Alberta
Calls for a new pipeline to the coast are only getting louder
From Resource Works
Alberta wants a new oil pipeline to Prince Rupert in British Columbia.
Calls on the federal government to fast-track new pipelines in Canada have grown. But there’s some confusion that needs to be cleared up about what Ottawa’s intentions are for any new oil and gas pipelines.
Prime Minister Carney appeared to open the door for them when he said, on June 2, that he sees opportunity for Canada to build a new pipeline to ship more oil to foreign markets, if it’s tied to billions of dollars in green investments to reduce the industry’s environmental footprint.
But then he confused that picture by declaring, on June 6, that new pipelines will be built only with “a consensus of all the provinces and the Indigenous people.” And he added: “If a province doesn’t want it, it’s impossible.”
And BC Premier David Eby made it clear on June 2 that BC doesn’t want a new oil pipeline, nor does it want Ottawa to cancel the related ban on oil tankers steaming through northwest BC waters. These also face opposition from some, but not all, First Nations in BC.
Eby’s energy minister, Adrian Dix, also gave thumbs-down to a new oil pipeline, but did say BC supports expanding the capacity of the existing Trans Mountain TMX oil pipeline, and the dredging of Burrard Inlet to allow bigger oil tankers to load Alberta oil from TMX at the port of Vancouver.
While the feds sort out what their position is on fast-tracking new pipelines, Alberta Premier Danielle Smith leaped on Carney’s talk of a new oil pipeline if it’s tied to lowering the carbon impact of the Alberta oilsands and their oil.
She saw “a grand bargain,” with, in her eyes, a new oil pipeline from Alberta to Prince Rupert, BC, producing $20 billion a year in revenue, some of which could then be used to develop and install carbon-capture mechanisms for the oil.
She noted that the Pathways Alliance, six of Canada’s largest oilsands producers, proposed in 2021 a carbon-capture network and pipeline that would transport captured CO₂ from some 20 oilsands facilities, by a new 400-km pipeline, to a hub in the Cold Lake area of Alberta for permanent underground storage.
Preliminary estimates of the cost of that project run up to $20 billion.
The calls for a new oil pipeline from Bruderheim, AB, to Prince Rupert recall the old Northern Gateway pipeline project that was proposed to run from Alberta to Kitimat, BC.
That was first proposed by Enbridge in 2008, and there were estimates that it would mean billions in government revenues and thousands of jobs.
In 2014, Conservative prime minister Stephen Harper approved Northern Gateway. But in 2015, the Federal Court of Appeal overruled the Harper government, ruling that it had “breached the honour of the Crown by failing to consult” with eight affected First Nations.
Then the Liberal government of Prime Minister Justin Trudeau, who succeeded Harper in 2015, effectively killed the project by instituting a ban on oil tanker traffic on BC’s north coast shortly after taking office.
Now Danielle Smith is working to present Carney with a proponent and route for a potential new crude pipeline from Alberta to Prince Rupert.
She said her government is in talks with Canada’s major pipeline companies in the hope that a private-sector proponent will take the lead on a pipeline to move a million barrels a day of crude to the BC coast.
She said she hopes Carney, who won a minority government in April, will make good on his pledge to speed permitting times for major infrastructure projects. Companies will not commit to building a pipeline, Smith said, without confidence in the federal government’s intent to bring about regulatory reform.
Smith also underlined her support for suggested new pipelines north to Grays Bay in Nunavut, east to Churchill, Manitoba, and potentially a new version of Energy East, a proposed, but shelved, oil pipeline to move oil from Alberta and Saskatchewan to refineries and a marine terminal in the Maritimes.
The Energy East oil pipeline was proposed in 2013 by TC Energy, to move Western Canadian crude to an export terminal at St. John, NB, and to refineries in eastern Canada. It was mothballed in 2017 over regulatory hurdles and political opposition in Quebec.
A separate proposal known as GNL Quebec to build a liquefied natural gas pipeline and export terminal in the Saguenay region was rejected by both federal and provincial authorities on environmental grounds. It would have diverted 19.4 per cent of Canadian gas exports to Europe, instead of going to the US.
Now Quebec’s environment minister Benoit Charette says his government would be prepared to take another look at both projects.
The Grays Bay idea is to include an oil pipeline in a corridor that would run from northern BC to Grays Bay in Nunavut. Prime Minister Carney has suggested there could be opportunities for such a pipeline that would carry “decarbonized” oil to new markets.
