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Alberta

Clean tech innovation cuts emissions, creates jobs

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7 minute read

March 12, 2019

Alberta’s Climate Leadership Plan is helping major industries reduce emissions and create jobs while cutting costs and becoming more competitive.

Emissions Reduction Alberta is funding more than a dozen new clean technology projects across the province, while Energy Efficiency Alberta is supporting small and medium-sized oil and gas companies to reduce methane emissions through upgrades.

“Innovation is a key part of Alberta’s economic and environmental success, and our industries continue to show tremendous leadership. Clean technology investments lead to made-in-Alberta solutions that support jobs, protect our environment, and point Alberta toward a healthy, prosperous future.”

Shannon Phillips, Minister of Environment and Parks and Minister responsible for the Climate Change Office

Emissions Reduction Alberta (ERA)

From Fort McMurray to Waterton, 16 innovative clean technology projects will receive funding through ERA’s $100-million Biotechnology, Electricity and Sustainable Transportation (BEST) Challenge – the largest challenge in ERA’s history.

These projects have a combined value of $600 million and the potential to reduce a total of 2.5 million tonnes of greenhouse gas emissions by 2030 – the same as taking 530,700 cars off the road. These projects will also result in 114 new jobs.

“Our BEST Challenge is about accelerating the most promising clean technology solutions across multiple sectors – from new solar opportunities in coal-impacted communities to efficient fleet solutions. These projects will be a showcase for innovative technologies that can be adopted in communities across Alberta. They support economic growth, community health and demonstrate environmental leadership on a national and global scale.”

Steve MacDonald, CEO, Emissions Reduction Alberta

The Alberta Motor Transport Association (AMTA) is working to develop and demonstrate a 700-kilometre-plus-range zero emission truck. These trucks will reduce greenhouse gas emissions through improved fuel efficiency of the fuel cell hybrid drivetrain. Sequestering carbon at the hydrogen generation facility will result in even greater emissions reductions.

“This is a very exciting project for the AMTA and our member companies. This initiative is primarily about moving freight on Alberta’s highways with zero emissions, but it is also about the future of the Alberta economy. Alberta is in the transportation fuel business, and that business is changing. The AZETEC project demonstrates that Alberta’s commercial transportation industry is leading the transition towards innovative, zero-emission transportation that meets the province’s unique needs.”

Chris Nash, president, Alberta Motor Transport Association

Another funding recipient, eCAMION, is working on a project to transition Alberta’s buses from diesel to electric. Its first-of-a-kind charging system could lower installation and operating costs, encouraging broader and faster adoption across the province. eCAMION will partner with the City of Edmonton on a trial of its fast-charge technology. A complete list of BEST Challenge projects is available here.

Energy Efficiency Alberta (EEA)

Government is providing an additional $5 million to support the continued success of EEA’s popular $10-million Methane Emissions Reduction initiative.

The program has already made it easier for 30 small and medium-sized oil and gas companies to address methane waste through energy-efficient equipment upgrades, which also helps facilities hire more staff, reduce annual emissions and boost competitiveness. To date, 2,534 applications are approved, with at least 1,500 more anticipated by March 31, 2019.

“Through methane-reduction education and deployment of existing technologies, companies ultimately have the ability to become more competitive and efficient. This announcement will result in a great collaboration to further our methane-reduction programming for the oil and gas sector.”

Monica Curtis, CEO, Energy Efficiency Alberta

The funding boost will also support a $1.5-million grant for the Petroleum Technology Alliance of Canada to introduce technologies that reduce methane emissions. The grant is expected to reduce up to 200,000 tonnes of emissions – the same as taking 42,460 cars off the road.

“Energy Efficiency Alberta’s Methane Emissions Reduction initiative is a momentous step towards a massive deployment of proven, cost-effective, economic methane-mitigation technologies that will benefit our people, planet and industry. It will enable producers – large and small – to maintain competitiveness, while helping Alberta’s entrepreneurs and small technology providers prosper and create jobs.”

Soheil Asgarpour, president, Petroleum Technology Alliance of Canada

“EEA’s Methane Emissions Reduction Program continues to improve the province’s emissions inventory while growing local jobs and incentivizing capital investment in Alberta-based emission-reduction projects. We look forward to continuing to contribute to the success of this program and working with industry to implement emission-reduction technologies.”

Jackson Hegland, executive director, Methane Emissions Leadership Alliance

Quick facts

  • The biotechnology, electricity and sustainable transportation sectors account for more than 40 per cent of Alberta’s annual greenhouse gas emissions.
  • ERA takes action on climate change and supports economic growth and diversification by investing carbon pricing paid by industry directly into clean technology solutions that reduce emissions, attract investment and create jobs. To date, ERA has committed more than $572 million in funding to 164 projects with a total value of roughly $4.3 billion.
  • The climate change impact of methane is 25 times greater than carbon dioxide over a 100-year period. Methane emissions in 2014 from Alberta’s oil and gas sector accounted for 70 per cent of provincial methane emissions, and 25 per cent of all emissions from the upstream oil and gas sector.
  • The Methane Emissions Reduction Program was announced in October 2018, and 60 per cent of the first year’s budget has already been committed. The program received three dozen applications in the first six weeks.

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Alberta

‘Existing oil sands projects deliver some of the lowest-breakeven oil in North America’

Published on

From the Canadian Energy Centre 

By Will Gibson

Alberta oil sands projects poised to grow on lower costs, strong reserves

As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.

Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.

“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.

Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.

A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.

While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.

Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy

“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.

“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.

“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.

Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.

The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.

“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.

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Alberta

It’s On! Alberta Challenging Liberals Unconstitutional and Destructive Net-Zero Legislation

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“If Ottawa had it’s way Albertans would be left to freeze in the dark”

The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.

The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.

Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.

“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”

Danielle Smith, Premier

“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”

Mickey Amery, Minister of Justice and Attorney General

Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.

“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”

Rebecca Schulz, Minister of Environment and Protected Areas

“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”

Nathan Neudorf, Minister of Affordability and Utilities

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