Canada Invests in Carbon Capture and Storage in Alberta

CALGARY, AB, July 4, 2025 /CNW/ - The Government of Canada is investing in carbon capture and clean technologies and getting more low-risk, low-cost and low-carbon Canadian energy to market while fighting climate change.

Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced more than $21.5 million toward cutting-edge, made-in-Canada carbon capture, utilization and storage technologies — from advancing CO₂ storage sites and subsurface analysis technologies to cleaner diesel engines.

These investments are examples of how innovation can help Canada strengthen and modernize our energy industry, support good local jobs, reduce pollution and grow a cleaner economy.  

Projects like these support Canada's ambitions of becoming an energy superpower — demonstrating how energy innovation can enhance energy security and unlock the full potential of our workers, businesses and resources.

Quotes

"We are taking action to make Canada a conventional and clean energy superpower — getting good products to market, cutting emissions, creating jobs and delivering the technologies that will power our economy for decades to come. Today's announcement highlights how Canada is showing the world that we are not just talking about clean energy — we are building it."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"Bow Valley Carbon will store existing CO₂ emissions from Inter Pipeline's Cochrane Extraction Plant and validate further potential for carbon sequestration in Western Alberta. Cochrane Extraction Plant is one of the largest plants of its kind in Canada responsibly producing energy products that support homes and businesses from coast to coast. Bow Valley Carbon will help ensure society can count on these products for decades to come. It will also create a path for long-term emissions reduction across the region and give other industrial emitters in the region the opportunity to meet their decarbonization goals. The investment from Natural Resources Canada is an important part of this innovative project developing a state-of-the art monitoring program for CO₂ storage."

Paul Hawksworth, CEO Inter Pipeline
Developer of Bow Valley Carbon Cochrane Limited Partnership with Entropy Inc.

"Enbridge is grateful for this collaboration with Natural Resources Canada in support of our Open Access Wabamun Hub north and west of Edmonton. This brings us closer to delivering a safe, reliable and scalable CO₂ transportation and storage solution to help Alberta industries in the region meet their decarbonization goals. We're proud that, once built, the five nearby Indigenous communities will have the opportunity to co-own the Wabamun Hub's CO₂ transportation and storage infrastructure." 

Colin Gruending
Executive Vice President and President Liquids Pipelines, Enbridge

"Enhance develops world-class and trusted CCUS projects that decarbonize global commodities and the energy we produce, with over 1.5 million tonnes of industrial CO₂ emissions being permanently stored every year in our existing projects. Our new Origins CCS hub will support Canada's Carbon Management Strategy by developing a carbon storage solution that permanently sequesters CO₂ emissions from a variety of sources. This is a great example of how CCUS and CCS play a role in making Canada an energy and emissions reduction superpower."

Candice Paton
Vice President, Enhance Energy Inc.

"We are grateful to Natural Resources Canada and our project partners, Emission Reduction Alberta, the Clean Resource Innovation Network and PTRC-Aquistore, for their vision, leadership and support of our geophysical subsurface technology validation project. Results from this project will help advance cleaner, data-driven technologies for enabling Canada's low-carbon energy future."

Andrea Crook
CEO, OptiSeis Solutions Ltd.

"OCCAM's Technologies is advancing breakthrough solutions to reduce emissions from internal combustion engines — one of the hardest sectors to decarbonize. Support from Natural Resources Canada is instrumental as we move from development to real-world demonstration at a commercially meaningful scale. Our initial focus is on engines that emit between five and 30 tonnes of CO₂ per day, with the goal of scaling the technology for broader adoption. With NRCan's support, this innovation positions Canada at the forefront of next generation decarbonization technologies."

Matthew Henderson
CEO, OCCAM's Technologies Inc.

Quick Facts

• As part of Budget 2021, the government is investing $319 million over seven years into research, development and demonstrations (RD&D) to advance the commercial viability of carbon capture, utilization and storage (CCUS) technologies. Natural Resources Canada is delivering on this commitment through the Energy Innovation Program (EIP).
• Projects announced today were funded under the EIP's Carbon Capture, Utilization and Storage RD&D call for proposals. The call supports the research, development and demonstration of next-generation carbon capture and storage technologies that have the potential to significantly reduce the costs of capturing and storing carbon through three streams:
  • Capture: To drive down the cost and enhance performance of capture technologies for different emission sources.
  • Storage and Transportation: to characterize and develop safe, permanent subsurface CO₂ storage and technologies that support safe and efficient transportation of CO₂ and storage opportunities across Canada.
  • Utilization: RD&D of CO₂ utilization technologies that reduce costs, energy use and carbon intensity while enabling large-scale, long-term CO₂ sequestration.
• As referenced in Budget 2024, the federal government delivered, on a priority basis, a suite of major economic investment tax credits, representing $93 billion in incentives by 2034–35, to create jobs and keep Canada on track to reduce pollution and reach net zero by 2050. This includes a Carbon Capture, Utilization and Storage Investment Tax Credit.

Related Products

• Backgrounder: Canada Invests in Carbon Capture and Storage to Drive Clean Energy Innovation in Alberta 

Associated Links

• Energy Innovation Program - Carbon capture, utilization and storage RD&D Call
• Energy Innovation Program - CCUS Front-End Engineering and Design (FEED) 
• Carbon Management
• Capturing the opportunity: A Carbon Management Strategy for Canada
• CCUS Investment Tax Credit

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SOURCE Natural Resources Canada