Sarnia-LambtonInvestment Overview
June 2013
What many people think of Sarnia
But there is so much more!
•First North American commercial oil well (Oil Springs – 1858)
•Invention, fabrication and export of oil industry equipment to the world.
•Imperial Oil start-up in Petrolia (1880) and built first refinery.
•1942 Polymer Corp. built to supply synthetic rubber for the war effort.
Brief Sarnia-Lambton Petrochemical History
Sarnia-Lambton, Ontario, Canada
Located on the Ontario-Michigan border, at the southern tip of Lake Huron.
Sarnia-Lambton is comprised of eleven municipalities, which make up the County of Lambton. The largest and most well known municipality is the City of Sarnia.
� County population 126,200
� Labour force 82,875
� Labour force within 60 mile radius, 315,000
� Estimated unemployment rate 8.6% (April 2013)
Michigan
USA
Sarnia-Lambton’s Municipalities
Sarnia-Lambton is located at the major commercial border crossing of Sarnia/Point Edward Ontario & Port Huron Michigan.
Dedicated car and truck lanes for Free and Secure Trade (F.A.S.T.) and Nexus programs.
Sombra Ferry – Additional crossing
Sarnia-Lambton is within 1 day drive to 65% of the U.S. market as well as major Ontario and Quebec markets.
Transportation - Highway
Photo – Trucks entering Canada at Point Edward, Sarnia-Lambton
RAIL - St. Clair CN rail tunnel links Ontario and Michigan, carrying more freight than any other U.S. – Canada border rail crossing
WATER - Surrounded by water, including the St. Lawrence Seaway system, Sarnia-Lambton is home to an international grain terminal as well as ship fuelling facilities
AIR – Locally, Chris Hadfield Airport has direct flights to Toronto and within one hour from Sarnia is the Detroit International Airport and London International Airport.
Transportation – Rail, Water and Air
Photo – service vehicle enters CN rail tunnel, Sarnia
Photo – ship at Sydney Smith Dock, Sarnia
Sarnia-Lambton’s Energy Infrastructure
� Lambton Generating Station – 950 MW
� TransAlta Energy Corporation – 506 MW Co-generation facility
� Greenfield Energy – 1,005 MW
� St. Clair Energy Centre – 577 MW
� Solar farms - Enbridge 80 MW / NextEra 2 x 20 MW
� Rooftop / Standalone Solar FIT projects
� Wind - Sky Generation 16.5 MW, Forest Co-op, IPC, Suncor
� Union Gas – Dawn Natural Gas Storage complex (largest natural gas storage facility in Canada)
� Natural Gas, Oil and Hydrogen Pipeline Infrastructure
Sarnia-Lambton’s Other Infrastructure
� Pipeline Infrastructure, feedstocks and support industries for industrial processing applications
� Underground salt caverns for energy storage and gas storage
� Access to water from the St. Clair River and Lake Huron� Lambton Area Water Supply (LAWS) distributing water
to many municipalities in Lambton County with a capacity of 181,844 m³/day.
� Extensive telecommunications infrastructure including cable, DSL, fibre to the home / premise throughout Lambton County. Access to high-speed Internet exceeds 85% both in urban and rural areas.
Sarnia-Lambton’s Available Labour Force
� County Population 126,200
� Labour force 82,875
� Large number of engineers and skilled trades
� Within 60 mile radius, 315,000
� Estimated unemployment rate 8.6% (April 2013)
� Low employee turnover and abstention
� Construction safety record 25 times better than the
Provincial average
Regional Educational Facilities
Ontario, Canada:� Lambton College� Western University
Sarnia-Lambton Research Park
� Fanshawe College� Ridgetown College
(branch campus University of Guelph)
� University of Windsor� University of Waterloo
Michigan, USA� Baker College� St. Clair College� Michigan State � Wayne State University
Sarnia-Lambton’s Manufacturing Infrastructure
� Over 50 machining and fabrication firms
� Over 30 engineering, process control and technical services firms
� Large craning and transportation moving equipment – Sterling, Cooper
� Access to large lay down areas
� Rail car servicing
Sarnia-Lambton’s Strategic Direction
Information Technology / Health Care
Advanced Manufacturing / Automotive
Cleantech
Develop External Energy Markets
Refining and Chemicals
Bio-economy
Agriculture / Food Processing
Sarnia-Lambton Agriculture / Biomass
Agriculture – A Key Economic Sector
� Second largest economic sector – approximately 2,400 farms in Lambton County
� Annual farm revenues of $500 million, 589,407 acres (238,542 hectares) of farmland
� Traditional focus
� Commodity crops (beans, corn and wheat)
� Livestock (beef and dairy cattle, poultry, pigs)
� Largest Ontario region for soy bean production
� Specialty crops include: onions, potatoes, sugar beets, cabbage,celery, bell peppers, as well as many varieties of fruits / vegetables
� Other agricultural products including herbs, alpaca wool, honey & mead, maple syrup, apple cider and wine.
