Alberta invests $50M into oil and gas industry transformation challenge

Alberta is making an effort to transition from crude oil and gas to more sustainable alternatives of natural gas and renewable energy technologies through an “industry transformation challenge”.

The goal of the challenge is to develop technologies that will be solutions for achieving net-zero emissions and enabling competitiveness in both existing and new industries. The prize money will be from the Technology Innovation and Emissions Reduction Fund (TIER).

Alberta’s TIER system a key component in reducing industrial emissions.@YourAlberta is making available up to $50M for the new Industrial Transformation Challenge.

Funding across new and existing industries, setting our workforce up for success! #COP27 https://t.co/SKF4GPYBtX

— Hon. Sonya Savage, KC (@sonyasavage) November 14, 2022

The TIER system focuses on finding innovative methods for clean technology for industrial facilities which make up half of Alberta’s total emissions, according to a government release.

The province is investing at least $1 billion in bolstering innovative programs and technologies that push for emissions reductions.

Atop of this, an additional $700 million will be invested over the next few years.

The goal of the TIER incentives is to help Alberta’s oil and gas industry reduce greenhouse gas emissions and remain competitive, states the release.

This initiative was a key target during the 2022 United Nations Climate Change Conference (COP27) in Egypt earlier this month.

“Sustainability is foundational to Alberta’s forest industry, and continuous improvement of our operations and processes is a big part of that. This funding opportunity is an important step that will enable our sector to continue to advance technology and drive innovation,” said president and CEO of the Alberta Forest Products Association, Jason Krips.

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“The chemistry and plastics sector recognizes its responsibility to eliminate waste and pollution while working toward circularity across the value chain. To be successful and remain competitive, billions of dollars of capital investment is needed in advanced recycling, carbon reduction technologies and deployment, and recapitalization of aging infrastructure,” said president and CEO of the Chemistry Industry Association of Canada, Bob Masterson.

“This funding from the Government of Alberta through Emissions Reduction Alberta is a step forward in attracting these investment dollars and strengthening the province’s position as a leader in advancing a sustainable, low-carbon economy,” said Masterson.

In partnership with Emissions Reduction Alberta, up to $50 million is now available for the new Industrial Transformation Challenge.

So far, Emissions Reduction Alberta has pledged $821 million into 231 projects estimated to be worth $6.5 billion, which are projected to cut more than 40 million tonnes of emissions.

“Reaching goals like net zero requires transformational innovation and change along with industry, organizations, government and creative minds coming together to build our sustainable future for generations to come. Government of Alberta funding through Emissions Reduction Alberta provides the opportunity to test, create and find innovative solutions to move this transformation forward,” said Brian Vaasjo, president and CEO of Capital Power.

Those who qualify to participate in the challenge can submit proposals that focus on clean energy opportunities like mineral and metal extraction, electrification, and managing methane emissions, says the release. All submissions must be piloted, demonstrated, and launched in Alberta and the deadline for those interested in applying is Jan. 19, 2023.