsin and Michigan, Ohio, Ontario and Quebec. 

“The average person doesn’t always understand how crucial it is. We do in Sarnia,” says Scott Archer, business agent for UA 663, a local union that representing pipe fitters and welders who work in refineries and petrochemical facilities in Sarnia, Ontario. 

“Line 5 is the lifeline for Ontario and also provides feedstock for refineries in Quebec. All of our refineries receive their feedstock from it. It’s what provides vehicle fuel for private and public transportation. Trucking and the railroads rely on it. Our agriculture industry uses it to dry crops.” 

The 1,600 members of UA 663 understand that continued operation of Line 5 doesn’t just affect them or their families, Archer says.   

“It’s really the entire region,” he says. 

“We have 70,000 people who live in this town and almost all of them depend on Line 5 to feed their families and keep a roof over their head.” 

The project approval means just as much in Michigan and Ohio, where the Enbridge network supplies refineries in Detroit and Toledo, as well as propane throughout the region. 

“Michigan uses more propane than any other state in the lower 48,” Hayes says.  

“About 55 per cent of the propane that heats homes and cooks food in our state goes through Line 5 and comes from Sarnia. Half of the jet fuel used at the Detroit International Airport comes from Line 5 feedstock. It’s essential to keep our state going.” 

Additional approvals required 

The tunnel project will need the approval of the Army Corps of Engineers at the federal level before Enbridge can start construction. The Army Corps is completing its environmental impact assessment, expected for completion in 2026.  

Michigan’s attorney general Dana Nessel also continues to pursue court action in an effort to shut Line 5 down.  

“The commission’s decision is still a big win,” Hayes says. 

 “[It] acknowledges the reality for regular people in Michigan and Ontario, who need fossil fuels, and the products made from them, in their day-to-day lives right now. It makes no sense to oppose a project that seeks to make it safer to transport them.”  

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Canada’s chemical industry sold a record $72.7 billion of product last year amid recovery from COVID-19 and strong consumer demand, according to the Chemistry Industry Association of Canada (CIAC).  

Natural gas is a key input to the chemistry sector, the broad term that refers to manufacturing a myriad of products used in everyday items from plastics to agriculture and pharmaceuticals.   

“Chemistry products go into 95 per cent of finished goods. It’s an important sector,” says CIAC president Bob Masterson. 

“It’s a sector that can grow as long as we fancy improving our lives and building a better world for tomorrow.” 

Chemicals in Canada 

Canada’s chemistry industry is the country’s fourth largest manufacturing sector by value of sales after food ($147 billion), transportation equipment ($119 billion), and petroleum/coal products ($118 billion). 

It is primarily centered in Ontario, Alberta and Quebec.  

The CIAC publishes an annual report on the sector’s activity using Statistics Canada data, separated into two categories: chemicals overall, and industrial chemicals.  

Chemicals overall includes manufacturing of soaps, cleaning compounds, paints, coatings and adhesives, pesticides and fertilizers, pharmaceuticals, rubbers and synthetic fibres, and basic chemicals.  

Industrial chemicals refers to the manufacturing of intermediate products used as inputs by industries including plastic and rubber products, forest products, transportation equipment, clothing, perfume and cosmetics, construction and pharmaceuticals.   

Global Growth  

According to Vantage Market Research, the global chemical market was valued at US$584 billion in 2022. It’s expected to grow by more than 55 per cent in the coming years to reach US$917 billion by 2030.  

This isn’t just driven population growth, Masterson says.  

“When you think about the demand for more sustainable outcomes: clean air, clean water, clean energy, safe, nutritious, abundant food and electric vehicles, that’s more and more and more chemistry,” he says.  

“Some of the predictions are that the volumes of chemistry will double in the next 20 years. Canada and Alberta in particular are exceptionally well positioned to help meet future market demand for these products. The demand is not going away. There’s no question about that.” 

Jobs 

In 2022, Canada’s chemicals sector directly employed 90,800 people, or approximately the population size of Sudbury, Ontario. The industry paid about $7 billion in salary and wages.  

That’s the direct impact of employment in the chemistry sector, but the CIAC estimates the full benefit to Canadians to be much higher as a result of indirect economic activity it supports.   

CIAC estimates that every job in Canada’s chemistry sector creates another five indirect jobs in other parts of the economy. This means the sector supported 454,000 jobs across Canada in 2022.  