There have also been several proposals that Canada should build an oil pipeline, and/or a natural gas pipeline, to the port of Churchill. One is from a group of seven senior oil and gas executives who in 2017 suggested the Western Energy Corridor to Churchill.
Now a group of First Nations has proposed a terminal at Port Nelson, on Hudson Bay near Churchill, to ship LNG to Europe and potash to Brazil. And the Manitoba government is looking at the idea.
“There is absolutely a business case for sending our LNG directly to European markets rather than sending our natural gas down to the Gulf Coast and having them liquefy it and ship it over,” says Robyn Lore of project backer NeeStaNan. “It’s in Canada’s interest to do this.”
And, he adds: “The port and corridor will be 100 per cent Indigenous owned.”
Manitoba Premier Wab Kinew has suggested that the potential trade corridor to Hudson Bay could handle oil, LNG, hydrogen, and potash slurry. (One obvious drawback, though, winter ice limits the Hudson Bay shipping season to four months of the year, July to October.)
All this talk of new pipelines comes as Canada begins to look for new markets to reduce reliance on the US, following tariff measures from President Donald Trump.
Alberta Premier Smith says: “I think the world has changed dramatically since Donald Trump got elected in November. I think that’s changed the national conversation.”
And she says that if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast oil pipeline.
“I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”
Now we need to know what Mark Carney’s stance on pipelines really is: Is it fast-tracking them to reduce our reliance on the US? Or is it insisting that, for a pipeline, “If a province doesn’t want it, it’s impossible.”
From the Canadian Energy Centre
Deep Sky Alpha facility will trial technologies that suck CO2 from the sky
Innisfail, Alta. is set to host the world’s first test centre for technology that removes carbon dioxide directly from the air to fight climate change.
This June, Montreal-based Deep Sky completed construction of a $110-million carbon removal innovation and commercialization centre in the town about 120 kilometres north of Calgary.
It is a key piece of the company’s vision to build 100 large-scale facilities across Canada and become a pioneer in the emerging market for direct air capture (DAC) technology.
“As of this summer, we will begin not only carbon removal, which is actually sucking it out of the air through these very powerful fans, but also liquefying it and then putting it underground for storage,” Deep Sky CEO Alex Petre told CTV News.
Work began in August 2024 on the project known as Deep Sky Alpha, which aims to begin testing up to 10 different DAC technologies in real-world conditions. It is expected to be up and running this August.
The Government of Alberta is investing $5 million in the facility through Emissions Reduction Alberta.
The Deep Sky Alpha direct air capture test facility in Innisfail, Alta. Photo courtesy Deep Sky
Deep Sky’s facility will capture up to 3,000 tons of CO2 per year over the next 10 years, with room for future expansion.
Captured CO2 will be transported by tanker trucks about 200 kilometres north to Sturgeon County where it will be injected more than two kilometres below the surface into the Meadowbrook Carbon Storage Hub.
Operated by Bison Low Carbon Ventures, the project is the first approved under Alberta’s open-access carbon sequestration hub initiative and is expected to begin operations before year-end.
“We’re going to line up these eight units side by side and run them to see how they operate in the summer and in the cold of winter,” said Damien Steel, former Deep Sky CEO who continues to serve as a company advisor.
“We’ll be tracking everything to see how all these best-in-class technologies compare – what are their strengths and weaknesses – so that ultimately we can choose the best solutions to scale up for the major commercialization of carbon removal projects that are needed.”
Unlike typical carbon capture and storage (CCS) projects that scrub CO2 from the exhaust of heavy industrial facilities such as power plants, refineries, cement plants or steel mills, DAC utilizes different technology to remove much lower concentrations of CO2 directly from the atmosphere.
According to the International Energy Agency (IEA), there are 27 DAC plants operating worldwide, capturing almost 10,000 tonnes of CO2 per year. In order to reach net zero emissions by 2050, the IEA estimates DAC capacity must expand to more than 60 million tonnes per year by 2030.
Deep Sky selected Alberta for its test facility because of the province’s experience with CCS, including its advanced regulatory system for CO2 sequestration.
“To be successful at carbon removal you need three things: you need access to geologic storage, you need talent, and you need a reliable supply of renewable power to operate DAC facilities. Canada is blessed with these things, and Alberta especially has all of these attributes in spades,” Steel said.
