$30 million to accelerate carbon capture projects in Alberta

For immediate release

EDMONTON, AB – A new $30 million funding opportunity will accelerate development of industrial-scale carbon capture and transportation technology solutions in Alberta. Emissions Reduction Alberta’s (ERA) Carbon Capture Kickstart: Design and Engineering call builds on Alberta’s global leadership in this space, and will fill key knowledge gaps, drive partnerships and innovation, and accelerate project financing and deployment in Alberta.

The Government of Alberta is providing $30 million to ERA from the Technology Innovation and Emissions Reduction (TIER) fund. Jason Nixon, Alberta’s Minister of Environment and Parks, and ERA CEO, Steve MacDonald, made the announcement on Friday, January 14, 2022.

The Carbon Capture Kickstart funding competition supports pre-construction design and engineering. It is focused on site-specific carbon capture, direct air capture, and carbon transportation infrastructure. Proposals can address emissions across industrial sectors: power generation, cement production, manufacturing, oil and gas, and more. All proposals must target specific large final emitter sites in Alberta.

“Carbon capture is necessary to reach large-scale reduction of CO2 emissions. The Carbon Capture Kickstart investment will create shared learnings and provide valuable insights to industry, government, and other stakeholders about the economic and emissions reduction potential of this critical technology in Alberta.”

Jason Nixon, Minister of Environment and Parks

“Alberta has played a leading role in the scale up and commercialization of CCUS technologies and has been the host of several world-first commercial projects. The Carbon Capture Kickstart competition will help establish a larger roster of investment-ready projects and position Alberta as a world-leader in developing CCUS technologies the world needs for emissions reductions.”

Sonya Savage, Minister of Energy

“On the path to net-zero emissions, carbon capture will be a key pillar of the effort to transform how we produce and use energy. By incenting collaboration and helping to build the case for investment, this funding creates momentum for further technology development and applications.” 

Steve MacDonald, ERA CEO

ERA will contribute up to 50 percent of the project cost to a maximum of $7.5 million. ERA will also identify opportunities to leverage funding for this call with support from other funding agencies, such as Natural Resources Canada (NRCan).

Technology developers, industry operators, industrial associations, small and medium-sized enterprises (SMEs), municipalities, and others are encouraged to apply. Partnerships are encouraged. The application deadline is Thursday, March 3, 2022 at 5 p.m. MST. Program details are available on the ERA website. An informational webinar will be hosted Wednesday, January 26 at 9 a.m. MST.

ERA’s funding opportunity aligns with the Federal Government’s committed introduction of an investment tax credit for capital invested in CCUS projects starting in 2022. It also supports the Government of Alberta’s carbon sequestration hub approach announced in 2021.

“A FEED study is an essential step in providing certainty, minimizing risk, and enabling confidence in a final investment decision for any major capital project. With the recognition that accelerated execution of several large-scale CCS projects is critical for Canada in achieving its 2030 emission reduction targets, we are encouraged to see direct support by ERA for carbon capture FEED studies.”

Mark Demchuk, National Director, International CCS Knowledge Centre

“Alberta has undertaken some extraordinary things in the CCUS space—one of the most promising clean energy technologies—to ensure a strong pipeline of technology that will be key to future economic and environmental successes.”
Brian Allison, Head CCUS R&D and International Policy, UK Department for Business, Energy and Industrial Strategy

“Investing in carbon capture technologies will play an essential role in realising our ambition of net-zero cement and concrete by 2050. The Carbon Capture Kickstart funding competition will deepen Alberta’s leadership in this critical technology and the fight against climate change.”

Michael McSweeney, President and CEO of the Cement Association of Canada

“Alberta and Canada already lead the world in low-carbon chemistry and plastics production. Lowering the process emissions in our sector is crucial to ensuring our chemistry products remain among the lowest carbon intensive products globally. ERA’s Carbon Capture Kickstart call is one more step forward in securing global scale net zero and circular economy investments in chemistry in Alberta by capitalizing on the province’s abundant, low carbon natural gas-based energy and feedstocks, along with its world-leading and rapidly expanding carbon capture and storage infrastructure.”

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

“Lehigh Hanson is committed to achieving carbon-neutral concrete by 2050 at the latest. We believe that carbon capture technology at our cement plants will play a key role in achieving this goal. With Alberta’s favourable geology and regulatory clarity, along with support from ERA, our Edmonton plant is emerging as an ideal location to bring large-scale carbon capture in cement manufacturing to fruition.”

Joerg Nixdorf, President, Lehigh Hanson – Canada Region

“CCUS is an important part of Alberta’s ability to meet our climate change goals. Supporting projects that can be deployed across different sectors, and the entire carbon value chain from stacks to geology, represents a tremendous opportunity for our province to realize deep emissions reductions. Funding from ERA and the Government of Alberta to kickstart these projects means that we can move more quickly to real projects, happening now.”

Candice Paton, Founder, Alberta Carbon Hub

“The Pathways initiative is focused on significantly reducing greenhouse gas emissions from oil sands production to help meet our climate goals and carbon capture will play a significant role. Carbon capture is a complex engineering challenge and rolling it out at scale will require close cooperation between industry and government. The next step is to complete site specific feasibility studies to further understand the costs involved. ERA’s new program is another strong example of how Alberta continues to lead with pragmatic emissions solutions.”

 Alan Reid, Director, Oil Sands Pathways to Net Zero

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. Recognizing the need for rapid progress and the reduced evaluation requirements associated with studies, ERA has implemented a modified intake process specific to this Call.

All ERA funding recipients are required to produce a final outcomes report that is shared publicly for the broader benefit of Alberta. Funding recipients will be required to report on project outcomes, achievements, and lessons learned including GHG reductions, job creation, and other environmental, economic, and social benefits.

For more information contact:
Kevin Duncan
Emissions Reduction Alberta

For 12 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 ERA was established in 2009, they have committed $821 million toward 221 projects worth $6.6 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 reductions of 42.3 million tonnes of CO₂e by 2030.