Alberta is a global leader in carbon capture, utilization and storage (CCUS) development and regulation, and the new Alberta Carbon Capture Incentive Program (ACCIP) will provide major industries with up to 12 per cent of new eligible capital project costs. The ACCIP will help businesses in multiple industries, such as oil and gas, power generation, hydrogen, petrochemicals and cement, reduce their emissions by incorporating CCUS technology into their operations. CCUS is currently the only viable option available for these industries to significantly reduce their emissions.
“Alberta is transitioning away from emissions, not from proven, reliable energy sources. We have invested significantly in CCUS projects and now we’re encouraging the private sector to do the same. Together, we can ensure Alberta remains a leader in providing responsibly sourced energy solutions to meet worldwide demand.”
Provincial funding will be available once the federal government has legislated its CCUS investment tax credit and related operating supports, such as contracts for difference. The federal government originally proposed the investment tax credit in their 2021 budget. The Alberta Carbon Capture Incentive Program will build on the federal investment tax credit. Together, the provincial and federal governments can cooperate in establishing the clear competitive advantage in CCUS that Alberta and Canadian businesses have demonstrated to the world.
“This program is yet another example of Alberta’s leadership in advancing CCUS technology. Alberta is doing its part to encourage CCUS and now we’re calling on Ottawa to cooperate with the provinces and kick-start its investment tax credit to support this important work. ACCIP will help ensure Alberta remains competitive internationally, as competing jurisdictions use similar project incentives.”
“ACCIP will build upon the strong value proposition that Alberta’s Industrial Heartland already offers and will help attract more capital investments to our $45-billion world-renowned energy cluster. This program will help strengthen the business case in Alberta by ensuring companies can reach both their economic and environmental goals.”
It’s expected that CCUS development will generate tens of billions of dollars in new investment over the next decade, creating thousands of good-paying jobs and other economic benefits across the province while protecting Alberta’s economy for future generations.
“This announcement is a clear indication of the Government of Alberta’s ongoing commitment to reduce emissions while ensuring responsibly produced Canadian energy can create jobs and investment and can help meet the world’s energy security needs for decades to come. Alberta’s long history of emissions reduction policy and investment in carbon capture and storage technology is globally significant.”
“Integrating CCS into our operations is crucial to reduce emissions as we strive for a sustainable future. This further support from the Alberta government ensures that Strathcona will continue to progress our goal to become one of the first companies to successfully deploy this technology at scale.”
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.
“Heidelberg Materials strongly supports the Alberta government’s commitment to deploy carbon capture, utilization and storage (CCUS) technology in the province. ACCIP will enhance Alberta’s competitiveness and support decarbonization efforts across industry sectors. Our net-zero cement plant in Edmonton, the first in the world, would not be possible without Alberta’s leadership in CCUS programming.”
“CCUS is a safe, proven technology used around the world to lower greenhouse gas emissions. Advancing these large-scale projects is critical for Canada and the world to meet our ambitious greenhouse gas reduction targets.”
Alberta has invested or committed more than $1.8 billion to support projects and programs, including more than $750 million from the Technology Innovation Emissions Reduction (TIER) fund. To date, two projects in Alberta, Quest and Alberta Carbon Trunk Line, have safely captured and stored a total of more than 11.5 million tonnes of carbon dioxide since starting operations, which is the equivalent of emissions from 2.5 million cars per year.
The government is currently working on program specifics with more details expected to be available in spring 2024.
- In 2022, the government selected 25 projects to begin exploring how to develop environmentally safe carbon storage hubs.
- Alberta is also exploring other carbon storage scenarios and is now accepting applications from small-scale and remote carbon storage projects.
- By 2035, CCUS development is expected to generate approximately $35 billion in investment in Alberta and add up to 21,000 jobs.
- The cost of ACCIP is expected to be between $3.2 to $5.3 billion over the next decade. The actual cost depends on the development timelines of these large capital-intensive projects that are still to be determined.
- A portion of funding for ACCIP will be accessed from the TIER fund.