Canada will invest more than C$21.5 million ($15.7 million) in a series of carbon capture, utilization and storage projects in Alberta, aiming to cut emissions, create jobs and accelerate the transition to a low-carbon economy, the federal government said on Sunday.

Energy and Natural Resources Minister Tim Hodgson announced the funding as part of the Energy Innovation Program, which supports the development of technologies to help Canada meet its 2050 net-zero emissions goal.

“Today’s announcement highlights how Canada is showing the world that we are not just talking about clean energy — we are building it,” Hodgson said at a press event in Calgary.

Alberta Projects Receive Federal Backing

The funding will support five Alberta-based projects focused on CO2 storage, subsurface analysis, and carbon capture from diesel engines.

The largest share — C$10 million — will go to the Bow Valley Carbon–Storage Demonstration Project, a joint effort between Inter Pipeline Ltd. and Entropy Inc.

The project will capture up to 40,000 tonnes of CO2 annually from Inter Pipeline’s Cochrane Natural Gas Extraction Plant. The emissions reduction is equivalent to taking more than 12,000 cars off the road each year.

“Bow Valley Carbon will help ensure society can count on these products for decades to come while creating a path for long-term emissions reduction,” said Paul Hawksworth, CEO of Inter Pipeline, in a statement.

Enbridge Inc. will receive C$4 million to support its Wabamun Hub CO2 Storage Optimization Project, which will analyze deep saline reservoirs in central Alberta to develop a large-scale carbon storage facility near Edmonton.

Enhance Energy Inc. will get C$5 million to advance its Origins CCS Hub, which targets storage in pressure-depleted saline aquifers within carbonate reservoirs—an alternative to the commonly used Basal Cambrian Sandstone.

“This is a great example of how CCUS and CCS play a role in making Canada an energy and emissions reduction superpower,” said Candice Paton, vice president at Enhance Energy in the statement.

Innovations in Subsurface Analysis, Diesel Capture

Two smaller projects will also benefit from federal investment. Calgary-based OptiSeis Solutions Ltd. will receive C$538,000 for a geophysical imaging project aimed at improving cost-effective CO2 monitoring and verification.

OCCAM’s Technologies Inc., based in Nisku, Alberta, will receive over C$2 million to develop a carbon capture system for diesel generators using oxy-fire combustion.

“Support from Natural Resources Canada is instrumental as we move from development to real-world demonstration,” said OCCAM’s CEO Matthew Henderson.

Clean Energy Commitments

The funding is part of a broader C$319 million investment from Canada’s 2021 federal budget to develop commercially viable CCUS technologies. The investments align with Canada’s pledge to reduce emissions while creating economic opportunities in the clean energy sector.

The government stated that the projects would also support its C$93 billion investment tax credit strategy, outlined in Budget 2024, aimed at helping industries decarbonize and meet their climate goals.

“Projects like these support Canada’s ambitions of becoming an energy superpower,” Hodgson said, adding that innovation would drive energy security and sustainable growth.

Also Read:

Canada Invests $12.5M in Clean Tech to Cut Industrial Emissions