$70.2 million announced to help Alberta’s industries reduce greenhouse gas emissions and remain globally competitive

Calgary, AB – Using low carbon fuels to make cement and recovering heat from a refinery to generate electricity are just two examples of promising new technologies that will get a funding boost as a direct result of the carbon levy paid by industry.

Eleven projects worth a combined value of $267 million will receive up to $70.2 million through Emissions Reduction Alberta’s (ERA) Industrial Efficiency Challenge. Launched in March 2018, the Challenge was an open call to Large Final Emitter (LFE) industrial facilities—Alberta’s most energy-intensive, trade-exposed industries—to implement new technologies that reduce emissions and operating costs. Sectors for consideration included oil and gas, chemicals and fertilizers, cement and concrete, forestry and agriculture, electricity, and manufacturing.

“Albertans know that our economy and our environment go hand-in-hand. These innovative technologies will help our major industries reduce emissions while creating jobs, cutting costs and making them more competitive in global markets. Our investments in innovation continue to position Alberta as a forward-thinking investment jurisdiction and industrial leader.

Shannon Phillips, Minister of Environment and Parks and Minister responsible for the Climate Change Office.

“The clean technologies required to improve both the environmental and economic performance of Alberta’s large industrial facilities require significant capital investment. The funding announced today helps accelerate the development and commercialization of some of the most promising industrial efficiency opportunities in Alberta.”

Steve MacDonald, CEO, Emissions Reduction Alberta

The following projects were selected for funding:

  • Imperial Oil Limited: Kearl ConDex Flue Gas Heat and Water Recovery Project
  • Lafarge Canada: Lower Carbon Fuels Project
  • 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 Project
  • 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 Project
  • Repsol Oil and Gas Canada: Demonstration of the Transition from Hydrocarbons to Inert Gas Technology for Gas Blanketing and Purge in the Gas Processing Industry
  • Athabasca Oil Corporation: Energy Intensity Reduction through Flow Control Devices and Non-Combustible Gas
  • Energreen Solutions: Strathcona Works – Waste Heat to Power Project
  • ENMAX Generation Portfolio Inc.: Crossfield Energy Centre Hybrid Electric Gas Turbine Project – hybridization of a natural gas turbine with battery storage.

Click here to read project descriptions.

These initiatives are anticipated to account for cumulative GHG reductions of more than 5.3 million tonnes of CO2e by 2030. This is equivalent to bringing more than 1,300 wind turbines online. Significant reductions in operating costs are also expected. If successful, many of these new technologies can be adopted across industrial sectors, leading to further emission reductions and further economic benefits.

Funding comes from ERA’s Industrial Efficiency Challenge, which includes $8 million investment from the Low Carbon Economy Leadership Fund administered by Environment and Climate Change Canada. Each project is led by or in partnership with large-final-emitter facilities in Alberta, representing first-of-kind demonstrations and deployments.

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 greenhouse gas quantification conducted an independent, rigorous, transparent review overseen by a Fairness Monitor. The ERA Board approved funding recipients in late December.

Projects were selected through ERA’s competitive review process. 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 shared publicly for the broader benefit of Alberta.

“Imperial continues to apply advanced technologies and improvements in efficiency to reduce the greenhouse gas emissions intensity of its operated oil sands facilities. This technology is designed to recover waste heat, increasing energy efficiency and recovering water to be reused — an innovative application of a simple concept at industrial scale.”

Cheryl Trudell, Vice-President of Research, Imperial

“This multi-partner, multi-site research project will help Lafarge better understand the environmental benefits of introducing lower carbon fuels at the Exshaw Cement Plant—the largest cement plant in Canada. The Exshaw low carbon fuels project will go a long way in helping us reach our ambitious corporate goal to produce 40 per cent less net CO2 per tonne of cement by 2030. This support from ERA helps us move this project forward. We hope that any positive results or lessons learned will encourage others in our industry to do the same, giving this investment a greater, far-reaching impact.”

Kate Strachan, Plant Manager, Lafarge Exshaw Cement Plant

“TransCanada is pleased to be awarded the ERA grant funding as part of the recent Industrial Efficiency Challenge.  This grant will be used to help fund the development and construction of a new waste heat recovery pilot plant to produce emissions-free electricity at one of our natural gas pipeline compressor stations in Alberta. Developed in partnership with Siemens, this plant will provide the first commercial scale waste heat recovery unit utilizing supercritical carbon dioxide in the world. We would like to thank ERA for their support of this innovative technology to help advance energy efficiency and reduce GHG emissions in Alberta.”

Sean Brett, Vice-President Power & Gas Storage, TransCanada

“TAQA North Ltd is committed to sustainable development and protection of the environment.  As the majority owner and the operator of the East Crossfield Gas Plant, TAQA North appreciates the support shown by Emissions Reduction Alberta.  On behalf of TAQA and our working interest partners, we look forward to a safe and successful project.”

Roderick Miller, TAQA North Vice President Production and Operations

“This funding from Emissions Reduction Alberta is supporting a technology that has a potential application across SAGD operations, resulting in significant reductions in greenhouse gas intensity and reduced costs. This is a great example of government and industry working together to drive innovation and help explore solutions to the challenges facing our industry, to the benefit of all Albertans.”

Khoa Dao, vice president, Asset Development and Commercial, ConocoPhillips Canada

“The ERA’s Industrial Efficiency Challenge Funding will have a positive impact on supporting continued innovations within the pulp and paper industry.  This funding not only supports the reduction in greenhouse gas emissions, but is helping Alberta Pacific Forest Industries Inc. pursue a project that will increase our efficiency, and will help to maintain and enhance our competitiveness and sustainability.”

Daryl Nichol, Pulp Mill Manager, Alberta-Pacific Forest Industries Inc.

“Repsol promotes an innovation culture and is excited for the opportunity to improve the greenhouse gas emissions profile of its operating facilities, which undoubtedly will help us reach our global target of a 2.1M tCO2e reduction by 2020. We are proud to collaborate with Emission Reduction Alberta’s commitment to the Industrial Efficiency Challenge and we look forward to evaluating the application of nitrogen generating equipment at the Edson Gas Plant in Alberta.”

Alejandro Baran, Director Production Operations Canada

“Athabasca is implementing technologies aimed at improving resource recovery while lowering its carbon footprint. Alberta’s energy industry is a global leader in technology innovation and environmental stewardship.  Our company is proud to meaningfully contribute to these efforts.”

Rob Broen, President & CEO, Athabasca Oil Corporation

“This Strathcona Works waste heat to power project is just one of many similar waste heat to power opportunities that now can be developed.”

Daniel J. O’Connor, President & CEO, Energreen Solutions

“This project is another significant step in ENMAX leadership to develop, implement and operate leading- edge clean-energy solutions. The knowledge obtained as a result of this innovative project will positively influence the utilization of electricity resources not only in Alberta, but well beyond its borders.”

Lonnie Enns, Senior VP, Power Supply, ENMAX

 

For more information contact:
Emissions Reduction Alberta
Michelle Gurney
Cell: 403.431.0759
mgurney@eralberta.ca

ABOUT EMISSIONS REDUCTION ALBERTA (ERA):

The Alberta government provides grants to ERA from the Climate Change and Emissions Management Fund. ERA takes action on climate change and supports economic growth and diversification by investing the carbon levy paid by industry directly into later-stage clean technology solutions that reduce GHGs, attract investment, and create jobs in Alberta. To date, ERA has committed more than $467 million in funding to 145 projects with a total value of approximately $3.5 billion.