EDMONTON, AB – Emissions Reduction Alberta (ERA) is investing up to $35 million to accelerate the development and commercialization of innovative drilling technologies. This investment will help reduce emissions in the oil and gas sector while advancing emerging opportunities in geothermal energy, geologic carbon sequestration, critical minerals extraction, and more.
Building on more than a century of drilling expertise, Alberta is uniquely positioned to lead in developing next-generation solutions that reduce costs, mitigate risks, and unlock economic and environmental benefits. ERA’s new funding leverages the province’s skilled workforce and established infrastructure to keep Alberta as a world leader in safe, cost-effective, low-emission drilling.
The $35 million Drilling Technology Challenge is funded through the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) fund. It directly aligns with the Alberta Drilling Accelerator (ADA), announced by the Government of Alberta in April 2024. The application deadline is January 29, 2026, at 5:00 p.m. Mountain Daylight Time (UTC-6h), and a free, hour-long online informational webinar will be held on Wednesday, October 22, 2025, at 2:00 p.m. Mountain Daylight Time (UTC-6h).
“Alberta’s drilling leadership continues to drive progress here and around the world. With each new technology developed and commercialized, we build on our province’s expertise and continue to lead the world in providing the responsible, affordable and reliable energy that people and communities need.”
Rebecca Schulz, Minister of Environment and Protected Areas
“Built on decades of responsible resource development, Alberta is home to the world’s best drilling expertise. We’ve been at it for over 100 years, and this investment will ensure Alberta remains a global leader in cost-effective, reliable, and responsibly produced energy.”
Justin Riemer, CEO, Emissions Reduction Alberta
Funding will range from $250,000 to $8 million per project. Eligible technologies may include, but are not limited to:
- Advanced drilling methods such as percussive, water-jet, or thermal systems
- Downhole tools and sensors for high-pressure, high-temperature environments
- Automation and digital optimization, including AI-driven drilling and predictive maintenance
- Efficient and low-impact rigs, including electrified or hybrid rigs, low-impact drilling fluids, etc.
- Geothermal and critical mineral applications, such as superhot well completions or drilling in lithium-rich brines
- Enabling infrastructure and support systems like mobile labs or simulation platforms.
All projects will be selected through ERA’s rigorous and transparent review process, overseen by a Fairness Monitor. As with all ERA funding, final outcomes will be shared publicly to help advance technology toward commercialization.
For more information, contact:
Kevin Duncan
Marketing and Communications
Emissions Reduction Alberta
kduncan@eralberta.ca
(403) 431-2859
ABOUT EMISSIONS REDUCTION ALBERTA (ERA)
For 16 years, ERA has invested revenues from the carbon price paid by large emitters to accelerate the development and adoption of innovative clean technology solutions. Since its establishment in 2009, ERA has committed nearly $1 billion toward 322 projects valued at over $10.6 billion, which are helping to reduce emissions, create competitive industries, and lead to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of over 33 million tonnes of CO₂e by 2030 and 102 million tonnes of CO₂e by 2050.
ABOUT TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION (TIER) FUNDING
The Technology Innovation and Emissions Reduction (TIER) Regulation is at the core of emissions management in Alberta. The TIER system implements Alberta’s industrial carbon pricing and emissions trading system. TIER helps industrial facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.