Calgary

Calgary oil companies get $26M to develop cleaner energy projects

The Alberta and federal governments are teaming up to invest $26.2 million to help three Calgary companies develop cleaner oil and gas technologies.

Investment in research and innovation will reduce costs and emissions, says federal natural resources minister

Federal Natural Resources Minister Jim Carr was in Calgary Thursday to announce that Ottawa and the province are teaming up to spend over $26 million to help three companies develop cleaner energy technology related to oilsands extraction. (CBC)

The Alberta and federal governments are teaming up to invest $26.2 million to help three Calgary companies develop cleaner oil and gas technologies.

Natural Resources Canada is contributing $21 million through its Oil and Gas Clean Tech Program, and Alberta Innovates is putting up an additional $5.2 million, officials announced in Calgary on Thursday.

Federal Natural Resources Minister Jim Carr says the projects under development by Cenovus Energy, Field Upgrading and MEG Energy will help the energy sector reduce costs and emissions.

"For example, Cenovus, which is hosting us here today, is working on a project that will use solvents to reduce the amount of steam required to melt the bitumen out of the oilsands," he said.

"This could dramatically reduce pollution during the extraction process and create cleaner air for everyone."

Climate leadership plan

Alberta Minister of Economic Development and Trade Deron Bilous says the investment will help cement the province's reputation as a world leader in energy and environmental innovation.

"As part of Alberta's climate leadership plan, the government of Alberta is making historic investments like this one, in research and innovation that will protect our environment and diversify our economy," he said.

Laura Kilcrease, CEO of Alberta Innovates — a provincial agency the focuses on promoting research and development — says the projects being funded could yield billions of dollars in economic spinoffs and lead to a reduction of millions of tonnes of GHG emissions.