Carbon Capture Kickstart
Calgary, AB, Canada
Money to accelerate carbon capture projects in Alberta
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Mining, quarrying, and oil and gas extraction
- Utilities
- Manufacturing
- Public administration
grant_single|grantors
- Emissions Reduction Alberta (ERA)
- Government of Alberta
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get up to $7.5 million in funding to cover 50% of costs associated with the pre-construction, design and engineering of a study that will accelerate the development of industrial-scale carbon capture and transportation solutions.
grant_single_labels|projects
Yes, there are several projects and activities eligible for this grant.
- Onsite carbon capture
- Direct air capture
- Direct carbon conversion
- Strategic CO2 transportation infrastructure
grant_single|admissibleProjectsExample
$3,500,000
Montréal
Engineering studies for the retrofitting of an existing power plant with CO2 capture technology
$4,000,000
Vancouver
Feasibility study for direct air capture technology installation
$2,500,000
Toronto
Installation planning for direct carbon conversion facility
$3,000,000
Calgary
Design and engineering of an onsite carbon capture system for a manufacturing plant
$5,000,000
Edmonton
Developing strategic CO2 transportation infrastructure between cities and surrounding industrial areas
$4,500,000
Toronto
Pre-construction design of a CO2 transportation pipeline network
grant_single_labels|admissibility
Eligibility for this grant is focused on proposals from diverse industrial sectors targeting specific large final emitter sites in Alberta, with a preference for those that advance projects beyond their current state.
- Proposals must target specific existing large final emitter sites in Alberta.
- Focused on industrial sectors such as power generation, cement production, industrial manufacturing, oil and gas, and more.
- The minimum scale for a carbon capture project is a capture rate of 200 ktCO2 annually.
- For transportation network projects, the minimum scale is an annual transport volume of 1 MtCO2 and must include multiple capture sites.
- Partnerships and collaborations among technology developers, industry operators, industrial associations, SMEs, municipalities, and others are encouraged.
- Applicants are encouraged to engage and include Alberta’s post-secondary and research institutions in project consortia where appropriate.
- Proposals need to demonstrate how the study will advance the project beyond the current state.
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for this grant. Applications were invited from diverse sectors including power generation, cement production, industrial manufacturing, oil and gas, and more.
- Power generation companies
- Cement production companies
- Industrial manufacturing companies
- Oil and gas companies
- Municipalities
- Technology developers
- Industry operators
- Industrial associations
- Small and medium-sized enterprises (SMEs)
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for this grant focused on pre-construction design and engineering.
- Onsite carbon capture
- Direct air capture
- Direct carbon conversion
- Strategic CO2 transportation infrastructure
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Alberta, Canada.
- Power generation sites
- Cement production sites
- Industrial manufacturing sites
- Oil and gas sites
grant_single_labels|criteria
The grant involves a competitive review process where proposals were evaluated by a team of experts on various aspects to ensure alignment with the goals of accelerating carbon capture projects. The criteria focus on technical feasibility, economic viability, and the potential for significant GHG reductions.
- Technical and commercial development level ready for commercial-scale projects
- Alignment with reducing technical and financial uncertainty around industrial-scale projects
- Potential to maximize the benefit of Federal Government’s tax credit for new CCUS projects
- Engagement with Alberta’s post-secondary and research institutions
- Partnerships and collaborations among technology developers, industry operators, and SMEs
- Advancement beyond the current state of carbon capture technologies
- Target capture rate of at least 200 ktCO2 annually for onsite carbon capture or 1 MtCO2 annually for transportation network projects
- Learnings from previous CCUS projects and transferrable outcomes for future initiatives
- Commitment to knowledge sharing and publication of study outcomes
- Reporting on GHG reductions, job creation, and other environmental, economic, and social benefits
grant_single_labels|register
- Step 1: Review the Call for Expressions of Interest Guidelines to understand the eligibility criteria and requirements.
- Step 2: Register for an informational webinar to gain further insights into the grant application process.
- Step 3: Prepare your proposal by targeting specific existing large final emitter sites in Alberta and demonstrating how the study will advance the project beyond the current state.
- Step 4: Form partnerships and collaborations as needed, and include Alberta’s post-secondary and research institutions in your project consortia where appropriate.
- Step 5: Ensure your proposal aligns with the minimum scale requirements (a capture rate of 200 ktCO2 annually or an annual transport volume of 1 MtCO2 for transportation network projects).
