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.

.

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.

.

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.

.

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 Consultantgeoff@sarnialambton.on.ca

George MallayGeneral Manager mallay@sarnialambton.on.ca

1-800-972-7642www.sarnialambton.on.ca