Keyera (TSX: KEY) and Canadian National Railway (CN) (TSX: CNR) have signed a memorandum of understanding (MoU) in an effort to assess the development of a specialised clean energy terminal in Alberta’s Industrial Heartland.
The clean energy terminal will “aggregate conventional and clean energy from multiple sources” to facilitate transportation of Alberta’s energy products and advance Canada’s efforts in fulfilling a greener future.
CN president and chief executive officer Tracy Robinson said the project highlights its brand’s core strength in sustainably moving Canadian natural resources, safely and efficiently, to domestic and international markets.
“The project will offer a unique opportunity to aggregate products from multiple producers and will provide an efficient mechanism to not only support Canadian industry but also further global energy transition,” she said.
Keyera’s president and chief executive officer Dean Setoguchi added combining both parties’ expertise was ideal in rallying behind the global energy transition.
“Together, Keyera and CN demonstrate how collaboration is key to creating sustainable solutions, meeting the evolving needs of our customers, and transporting high value products locally and abroad while supporting Canada’s path to net-zero,” he said.
Most efficient rail logistics solution in Alberta’s Industrial Heartland
Keyera and CN hope to develop the most efficient rail logistics solution in Alberta’s Industrial Heartland through the clean energy terminal.
It will create a safe and efficient service for industrial players to connect and transport a range of specialised low-cost sustainable energy products to key markets, both domestically and across the globe.
The terminal will be set up on adjoining land belonging to both companies, leveraging the CN rail network and surrounding infrastructure.
Once complete, the facility will be capable of handling six inbound and outbound high-capacity trains each day.
Alberta Industrial Heartland Association executive director Mark Plamondon said the terminal would be a significant capital investment in new infrastructure in Alberta’s Industrial Heartland (AIH).
“The terminal will add to the competitiveness of AIH, which will underpin additional new clean energy investments that take advantage of centralised loading and cost-efficient access to global markets,” he said.
Mayor of Strathcona County Rod Frank added the agreement underpins the global push towards energy transition, with the region holding the upper hand in serving global markets.
“Opportunities for jobs and a cleaner environment will now grow even more,” he said.
“We are seeing the importance of existing production assets and robust transportation infrastructure to attract new investment to our region, and will continue to ensure that our region provides the right environment for local industry and businesses to succeed and grow.”