$176 million announced to support 16 shovel-ready projects to accelerate Alberta’s economic recovery, cut greenhouse gas emissions

November 1st, 2021

For immediate release

EDMONTON, AB – Sixteen shovel-ready projects will share $176 million in provincial and federal funding to accelerate Alberta’s economic recovery while supporting environmental sustainability. The projects were selected by Emissions Reduction Alberta (ERA) through its Shovel-Ready Challenge. They represent a total investment of more than $2 billion in public and private funding.

Premier of Alberta, Jason Kenney, and Jason Nixon, Alberta’s Minister of Environment and Parks, announced the finalists of the Shovel-Ready Challenge with ERA CEO, Steve MacDonald, on Monday, November 1, 2021, at Capital Power’s Genesee Generating Station.

This is the largest funding announcement ever made through ERA. These technology innovations have the potential to deliver cumulative GHG reductions of 6.8 million tonnes of CO₂e by 2030—equal to eliminating emissions from the electricity used by 4.5 million homes—with an average annual emissions reduction of 1 million tonnes by 2030. It is anticipated these projects will also support approximately 5,600 new jobs.

In total, $126 million of stimulus funding is being sourced from Alberta’s industry-funded Technology Innovation and Emissions Reduction (TIER) fund. The remaining $50 million will be supported by the federal Low Carbon Economy Leadership Fund (LCELF).

“Alberta continues to show leadership by using technology in practical ways to reduce emissions and combat climate change. These investments will help us grow our economy and pave the way to an even brighter future for all Albertans by building on Alberta’s strong foundation as a responsible and innovative energy leader.”

Jason Kenney, Premier

“Shovel-Ready funding expands groundbreaking technologies that are helping industries cut emissions, employ more Albertans and grow our economy. The TIER program continues to demonstrate Alberta’s global leadership on innovation and technology, which are the key pathways to protecting our shared environment while getting Alberta’s economy back on track.”

Jason Nixon, Minister of Environment and Parks

“These investments are unlocking innovation and mobilizing private spending to create economic opportunities and improve environmental performance. They build on Alberta’s strengths across industries and turn emission reduction ambitions into action.”

Steve MacDonald, ERA CEO

ERA’s portfolio of projects is key to ensuring Alberta can achieve its economic and environmental objectives. Shovel-Ready was designed as an economic stimulus initiative in response to the impacts of COVID-19. This significant investment encourages immediate economic activity while also creating solutions for long-term recovery, investment attraction, growth, and environmental sustainability.

The 16 projects have enormous potential to stimulate the economy, support job creation and retention, lead to operational efficiencies, and cut greenhouse gas emissions.

Shovel-Ready Challenge funding will help implement leading-edge technologies in applications for both greenfield and brownfield operations. Work is anticipated to commence within 60 days of funding approval and outcomes must include commercial demonstration or deployment of technologies in operational environments. Projects were split amongst three categories: five projects from oil and gas, six representing low carbon energy, and five in bioindustry and waste-to-value add.

OIL AND GAS

H2nanO Incorporated
Sunlight Powered GHG Treatment for Oil Sands Tailings Pond
Project value: $6,600,000 | ERA commitment: $3,300,000

ConocoPhillips Canada
Surmont Steam-Additives Pilot
Project value: $28,200,000 | ERA commitment: $7,400,000

Canadian Natural Resources Limited
In-Pit Extraction Process Demonstration
Project value: $99,700,000 | ERA commitment: $15,000,000

Suncor Energy Inc.
Suncor PURE Demonstration Facility
Project value: $52,500,000 | ERA commitment: $15,000,000

Linde Canada Inc.
LNG Low Carbon Fuels Demonstration Project
Project value: $37,500,000 | ERA commitment: $14,900,000

LOW CARBON ENERGY

Canadian Pacific
CP Hydrogen Locomotive Program
Project value: $33,200,000 | ERA commitment: $15,000,000

Elemental Energy Renewables Inc.
Chappice Lake Solar Storage
Project value: $40,300,000 | ERA commitment: $10,000,000

Air Products Canada Ltd.
New Edmonton Blue Hydrogen Hub
Project value: $1,269,000,000 | ERA commitment: $15,000,000

City of Edmonton
Alberta Zero Emissions Hydrogen Transit (AZEHT)
Project value: $9,900,000 | ERA commitment: $4,600,000

Turning Point Generation
Canyon Creek Pumped Hydro Energy Storage
Project value: $200,000,000 | ERA commitment: $15,000,000

ATCO Electric
Northern Alberta Community Diesel Reduction
Project value: $5,400,000 | ERA commitment: $2,500,000

