Home > Technology Funding > Industrial Efficiency Challenge – 11 Projects – $70.2 Million Investment – $267 Project Value

$70.2 MILLION IN FUNDING AWARDED TO 11 PROJECTS

Eleven projects worth a combined value of $267 million will receive up to $70.2 million through ERA’s Industrial Efficiency Challenge.

These initiatives are anticipated to account for cumulative greenhouse gas (GHG) reductions of more than 5.3 million tonnes of CO₂e by 2030. Significant reductions in operating costs are also expected. Each project is led by or in partnership with Large Final Emitter (LFE) facilities in Alberta, representing first-of-kind demonstrations and deployments.

Funding will help accelerate the deployment and adoption of these technologies and support Alberta’s large emitters subject to the Carbon Competitiveness Incentive Regulation (CCIR). ERA CEO Steve MacDonald made the announcement with Shannon Phillips, the Minister of Environment and Parks and the Minister Responsible for Climate Change, on February 6, 2019 at the PROPEL Energy Tech Forum in Calgary.

The following projects were selected for funding:

  •  Imperial Oil Limited: Kearl ConDex Flue Gas Heat and Water Recovery.
  •  Lafarge Canada: Lower Carbon Fuels.
  •  Suncor Energy Inc. Oil Sands: Digital Optimization using Advanced Process Control in an In Situ Facility.
  •  TransCanada Energy: Supercritical CO₂ Waste Heat Recovery and Utilization Technology.
  •  TAQA North Ltd.: Crossfield Gas Plant Energy Efficiency and GHG Reduction.
  •  ConocoPhillips Canada: Field Pilot of Multilateral Well Technology to Reduce GHG Intensity of SAGD.
  •  Alberta-Pacific Forest Industries Inc.: Kraft Pulp Mill Flue Gas Energy Recovery.
  •  Athabasca Oil Corporation: Energy Intensity Reduction through Flow Control Devices (FCD) and Non-Condensable Gas (NCG).
  •  Energreen Solutions: Strathcona Works – Waste Heat to Power.
  •  ENMAX Generation Portfolio Inc.: Crossfield Energy Centre Hybrid Electric Gas Turbine Project – hybridization of a natural gas turbine with battery storage.

Please note, since the announcement, one project has withdrawn. ERA is now providing 10 projects with $69 million in support. The projects have a combined total value estimated at over $265 million.

SUBMISSION PROCESS

Projects were selected through ERA’s competitive review process. ERA received 93 expressions of interest, which were shortlisted down to 19. Sixteen organizations submitted Full Project Proposals and made in-person presentations. A team of experts in science, engineering, business development, commercialization, financing, and GHG quantification conducted an independent, rigorous, transparent review overseen by a Fairness Monitor.

The ERA Board approved funding recipients in late December 2018, and the projects were publicly announced in January 2019. If successful, many of these new technologies can be adopted across industrial sectors, leading to further emissions reduction and economic benefits.

Funding will be distributed on a milestone-by-milestone basis, and the progress of each project is reported on until completion. All recipients are required to produce a final outcomes report that will be shared publicly for the broader benefit of Alberta.

ABOUT THE CHALLENGE

Launched in March 2018, the Industrial Efficiency Challenge was an open call to LFE industrial facilities—Alberta’s most energy-intensive, trade-exposed industries—to implement new technologies that reduce emissions and operating costs.

Click the links below for more details:

WHY INDUSTRIAL EFFICIENCY?

There is a pent-up demand for innovative technologies that can help Alberta industry reduce emissions and lead in a low carbon global economy.

Alberta has regulatory requirements that require large emitters to reduce GHG emissions. Our province is home to energy-intensive and trade-exposed industries.

We know that technology can help industry adapt to new regulations, reduce GHG emissions and operating costs.

It requires complete solutions and the ERA Industrial Efficiency Challenge is part of a comprehensive strategy. This funding will support Alberta’s industrial operations that are subject to the Carbon Competitiveness Incentive Regulation (CCIR).

Before the launch of this Challenge, ERA sought input from industry, government, and innovators to define the scope of the Challenge so that it will deliver the greatest outcomes in terms of emissions and cost reductions.

The Industrial Efficiency Challenge targeted near-term opportunities to improve cost competitiveness and reduce GHG emissions from large industrial emitters in Alberta.

This funding complements other Government of Alberta programs such as the offset system and Energy Efficiency Alberta’s Industrial Energy Savings programs.

SUCCESSFUL PROJECTS MUST:

  • Involve field piloting, commercial demonstration, or large-scale deployment of leading industrial efficiency technologies at a “Large Final Emitter” site in Alberta (TRL 7-9).
  • Reduce the quantity of energy or GHG emissions to produce the same or greater output.
  • Be complete within three years after commencement.
  • Demonstrate how the solution is “leading” – such as first of kind, first in Alberta, first in industry or first at facility.

LARGE FINAL EMITTERS

Large Final Emitters in Alberta facilities are found in a number of sectors, including (but are not limited to):

  • Cement/lime
  • Chemical
  • Energy (Oil and gas)
  • Fertilizer
  • Food manufacturing
  • Forestry/paper
  • Mining
  • Municipalities
  • Pipelines
  • Power generation
  • Waste treatment

FOCUS AREAS

The focus of this funding opportunity is on advancing leading industrial efficiency technologies in Alberta. The intent is to accelerate technology with near-term market potential (<5 years). This call was open to all industrial sectors, but opportunities within the emissions intensive trade exposed sectors were of particular interest.

Examples of potential areas of interest include (but are not limited to):

  • Process improvements (combustion, catalysts, water treatment, etc.)
  • High efficiency equipment (motors, pumps, compressors, etc.)
  • Waste heat utilization and low carbon industrial heat
  • Fuel switching, electrification, and alternative feedstocks
  • Digital optimization and automation
  • Industrial carbon conversion/utilization
  • Industrial transportation and logistical optimization

PROJECT DEVELOPMENT STAGE

All eligible projects must involve field piloting, commercial demonstration, or technology deployment:

  • Field Pilot (TRL 7): At this stage of development, the technology is ready to be field tested in an operational environment. Projects in this category include scale up of prototypes to representative pilot scale and subsequent in-field testing of pilot units.
  • Demonstration (TRL 8): At this stage of development, the technology is approaching the final commercial product and representative systems have been built. Projects in this category include demonstration of near- or fully-commercial scale systems in an operational environment.
  • Commercial Implementation (TRL 9): At this stage, the technology is ready for commercial deployment. Projects in this category will involve design, construction, and operation of the technology in its final commercial form, with the intent to operate the technology for its full commercial life.

WORKING TOGETHER TO SECURE A LOWER CARBON FUTURE FOR ALBERTA

ERA is a key partner in addressing Alberta’s Climate Leadership priorities. We receive grants from government to deliver on our mandate. This funding is sourced from the Climate Change and Emissions Management Fund, one of the options Large Final Emitters can use to comply with GHG-reducing regulations.

ERA works collaboratively with government, industry and other stakeholders. Together, we can build a better province for future generations.

Emissions Reduction Alberta (ERA) is a legal tradename of the Climate Change and Emissions Management (CCEMC) Corporation.