- Step 6: Submit your proposal by following instructions on eligible expenses, data security, and confidentiality.
grant_single_labels|otherInfo
The grant supports pre-construction design and engineering studies for carbon capture and emphasizes knowledge sharing and collaboration.
- Proposals needed to target specific existing large final emitter sites in Alberta.
- Projects must plan to be up and running by 2030.
- The minimum capture rate for projects is 200 ktCO2 annually.
- For transportation network projects, the minimum annual transport volume is 1 MtCO2.
- Projects must include multiple capture sites for transportation network projects.
- Applicants were encouraged to include Alberta’s post-secondary and research institutions in project consortia where appropriate.
- Funding recipients must produce a final outcomes report to be shared publicly.
- Recipients must participate in an annual confidential roundtable and a wrap-up public Lessons Learned event.
- Funding does not support capital costs but focuses on improving understanding, feasibility, and de-risking of projects.
Apply to this program
Summary of the Carbon Capture Kickstart Grant
The Carbon Capture Kickstart Grant is a pivotal funding initiative by ERA, allocating $40 million from Alberta's TIER fund to 11 pre-construction projects designed to accelerate carbon capture, utilization, and sequestration (CCUS) technologies. This investment aims to reduce emissions by 24 million tonnes annually, drive substantial future capital expenditures, and position Alberta as a global leader in CCUS technologies.
In-depth Analysis of the Carbon Capture Kickstart Grant
The Carbon Capture Kickstart Grant is an instrumental funding program introduced by Emissions Reduction Alberta (ERA) to fast-track the development of cutting-edge carbon capture, utilization, and sequestration (CCUS) technologies in Alberta. Recognizing the urgent need to mitigate industrial emissions, this grant allocates $40 million from Alberta’s Technology Innovation and Emissions Reduction (TIER) fund to support 11 pre-construction projects. These projects, collectively worth $194 million, are poised to not only reduce greenhouse gas emissions significantly but also stimulate economic growth and job creation across diverse industrial sectors in Alberta.
Objective and Vision
The primary objective of the Carbon Capture Kickstart Grant is to lay a robust groundwork for large-scale CCUS projects, addressing both technical and financial uncertainties that typically hinder such substantial investments. The initiative is envisioned to support Alberta's transition towards a low-carbon economy by reducing approximately 24 million tonnes of emissions annually—equivalent to nearly 10% of Alberta’s annual industrial emissions.
ERA envisages that these pre-construction studies will inspire shared learning about the economic and environmental benefits of CCUS technologies, thereby propelling Alberta and Canada to the forefront of this burgeoning field. By funding these studies, the grant aims to foster a comprehensive understanding of the feasibility, costs, and integration requirements of large-scale CCUS projects, ultimately de-risking these initiatives and attracting significant follow-on investments.
Projects Funded
The Carbon Capture Kickstart Grant supports a diverse array of projects spanning various industrial sectors such as power generation, cement production, fertilizer, forest products, and oil and gas. These projects are strategically located at large emitter sites across Alberta, ensuring a wide-reaching impact on emission reductions. Some of the notable projects that received funding include:
- Canadian Natural Resources Limited - Oil Sands CCUS Pathways to Net Zero. ERA funding: $5 million, Project cost: $46.33 million.
- Heartland Generation Ltd. - Innovative Integration of Carbon Capture for Clean Power. ERA funding: $5 million, Project cost: $38.37 million.
- Lafarge Canada - Exshaw Cement Carbon Capture and Bow Valley Decarbonization. ERA funding: $5 million, Project cost: $27 million.
- Capital Power Corporation - Genesee CCS. ERA funding: $5 million, Project cost: $12.35 million.
- Strathcona Resources Ltd - Post-Combustion Flue Gas Carbon Capture at Cold Lake Region SAGD Facilities. ERA funding: $5 million, Project cost: $10 million.
- Entropy Inc. - Athabasca Leismer Carbon Capture. ERA funding: $3.3 million, Project cost: $10.65 million.
- Agrium Canada Partnership - Nutrien Redwater Carbon Capture Study. ERA funding: $3.28 million, Project cost: $12.6 million.
- Enmax Energy Corporation - Shepard Energy Centre Carbon Capture Unit FEED Study. ERA funding: $3.06 million, Project cost: $6.11 million.
