Keyera Corp. (“Keyera”) and CN (TSX: CNR) (NYSE: CNI) today announced the signing of a Memorandum of Understanding that will use their joint expertise to evaluate the construction of a special clean energy terminal in Alberta’s Industrial Heartland.
The new infrastructure will combine conventional and clean energy from multiple sources to support transportation of Alberta’s diverse energy products and further strengthen the development of Canada’s green energy future.
“This project leverages a core strength of CN: sustainable transfer of Canada’s natural resources safely and efficiently to domestic and international markets” explained Tracy Robinson, President and CEO of CN. “We are pleased to be working with Keyera on this project that will benefit Alberta and the Canadian economy. The project will offer a unique opportunity to aggregate products from multiple producers and provide an efficient mechanism to not only support Canadian industry but more the global energy transition.
“This agreement builds on the strengths of each partner and allows for the most efficient solutions for the industry to meet today’s market needs and the future of clean energy,” said Dean Setoguchi, President and CEO of Keyera. “Together, Keyera and CN demonstrate how collaboration is key to creating sustainable solutions, meeting the changing needs of our customers, and bringing high-value products locally and abroad while supporting Canada’s path to net-zero.”
“The government of Alberta is pleased to see this agreement between Keyera and CN as they work towards bringing Alberta’s clean energy products to new and growing markets around the world. This collaboration is another which is a clear indication that Alberta has all the tools needed to become a global leader in efforts to build a more diverse energy system, while also offering a safe and ethical source for of traditional energy resources.With companies like Keyera and CN leading the way, Alberta will be seen for generations as an international destination for responsible energy production.
-Dale Nally, Associate Minister of Natural Gas and Electricity
“The clean energy terminal will be a significant capital investment in new infrastructure in Alberta’s Industrial Heartland (AIH). The terminal will increase AIH’s competitiveness, which will support additional new clean energy investments which takes advantage of centralized loading and cost-efficient access to global markets. This investment also illustrates that successful collaboration has been effective in helping to create new economic opportunities and enhance existing strong offerings. in AIH.
-Mark Plamondon, Executive Director, Alberta’s Industrial Heartland Association
“This announcement confirms the global demand for clean energy products, and shows the advantages of the cluster right here in our region serving markets around the world. The opportunities for jobs and a more clean environment will continue to grow. We see the importance of existing production assets and strong transportation infrastructure to attract new investment to our region, and continue to ensure that our region provides the right environment for local industry and business to succeed and grow.
-Rod Frank, Mayor of Strathcona County
The purpose of this collaboration is to create the most efficient rail logistics solution in Alberta’s Industrial Heartland. The proposed first-class facility will create a safe and efficient solution for industry players to connect and transport a range of specialized low-cost sustainable energy products to key domestic markets and all over the world.
The high throughput, state of the art facility will be built on adjacent lands belonging to Keyera and CN. The benefits of this strategic location include an unparalleled opportunity for product integration through proximity to major industrial operators, existing infrastructure to support the terminal and its customers including carbon sequestration, and direct access to the CN rail network. It is envisaged that at the time of its completion, the facility will be able to handle six inbound and outbound high-capacity trains per day.
