Alberta is Canada’s energy province and a foremost leader in energy development and emissions reduction technology. On Jan. 31, Premier Danielle Smith and Colorado Governor Jared Polis signed a memorandum of understanding (MOU) to align and improve regulation, enhance collaboration and increase information sharing on best practices in key energy and environmental areas including carbon capture, utilization and storage, methane emission reduction, hydrogen development and geothermal energy.
“Alberta and Colorado have legacies in environmental leadership and responsible energy development that we will build on to play a key role in the global energy transition away from emissions. This agreement will help us deliver solutions and support innovation in clean and renewable energy while providing new economic opportunities for Alberta companies.”
“Today’s action is an important step in Colorado’s clean energy transition, moving us closer to our goal of 100 per cent clean energy by 2040 and saving Coloradans money. This agreement will help combat climate change and support Colorado’s booming clean energy sector including geothermal energy and the hydrogen economy. Colorado and Alberta are leading in clean energy, and emission reduction is a global challenge that requires exactly this kind of international cooperation. I am excited that Colorado and Alberta are partnering together to do even greater things.”
Alberta’s government has an effective plan to reduce emissions while supporting responsible energy development. The province’s strong community of forward-thinkers has a long history of technological innovation and sector expertise, pioneered in oil and gas. These innovators are leading the pack in developing groundbreaking solutions to diversify Alberta’s energy mix, boost industry competitiveness and improve environmental performance across the energy sector.
“Current global events highlight the importance of energy security in North America and the MOU with Colorado advances this cooperation. Alberta’s energy sector has shown adaptability through years of technological innovation and sector expertise, pioneered in the oil and gas sector, which will help the transition towards a decarbonized future.”
“This is good news for Alberta as we work to reduce emissions, grow our economy and make sure that energy remains reliable and affordable for decades to come. Alberta and Colorado are both hubs of energy innovation, and this partnership will help us both to continue developing new technologies while creating jobs and driving innovation.”
Alberta and Colorado officials will use this agreement to formalize regular connections and advance shared priorities that will boost Alberta’s competitiveness and grow and diversify the province’s economy. It will also fuel new industry jobs and open market opportunities for Alberta industries, businesses and innovators deploying new energy technology and emissions reduction innovation to the world.
The MOU will be in effect for three years with an opportunity to renew.
- The U.S. is Alberta’s largest trade partner and Alberta’s relationship with Colorado is particularly strong.
- Bilateral trade between Alberta and Colorado totalled $6.2 billion in 2022.
- Alberta’s total energy exports to Colorado, primarily energy products, totalled $5.4 billion in 2022.
- A number of Alberta companies already have a strong presence in Colorado, including Encana, Stantec and Suncor.
- According to the Canadian Geothermal Energy Association, there is an estimated potential of 388,500 megawatts of thermal energy in Alberta that can be recovered under existing technical, structural and ecological restrictions.
- Alberta is the largest hydrogen producer in Canada and has the resources and expertise needed to become a major global supplier.
- The global hydrogen opportunity is projected to be worth trillions by 2050.
- Alberta’s government has invested or committed more than $1.8 billion, including Technology Innovation and Emissions Reduction fund dollars, to support carbon capture, utilization and storage-related projects and programs.
- Alberta was the first subnational government in North America to set a methane reduction target for upstream oil and gas, namely 45 per cent reduction from 2014 levels by 2025.
- Alberta is using a combination of regulation, market-based incentives and programs to support cost-effective and timely emission reductions.