
Frequently Asked Questions: For Companies (SMEs)
Updated: October 28, 2026
About LSIP
Emissions Reduction Alberta (ERA) is an arm’s-length, not-for-profit organization funded through the Technology Innovation and Emissions Reduction (TIER) Fund. LSIP is designed to help Alberta’s small and medium-sized enterprises (SMEs) overcome a common barrier to commercialization: the high cost of accessing specialized lab equipment and expertise, so that promising clean technologies can move forward faster.
Yes. LSIP was piloted in 2025–2026 with three Alberta universities. The pilot supported 24 completed technology projects across a range of sectors, with a 100% project completion rate. In a post-pilot survey, 94% of participating companies said they would recommend the program. LSIP is now being offered as a multi-year program running from October 2026 to September 2029.
LSIP supports specialized laboratory services that help advance your technology, including testing, validation, characterization, sampling, imaging, compositional analysis, prototyping, and experimental design.
Laboratory services are not limited to activities conducted within a physical laboratory. Controlled field trials, small-plot studies, and similar applied testing environments may be eligible where the activity is a defined, scoped testing exercise that advances the technology.
The services must require the need for specialized equipment or technical expertise of a participating post-secondary institution and must be tied to a clearly defined project, not open-ended research.
Your project should align with at least one of ERA’s five focus areas in the Technology Roadmap:
| Focus area | Examples |
|---|---|
| Enhanced Efficiency | Technologies that improve energy or resource efficiency across industry, buildings, and operations. |
| Energy Horizons | Clean and emerging energy generation, storage, hydrogen, and related systems. |
| Industrial Frontiers | Industrial decarbonization, advanced manufacturing, and process innovation. |
| Circular Economy | Waste reduction, recycling, reuse, water treatment, and resource recovery. |
| Carbon Management | Carbon capture, utilization, storage, and emissions-reduction technologies. |
One focus area is sufficient. Where a project genuinely advances a technology within more than one area, more than one may be identified, with a primary area indicated.
No. Your project does not need to demonstrate a direct greenhouse gas reduction, and you are not required to produce calculations or verified figures. ERA’s mandate also covers broader environmental performance, including water use and treatment, land and soil quality, air quality, waste reduction, and resource efficiency. Therefore, a project delivering those benefits within a focus area is equally eligible.
The participating post-secondary institution provides lab services, equipment and expertise—not project funding. It works with you to define the scope, cost and timeline, submits the application to ERA on your behalf, and signs an agreement with you covering deliverables, timelines, costs and payment terms before work begins. It also receives ERA’s funding and handles program reporting.
Yes. LSIP is not limited to testing a finished product. It supports lab services that advance a technology, including work at the development stage such as experimental design, empirical studies and prototyping.
The work must be a clearly defined project with a set scope, timeline, cost estimate and technology objective. Open-ended research programs and routine commercial consulting are not eligible.
No. LSIP supports early-stage technology development toward commercialization, but there is no fixed TRL range, and your technology’s stage of development does not, on its own, determine eligibility. A later-stage technology needing specific validation data may be considered if the lab services are part of a clearly defined project, genuinely advance the technology rather than serving as routine commercial testing or consulting, and the technology aligns with at least one of ERA’s five focus areas.
No. LSIP does not set a separate budget for each focus area. Funding comes from a shared program budget of $1.5 million per year, or $4.5 million over the three-year program. Complete submissions are considered in the order received, subject to eligibility and funding availability.
Eligibility
LSIP is open to for-profit small and medium-sized enterprises (SMEs) with an Alberta presence. Here’s a quick summary of the main requirements:
| Requirement | What it means for your company |
| For-profit SME | You must be a for-profit small or medium-sized enterprise with no more than 499 employees. Not-for-profit organizations are not eligible. |
| Alberta presence | You must be an Alberta-based, for-profit enterprise. For clarity, you are not required to be incorporated in Alberta but must maintain a significant operational presence in Alberta, including Alberta-based employees and/or facilities and technology development activities occurring in Alberta. Customers, sales activity, or partnership arrangements alone will not be sufficient to establish eligibility. |
| Technology focus | Your project must align with at least one of ERA’s five focus areas and advance a specific technology. |
| Revenue stage | Both pre-revenue and revenue-generating companies are eligible. |
| Cost sharing | You must pay your share of the eligible direct project costs (at least 50%) in cash. This cannot be an in-kind contribution. |
You do not need to be incorporated in Alberta, but your company must maintain a significant operational presence in Alberta, including Alberta-based employees and/or facilities and technology development activities occurring in Alberta. Customers, sales activity, or partnership arrangements alone will not be sufficient to establish eligibility.