Industrial chemicals alone directly employed 17,100 people and indirectly supported 85,600 jobs in the broader Canadian economy last year, the CIAC says. 

Rising Trade 

At a value of $72.7 billion, Canada’s overall chemical industry sales were their highest ever in 2022 – a 30 per cent increase compared to 2019, prior to the COVID-19 pandemic.  

Industrial chemicals sales reached a record $34.2 billion, a 32 per cent increase compared to 2019.  

Exports also increased last year, rising to a value of $52.8 billion compared to $45.9 billion in 2021. Of that, the sector exported $24.8 billion of industrial chemicals, up from $22.5 billion the previous year. 

The United States is Canada’s main customer for chemical exports, representing 76 per cent of exports or $40.1 billion in 2022. The next largest export markets are China ($1.86 billion), the Netherlands ($1.7 billion), and the United Kingdom ($1.1 billion). 

The Canada Advantage 

Canada has distinct advantages as a chemical manufacturer and exporter including growing access to global markets, CIAC says.  

In Alberta, the main advantage is access to low-cost natural gas resources – specifically valuable natural gas liquids like ethane, propane and butane.  

“The rich abundance of natural gas liquids that come out of the ground when we drill for natural gas let Alberta be a low-cost chemistry producer despite being pretty much the only large chemistry industry worldwide that’s not on tidewater,” Masterson says.  

Responsible Care 

Since 1985, Canada’s chemistry industry has operated under an initiative called Responsible Care that encourages companies to innovate for safer and greener products.  

CIAC reports that Responsible Care is now practiced in 73 countries and by 96 of the 100 largest chemical producers in the world. 

Since 2005, CIAC members have reduced CO2 equivalent emissions by 13 per cent; reduced sulphur dioxide emissions by 94 per cent, and virtually eliminated large scale safety incidents. Since 2012, CIAC members have also reduced net water consumption by 13 per cent. 

“We’re not standing in place,” Masterson says. 

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Without lights or camera, the film industry would have very little action. 

Whether going to the movie theatre or curling up on the couch to stream the latest Hollywood blockbuster, it’s worth taking a minute to consider that bringing the stories we love to the screen takes more than just actors and scripts. 

Making movie magic would become exceedingly difficult without oil and gas, as well as petroleum products, playing a starring role. 

From running generators that fuel massive sets in remote areas to transporting crews around the world to the perfect location, Hollywood leans heavily on oil and gas. Meanwhile, petrochemical products are used extensively for creating props, set design and pyrotechnics. 

But just how big of a part do fossil fuels play in filmmaking? 

According to a 2021 report by the Sustainable Production Alliance, the average blockbuster has an average carbon footprint of 3,370 metric tonnes, the equivalent emissions from powering 656 average homes for an entire year. Even large- and medium-scale productions use plenty of oil and gas, creating 1,081 metric tonnes and 769 metric tonnes of carbon emission respectively. 

Of that, nearly half is directly used for fuel for production vehicles and generators. About a quarter is used for air travel and some 22 per cent for utilities. 

Last year, 449 movies were released in Canada and the U.S. 

Streaming giant Netflix said its carbon footprint in 2021 was 1.5 million metric tonnes, more than half of that attributed to production of films and TV. The company is looking to slash emissions in half by 2030 and use oil and gas industry-pioneered innovations like carbon capture to ultimately bring its footprint to net zero. 

Beyond transportation and power, the basic building block of any film requires an abundance of gear that rely on petrochemical products. 

From durable carbon fibre used in sound booms and set design, to plastics used to make cameras and movie props, to assorted polyester, nylon and spandex used in costume design, it would be nearly impossible to find a movie set without a healthy dose of equipment derived from oil and gas. 

Gas generators are essential to keep shooting going into the night as well as providing reliable power for trailers used by actors for relaxing. 

Even the director’s clapperboard used to set the scene is commonly made from a white acrylic so it can be used with dry erase markers. 

Once produced, films are then displayed at movie theatres on large white vinyl screens to theatre-goers sitting on seats packed with polyurethane foam. 

So next time you reach for the popcorn and hunker down for some silver screen escapism, spare a moment to thank the contributions of oil and gas. 

The unaltered reproduction of this content is free of charge with attribution to Canadian Energy Centre Ltd.