Alberta to Launch Emissions-Cutting Technology Incentive Program for Oil Industry

Alberta, Canada, the largest oil-producing province, is planning to launch an investment incentive program for emissions-reducing technologies such as carbon capture and storage (CCS) in the near future, according to the province’s energy minister, Brian Jean, as reported by Reuters on September 12. CCS is considered crucial in helping Canada’s oil and gas industry reduce emissions without curbing production. Companies have hesitated to invest due to high costs and have advocated for increased government support.

Alberta’s program, working alongside a federal government investment tax credit, could boost the development of Canada’s CCS industry. The government aims to ensure proper program design through consultations with stakeholders. This initiative aligns with the federal government’s goal of achieving net-zero emissions by 2050, despite the oil industry being a significant source of pollution. Several companies, including Enbridge Inc [ENB:US], TC Energy [TRP:US], and the Pathways Alliance, are proposing major CCS storage hubs. However, Alberta has had disagreements with the federal government over interim emissions targets and a promised cap on oil and gas emissions. Both levels of government have urged each other to provide more public funding for CCS technology.

Sources:

https://www.reuters.com/sustainability/climate-energy/alberta-expects-unveil-carbon-capture-incentive-program-months-2023-09-12/