BOE Report

Canada opens call for carbon capture research, development and demonstration projects

REGINA, SK – A healthy environment and a healthy economy go hand in hand, and nowhere is that clearer than in Canada’s clean energy future. The Government of Canada is investing to make Canada a leader in new technologies that will build a strong and resilient economy, create sustainable jobs, and fight climate change.

Today, the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced a $81.5-million call for expressions of interest to support research, development and demonstration (RD&D) projects in carbon capture, utilization and storage (CCUS). CCUS technologies prevent gases from heavy industries like steel and cement from polluting the air, which helps fight climate change. The call will include three intakes to advance CCUS technologies: capture, storage and sequestration, and utilization. Applications are now open for carbon capture RD&D projects.

Funded under the Energy Innovation Program, carbon capture RD&D projects selected through this call will help emission-intensive industries identify, develop and test technologies with competitive costs and energy efficiency levels, which they could implement to capture their CO2 emissions. Projects are expected to lower harmful emissions in these sectors, delivering clean air and water, and healthy communities, all  while helping Canada reach its goal of achieving a net-zero economy by 2050.

The call for expressions of interest for carbon capture RD&D projects will remain open until October 3, 2022. Intakes for carbon storage and sequestration, and utilization RD&D projects are expected to be launched over the coming year.

The International Energy Agency has been clear: carbon capture, utilization and storage is an important emissions-reduction technology that can be applied across the energy system. The Government of Canada is committed to accelerating the development of technologies that will help build a clean energy future while creating new opportunities for Canadian workers  and industries.

Through Budget 2021, the federal government is investing $319 million in research, development and demonstrations to advance the commercial viability of CCUS technologies. These funds will support businesses, academia, non-profits, government and public laboratories. Additionally, through its 2030 Emission Reduction Plan and Budget 2022, the government reaffirmed its commitment to develop a CCUS strategy for Canada and proposed a refundable investment tax credit valued at $2.6 billion over five years, starting in 2022–23, to incentivize the development and adoption of CCUS technology to help industries in their journey to net-zero emissions.

Quotes

“Many of the technologies needed to reach our goal of net zero by 2050 are still in various stages of development, including decarbonization solutions such as CCUS. The Government of Canada is investing in innovative clean energy RD&D projects to help grow the economy, fight climate change and create good jobs for Canadian workers.”

The Honourable Jonathan Wilkinson
Minister of Natural Resources

Quick Facts

  • This represents the second call in support of CCUS innovation, the first one focused on front-end engineering and design (FEED) studies for large-scale projects. Through this initial call, 11 projects were selected for funding in April 2022, representing a total investment of up to $50 million:
  • Funding for projects selected through the FEED call is subject to successful completion of due diligence and signing of an agreement.
  • Increased use of CCUS features in the mix of every credible path to achieving net zero by 2050, including all 1.5°C pathways developed by the United Nations Intergovernmental Panel on Climate Change and the International Energy Agency.