Closed
Drilling Technology Challenge
Funding for innovative drilling technology projects advancing emissions reduction
Last Update: March 3, 2026
Funding available
$ 250,000 - $ 8,000,000
Timeline
- Closing date : January 29, 2026
Location
Alberta, Canada
Overview
The Drilling Technology Challenge, funded by Emissions Reduction Alberta, offers up to $8 million per project (with a total of $35 million available) to accelerate the development and commercialization of innovative, low-emission drilling technologies. The program supports activities such as prototype testing, piloting, demonstration, and first-of-kind commercial implementation of advanced drilling solutions in Alberta.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop strategic partnerships
- Develop a new product or service
Eligible Funding
- Maximum amount : 8,000,000 $
- Minimum amount : 250,000 $
- Up to 50% of project cost
Timeline
- Closing date : January 29, 2026
Eligible candidates
Eligible Industries
- Mining, quarrying, and oil and gas extraction
- Utilities
- Professional, scientific and technical services
- Educational services
- Other services (except public administration)
- Public administration
Location
- Alberta
Legal structures
- Non-profit
- Sole proprietorship
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Canadians
- Startups
Non-profit candidates
Sector of operation
- Higher Education
- Research
- Environment
- Economic, Social and Community Development
- Business Associations
Target groups
- Indigenous peoples
- Rural / Remote communities
- Business owners / entrepreneurs
- Nonprofits / charities
- Academia / students
Revenue structures
- All structures
Scope
- Local
- Municipal
- Regional
- Provincial
- National
- International
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Development and commercialization of innovative drilling technologies to reduce costs and emissions.
- Field testing, piloting, or demonstration of new drilling solutions in Alberta across sectors such as geothermal energy, carbon capture and storage, critical minerals, and oil and gas.
- Implementation of first-of-kind commercial drilling technologies aimed at improving environmental and economic performance.
- Collaboration projects that engage Alberta-based partners, post-secondary and research institutions, or Indigenous communities for technology deployment.
- Advancement of technologies that modernize drilling processes, including automation, advanced sensors, and energy-efficient systems.
Documents Needed
- Application Template
- Appendix A workbook and template
- Appendix B template
- Appendix C template, if applicable
- Appendix D template
Official resources
Eligibility
Who is eligible?
- Innovators and technology developers
- Industrial facility owners and operators
- Industrial associations
- Small and medium-sized enterprises (SMEs)
- Research and development organizations
- Universities
- Not-for-profit organizations
- Government research laboratories
- Individuals
Who is not eligible
- Projects proposing technologies considered as existing or typical solutions (business-as-usual) are not eligible.
- Companies or organizations proposing only incremental efficiency improvements that do not exceed current regulatory requirements.
- Projects limited to a part of the process, such as independent infrastructures, building envelopes, or pre-construction studies (pre-engineering, feasibility), that do not integrate into an overall technological project.
- Proposals concerning only conventional exploration wells for resource characterization.
Eligible expenses
- Project personnel salaries and related benefits for staff directly involved in project execution.
- Acquisition of equipment and materials essential to the project.
- Contracted services and consulting fees required for project development, piloting, or implementation.
- Costs related to technology design, construction, testing, and demonstration activities.
- Expenses for data collection, monitoring, and reporting directly linked to the project.
- Eligible overhead and administrative costs attributable to the project.
Ineligible Costs and Activities
- GHG detection, quantification, measurement, and monitoring technologies
- Standalone pre-construction studies such as feasibility or FEED
- Business-as-usual technologies or incremental efficiency improvements only
- Standalone infrastructure, facilities, or building envelopes
- Conventional exploration wells for resource characterization
Eligible geographic areas
- Alberta
Selection criteria
- Technology advancement beyond business-as-usual solutions
- Readiness to reach field pilot, demonstration, or first-of-kind implementation
- Environmental performance and emissions reduction potential
- Economic and ancillary benefits
- Stakeholder engagement and commercialization fit
How to apply
1
Confirm project and applicant eligibility
- Review the eligibility criteria for applicants and technologies
- Ensure your project aligns with priority areas, funding amounts, and demonstration requirements in Alberta
- Consult provided guidelines and FAQ for clarifications
2
Prepare application materials
- Download and read the Application Guidelines and templates
- Gather necessary documentation, including project details and eligible expense justifications
- Engage with potential partners such as universities, communities, or industrial organizations, if applicable
3
Complete and assemble application
- Complete the application form using the official template
- Attach appendices (Appendix A, B, D, and others via Grant Manager, as required)
- Ensure all documents comply with guidelines for privacy and security
4
Submit application before deadline
- Submit your complete application through the designated online portal by January 29, 2026, 5:00 p.m. MDT
- Retain confirmation and records of submission for your files
5
Respond to shortlisting and present
- Receive notification of shortlisting and, if applicable, prepare for a presentation session
- Participate in applicant presentations if invited in April 2026
6
Await funding decision
- Await the funding decision notification from ERA (expected June 2026)
- Review the outcome and next steps if approved
Processing and Agreement
- Applications are reviewed through a competitive process.
- Shortlisted applicants are invited to present their proposals.
- Final funding decisions are made by ERA’s Board of Directors.
- A Contribution Agreement must be signed before funding is issued.
- Successful applicants must provide project completion and follow-up reporting.
Additional information
- A free, hour-long informational webinar is offered to provide details about the opportunity and answer applicants’ questions.
- Collaborative proposals with Alberta’s post-secondary institutions, Indigenous communities, and municipalities are strongly encouraged.
- All proposed technology solutions must be demonstrated or implemented within Alberta for eligibility.
- Review and oversight of applications will be conducted by an independent team including experts and a Fairness Monitor.
Frequently Asked Questions about the Drilling Technology Challenge Program
What is the Drilling Technology Challenge?
The Drilling Technology Challenge, funded by Emissions Reduction Alberta, offers up to $8 million per project (with a total of $35 million available) to accelerate the development and commercialization of innovative, low-emission drilling technologies. The program supports activities such as prototype testing, piloting, demonstration, and first-of-kind commercial implementation of advanced drilling solutions in Alberta.
How much funding can be received?
Drilling Technology Challenge Funds up to 50% of admissible expenses, capped at $8,000,000 per project.
Who is eligible for the Drilling Technology Challenge program?
To be eligible for the Drilling Technology Challenge program, you must:
Innovators, technology developers, industrial facility owners/operators, SMEs, industrial associations, research organizations, universities, not-for-profits, government research labs, and individuals are eligible.
Technology solutions must be demonstrated or implemented in Alberta during the project.
Projects piloted outside Alberta may be considered if an Alberta-based company is a lead partner with commercialization potential in Alberta.
What expenses are eligible under Drilling Technology Challenge?
Development and commercialization of innovative drilling technologies to reduce costs and emissions.
Field testing, piloting, or demonstration of new drilling solutions in Alberta across sectors such as geothermal energy, carbon capture and storage, critical minerals, and oil and gas.
Implementation of first-of-kind commercial drilling technologies aimed at improving environmental and economic performance.
Collaboration projects that engage Alberta-based partners, post-secondary and research institutions, or Indigenous communities for technology deployment.
Advancement of technologies that modernize drilling processes, including automation, advanced sensors, and energy-efficient systems.
Who can I contact for more information about the Drilling Technology Challenge?
You can contact Emissions Reduction Alberta (ERA).
Where is the Drilling Technology Challenge available?
The Drilling Technology Challenge program is available the province of Alberta.
Is the Drilling Technology Challenge a grant, loan, or tax credit?
Drilling Technology Challenge is a Partnering and Collaboration