Up to $150 million announced for shovel-ready projects that cut costs and emissions in Alberta

Federal and provincial joint funding opportunity targets projects that can rapidly create jobs and stimulate economic opportunities in the province

EDMONTON, AB – Industrial innovation initiatives that support economic recovery and sustainability are now eligible for up to $150 million in funding. Today, the Government of Alberta announced it is funding $100 million for Emissions Reduction Alberta’s (ERA) Shovel-Ready Challenge through the Technology Innovation and Emissions Reduction (TIER) fund. Up to $50 million in additional funds will also be available from the federal Low Carbon Economy Leadership Fund (LCELF).

ERA’s Shovel-Ready Challenge will provide vital financial support to companies ready to implement leading-edge technologies in applications for both greenfield and brownfield operations. This support will be leveraged with private funding, leading to projects valued at over $500 million. This will result in operational efficiencies, cost and emissions reductions, new investment, job creation and retention, and address longer-term environmental sustainability priorities.

ERA is seeking commercial demonstration and deployment projects that have the highest potential to immediately create economic stimulus and environmental resiliency. Projects must begin within 60 days of funding approval and outcomes must include commercial demonstration or deployment of technologies in operational environments. New projects and projects at early stages of execution that have been initiated but stalled due to the current economic situation are also eligible to apply.

Successful applicants are eligible for up to $15 million with a minimum request of $2 million. ERA will identify opportunities to leverage funding for this call with support from other funding partners. Since funding will be leveraged with public and private investments, the potential for employment and GDP creation is increased.

“The TIER program is central to Alberta’s economic recovery, supporting projects that cut emissions, attract investment, keep industry competitive and get Albertans back to work. This investment comes at a critical time when Alberta has the opportunity to build back better.”

Jason Kenney, Premier

“The Government of Canada is proud to support innovative projects that reduce emissions and create good jobs. Today’s announcement highlights some of the important work Alberta is doing to build a stronger, more resilient, and sustainable community. These Government of Alberta efforts to reduce emissions are a great example of positive climate action, which will help Canada meet and exceed its 2030 Paris target, as well as achieve net-zero emissions by 2050.”
Jonathan Wilkinson, Minister of Environment and Climate Change

“This investment will accelerate development and deployment of technologies that will stimulate the economy and reduce greenhouse gas emissions and help jump start projects that may have been delayed or stopped because of the COVID-19 pandemic and economic uncertainty.”

Steve MacDonald, CEO, Emissions Reduction Alberta

“By investing in leading-edge technologies and demonstrations, ERA and the Shovel-Ready Challenge will provide immediate economic value, while advancing long-term technology innovation and environmental goals across several sectors.”

Lonnie Enns Senior VP, Power Supply, ENMAX

“Alberta’s chemistry sector has shown resilience and responsiveness to Canada’s pandemic fight. ERA’s Shovel-Ready Challenge supported by the TIER fund will allow the sector to continue to reduce its emissions and support its essential manufacturing role, while taking the next steps to improve energy efficiency and boost productivity.”

Bob Masterson, President and CEO, Chemistry Industry Association of Canada

“Nutrien’s roots run deep in Alberta, as does our commitment to protecting the province’s air, water, and land. We support the province’s investment through Emissions Reduction Alberta for innovative, emissions-reduction technologies which will continue to help agriculture become even more sustainable.”

Chuck Magro, President & CEO, Nutrien

“As part of our Beyond 2020 global strategy, Lehigh Hanson and our parent company HeidelbergCement are firmly committed to reducing CO2 emissions by at least 30 per cent as compared to 1990 by the year 2025, and to achieving carbon-neutral concrete by 2050 at the latest. Funding opportunities, like the Shovel-Ready Challenge supported by the Government of Alberta and offered through ERA, are critically important to achieving these ambitious goals, while also allowing Lehigh Hanson to remain competitive in a challenging economy.”

Joerg Nixdorf, President, Lehigh Hanson Canada Region.

“Alberta’s oil and natural gas industry has made significant strides in reducing our environmental footprint in large part due to strong collaborations and a range of partnerships across industry, governments, academia, and technology providers. With the leadership and support of Alberta’s government and Emissions Reduction Alberta, our industry will continue to accelerate the pace of technology development with R&D investment that will create jobs, build efficiencies, and deliver environmental benefits—all essential for a strong and sustained economic recovery from the impacts of COVID-19.”

Joy Romero, Vice President, Technology & Innovation

To inform the scope of the Shovel-Ready Challenge, ERA reached out to technology developers, industry, government, and other experts to discuss opportunities to create jobs, increase competitiveness, tackle barriers to advancing technology, and reduce emissions.

Applications are open for all categories of applicants with shovel-ready projects, including industry associations, industry operators, entrepreneurs, technology providers, municipalities, and others. Partnerships between technology developers and industry operators are encouraged to apply.

This call is open to a broad range of Alberta’s industries with opportunities for significant GHG reductions. Projects can include mobility and transportation solutions; low-emitting electricity generation; high efficiency equipment; optimization of agriculture and forestry operations; methane emissions management; waste heat utilization; low carbon industrial heat; fuel switching; alternative feedstocks; carbon capture, utilization, and sequestration (CCUS); and more.

Projects may involve components outside of Alberta, but all technology demonstration and deployment activities must occur in the province. The application deadline is Tuesday, December 22, 2020. Program details are available on the ERA website.

Submissions will be selected through ERA’s competitive review process. A team of experts in science, engineering, business development, commercialization, financing, and GHG quantification will conduct an independent, rigorous, transparent review overseen by a Fairness Monitor. All ERA funding recipients are required to produce a final outcomes report that is shared publicly for the broader benefit of Alberta.

Steve MacDonald, ERA’s CEO, and Mark Summers, ERA’s Executive Director of Technology and Innovation, will host an informational webinar on Thursday, November 12 at 1 p.m. (MT). They will provide an overview of the funding opportunity, including scope and eligibility of the call, the submission process, and timelines for decisions. Participants will have the chance to ask specific questions to help prepare an application.

Emissions Reduction Alberta
Kevin Duncan
403.431.2859 | kduncan@eralberta.ca

For more than 10 years, ERA has been investing the revenues from the carbon price paid by large final emitters to accelerate the development and adoption of innovative clean technology solutions. Since we were established in 2009, we have committed $611 million toward 185 projects worth over $4 billion that are helping to reduce GHGs, create competitive industries and are leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative GHG reductions of 34.7 million tonnes by 2030.

The Low Carbon Economy Leadership Fund provides $1.4 billion to provinces and territories to reduce carbon pollution and help Canada meet its 2030 climate target. The funding recognizes the key role provinces and territories play in addressing climate change, and it supports their efforts to reduce emissions, encourage innovation, save money, and create jobs and healthier communities.