Funding will increase the global competitiveness of the province’s core industrial sectors
EDMONTON, AB – Emissions Reduction Alberta (ERA) is launching its third annual Industrial Transformation Challenge, a $65 million funding competition to improve the economic competitiveness and environmental sustainability of Alberta’s industrial and natural resource sectors.
Initially launched in 2022, the yearly funding call focuses on scale-up, pilot, demonstration, and first-of-kind commercial projects with solutions for Alberta’s energy-intensive industries, including agriculture, forestry, manufacturing industries, electricity, oil and gas, and other natural resource sectors.
New for this year, projects and technologies with environmental benefits beyond emissions reduction are invited to apply, including improved water management, soil remediation, reduced land use or disturbance, and the reduction of air pollutants.
Rebecca Schulz, Minister of Environment and Protected Areas, made the announcement on April 16, 2025, alongside ERA’s CEO, Justin Riemer, and other industry representatives. The announcement was made at Baymag’s high-grade magnesium oxide plant in Exshaw. Funding is sourced from the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) fund.
“Alberta is a global leader in responsible energy development. By supporting made-in-Alberta technology, we’re strengthening our economy, protecting our environment, and keeping our job creators competitive. This funding helps secure Alberta’s energy leadership now and for decades to come.”
Rebecca Schulz, Minister of Environment and Protected Areas
“With investments like these, Alberta is advancing its reputation for excellence in developing and deploying technology solutions that have global export potential – technologies that keep our industries competitive in international markets. Through this funding, the province is once again cementing its leadership with critical technologies needed around the world, from methane management and mitigation to water conservation, soil and groundwater protection, and waste reduction.”
Justin Riemer, CEO, Emissions Reduction Alberta
“Funding provided by the Government of Alberta and Emissions Reduction Alberta in such programs as the Industrial Transformation Challenge are critical to supporting Alberta industry on its path towards innovation and sustainability. Previous funding from the province has supported Baymag and ZS2 Technologies in the development of an innovative, low-carbon, made-in-Alberta cement product to support high-performance building solutions.”
Franz X. Spachtholz, President and CEO, Baymag Inc.
Examples of eligible technologies include new ways of producing fuels, breakthrough industrial process improvements, water and land management technologies, major industrial facility efficiency upgrades, agricultural and forestry innovation, improved processes for bitumen extraction, oil and gas processing and refinement, and industrial fuel switching and electrification, along with much more.
The $65 million funding opportunity plays to Alberta’s unique advantages, including a talented workforce, locations available to host pilot projects, and concentrated clusters of industrial activity. While technology solutions can originate from anywhere globally, it is preferred they be piloted, demonstrated, or deployed in Alberta or show direct economic benefit to the province.
Successful applicants are eligible for up to $10 million per project, exceptionally strong projects with a high funding leverage ratio may be eligible up to $15 million on a limited basis. The minimum funding request is $500,000. ERA’s contribution to a single project will be no more than 50 per cent of the project’s eligible expenses. The application deadline is Thursday, June 12 at 5 p.m. MDT (UTC-6h) and a free, hour-long, online webinar will be held Tuesday, April 29, at 11 a.m. MDT (UTC-6h).
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. All final funding decisions will be made by ERA’s Board of Directors.
The Industrial Transformation Challenge is one of ERA’s most successful funding programs to date. In 2023, ERA committed over $60 million to 14 projects worth more than $225 million in public and private investment through the Challenge. In 2024, the organization invested a further $46 million to an additional 12 projects worth over $131 million.
For more information, contact:
Neil Wedin
Media Relations
Emissions Reduction Alberta
403-973-1015
nwedin@eralberta.ca
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 $954 million toward 296 projects valued at over $7.4 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 36 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.