The Path to Net Zero Runs Through Alberta, Canada
Low-carbon energy transition
Alberta is a leader in energy decarbonization, having made strides in reducing the carbon intensity of its electricity grid as well as its oil and gas sector. This is being achieved through a series of targeted reductions, a transition away from coal, the development of world-scale renewable energy projects, and investment in a growing carbon capture, use and storage (CCUS) industry.
By 2023, power generation in Alberta will be coal free and the electricity grid will produce roughly 20 megatons of GHG emissions a year — less than half the 2015 level.
The province’s deregulated market ensures that Alberta remains a low-cost electricity jurisdiction throughout this transition.
Alberta’s market-based grid and unique geography make it an attractive setting for utility-scale wind and solar projects and allows companies to purchase renewable electricity at a competitive rate.
ABUNDANT, RESILIENT, LOW-COST NATURAL RESOURCES
Alberta is home to the third largest oil reserves in the world, 70% of the marketable natural gas in Canada and critical minerals including lithium and magnetite.
Alberta’s supply of natural resources is vast and reflects a low-cost basin tested through multiple commodity cycles. The strong commitment to environmental, social and governance (ESG) throughout the established energy sector provides investment opportunities, including clean technology and environmental services related to decarbonization.
REDUCING METHANE EMISSIONS
Alberta was the first regional government in North America to commit to a methane emissions reduction target for the oil and gas sector. Through regulatory changes and investments in technology and innovation, Alberta’s oil sands producers reduced GHG emissions intensity by 22% since 2011.
Alberta’s decarbonization efforts are bolstered by a large pool of talented researchers, technical professionals and entrepreneurs who understand the oil and gas industry and its needs.
Innovation and cleantech
A pioneer in CCUS, Alberta is leveraging its expertise and existing facilities and infrastructure to expand into low-carbon petrochemical products, such as blue methanol and blue hydrogen.
Alberta is home to two of the world’s 18 large-scale projects. The newest, the Alberta Carbon Trunk Line, can sequester 14.6 million tonnes of CO2 per year. The captured carbon is used to produce blue hydrogen and for enhanced oil recovery.
Alberta’s extensive oil and gas infrastructure also allows the province to produce blue hydrogen at a lower cost than any other jurisdiction in the world.
An abundant supply of low-emission blue hydrogen and a number of support programs makes Alberta a competitive choice for hydrogen projects, like the $1.3-billion plant announced by Air Products and Chemicals Inc.
Edmonton Region Hydrogen Futures
areas of focus
Carbon capture, use and storage
Low-carbon hydrogen production
Solvent extraction technology
Alberta is a global leader in methane reduction. It also boasts an abundance of affordable, low-emission blue hydrogen and is home to two of the world’s large-scale CCUS projects.
Modern, deregulated power markets
Emerging geothermal and hydro
Alberta provides some of the lowest cost renewable power in the world. The province’s unique geography and deregulated electricity grid make it ideal for utility-scale wind and solar projects.
Large reserves of low-decline, low-cost oil
Innovative oil and gas services sector
Stable and clear fiscal and regulatory systems
Abundant supplies of low-decline and low-cost oil, coupled with an innovative and well-established oilfield services sector will help to maintain Alberta’s oil production for years to come.
Large reserves of low-cost natural gas
Large liquids plays and markets
World-class value-added processing
Alberta has rich supplies of low-cost natural gas and is home to the largest hydrocarbon processing zone in Canada. The province counts two propylene derivatives plants and the country’s largest ethane cracking complexes.
Access to Markets
Stable regulatory environment and business-friendly policies make Alberta the perfect place to invest
Stable Fiscal and Regulatory Environment
Canada scores in the top 30 of the World Bank’s Political Stability Index.
Low Corporate Tax Burden
Alberta’s corporate tax rate has dropped to 8% — the lowest in the country.
Alberta has the highest economic freedom in Canada as ranked by the Fraser Institute’s Economic Freedom Index.
Government support for innovation
Both provincial and federal governments offer financial programs to stimulate innovation in the energy and cleantech sector
Alberta’s energy sector is supported by a vast network of pipelines and a market-based electricity grid
Robust Petrochemical Processing Capacity
Home to the largest hydrocarbon processing zone in Canada — Alberta’s Industrial Heartland.
Increased Access to West Coast
Low Carbon Power Purchase Opportunities
The most deregulated electricity market in Canada.
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