Alberta Carbon Capture Incentive Program

Alberta Carbon Capture Incentive Program\nGrants to help accelerate the development of carbon capture, utilization and storage in Alberta.\n\nOn this page:\nOverviewKey featuresEligibilityNext stepsNewsContact\nOverview\nThe Alberta Carbon Capture Incentive Program (ACCIP) will support and accelerate the development of new carbon capture, utilization and storage (CCUS) infrastructure by providing incentives for facilities to incorporate this technology into their operations. Developing CCUS is a key component of Alberta’s Emissions Reduction and Energy Development Plan which sets the path to reach emissions targets while encouraging sustainable economic growth in the province.\n\nKey features\nACCIP will help hard-to-abate industries by providing a grant of 12 per cent for new eligible CCUS capital costs.\n\nGrants will be paid to operators in three installments over three years starting after one year of operations, similar to the process used by the Alberta Petrochemical Incentives Program. A portion of funding for ACCIP will be accessed from the Technology Innovation and Emissions Reduction fund.\n\nProvincial funding will be available once the federal government has legislated its CCUS investment tax credit (ITC) and related operating supports, such as contracts for difference. ACCIP will be designed to build on the federal ITC. Together, the provincial and federal governments can cooperate in establishing the clear competitive advantage in CCUS that Albertan and Canadian businesses have demonstrated to the world.\n\nEligibility\nACCIP will be able to support a variety of sectors including oil sands, oil and gas production, enhanced oil recovery production, petrochemicals, power generation, manufacturing and cement production, among others. CCUS is currently the only viable option available for these industries to significantly reduce their emissions.\n\nNext steps\nGovernment is currently working on program specifics with more details expected to be available in spring 2024.\n\nAlberta has a proven track record of supporting CCUS, having invested or committed over $1.8 billion to support projects and programs over the past decade.\n\nIn total, the program is expected to provide between $3.2 to $5.3 billion of support between 2024 and 2035. The actual cost is dependent on the development timelines of these large capital-intensive projects that are still to be determined.\n\nOver the next decade, the government estimates that these incentives will support $35 billion in new investment and create up to 21,000 good paying jobs.\n