No. Both pre-revenue and revenue-generating companies can apply.
Yes, provided the lab services you are requesting under LSIP are for a different scope of work than any project ERA is already funding. Lab services directly related to a project or technology that ERA is supporting through another program are not eligible for LSIP.
You can apply at any point during your engagement with a participating institution. However, only lab services provided after ERA has approved the project are eligible for the incentive, so it’s best to start the approval process early.
A larger company cannot be the client receiving LSIP-supported services, which must be an eligible SME. However, it may fund all or part of the SME’s share, paid in cash to the institution, or participate as a non-funded partner, such as an end user, host site or technical collaborator. Each party’s role and funding should be described to the institution early in scoping. ERA makes the final eligibility decision.
Yes. The current LSIP is a new three-year program that began on October 1, 2026, following the 2025–2026 pilot. Each new project requires a submission from a participating institution and written approval from ERA. Only costs incurred from October 1, 2026 onward are eligible.
Yes. Each project is submitted by a participating institution and reviewed separately by ERA, and each requires its own written approval and its own agreement with the institution. ERA’s incentive is capped at $50,000 per project and $100,000 per company over the three-year program.
Costs and Funding
ERA will cover up to 50% of the eligible direct cost of your lab services, subject to all project costs being eligible, to a maximum of $50,000 per project. You are responsible for paying the remaining balance.
ERA also pays the participating institution a separate administration allowance of up to 30% of the approved project incentive, capped at $15,000 per project. This allowance is paid by ERA in addition to the project incentive and is not included in the eligible direct project cost or the amount your company is required to pay.
The examples below show how cost sharing works:
| Eligible direct project cost | LSIP pays (up to 50%) | You pay (excluding additional overhead and administration costs negotiated with the PSI) |
| $20,000 (minimum) | $10,000 | $10,000 |
| $50,000 | $25,000 | $25,000 |
| $100,000 | $50,000 (maximum) | $50,000 |
| $150,000 | $50,000 (capped) | $100,000 |
- Minimum: Projects must have an eligible direct project cost of at least $20,000 (the minimum LSIP incentive is $10,000).
- Maximum per project: There is no maximum project size, but ERA’s contribution is capped at $50,000 per project.
- Maximum per company: The total LSIP incentive to any one company is capped at $100,000 over the three-year program(you may apply for more than one project).
LSIP covers eligible direct lab-service costs. It does not cover items such as land, buildings or capital equipment purchases, publication and downstream research activities, legal or regulatory fees, subscriptions and memberships, recruitment, travel, insurance, hospitality, or marketing and communications costs. The institution can help you understand which of your project costs are eligible.
LSIP covers up to 50% of eligible direct lab-service costs, to a maximum of $50,000 per project. Eligible costs are those the participating institution normally bills clients: employee or contractor labour, including benefits and eligible student or principal investigator time; pro-rated equipment use or depreciation; materials, consumables and utilities, including for prototyping; pro-rated software or intellectual property licensing fees; and training or certification required for staff or contractors to deliver the services.
Renting space so that your own staff can carry out experiments generally falls outside LSIP, because LSIP supports services delivered by the institution. Facility or equipment-use fees that the institution normally charges as part of a service it delivers to you may be eligible.
LSIP does not fund the purchase of capital equipment. Where a project involves building or fabricating something, such as a prototype or test apparatus, ownership should be agreed between your company and the institution and set out in your written agreement before work begins.
ERA pays its share directly to the participating institution, and you pay your share directly to the institution under your agreement with it. For single-year projects, ERA generally advances the approved funding upfront once the institution provides the required documentation; for projects spanning more than one LSIP funding year (October to September), funding is released in milestone-based instalments. ERA aims to process payments within about 30 business days of receiving a complete documentation package, and all advances are reconciled against actual eligible costs.
