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METHANE REDUCTION DEMONSTRATION PROGRAM - Alberta - Canada
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METHANE REDUCTION DEMONSTRATION PROGRAM

Non-dilutive funding for near-commercial methane technology demonstrations in Alberta
Last Update: March 4, 2026
Funding available
$ 750,000
Timeline
  • Closing date : February 24, 2026
Location
Alberta, Canada

Overview

The Methane Reduction Demonstration Program provides up to $750,000 CAD per project (covering up to 75% of eligible costs) to help startups and SMEs demonstrate near-commercial technologies that detect, quantify, or reduce methane emissions across Alberta’s oil and natural gas value chain. Eligible activities include pilot demonstrations and field trials at one or more NGIF Industry Grants member sites, including related project costs such as labour, materials and supplies, depreciation on project-dedicated assets, travel, and project-related overhead.
/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 : 750,000 $
  • Up to 75% of project cost
Timeline
  • Closing date : February 24, 2026

Eligible candidates

Eligible Industries
  • Mining, quarrying, and oil and gas extraction
  • Utilities
Location
  • Alberta
Legal structures
  • For-profit business
Annual revenue
  • $ 25,000,000 maximum revenue
Organisation size
  • 500 employees maximum
Audience
  • Startups

Next Steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Demonstration projects that validate near-commercial methane mitigation and reduction technologies within oil and natural gas operations in Alberta (e.g., reducing emissions from production, transmission, distribution, or end-use facilities).
  • Demonstration projects that validate near-commercial methane measurement and quantification technologies within oil and natural gas operations in Alberta.
  • Field pilots and controlled field trials to move methane detection, quantification, or reduction solutions from pilot-scale validation to demonstration and early-stage commercial deployment.
  • Demonstration projects carried out at one or more sites owned or operated by NGIF Accelerator Industry Grants program member companies.
  • Projects that include third-party verification activities for greenhouse gas (GHG) reduction results, as required by NGIF Accelerator.

Eligibility

Who is eligible?

  • Small and medium-sized enterprises (SMEs) and technology development start-ups developing near-commercial methane detection, quantification, or reduction technologies
  • Cleantech organizations advancing methane emissions reduction solutions
  • Oil and natural gas sector technology providers serving upstream (production), midstream (transmission), and downstream (distribution and end-use) operations
  • Companies (Canadian or international) able to demonstrate their technology in Alberta at a site owned or operated by an NGIF Accelerator Industry Grants industry member
  • Organizations collaborating on eligible projects as partners (including academic and research institutions such as universities, colleges, and schools)

Who is not eligible

  • Organizations (or project subcontractors) based in countries sanctioned by the Government of Canada under the United Nations Act (UNA) and the Special Economic Measures Act (SEMA).
  • Projects that are not at the required stage of development: TRL 5 (and lower) are not considered for this competition.

Eligible expenses

  • Direct project labour costs: base salaries for employees working on the project, plus actual benefits for permanent full-time employees (up to 20% of base salary), and contractor fees (with documented rates and time worked).
  • Depreciation of fixed assets used exclusively for the project during the project period (assets must be itemized in the Investment Proposal; any unidentified asset requires prior approval).
  • Land leasing costs, where directly associated with the project and justified.
  • Consumables used during the project (e.g., industrial gases, construction supplies, laboratory supplies), with documentation.
  • Project materials and supplies needed to carry out the work (e.g., raw materials, tools, software), as budgeted/approved.
  • Travel and accommodation for approved project business, including economy airfare; vehicle travel (allowances for private/company vehicles per Canada rates, compact/mid-size rental vehicles where lower cost, receipted parking, tolls); taxis when other options are unavailable/unsuitable; reasonable accommodation and meal per diems consistent with Canada rates.
  • Project-related administrative/overhead costs directly related to the project (e.g., administrative salaries for project activities, office supplies, project-related IT charges, pro-rated insurance, pro-rated utilities), itemized and documented.
  • Conference travel and attendance costs where the recipient is a presenter and the presentation is directly related to the project (up to $2,500; up to $5,000 for international conferences), subject to approval and documentation.
  • Non-recoverable taxes paid on eligible project expenses.
  • Third-party greenhouse gas (GHG) reduction verification costs (by a third party pre-approved by NGIF Accelerator).