Deep Sky Alpha is one of several clean tech projects underway in a five-acre industrial park in Innisfail as part of an economic diversification plan that was launched in 2022 to make the town a centre for energy innovation.
A municipal solar farm and a power plant that burns garbage and will be equipped with CCS to eliminate emissions are also under development.
Deep Sky says that more than 110 jobs were created during the construction phase of its Innisfail project and it will employ 15 people for annual operations.
Subsequent commercial plants it hopes to build across Canada will employ approximately 1,000 workers for construction and 150 for annual operations.
Steel said he expects the DAC test facility will become a destination for those looking to advance CCS projects around the world, showcasing Canadian expertise in the process.
“My hope is that not only will we learn and improve carbon removal technology, but we will also put Canada on the map in terms of being a place where innovation can thrive and this industry can work,” he said.
“It will be a place where corporate leaders, government officials and customers from around the world can come and see what direct air capture really is, how it works, and how Canada is the place to do it.”
Alberta’s Heritage Fund reaches new heights
Alberta is growing the Heritage Fund for what matters most – saving for the future to ensure a strong health care system, quality education and the lowest tax environment in Canada. By investing in the Heritage Fund, by 2050 Alberta will be on the path to energize its economy, create new opportunities and fund projects that make life better for all Albertans.
This $2.8-billion contribution marks a new record for the fund and keeps the province on track to reach its goal of $250 billion by 2050. The goal is to grow the fund to the point where, after 2050, Alberta would be able to withdraw some of the income the fund earns each year while still allowing it to grow over time. Those withdrawals could help cover fluctuations in resource revenue, invest in important infrastructure and keep taxes low.
“Alberta is turning resource strength into lasting financial security. By growing the Heritage Fund, we’re strengthening core services like health care and education, while preserving the low-tax Alberta advantage. This $2.8-billion boost to the Heritage Fund is a bold step that sets the province on the path to success and puts Albertans first.”
“This investment is a key step in securing a prosperous future with stable revenues and competitive taxes for Albertans today and tomorrow.”
Alberta’s government recently launched their plan, Renewing the Alberta Heritage Savings Trust Fund: A Roadmap to Securing Alberta’s Future. This plan outlines how Alberta will grow the Heritage Fund to $250 billion by 2050 through strategic investments, global partnerships and strong governance, securing long-term economic growth and stability. These strategic investments will eventually fund the public services and infrastructure vital to supporting the growing province.
Central to the plan is the leadership of the Heritage Fund Opportunities Corporation. The updated corporation will modernize the fund’s management and help Alberta access global investment opportunities to create meaningful wealth and future prosperity. Led by board chair Joe Lougheed, the corporation will strengthen the governance of Heritage Fund assets and support investment decisions independent from government.
“Our role is to ensure the Heritage Fund is managed with the highest standards of governance and independence. By embracing global opportunities and modernizing oversight, we’re safeguarding Alberta’s wealth to deliver steady, long-term prosperity for Alberta’s future generations.”
This historic boost to Alberta’s Heritage Fund isn’t just about the numbers – it’s about building a future where families thrive, communities grow and Alberta stays strong no matter what comes next.
Quick facts:
- Alberta’s government invested $2.8 billion from the 2024-25 surplus cash in the Heritage Fund, growing the fund to $30 billion from $27.2 billion in 2024-25.
- This is up from $22.9 billion in 2023-24, the previous fiscal year.
- Alberta’s goal is to grow the fund to $250 billion by 2050.
- Once $250 billion is reached, interest from the fund will help stabilize resource revenue, invest in infrastructure and keep taxes low.
- Since 2019-20, the Heritage Fund has grown more than 84 per cent:
- from $16.3 billion to $30 billion.
- Since 2022-23, the Heritage Fund has grown more than 41.5 per cent:
- from $21.2 billion to $30 billion.
- The board of the Heritage Fund Opportunities Corporation brings together the skills and expertise of Alberta and international leaders in investment management to set Alberta up for long-term success. The current members are:
- Joe Lougheed, board chair, Alberta
- Kate White, director, Alberta
- Jacqueline Curzon, director, Switzerland
- Jouko Karvinen, director, Finland
- Chana Martineau, director, Alberta
- Mary Ritchie, director, Alberta
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