Yes. There are no stacking limits on the source of your contribution, so you may fund your share from your own revenue, other government programs (such as NSERC Alliance or Mitacs), investors or industry partners. However, your share must be paid in cash to the institution, and lab services directly related to a project or technology already funded through another ERA program are not eligible. The institution identifies any other public funding in the application; please also check other programs’ own stacking rules.
How to Apply
Applications to LSIP are made through a participating post-secondary institution, not directly to ERA. The general steps are:
- Connect with a participating institution. Identify a participating Alberta post-secondary institution that offers the lab services you need and discuss your project with them.
- Scope your project together. Work with the institution to define the scope of services, estimated cost, timeline, and how the project advances your technology.
- The institution submits a pre-approval request to ERA on your behalf.
- ERA reviews and confirms eligibility: your company is eligible, the technology aligns with a focus area, and the project cost and timeline meet program requirements.
- Written agreement and approval. Once ERA approves the project, you and the institution sign a written agreement covering scope, deliverables, timelines, costs, and payment before the work begins.
- Work proceeds; costs are shared. The institution delivers the lab services and you pay your share; ERA provides its portion to the institution.
The participating post-secondary institution submits the pre-approval request to ERA on your behalf. Your role is to work with the institution to define the project and provide the information they need.
You can begin scoping and planning with the institution at any time, but only lab services delivered after ERA’s written approval are eligible for the incentive. To avoid paying full price for early work, start the approval process before services begin.
Yes. For every approved project, you and the institution must sign a written agreement before work begins, setting out the scope, deliverables, timelines, costs, and payment terms. This is a condition of the LSIP funding.
Timelines vary depending on how well-defined your project is and ERA’s review. Working closely with the institution to provide complete information up front helps speed up the process. The institution can give you an estimate based on current program activity.
Let the institution know as soon as possible. Material changes, such as changes to scope, cost, timing, or the services required, must be shared with ERA, which may need to confirm the project remains eligible before the changes take effect.
Once a participating institution submits an application, ERA acknowledges it within five business days and confirms whether it is complete. ERA aims to issue a written decision within ten business days of receiving a complete submission. If a project requires further review, or annual funding is close to being fully committed, ERA may need longer and will let the institution know.
After approval, the time needed to sign your agreement with the institution depends on the institution’s contracting process.
Work can begin once ERA has issued written approval, and you and the institution have signed your agreement. Only lab services delivered after ERA’s written approval are eligible. All lab services must be completed by September 30, 2029.
Yes. You are welcome to speak with more than one participating institution to find the best fit for the lab services and expertise you need. Once you choose an institution, it will work with you on the project and submit the application to ERA.
Yes. Two participating institutions can work together on the same project where it requires complementary expertise, facilities or lab services. The ERA incentive cap of $50,000 applies per project, so a single combined project is limited to $50,000 regardless of how many institutions are involved. Please raise this with the institutions early so the project can be structured appropriately before it is submitted.
Yes. There is no limit on the number of projects or companies a participating institution or individual principal investigator can support. Each project must have its own defined scope, timeline and budget. Any financial or other interest a researcher has in a company must be disclosed, managed under the institution’s policies and reported to ERA.
ERA may approve a project, approve it with conditions, request more information, defer the decision or decline it. Where information is missing or needs clarification, ERA will tell the institution what is needed and consider the submission once it is complete. An incomplete submission does not hold its place in the queue.
A declined project may be revised and resubmitted. It will be treated as a new submission in the order received.
Other Common Questions
Intellectual property is arranged directly between your company and the institution, in line with the institution’s policies. ERA does not negotiate IP terms, but does require that IP arrangements are not so restrictive that they prevent your technology from being commercialized for the benefit of Alberta.
ERA and participating institutions handle project information in accordance with applicable privacy and confidentiality obligations. You can discuss any specific confidentiality needs with the institution as part of your written agreement.
Any actual, potential, or perceived conflict of interest must be disclosed and managed. The institution will apply its own conflict of interest policies, and ERA must be informed of any conflict so it can be appropriately managed.
If a project doesn’t proceed to completion, only the eligible services actually delivered can be supported. Let the institution know as early as possible so the project can be updated or closed out appropriately.