Energy innovation fund
Creating jobs and economic growth by investing in a diversified, low carbon economy.
Helping the energy industry increase economic growth and create jobs while reducing carbon emissions is a foundation of Alberta’s Climate Leadership Plan.
Getting more carbon out of our energy depends on innovation and technology, just like the made-in-Alberta technology that first unlocked the oil sands decades ago.
A new innovation fund has been created to foster the next generation of technology to help our energy industry:
- create more good jobs
- attract investment
- reduce emissions
- expand and diversify access to tidewater and world energy markets
Alberta will invest $1.4 billion over 7 years for innovation projects in 5 categories:
- Oil sands innovation fund
- Innovation across sectors
- Industrial energy efficiency
- Loan guarantees
These will be funded by the Climate Leadership Plan, which recycles carbon levies back into Alberta industries to help them compete and grow in our modern economy and continue to be global innovation leaders.
Oil sands innovation fund
With Alberta’s new approach to managing industry emissions coming in 2018, the fund will help large emitters upgrade facilities and update processes to reduce emissions and thrive in a carbon-competitive global market.
Funding will start at $40 million a year in 2019-20, rising to $80 million in 2020-21 through 2024-25.
Innovation across sectors
The innovation stream includes funding to support research, development and investment in new technologies that reduce industrial carbon emissions in two program areas.
- Emissions Reductions Alberta ($80 million): continued funding for innovation grants.
- Climate Change Innovation and Technology Framework ($145 million): this new fund will help manage government investments in research, innovation and technology and will help commercialize products.
Industrial energy efficiency
Funds will be available to help the commercial and industrial sectors lower emissions and energy use and reduce costs through:
- equipment and facility upgrades
- energy management systems
- energy audits
Eligible industries include:
- oil and gas facilities
- large agricultural and manufacturing operations
- commercial facilities
- not-for-profit organizations
Alberta’s existing Bioenergy Producer Program will be adjusted to provide grants to dedicated biofuel-producing facilities. These include:
- liquid biofuels such as biodiesel, ethanol and pyrolysis oil
- biogas electricity production from farm-based anaerobic digesters
- electricity produced from wood byproducts (biomass)
Green loan guarantees
The government will underwrite commercial loans for qualified organizations that want to invest in energy efficiency and renewable energy.
These green loans will encourage additional investment in projects that reduce emissions, while also reducing lending risks for financial institutions and potentially lowering interest costs.
Major funding for diversified, low-carbon economy (Dec 5, 2017)