Alberta puts federal fuel tax dollars to work
A new $50-million program will invest federal taxes into technologies that strengthen Alberta’s fuel sector and reduce emissions.
The Future Fuels Challenge, administered by Emissions Reduction Alberta (ERA), will accelerate the development and deployment of low-emission fuel technologies. The program will invest federal taxes imposed on producers and importers of gasoline and diesel into projects that reduce emissions, strengthen Alberta’s fuel sector and help industry stay competitive.
ERA has been approved to manage this funding in Alberta, making it one of only a few organizations in Canada allowed to do so. This gives Alberta a direct mechanism to put those industry dollars to work through practical projects that support innovation, strengthen competitiveness and deliver real value, rather than leaving Alberta with little say over how those federal taxes are used.
“Alberta has spent more than 17 years building Emissions Reduction Alberta into a world-class organization with the expertise to turn complex challenges into practical results. The Future Fuels Challenge puts that Alberta-made strength to work by directing federal dollars into projects that reduce emissions, support innovation and strengthen the competitiveness of our refining sector. It is another example of Alberta asserting its jurisdiction by leading, by delivering and by being the best place in the country to invest in real industrial solutions.”Grant Hunter, Minister of Environment and Protected Areas
Each year, the program funds projects that can reduce greenhouse gas emissions and help bring new clean fuel ideas to market. Funding will support projects that make refinery efficiency improvements, carbon capture, biofuels, hydrogen and other lower-emission fuel production. Alberta-based companies account for 62 per cent of Canada’s refining capacity and 56 per cent of Canada’s biofuels capacity.
“The Challenge helps move low-carbon innovations to commercialization and deployment, filling a critical gap faced by industry and technology developers. We’re looking forward to accepting applications from proponents across Canada to help scale solutions that can make a real impact.”Justin Riemer, CEO, Emissions Reduction Alberta
“CFA was pleased to collaborate in the development of this important program. This new funding represents a strong opportunity to advance low-carbon fuel projects, technologies and infrastructure that will deliver direct, measurable emissions reductions across Canada.”Bob Larocque, president and CEO, Canadian Fuels Association
Quick facts
- Successful applicants may request between $1 million and $10 million per project, with funding covering up to 50 per cent of eligible expenses.
- Alberta companies account for 62 per cent of Canada’s refining capacity and 56 per cent of biofuels capacity.
- The challenge is supported through Emissions Reduction Alberta’s Fuel Innovation Fund, which reinvests taxes imposed by the federal government on the producers and importers of gasoline and diesel, largely Alberta-based refiners, into emissions-reduction projects that strengthen Alberta’s fuel industry. The Future Fuels Challenge is the first competition announced under the new fund.