Lambton County and Food Processing Opportunities
� Situated in the agricultural heartland of southern Ontario with plentiful supply of high quality raw product inputs and water
� Ontario's largest acreages of soybeans� Other specialty crops (potatoes, varieties of fruits / vegetables� Wide range of livestock, including beef and dairy cattle, pigs and
poultry� Good accessibility to both domestic and international consumer
markets� Large quantities of readily available water necessary for food
production� Abundant reliable source of electricity and natural gas � Sizeable tracts of serviced industrial land at competitive prices� Research and education facilities
Lambton County Agricultural Innovation -Envirofresh Farms and CF Industries
� 23 acre greenhouse facility located at CF Industries
� Captures waste heat and CO2 (carbon dioxide) from an adjacent nitrogen fertilizer manufacturing complex (CF Industries)
� Uses 10Mw per hour of waste industrial heat and approximately 160 tonnes of CO2 per day produced by CF Industries
� Grows red, yellow and orange peppers� First greenhouse project in North
America to operate without the normal use of fossil fuels.
Canada’s Bioindustrial Innovation Centre
Multi-million dollar project located at the Western University Sarnia-Lambton Research Park
Photo – Artist’s concept – Canada’s Bioindustrial Innovation Centre, The Research Park, Sarnia-Lambton Campus
80% of Ontario soybeans and corn within 200km
Sarnia-Lambton Biohybrid Chemistry Cluster Companies
20
Fossil Based:
� Air Products� CF Industries� DuPont� Enbridge� Ethyl Corp.� Imperial Oil� LANXESS� NOVA Chemicals� Ontario Power
Generation� Pembina� Plains Midstream� Praxair� Royal Dutch Shell� Styrolution� Suncor� TransAlta Energy
Bio / Renewable Based:
�BioAmber�Cargill�Enbridge�Greenfield
Ethanol�Methes Energy�KmX�Suncor Ethanol�Woodland Biofuels
Sarnia-Lambton
Biohybrid Chemical Complex
Examples of Biohybrid Chemical Complex Investments
� Woodland Biofuels - $800,000 FedDev investment in pilot plant producing cellulosic ethanol from wood, grasses or other biomass
� BioAmber - $125M plant uses sugar from corn to produce bio-based succinic acid used in a variety of products, including plasticizers, automotive parts, disposable cutlery and cosmetics
� KmX – pilot plant to produce membranes in the biofuelproduction process
Petrochemical and Refining
� Significant North American petrochemical and refining centre
� Employment of 4,500 in 36 related facilities
� Significant producer of chemicals, plastics, synthetic rubber and variety of oil-based products for North American and off-shore markets
Established multi-nationals include: Air Products; Plains Midstream Canada; Cabot Carbon; CF Industries; DuPont; Exxon-Mobil; Styrolution; LANXESS; NOVA Chemicals; Praxair; Royal Dutch Shell; Suncor Energy
Photo – NOVA Corunna Site
Petrochemical and RefiningNOVA 2020 Projects – Eastern Region
� Phase 1 - Conversion of Corunna ethylene cracker to utilize up to 100% NGL’s � $250 Capital Investment currently underway � Completion early 2014
� Phase 2 – Feasibility studies and engineering work on additional projects� Expansion of Corunna cracker by up to 40% supporting a
proposed world scale polyethylene (PE) facility � Decisions to proceed throughout 2013� Anticipated start-up of projects – between late 2014 and 2017
Petrochemical and RefiningShell Canada – Great Lakes Corridor LNG Project
� Shell to establish natural gas liquefaction unit at Sarnia Manufacturing Centre in Township of St. Clair
� Annual capacity of 250,000 tons
� Will provide LNG fuel to all five Great Lakes, their bordering U.S. states and Canadian provinces and the St. Lawrence Seaway
� Primary market is marine traffic as well as trucks and trains
� Production to begin 2016
Energy Markets - Enbridge Sarnia Solar Project
� 80 MW completed in 2010
� One of the largest Photovoltaic solar plants in the world
� Generates enough green power to meet the needs of more than 12,000 homes
Recent New Energy Storage and Generation Projects
� Greenfield South Power Plant – Natural Gas Powered
� NRStor 2MW flywheel at Lambton Generating Station – first commercial energy storage project
� Bluewater Power - Bio-generator – demo –converting hydrogen to electricity while actually consuming CO2 from the atmosphere.
