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.
Low-carbon energy transition
Alberta is a leader in energy decarbonization, having made large 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 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 allow companies to purchase renewable electricity at a competitive rate.
ABUNDANT, RESILIENT, LOW-COST NATURAL RESOURCES
Alberta’s supply of natural resources is vast and reflects a low-cost basin tested through multiple commodity cycles. The strong commitment to ESG throughout the well-established energy sector provides investment opportunities, including clean technology and environmental services related to decarbonization.
Alberta is also a global leader in methane emission reductions. It 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 have reduced GHG emissions intensity by 22% from 2011 to 2019.
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
Alberta is at the forefront of innovation in areas like carbon capture, use and storage (CCUS) and blue hydrogen production.
A pioneer of CCUS, Alberta is home to two of the world’s 18 large-scale projects. The newest, the Alberta Carbon Trunk Line, can sequestering 14.6 million tonnes of CO2 per year. The captured carbon is used for enhanced oil recovery — boosting the amount of oil extracted from Alberta’s oil fields.
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 government support programs makes Alberta a competitive choice for hydrogen projects,. like the $1.3-billion plant announced by Air Products and Chemicals Inc. in June 2021.
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, 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, low-cost oil, coupled with an innovative and well-established oilfield service 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
LNG: growing access to west coast and growing Asian markets
Crude oil: Access to key U.S. and Canadian markets, growing access to U.S. and Asian export markets
Alberta is growing its market access through the construction and expansion of several pipeline projects, including the Coastal GasLink and the Trans Mountain Pipeline.
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 (2019)
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 (2020)
Government support for innovation
Both the provincial and federal governments offer financial programs to stimulate innovation in the energy and cleantech sector
- Emissions Reduction Alberta
- Clean Resources Innovation Network
- Alberta Petrochemical Incentive Program
- Federal government
- Federal Investment Tax Credit for CCUS
- Strategic Innovation Fund
- Clean Growth Program
- Energy Innovation Program
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 (see Petrochemicals)
Increased market access to west coast
Coastal GasLink and Trans Mountain Pipeline expansion will allow exports of LNG and crude oil to Asian markets
Low carbon power purchase opportunities
The only deregulated electricity market in Canada
Alberta StoriesSee All Alberta Stories
Amazon’s first Canadian renewable energy project coming to Alberta
Alberta will be home to Amazon’s first renewable energy project in Canada. The 80-megawatt solar farm will contribute over 195,000 megawatt-hours to the grid.Read More
Berkshire Hathaway Energy acquires AltaLink, expands across country
Berkshire Hathaway Energy made its foray into the Canadian market in 2015, with the purchase of AltaLink, Alberta’s largest independent transmission provider. Today, BHE Canada is focused on business opportunities within all aspects of the energy infrastructure market across Canada, including renewables.Read More
Petronas Canada to become leader in low-carbon natural gas exports
In 2012, Petronas purchased Canadian natural gas producer Progress Energy to create one of the largest natural gas companies in North America. Today the company is poised to lead the country in LNG production and exports.Read More
Air Products Canada announces $1.3B hydrogen plant
In June 2021, Air Products Canada announced the construction of a $1.3-billion hydrogen plant in Alberta’s Industrial Heartland. The plant would produce hydrogen-fuelled electricity and liquid hydrogen for transportation, as soon as 2024.Read More
Alberta is home to some incredible energy companies.
From renewable energy to carbon capture, Alberta’s companies are leading the way to a more sustainable future. Our energy producers are resilient, innovative, and constantly improving.