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Part of Carbon capture, utilization and storage

Alberta Carbon Capture Incentive Program

Grants to help accelerate the development of carbon capture, utilization and storage in Alberta.

Overview

The Alberta Carbon Capture Incentive Program (ACCIP) will support and accelerate the development of new carbon capture, utilization and storage (CCUS) infrastructure by providing incentives for facilities to incorporate this technology into their operations. 

Developing CCUS is a key component of Alberta’s Emissions Reduction and Energy Development Plan which sets the path to reach emissions targets while encouraging sustainable economic growth in the province.

Industry and carbon sequestration hub operators can now apply for ACCIP pre-approval.

Learn more about pre-approval and find out how to apply.
 

Key features

  • ACCIP will be finalized after the federal government legislates its CCUS investment tax credit (CCUS ITC) and related operating supports, such as contracts for difference.
  • ACCIP is being designed to align with the federal CCUS ITC
    • Together, the provincial and federal governments can cooperate in affirming the clear competitive advantage in CCUS that Albertan and Canadian businesses have demonstrated to the world.
  • Alberta’s program will help hard-to-abate industries by providing a grant of 12% for new eligible CCUS capital costs.
  • Grants will be paid to operators in 3 installments over 3 years starting after one year of operations, similar to the process used by the Alberta Petrochemicals Incentive Program.
  • ACCIP will be able to support a variety of sectors including: 
    • oil sands
    • oil and gas production
    • enhanced oil recovery production
    • petrochemicals
    • power generation
    • manufacturing and cement production
    • and more
      • CCUS is currently the only viable option available for these industries to significantly reduce their emissions.

Eligibility

Eligible projects

  • CCUS projects that capture, prepare, compress, transport, store, or utilize carbon dioxide. 
  • The projects must be physically located in Alberta. 
  • Projects that have received funding from the Alberta Petrochemicals Incentive Program, or under any Alberta royalty regimes, are not eligible to receive duplicate benefits for the same costs.
  • Projects that have received funding from the Alberta Petrochemical Incentives Program or under any Alberta royalty regimes are not eligible to receive duplicate benefits for the same costs.
  • CCUS projects will be considered eligible retroactively to January 1, 2022, in alignment with the CCUS ITC. 
  • ACCIP will not include any minimum carbon capture rate or similar measures. 

Eligible costs

  • ACCIP will only provide support for capital costs. 
    • This includes costs for converting existing equipment for use in a CCUS project and that used for monitoring and tracking carbon dioxide within buildings or structures dedicated exclusively to supporting an eligible CCUS project. 
    • Eligible expenditures under ACCIP include the cost of purchasing and installing approved equipment used in an eligible CCUS project, provided there is an eligible storage or use of the carbon dioxide.  
      • All forms of carbon dioxide utilization that result in the permanent sequestration of carbon dioxide are eligible. 
  • Capital costs associated with engineering studies, pilot projects and proof of concept projects are not considered eligible. 
  • The Government of Alberta continues to work with industry to consider support for dual-use equipment under ACCIP.

How to apply

Industry applicants with an Electronic Transfer System (ETS) user account will need to complete an ETS Account Setup Change Form, select ACCIP under Miscellaneous.

After access is granted, log into the ETS to complete the ACCIP pre-approval form.  

New users must first register for a user account through the ETS, and our Accounts (ETS) Administration modules which are available through the first link above.

Stage 1 | Pre-approval notification (available now)

Applicants can learn if their project may be eligible and receive a high-level estimate of potential ACCIP benefits that may be received prior to completing the full application process that opens later in 2024. As part of the pre-approval application, companies will be asked to provide the following, in addition to other information:

  • Company information
  • Project location
  • Project type
  • Estimates for total costs, eligible capital costs, and expected emissions reduction

Stage 2 | Final approval notification (to open later in 2024)

This stage will open later in 2024 once stakeholder information sessions are completed and ACCIP guidelines are finalized.

Businesses will be required to provide additional details about their project to complete the process, which will include actual project costs.

Stage 3 | Payment and reporting

Grants will be paid to operators in 3 installments over 3 years starting after one year of operations.

Between grant instalments, applicants will be required to report on their project. The exact specifications will be detailed in the program guidelines once available.

How Alberta is supporting CCUS

Alberta has a proven track record of supporting CCUS, having invested or committed over $1.8 billion to support projects and programs over the past decade.

Alberta has invested more than $1.2 billion in 2 successful CCS projects: the Alberta Carbon Trunk Line project and the Quest project. Together, these projects have captured and stored more than 12 million tonnes of carbon dioxide, equivalent to emissions from 2.6 million cars per year.

We continue to work with industry stakeholders to help inform the final ACCIP guidelines. Stakeholder information sessions are planned with groups representing various industrial emitters and hub operators throughout the province in April and May of 2024. We will also continue ongoing outreach activities to gather feedback from stakeholders.

Alberta Carbon Trunk Line project

Agency: Wolf Midstream

Support pledged: Up to $495 million from the Government of Alberta ($63 million from the Government of Canada)

Project status: In June 2020, the project started full operations with the first injection of carbon dioxide at their field near Clive.

Quest project

Agency: Shell Canada

Support pledged: Up to $745 million from the Government of Alberta ($120 million from the Government of Canada)

Project status: Since opening in late 2015, the Quest project has captured and stored over eight million tonnes of carbon dioxide.
 

In total, the ACCIP program is expected to provide between $3.2 to $5.3 billion of support between 2024 and 2035. The actual cost is dependent on the development timelines of these large capital-intensive projects that are still to be determined.

Over the next decade, the government estimates that these incentives will support $35 billion in new investment and create up to 21,000 good paying jobs.
 

News

Contact

Connect with Carbon Capture, Utilization and Storage:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Email: [email protected]