Ineligible Costs and Activities

  • Costs to prepare or develop the Expression of Interest (EOI) or the Investment Proposal (e.g., staff or consultant time).
  • Sales commissions, bonuses, or other pay-for-performance compensation included in salaries.
  • Land purchase costs.
  • Entertainment expenses (e.g., movies, liquor).
  • Intellectual property protection costs (e.g., patenting, licensing, copyrighting).

Eligible geographic areas

  • Alberta, Canada (projects are expected to be demonstrated in Alberta; approved projects should be demonstrated there).
  • Canada (projects must be demonstrated at a site owned or operated by an NGIF Industry Grants Program member).
  • International applicants are eligible (companies from any country can apply), provided the demonstration is in Alberta, Canada.

Processing and Agreement

  • NGIF Accelerator screens submitted applications (Stage 1) to confirm enough information is provided for evaluation and alignment with the program’s mandate.
  • Stage 1 applications are evaluated by NGIF Accelerator’s Industry Grants program using the evaluation criteria set out in the Intake Guidelines; only selected applicants are invited to Stage 2.
  • Stage 2 proposals undergo further evaluation (including site visits for successful Stage 2 applicants), and finalists are selected.
  • Selected projects must pass both Gate 1 (Industry Grants evaluation) and Gate 2 (Government of Alberta TIER matching-funding assessment by an independent expert committee) before being approved for funding.
  • NGIF Accelerator issues funding decisions (Cohort I: July 2026) and requires a fully executed Contribution Agreement before any funds are released.

Additional information

  • The program is designed as a fixed-intake model with three competitive intakes (cohorts) planned between November 2025 and December 2027.
  • Each cohort cycle is anticipated to span approximately six to eight months from intake to project selection, followed by a contracting phase where project scopes may be refined based on due diligence outcomes.
  • Successful projects are expected to proceed into an eighteen-month delivery period once contracts are executed.
  • Only expenses incurred after the funding approval letter are eligible for payment using the approved Industry Grants program funds (even if a project starts earlier).

Contacts

Frequently Asked Questions about the METHANE REDUCTION DEMONSTRATION PROGRAM Program

Here are answers to the most common questions about the METHANE REDUCTION DEMONSTRATION PROGRAM. 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 METHANE REDUCTION DEMONSTRATION PROGRAM?

The Methane Reduction Demonstration Program provides up to $750,000 CAD per project (covering up to 75% of eligible costs) to help startups and SMEs demonstrate near-commercial technologies that detect, quantify, or reduce methane emissions across Alberta’s oil and natural gas value chain. Eligible activities include pilot demonstrations and field trials at one or more NGIF Industry Grants member sites, including related project costs such as labour, materials and supplies, depreciation on project-dedicated assets, travel, and project-related overhead.

How much funding can be received?

METHANE REDUCTION DEMONSTRATION PROGRAM Funds up to 75% of admissible expenses, capped at $750,000 per project.

Who is eligible for the METHANE REDUCTION DEMONSTRATION PROGRAM program?

To be eligible for the METHANE REDUCTION DEMONSTRATION PROGRAM program, you must: Start-ups or SMEs (independent, non-subsidiary; <500 employees). Start-ups: <100 employees and <CAD $25M annual revenues. Not from countries sanctioned by Canada (UNA/SEMA).

What expenses are eligible under METHANE REDUCTION DEMONSTRATION PROGRAM?

Demonstration projects that validate near-commercial methane mitigation and reduction technologies within oil and natural gas operations in Alberta (e.g., reducing emissions from production, transmission, distribution, or end-use facilities). Demonstration projects that validate near-commercial methane measurement and quantification technologies within oil and natural gas operations in Alberta. Field pilots and controlled field trials to move methane detection, quantification, or reduction solutions from pilot-scale validation to demonstration and early-stage commercial deployment. Demonstration projects carried out at one or more sites owned or operated by NGIF Accelerator Industry Grants program member companies. Projects that include third-party verification activities for greenhouse gas (GHG) reduction results, as required by NGIF Accelerator.

Who can I contact for more information about the METHANE REDUCTION DEMONSTRATION PROGRAM?

You can contact Natural Gas Innovation Fund (NGIF) by email at mrdp@ngif.ca.

Where is the METHANE REDUCTION DEMONSTRATION PROGRAM available?

The METHANE REDUCTION DEMONSTRATION PROGRAM program is available the province of Alberta.

Is the METHANE REDUCTION DEMONSTRATION PROGRAM a grant, loan, or tax credit?

METHANE REDUCTION DEMONSTRATION PROGRAM is a Partnering and Collaboration