$30 million to accelerate carbon capture projects in Alberta

Jan 16 2022


A new $30 million funding opportunity will accelerate development of industrial-scale carbon capture and transportation technology solutions in Alberta.

Emissions Reduction Alberta’s (ERA) Carbon Capture Kickstart: Design and Engineering call builds on Alberta’s global leadership in this space, and will fill key knowledge gaps, drive partnerships and innovation, and accelerate project financing and deployment in Alberta.

The Government of Alberta is providing $30 million to ERA from the Technology Innovation and Emissions Reduction (TIER) fund. Jason Nixon, Alberta’s Minister of Environment and Parks, and ERA CEO, Steve MacDonald, made the announcement on Friday, January 14, 2022.

The Carbon Capture Kickstart funding competition supports pre-construction design and engineering. It is focused on site-specific carbon capture, direct air capture, and carbon transportation infrastructure. Proposals can address emissions across industrial sectors: power generation, cement production, manufacturing, oil and gas, and more. All proposals must target specific large final emitter sites in Alberta.

"Carbon capture is necessary to reach large-scale reduction of CO2 emissions. The Carbon Capture Kickstart investment will create shared learnings and provide valuable insights to industry, government, and other stakeholders about the economic and emissions reduction potential of this critical technology in Alberta,” said Jason Nixon, Minister of Environment and Parks.

ERA will contribute up to 50 percent of the project cost to a maximum of $7.5 million. ERA will also identify opportunities to leverage funding for this call with support from other funding agencies, such as Natural Resources Canada (NRCan).

Technology developers, industry operators, industrial associations, small and medium-sized enterprises (SMEs), municipalities, and others are encouraged to apply. Partnerships are encouraged. The application deadline is Thursday, March 3, 2022. Program details are available on the ERA website. An informational webinar will be hosted Wednesday, January 26 at 9 a.m.

ERA’s funding opportunity aligns with the Federal Government's committed introduction of an investment tax credit for capital invested in CCUS projects starting in 2022. It also supports the Government of Alberta’s carbon sequestration hub approach announced in 2021.

“A FEED study is an essential step in providing certainty, minimizing risk, and enabling confidence in a final investment decision for any major capital project. With the recognition that accelerated execution of several large-scale CCS projects is critical for Canada in achieving its 2030 emission reduction targets, we are encouraged to see direct support by ERA for carbon capture FEED studies,” said Mark Demchuk, National Director, International CCS Knowledge Centre.

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. Recognizing the need for rapid progress and the reduced evaluation requirements associated with studies, ERA has implemented a modified intake process specific to this Call.

All ERA funding recipients are required to produce a final outcomes report that is shared publicly for the broader benefit of Alberta. Funding recipients will be required to report on project outcomes, achievements, and lessons learned including GHG reductions, job creation, and other environmental, economic, and social benefits.

Carbon Capture Kickstart


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Issue 86 - Mar - Apr 2022

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