Author: Rick Christiaanse, CEO, Invest Alberta
Major financial institutions are projecting Alberta will lead Canada in economic growth in 2022. Doubling down on investment attraction throughout the pandemic has led to billions in private investment across agriculture, energy, technology, and financial services to flow into Alberta.
Invest Alberta’s clients were part of this journey, announcing $19 billion in investment and over 5,000 jobs last fiscal. As Alberta continues to grow its pipeline of high-impact, high-value investment, new announcements and growing government steps to keep Alberta competitive are paving the way for emerging sectors and continued investment in technology, fintech, agriculture processing, hydrogen and more.
Budget 2022 and diversification
When the Government of Alberta tabled its 2022 provincial budget in February, it was clear that the future was top-of-mind. New funding for talent development programs, reducing red tape for business and a new Hydrogen Centre of Excellence were announced to help enhance Alberta’s competitive position for investment attraction.
Budget 2022 presented a balanced budget, thanks to spending restraint and dynamic growth in every sector of the economy. The Government of Alberta has committed to keeping Alberta’s net debt below 30 per cent of its gross domestic product (GDP).
Alberta also has one of the lowest net debt-to-GDP ratios in Canada, and government is projecting budget surpluses in each of the next three years.
"Alberta’s tech and innovation sectors continue to see record growth. According to a 2021 AEC Deal Flow Study, as of April 2021, there were over 3,000 tech companies in Alberta, an increase of 149% since 2019."
Alberta is a global tech hub
Alberta’s tech and innovation sectors continue to see record growth. According to a 2021 AEC Deal Flow Study, as of April 2021, there were over 3,000 tech companies in Alberta, an increase of 149% since 2019.
Lower rent costs, tax advantages, and a local and growing tech workforce of about 200,000 have attracted tech heavy hitters like Amazon Web Services —which announced a $4.3 billion investment by 2037 for a new cloud computing operation in Calgary—and global IT giant Mphasis which is building a quantum computing ecosystem in Alberta that will create up to 1000 jobs.
Robotics, software and app development, AI, cloud computing and more show innovations coming to life in Alberta to solve the world’s biggest problems and create a cluster of expertise here to support bigger companies looking to incorporate these innovations into their operations.
Smaller companies continue to benefit from this symbiotic relationship, and a growing number of incubator programs are designed to accelerate the growth of small and medium tech companies.
The emergence of Alberta fintech
An important offshoot of the tech sector is Alberta’s emerging fintech industry. It’s all about embracing digital transformation and changing the way finance works. As of February 2022, Alberta is home to at least 15 crypto-related firms, ranging from mining to financial services, and the industry is only expected to grow.
The concentration of capital-intensive industries has created strong demand for an innovative financial services sector. Alberta has developed world-class expertise in niche sectors, like cryptocurrency. There are also tailored services to help companies navigate Alberta’s regulatory streams, like the financial concierge services provided by Invest Alberta, for example.
Our announcement in December with Brane Inc. is an example of crypto businesses making Alberta a destination of choice.
Brane Inc. is a leading independent cryptocurrency custody solutions provider that chose Alberta to headquarter its Brane Trust operations, creating up to 100 full-time jobs over five years and building on Alberta’s growing fintech and blockchain ecosystems. The announcement builds on the momentum of similar announcements from companies like Tetra Trust, BitCoin Well, Catalyx and more.
Alberta’s financial services sector has a growth projection of 11% year-over-year, with fintech playing an increasingly bigger role. Alberta is also becoming home to new Centres of Excellence, including the new EY Finance Centre of Excellence that will offer cutting-edge internal finance services for the pressing needs of EY’s business, and create up to 200 new jobs over the next three years. Royal Bank of Canada (RBC) is also investing in a new Innovation Centre in Calgary that will create 300 jobs.
"Calgary has the most corporate head offices per capita in Canada, and major firms with a presence in Alberta include JP Morgan Chase, Goldman Sachs, Morgan Stanley and Barclay’s."
