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Up to $131 million from the TIER fund is being invested into Alberta’s Industrial Energy Efficiency and Carbon Capture Utilization and Storage (IEE CCUS) program, which helps industries save money and cut emissions through technology and equipment upgrades.
Seven projects will receive more than $100 million in IEE CCUS program funding, which will support an estimated 2,200 jobs and cut about 2.9 million tonnes of emissions by 2030 – the same as taking about 70,000 cars off the road each year.
Up to $31 million in IEE CCUS funding will also be allocated to support more projects in the near future.
“We are moving Alberta forward with climate policies that are creating jobs and actually reducing emissions. These investments will help create jobs, spur economic growth and continue the hard work that we are doing to protect our environment as a responsible and sustainable energy leader.”
“Alberta is a proven leader when it comes to emissions reduction technology, from exploring clean hydrogen and geothermal development to government’s latest investments in industrial energy efficiency and CCUS. The TIER fund continues to help companies turn innovative ideas into real projects with measurable results like cost savings, more jobs and fewer emissions.”
Funding is supporting upgrading engines at a natural gas facility to reduce fuel use and cut emissions, and converting wasted heat from generators into emissions-free technology at a gas plant, among other initiatives.
“The world needs more clean, Alberta energy and this announcement is another example of how the province’s producers are stepping up to deliver. Over the past two years, we have seen continuous improvement and innovation in the production of clean energy and I am proud to see this investment continue in my constituency.”
Project examples include:
- Advantage Energy Ltd. will construct and install a state-of-the-art carbon capture and storage (CCS) project at its Glacier Gas Plant. IEE CCUS program funding will support Phase 1 of the project, which will cut about 46,800 tonnes of emissions each year and improve the plant’s emissions intensity by 22 per cent.
- Tidewater Midstream will build Alberta’s first fully integrated blue hydrogen plant at the Brazeau River Complex. The facility will use a CCS hydrogen production unit that converts methane to hydrogen, and the resulting emissions will be captured and stored underground. The plant will also introduce a 15-megawatt turbine with heat recovery steam generation. Excess stream will be used to offset natural gas consumption from the plant’s boilers. The overall project will cut about 31,000 tonnes of emissions each year.
- Imperial plans to install five additional units across the Kearl Oil Sands mine facility to recover waste heat that would otherwise go into the atmosphere. This heat would be reused in operations, resulting in less steam usage and fewer emissions. This will reduce heat loss by up to 50 per cent in the winter months, cut about 190,000 tonnes of emissions each year, and recover and reuse up to 700,000 cubic metres of condensed water per year – the amount of water needed to fill about 280 Olympic swimming pools.
“The TIER program creates a groundbreaking approach to emissions reduction by recycling industry dollars directly back into programs that incentivize carbon reduction investment. Using Entropy technology, industrial emitters in Alberta and around the world will have the opportunity to reduce emissions in stages to achieve targeted outcomes.”
“The support shown by the Alberta government has been tremendous and we are thankful for the confidence placed on our triple-play blue hydrogen project at our Brazeau River facility in what was a very competitive grant process. We look forward to progressing this project.”
“We greatly appreciate the support from the Government of Alberta to help advance implementation of boiler flue gas technology at our Kearl oil sands operations as Imperial develops pathways in support of a net-zero future. This technology recovers waste heat, resulting in less steam usage and lower emissions, and also offers the potential for broader industry to benefit in reducing fuel usage and emissions through this collaboration.”
Investment in the IEE CCUS program is part of government’s $750-million spend from the TIER fund and other public funding to support up to 8,700 jobs, inject $1.9 billion into Alberta’s economy and cut about six million tonnes of emissions each year. This investment is in direct response to the unprecedented economic consequences of the COVID-19 pandemic and low oil prices.
Successful projects under the IEE CCUS program were chosen through a competitive evaluation process. Proposals were reviewed based on emissions reductions and benefits to industry competitiveness, job creation and economic resilience.
- CCUS can capture, use and store up to 90 per cent of carbon dioxide emissions produced from industrial facilities, preventing those emissions from entering the atmosphere.
- TIER helps industrial facilities, which account for more than 60 per cent of Alberta’s total emissions, find innovative ways to reduce emissions and invest in clean technology to save money and stay competitive.
- Industries can pay into a TIER fund as a compliance option under the TIER regulation. The TIER fund is being reinvested into programs that are bringing investment to Alberta and continuing to build on Alberta’s strong record on environmental, social and governance matters.