BIOINDUSTRY AND WASTE-TO-VALUE

Mercer Peace River Pulp Ltd.
MPR Fibre Procurement Project
Project value: $75,100,000 | ERA commitment: $7,500,000

Calgary Aggregate Recycling Inc.
Calgary Aggregate Recycling Soil Reuse Facility Expansion
Project value: $17,600,000 | ERA commitment: $8,800,000

Lehigh Hanson Materials Ltd.
Lehigh Edmonton Alternative Low Carbon Fuel Project
Project value: $23,400,000 | ERA commitment: $11,700,000

Lafarge Canada Inc.
Landfill Fly Ash Beneficiation
Project value: $48,700,000 | ERA commitment: $15,000,000

Capital Power Corporation
Genesee Carbon Conversion Centre (Phase 1)
ERA commitment: $15,000,000

“Government of Alberta and ERA funding is critical to the implementation of leading-edge technologies that will facilitate the transformation to a low carbon future. As we work to net carbon neutrality by 2050, the Genesee Carbon Conversion Center utilizes a novel technology that captures CO2 and transforms it into carbon nanotubes—a unique material that can be utilized in various industrial applications, supporting downstream emission reductions and a more sustainable economy overall.”

Brian Vaasjo, President and CEO, Capital Power

“With ERA’s funding and support, we are able to accelerate technology development that moves us closer to reaching our aspirational goal of net-zero GHG emissions in the oil sands. Advancements like these have established Canada as an ESG leader and positions us to be a preferred supplier of responsibly-produced energy that the world will need in a low carbon emissions future.”

Joy Romero, Vice President, Technology and Innovation, Canadian Natural

“Commercial-scale implementation of new technologies and innovative ideas is a critical part of optimizing our business and contributing to society’s net-zero goals. Government of Alberta and ERA funding will advance and accelerate our project, which has the potential to increase the value of bitumen produced in the oil sands while reducing greenhouse gas emissions.”

Melanie Weber, Vice President, Regional Integration and Development, Upstream, Suncor

“We sincerely appreciate the Government of Alberta and ERA’s belief in our work and our people. As a sustainably driven organization, we share their goal of reducing greenhouse gas emissions through advanced technology. CP will combine the grant with our own funds to expand our research and development of real-world hydrogen technology in Alberta.”

Keith Creel, President and Chief Executive Officer, Canadian Pacific

“The City of Edmonton is committed to transitioning to a zero emissions future. Government of Alberta and ERA funding provides a foundation for us to advance an introduction of zero emission hydrogen-fueled buses in real world conditions—operating in regular service through all seasons. Combined with the efforts of the transport industry, it is an early step to building a full value chain for hydrogen in an area where a cost-effective supply of low-carbon hydrogen is readily available.”

Stephanie McCabe, Deputy City Manager of Urban Planning & Economy, City of Edmonton

“Thanks to the funding and support of the Government of Alberta and Emissions Reduction Alberta, Calgary will be home to Canada’s first Construction and Demolition Waste Recycling Plant. This technology will have an immediate impact on greenhouse gas reductions, boost the economy, and create a variety of jobs for Calgarians. Calgary Aggregate Recycling and our partners are committed to creating a sustainable future and we now have the support required to take meaningful steps towards that goal.”

Travis Powell, President, Calgary Aggregate Recycling Inc.

ERA received a total of 281 applications for its Shovel-Ready Challenge. These 16 projects were selected through ERA’s competitive review process. 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. All recipients are required to produce a final outcomes report that will be shared publicly for the broader benefit of Alberta.

For more information contact:
Emissions Reduction Alberta
Kevin Duncan
Media Relations
403.431.2859
kduncan@eralberta.ca

Government of Alberta
Paul Hamnett
Press Secretary, Environment and Parks
780.203.0913
Paul.Hamnett@gov.ab.ca

ABOUT EMISSIONS REDUCTION ALBERTA (ERA):
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 CO₂e per year by 2030. Please visit https://eralberta.ca.

ABOUT TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION REGULATION
The TIER system is funded by large industry which pay into the fund when they do not meet emissions targets. Alberta is using up to $750 million from the TIER fund for a range of programs that are reducing emissions, boosting the economy and getting Albertans back to work. This investment supports Alberta’s economic recovery from the COVID-19 pandemic and low oil prices.

ABOUT LOW CARBON ECONOMY LEADERSHIP FUND
The Low Carbon Economy Leadership Fund provides $1.4 billion to provinces and territories to reduce carbon pollution and help Canada exceed 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.