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Alberta

Oil sands technology competition to generate low emissions carbon fibre moves into final phase

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Bryan Helfenbaum, associate vice-president of clean energy with Alberta Innovates, holds a hockey stick made with carbon fibre derived from oil sands bitumen. Photo by Dave Chidley for the Canadian Energy Centre

From the Canadian Energy Centre

By Will Gibson and Deborah Jaremko

Study found carbon fibre made from oil sands bitumen has 69 per cent lower emissions than conventional sources

Having spent most of a long and distinguished academic career working with metals, Weixing Chen became fascinated by the potential of repurposing a heavy hydrocarbon from Alberta’s oil sands into a high-value product for a low-carbon economy. 

The product is carbon fibre – thin as human hair but four times stronger than steel – and research has shown producing it from oil sands bitumen generates lower greenhouse gas emissions than today’s sources.  

“This is a great opportunity for me to challenge myself moving forward to develop this technology that will benefit society,” says Chen, a chemical and material engineering professor at the University of Alberta.  

His team at Edmonton-based Thread Innovations is one of five receiving a total $15 million in funding in the final round of the Carbon Fibre Grand Challenge, announced in December. 

Great potential for carbon fibre 

With its light weight and high strength, today carbon fibre is used in products like aircraft and spacecraft parts, racing car bodies, bicycles, hockey sticks and golf clubs. 

It has great potential, but its use is limited by cost. Carbon fibre averages $10 to $12 per pound, compared to less than $1 per pound for steel.   

Part of the Alberta competition is that the carbon fibre derived from oil sands bitumen must cost 50 per cent less than current carbon fibre products.  

This would unlock new markets for carbon fibre, says Byran Helfenbaum, associate vice-president of clean energy for Alberta Innovates, which is funding the challenge along with Emissions Reduction Alberta.  

“At the end of this phase, the intention is the technology is at a point where a company could make a funding decision for if not a commercial project, then at least a commercial demonstration project,” he says. 

“It’s really to get it out of the lab and start hitting the key specifications, identifying the existing and new markets, and pumping out prototypes that can be tested.  We have already generated our first two prototypes, a truck side mirror and a hockey stick, but we need to go bigger and faster and test a wide range of market opportunities.” 

Long-term need for carbon-based products 

The future is likely to be full of carbon fibre products, Helfenbaum says. 

“This ‘low-carbon future’ is a misnomer. When we say low-carbon future, what we mean is let’s keep carbon out of the atmosphere. Carbon is still going to be around us in solid form, and probably in increasingly higher amounts,” he says.  

“We’re going to have 10 billion people on the planet by mid-century. They need energy, but they also need stuff. They need housing, infrastructure, and consumer goods. And most of that stuff is or can be made of pure carbon.” 

Lower emissions from oil sands carbon fibre 

Most carbon fibre today is generated from a chemical compound called polyacrylonitrile (PAN), which is derived from a component of natural gas. 

recent study by researchers at the University of Alberta found that life cycle emissions from carbon fibre derived from oil sands bitumen are 69 per cent lower than PAN-based product.  

It’s the high carbon content of oil sands bitumen that provides the benefit, Helfenbaum says.  

“The heaviest fraction of bitumen takes more energy to break down to be turned into fuels. But that same fraction can be used to produce carbon fibre with fewer greenhouse gas emissions than the current PAN process,” he says. 

“If we are successful in reducing its cost, then it can be deployed into new markets that will further reduce carbon emissions, such as lightening passenger vehicles and improving the longevity of concrete infrastructure.” 

Adding value while reducing emissions 

The Carbon Fibre Grand Challenge is part of Alberta Innovates’ broader Bitumen Beyond Combustion  research program. The work considers opportunities to use bitumen to create value-added products other than fuels like gasoline and diesel.   

“From an economic perspective, the Bitumen Beyond Combustion program could triple the value of a barrel of bitumen,” Helfenbaum says.  

“Carbon fibre is among the most valuable of those products, but it’s not the only one. This is potentially in the tens of billions of dollars a year of gross revenue opportunity, so this is transformational.” 

It also presents environmental benefits.  

“Eighty per cent of the emissions associated with petroleum happen at combustion of gasoline, diesel, and jet fuel so by diverting into these products, that becomes carbon that is sequestered forever and doesn’t get into the atmosphere,” he says.  

Pathway to commercial production 

Winners of the grand challenge will have a credible pathway to manufacturing 2,000 tonnes or more of carbon fibre per year. The challenge is scheduled to end in summer 2026.  

Thread Innovations is building a new facility to produce samples for potential buyers and demonstrate the ability to scale up production. This phase will also focus on improving characteristics of the carbon fibre produced by their technology to build commercial demand. 

“Our target is to complete the current project and then establish a commercialization plan in 2025,” says Chen.  

Alberta

Alberta government should eliminate corporate welfare to generate benefits for Albertans

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From the Fraser Institute

By Spencer Gudewill and Tegan Hill

Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.

And this is just one example of corporate welfare paid for by Albertans.

According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.

Why should Albertans care?

First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.

For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.

Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.

Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.

In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.

By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.

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Alberta

Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline

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Alberta is celebrating an important achievement for the energy industry – the start-up of the twinned Trans Mountain pipeline. It’s great news Albertans and Canadians as this will welcome a new era of prosperity and economic growth. The completion of TMX is monumental for Alberta, since this will significantly increase our province’s output. It will triple the capacity of the original pipeline to now carry 890,000 barrels per day of crude oil from Alberta’s oil sands to British Columbia’s Pacific Coast.
We are excited that Canada’s biggest and newest oil pipeline in more than a decade, can now bring oil from Edmonton to tide water in B.C. This will allow us to get our energy resources to Pacific markets, including Washington State and California, and Asian markets like Japan, South Korea, China, and India. Alberta now has new energy customers and tankers with Alberta oil will be unloading in China and India in the next few months.
For Alberta this is a game-changer, the world needs more reliably and sustainably sourced Alberta energy, not less. World demand for oil and gas resources will continue in the decades ahead and the new pipeline expansion will give us the opportunity to meet global energy demands and increase North American and global energy security and help remove the issues of energy poverty in other parts of the world.
Analysts are predicting the price differential on Canadian crude oil will narrow resulting in many millions of extra government revenues, which will help fund important programs like health, education, and social services – the things Albertans rely on. TMX will also result in billions of dollars of economic prosperity for Albertans, Indigenous communities and Canadians and create well-paying jobs throughout Canada.
Our province wants to congratulate the Trans Mountain Corporation for its tenacity to have completed this long awaited and much needed energy infrastructure, and to thank the more than 30,000 dedicated, skilled workers whose efforts made this extraordinary project a reality. The province also wants to thank the Federal Government for seeing this project through. This is a great example of an area where the provincial and federal government can cooperate and work together for the benefit of Albertans and all Canadians.
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