
Drilling Technology Challenge
Last Update: October 15, 2025
AB, Canada
Funding for innovative drilling technology projects advancing emissions reduction
At a glance
Eligible Funding
- From $250,000 to $8,000,000
- Up to 50% of project cost
Timeline
- Closing date : January 29, 2026
Financing Type
Partnering and Collaboration
Grant and Funding
Eligible Industries
- Mining, quarrying, and oil and gas extraction
- Utilities
- Professional, scientific and technical services
- Educational services
- Other services (except public administration)
- Public administration
Funds Providers
Program status
Open
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.
Financing terms and conditions
- Total available funding of up to $35 million under the program.
- Applicants may receive between $250,000 and $8 million per project.
- ERA contribution will not exceed 50% of the eligible project expenses.
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.
Examples of admissible projects:
$ 3,025,000
Integration of real-time methane sensors in oil sands drilling
$ 3,990,000
Pilot project for low-emission geothermal drilling technology
$ 6,530,000
Scaling solar-powered automated drilling system for carbon capture
$ 7,750,000
Demonstrating high-efficiency drilling rigs with hybrid power modules
$ 7,950,000
Deploying automated directional drilling for critical mineral extraction
$ 5,110,000
First commercial test of downhole robotics for geothermal wells
Eligibility
- The applicant can be an innovator, technology developer, industrial facility owner or operator, industrial association, SME, research and development organization, university, not-for-profit organization, government research laboratory, or individual.
- The technology solution must be demonstrated or implemented in Alberta during the project.
- If the project is piloted outside Alberta, at least one lead project partner or the technology provider must be an Alberta-based company with commercialization potential in Alberta.
- The proposed technology must represent an advancement over current drilling technology in Alberta and must fall within prototype testing, development, piloting, demonstration, or commercial implementation stages.
- Collaborative partnerships with Alberta post-secondary/research institutions, Indigenous communities, or municipalities are encouraged but not mandatory.
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.
Eligible geographic areas
- Projects must be demonstrated or implemented in Alberta.
- Projects piloted outside Alberta may be eligible if the technology provider or a lead project partner is an Alberta-based company with potential to commercialize the technology in Alberta.
Selection criteria
- Degree of innovation and advancement beyond current drilling technologies in Alberta.
- Potential impact on cost reduction, emissions mitigation, and environmental benefits.
- Quality and extent of engagement with local communities and partnerships (e.g., with Alberta’s post-secondary and research institutions, Indigenous communities, municipalities).
- Demonstrated potential to progress technology to field pilot, demonstration, or first-of-kind commercial implementation stage within project timeline.
- Competitive merit as determined by a transparent, expert-led review process including technical, business, and GHG quantification assessment.
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
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.
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Frequently Asked Questions about the Drilling Technology Challenge Program
Here are answers to the most common questions about the Drilling Technology Challenge. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Drilling Technology Challenge?
How much funding can be received?
What expenses are eligible under Drilling Technology Challenge?
What is the deadline to apply?
Is the Drilling Technology Challenge a grant, loan, or tax credit?
Who are the financial supporters of the Drilling Technology Challenge?
Who is eligible for the Drilling Technology Challenge program?
Who can I contact for more information about the Drilling Technology Challenge?
Where is the Drilling Technology Challenge available?
Are startups eligible for the Drilling Technology Challenge program?
Are Indigenous Peoples eligible for the Drilling Technology Challenge program?
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