Calgary has the most corporate head offices per capita in Canada, and major firms with a presence in Alberta include JP Morgan Chase, Goldman Sachs, Morgan Stanley and Barclay’s. In Alberta, the world’s largest finance players intermix with exciting fintech startups, all supported and driven by a skilled workforce.
A new leaf
Agriculture continues to be a key driver of Western Canada’s economy, but the future of agriculture is always changing. While traditional farming continues to evolve and feed the world, Alberta’s expertise in agri-tech is attracting innovations like the new 76,000-square-foot vertical farming operation sprouting up in Alberta by GoodLeaf Farms.
GoodLeaf operates proprietary indoor vertical farming systems that use modern technologies to grow varieties of leafy greens year-round without pesticides or herbicides. The indoor vertical farm planned for Southern Alberta will be twice the size of the company’s flagship farm in Guelph, Ontario. They were assisted with a $2.7 million incentive from the Alberta Investment Growth Fund (IGF)—a program that helps companies in the late stages of decision-making if the company can deploy at least $15 million in capital and demonstrate that Alberta and at least one other jurisdiction are actively being considered for investment.
The farm will produce more than one million pounds of local leafy greens each year which will land on grocery store shelves in Western Canada by early 2023. Global connectivity and business friendly policies open up tremendous opportunities for agriculture and agri-tech to establish Alberta as a North America hub.
Clean hydrogen takes off
With a global market estimated to be worth $2.5 trillion a year by 2050, hydrogen could be our next great energy opportunity. When companies like Northern Petrochemical Corporation were searching the globe for a home for its proposed $2.5 billion clean hydrogen complex, they found it in the Northwest Alberta.
Last November, the company signed a historic land purchase agreement in Grande Prairie with the Municipal District of Greenview for a 295-acre parcel to develop a carbon-neutral integrated ammonia and methanol complex. The project is expected to create up to 4000 near-term construction jobs and 400 permanent full-time jobs once operational in the region. It’s an ESG win for Alberta.
The Greenview Industrial Gateway—where Northern Petrochemical’s project is slated to be built—is a world-class, heavy eco-industrial development focused on value-added petrochemical development. The gateway is connected by rail to the Port of Prince Rupert for export to Asian markets, offers low-cost feedstock for the processing and development of petrochemicals, houses pipeline and utility infrastructure, and has a skilled industrial workforce experienced in energy production, manufacturing, and processing.
This “plug and play” scenario is catching the attention of global investors who want to be part of the hydrogen revolution.
Air Products is building the world's largest net-zero hydrogen energy complex in Alberta—a $1.3 billion high-impact investment built with modern technology and design. The energy complex will establish a local supply of liquid hydrogen, enabling the energy transition of the transportation sector, encouraging hydrogen-fuelled transit buses, trucks, and trains with long-term local supply.
"The Government of Alberta’s recently-announced hydrogen roadmap is also a blueprint that positions Alberta as a hydrogen superpower. It contains several policy actions that will be introduced and provides support to the sector as technology and markets develop."
The Government of Alberta’s recently-announced hydrogen roadmap is also a blueprint that positions Alberta as a hydrogen superpower. It contains several policy actions that will be introduced and provides support to the sector as technology and markets develop.
A place that understands the energy sector, Alberta’s carefully planned infrastructure supports net-zero energy developments and a network of services to get energy products to international markets, fast.
What’s next?
Progress is not without its challenges, and as Alberta’s emerging sectors continue to grow exponentially, we can face the same challenges as other jurisdictions, like talent shortages, supply chain issues and competition.
2022 is once again looking promising for Alberta. There are green and blue hydrogen projects in the works, a one-of-a-kind biofuel facility, and value-added agriculture projects sprouting up.
Whatever your investment or business goals are, you can achieve them in Alberta, Canada. Whether it’s leading the world in tech, energy, or developing sustainable food, we can make it happen, together.
Rick Christiaanse is the CEO of Invest Alberta, which works with investors globally to start up or scale up in Alberta, Canada. With offices in Calgary, Edmonton, along with international offices located in key markets around the world, Invest Alberta connects industry, government partners, and economic development organizations to offer seamless services that make it easy for high-impact investment to flow into the province. Learn more at investalberta.ca