- City of Medicine Hat - Project Clear Horizon. ERA funding: $2.5 million, Project cost: $5 million.
- Vault 44.01 - Hinton Bioenergy Carbon Capture and Storage Project. ERA funding: $2.49 million, Project cost: $15.58 million.
- Suncor Energy Services Inc. - Svante’s CO2 capture process for Suncor’s Fluid Catalytic Cracker. ERA funding: $950 thousand, Project cost: $9.9 million.
Selection and Review Process
The 11 projects selected for this grant underwent a highly competitive review process conducted by a team of experts in various domains, including science, engineering, business development, commercialization, financing, and greenhouse gas quantification. The review was conducted transparently and rigorously, overseen by a Fairness Monitor to ensure impartiality and fairness in the selection process.
Alignment with Government Priorities
The Carbon Capture Kickstart Grant aligns closely with both provincial and federal priorities. It seeks to maximize the benefits of the Federal Government’s tax credit for capital invested in new CCUS projects and the Government of Alberta’s carbon sequestration hub approach. Additionally, the grant aligns with the provincial government’s allocation of $305 million over four years for future carbon capture projects. The collaborative efforts of ERA and Natural Resources Canada (NRCAN) underline the importance of joint funding to propel Alberta's CCUS initiatives forward.
NRCAN is committing up to $50 million through its CCUS Front-End Engineering Design (FEED) Studies funding program to 11 projects, five of which are also receiving funding from ERA. This synergy between ERA and NRCAN is expected to amplify the impact and success of the funded projects.
Focus Areas and Eligibility
ERA’s Carbon Capture Kickstart funding opportunity focuses on accelerating the development of onsite carbon capture, direct air capture, direct carbon conversion, and strategic CO2 transportation infrastructure. The grant supports pre-construction design and engineering studies but does not cover capital costs. Projects must demonstrate a minimum capture rate of 200 ktCO2 annually or, for transportation network projects, an annual transport volume of 1 MtCO2. Additionally, projects must include multiple capture sites to ensure a robust and scalable impact.
The call for proposals was open to a wide array of participants, including technology developers, industry operators, industrial associations, small and medium-sized enterprises (SMEs), municipalities, and more. Partnerships and collaborations were highly encouraged, particularly those involving Alberta’s post-secondary and research institutions.
Knowledge Sharing and Reporting
One of the critical objectives of the Carbon Capture Kickstart Grant is to foster knowledge sharing and transparency. Successful applicants are required to commit to the following:
- Publication of study learnings and key outcomes upon completion.
- Publication of the completed study, in whole or in part, to protect equipment supplier intellectual property if necessary.
- Participation in an annual confidential roundtable with other funding recipients to discuss and share learnings and best practices.
- Participation in a wrap-up public Lessons Learned event to broadly share the high-level outcomes of their studies.
- Provision of Post Project Reports to ERA to inform on project outcomes.
By mandating such comprehensive reporting, ERA aims to de-risk the initiation of industrial-scale carbon capture projects and accelerate follow-on investments for projects with favorable study findings. This approach ensures that the insights gained from these studies are leveraged for the broader benefit of Alberta and Canada.
Economic and Environmental Impact
The Carbon Capture Kickstart Grant is poised to have a profound impact on Alberta’s economy and environment. By supporting projects that reduce emissions by 24 million tonnes annually, the grant will contribute significantly to Alberta’s climate goals. Moreover, the investment is expected to trigger over $20 billion in capital expenditures, creating thousands of jobs across the province.
Beyond emission reductions and economic growth, the grant will also enhance Alberta’s capabilities in carbon capture technologies. This will not only position Alberta as a leader in the field but also develop a qualified workforce experienced in CCUS technologies. The increase in coordination with the Government of Alberta’s carbon sequestration hub approach further strengthens the province’s commitment to sustainable and innovative solutions for emission reductions.
Conclusion
The Carbon Capture Kickstart Grant is a visionary initiative by ERA that underscores the critical role of CCUS technologies in addressing industrial emissions. By allocating significant funds to pre-construction studies, the grant de-risks large-scale CCUS projects, fosters shared learning, and catalyzes substantial future investments. With a focus on transparency, collaboration, and innovation, the Carbon Capture Kickstart Grant sets the stage for Alberta to lead the way in sustainable and impactful carbon capture solutions.