The province's new push for more value-added products from bitumen will start in Alberta's Industrial Heartland, with long-term plans for an integrated cluster of chemical industries, a senior energy official says.

Mike Ekelund, assistant deputy minister, said Friday that "several" proposals have been received for upgrading and refining projects that would use a share of oil under Alberta's new bitumen royalty in-kind (BRIK) program. He told the Heartland association's annual regional stakeholder meeting that a detailed review will begin immediately and a decision is expected by May.

"But the guidelines are clear, that processing of the bitumen has to take place in Alberta, and the Industrial Heartland is the preferred location."

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Mayor Stephen Mandel and Strathcona County Mayor Cathy Olesen embrace at Alberta's Industrial Heartland's annual stakeholder update and luncheon at the Dow Centennial Centre in Fort Saskatchewan on Friday. The City of Edmonton signed on to become the fifth municipal partner of Alberta's Industrial Heartland Association.

Larry Wong, The Journal

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Energy Minister Ron Liepert, on his first outing since being named energy minister two weeks ago, praised the Heartland group as a key force in promoting Alberta's need to do more than simply ship its bitumen out of the province.

Liepert said he is on a "steep learning curve and I am about five per cent of the way" as new energy minister. At the moment, the province's competitiveness review for the conventional oil and gas industry is his focus.

"It will get a final look and I hope to have the report next week, and over the course of a couple of weeks make it public. We want to make Alberta the best place to invest. Energy is the core of our economic success, and frankly, we shouldn't be making any apologies for it."

Edmonton has been at odds with the four municipalities -- Fort Saskatchewan and the counties of Lamont, Sturgeon and Strathcona -- that founded the association in 1998. Edmonton wanted a share of additional tax revenues from soaring industrial growth in the counties to cover its additional expenses -- for such things as increased traffic on city streets. The rift was formally closed Friday, when Edmonton signed on as the fifth municipal member.

"The Industrial Heartland group has done an amazing job, and we really applaud what they have done. And we hope we can add something," said Mayor Stephen Mandel.

Edmonton's Horse Hills area in the northeast is touted as a future eco-industrial park, using production from other industries in the region such as semi-refined materials and off-gases to create even more products.

"Together we are putting together an area plan to create the right environment for industry," said Mandel.

The mayor said he and the other mayors have been meeting quietly for the past year and a half to find common ground and smooth over differences.

"We have an incredibly positive relationship right now. If the other municipalities are successful, we in Edmonton will be successful."

Strathcona Mayor Cathy Oleson said since they all buried the hatchet, everybody has been getting along famously.

"It is great. We have so much in common, and we can accomplish so much if we work together."

Neil Shelly, executive director of the Heartland association, said the last 12 months have seen a huge swing, with bitumen trading for just $27 a barrel last January compared with about $63 today. And the result has been four major oilsands projects announced -- Imperial's Kearl, Suncor's Firebag 3 and 4, plus the Surmont and Sunrise in situ projects.