� AVE – atmospheric vortex engine – scale-up –funded by Paypall co-founder Peter Thielproducing energy from waste heat.
Lambton County’s Advanced Manufacturing and Automotive Industry
� Autotube – Auto cooling and oil tubing (GM, Ford, Chrysler)
� Armtec Ltd. - high-density polyethylene construction products
� Intertec Instrumentation Ltd. - custom field instrumentation shelters, cabinets and enclosures for the petrochemical industry
� Penta TMR – agricultural equipment manufacturing
� Waterville TG – extruded rubber seals for the auto industry
� Lamperd Less Lethal – design and manufacture civil defense equipment
Manufacturing andService Infrastructure
Sarnia-Lambton’s large metal fabrication and service sector serves Sarnia-Lambton’s chemical
and manufacturing industries – and companies export their services
world-wide.
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Sarnia-Lambton Industrial Alliance
� Fabricators, machine shops, engineering companies and environmental service companies
� SLIA is a not-for-profit group to jointly seek out new markets for the skills, products and services that exist in Sarnia-Lambton
� Over 40 member companies working together
� One project is production of large modules for refineries
� Just completed a large module transportation study including analysis of deep water harbour access on the St. Clair River.
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Sarnia-Lambton Information Technology Industry
� Local Lambton College trained ICT graduates as well as close proximity to Western, Waterloo and Windsor Universities.
� Internet infrastructure through multiple providers even in rural areas as well as close proximity to main fibre corridor between Toronto and Chicago via St. Clair Railway Tunnel
� Close proximity to Detroit airport and the US border for easy access to US and international destinations.
� Competitive Power Rates and stable power supplies from gas, wind, and solar as well as lower co-generation rates
� Moderate summer temperatures and cool winter temperatures - 8500 Hours of FREE cooling for data centres
� Close to Lake Huron and St. Clair river for water cooling cost savings for data centres
� Stable weather environment with Low Seismic, Flood and Hurricane Risk� Competitive corporate tax rates and access to R&D grants for digital media
companies.
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Sarnia-Lambton’s ICT Company Projects
� HomeTrak http://hometrak.com/ – developed system to support home care workers
� Pipeintel http://www.pipeintel.com/ – system developed to manage all the information related to complex pipelines
� Link2Feed http://www.link2feed.ca/ - Foodbankmanagement software
� IMAP Audits http://www.imapaudits.com/ - Audit process and software for supporting energy and safety audits for industrial applications
Shovel-Ready Sites
LANXESS Bluewater Energy Park
Internationally Competitive Business Environment
� Competitive Labour Costs� Competitive Utilities� Lowest Corporate Taxes in
North America� Canada is ranked 8th in the
world for best taxation policies (2013 PWC Paying Taxes Survey)
� Property tax savings of 30% to 80% or more than GTA
Sarnia-Lambton’s competitive housing costs
Photo – waterfront condominiums, Village of Point Edward
� Sarnia housing prices are very affordable
� 2 bedroom rental $801 (CMHC Fall 2012)
� Average residential sale price: $184,166 (Sarnia-Lambton Real Estate Board December 2012)
� Houses, condos, and apartments are available on the St. Clair River and Lake Huron waterfronts
� Sarnia-Lambton’s picturesque rural areas provide room for hobby farms as well as large agricultural operations
Sarnia-Lambton’s Amenities
� Sarnia-Lambton a great place to live and play with all the amenities of big city living with small town friendliness
� Over 40 miles of beautiful freshwater beaches
� 60 recreational parks and conservation areas as well as the 6,000 ac. Pinery Provincial Park
� The best recreational boating experiences on Lake Huron and the St. Clair river.
Sarnia-Lambton’s Entertainment Opportunities
� RBC Centre – 4,500 seat sports and entertainment complex, home of the Sarnia Sting OHL team.
� Home to many festivals and events
� OLG Casino Point Edward and Hiawatha Horse Park and Entertainment Centre
� Local live theatre venues include the Imperial Theatre and Victoria Playhouse
� New home to the Judith & Norman ALIX Art Gallery (opening 2012)
High Quality of Life = High Productivity of workforce
� Less Lateness and Absenteeism
� Easy commuting distances and times
� Less severe weather – lake effect
� Less stress because of more affordable housing choices and recreational amenities
� Smaller schools without big city problems
� Excellent labour management relations across
Lambton County
Contacts:
Geoff GreeningMarket Development [email protected]
George MallayGeneral Manager [email protected]
1-800-972-7642www.sarnialambton.on.ca