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Press Release

$58 Million Announced for Natural Gas Innovations Worth $155 Million — ERA Supports 20 Projects

July 21, 2020Emissions Reduction Alberta

Leveraging artificial intelligence and machine learning to better measure and locate methane emissions, and prototyping new approaches to convert natural gas to hydrogen, are two of 20 technology innovations that will receive funding from the Government of Alberta through Emissions Reduction Alberta (ERA).

Alberta’s Minister of Environment and Parks, Jason Nixon, and Associate Minister of Natural Gas and Electricity, Dale Nally, announced the finalists of the Natural Gas Challenge with ERA CEO, Steve MacDonald, on Tuesday, July 21, 2020, at the opening of the Maximizing Funding Potential Workshop, presented by ERA and Alberta Innovates.

ERA is committing $58.4 million for 20 projects worth $155 million. Funding for ERA’s challenges comes from the carbon price paid by Large Final Emitters in Alberta through the Technology Innovation and Emissions Reduction (TIER) fund.

Today’s announcement by the Government of Alberta supports investment attraction, job creation, and economic growth. Some projects will have an immediate impact by improving the performance of the natural gas sector’s existing operations and others are accelerating transformative opportunities, like hydrogen production, that can change the face of the industry.

Steve MacDonald, CEO, ERA

The Natural Gas Challenge was launched in October 2019 and was open to projects involving technologies at the pilot, demonstration, or first-of-kind commercial deployment stages. ERA’s selection committee reviewed 117 submissions and of these, twenty projects were selected based on their potential to unlock innovation across Alberta’s natural gas value chain, from production to the end consumer.

Projects announced include

1

MultiSensor Canada Inc.

Methane Imaging Solution for Continuous Leak Detection and Quantification for Tank Emissions and Facility Monitoring

Total project value: $3,200,000 | ERA commitment: $1,600,000

2

Qube Technologies

Emissions Reductions Through Artificial Intelligence

Total project value: $16,200,000 | ERA commitment: $4,000,000

3

University of Calgary

UCalgary-Canadian Natural Fugitive Emissions Pilot Study: Field-Scale Deployment and Acceleration of Made-In-Alberta Technology

Total project value: $3,200,000 | ERA commitment: $1,600,000

4

Canadian Natural Resources Limited

Canadian Natural Fugitive Emissions Study Using Aerial Detection Technology

Total project value: $1,900,000 | ERA commitment: $927,000

5

Challenger Technical Services

Multi Component Downhole Injection System

Total project value: $2,600,000 | ERA commitment: $1,000,000

6

Petroleum Technology Alliance Canada (PTAC)

Affordable Zero-Emission Fail-Safe Electric Dump Valve Actuator (EDVA) Phase 2

Total project value: $2,200,000 | ERA commitment: $550,000

7

Kinitics Automation Limited

Kinitics Valve Actuator for Gas Producers

Total project value: $1,100,000 | ERA commitment: $552,000

8

Westgen Technologies Inc.

Unlocking EPOD Economic Zero Bleed Pneumatic Instrument Air Retrofit Solution

Total project value: $4,000,000 | ERA commitment: $1,300,000

9

Modern Wellbore Solutions

Demonstration of a Full-Scale Multilateral Junction Assembly

Total project value: $12,100,000 | ERA commitment: $3,500,000

10

Tourmaline Oil Corp.

Natural Gas Mobile Unit for Drilling Rig Power Generation

Total project value: $7,989,000 | ERA commitment: $3,200,000

11

ATCO Gas and Pipelines Ltd.

Fort Saskatchewan Hydrogen Blending

Total project value: $5,700,000 | ERA commitment: $2,800,000

12

Ekona Power Inc.

Development and Field Testing of a Tri-Generation Pyrolysis (TGP) System for Low-cost, Clean Hydrogen Production

Total project value: $13,800,000 | ERA commitment: $5,000,000

13

Standing Wave Reformers Inc.

A New Wave in Hydrogen Production

Total project value: $8,200,000 | ERA commitment: $3,000,000

14

ATCO Gas and Pipelines Ltd.

ATCO and Future Fuel RNG

Total project value: $15,900,000 | ERA commitment: $7,900,000

15

Sustainitech Inc.

Co-Locating Natural Gas and Indoor Agriculture for Alberta’s Future

Total project value: $17,862,298 | ERA commitment: $5,000,000

16

Enersion Inc.

Greenest Natural Gas-Powered Quad-generation with a 41% GHG Reduction

Total project value: $3,800,000 | ERA commitment: $1,800,000

17

Stone Mountain Technologies, Inc.

Demonstration of Thermally Driven Heat Pumps for Residential Heating Applications

Total project value: $1,972,510 | ERA commitment: $986,250

18

Anax Power

Turboexpander Project

Total project value: $6,200,000 | ERA commitment: $2,400,000

19

Innovative Fuel Systems

Advanced Dual-Fuel System Commercial Demonstration

Total project value: $2,800,000 | ERA commitment: $1,200,000

20

Converting Landfill Gas to Renewable Natural Gas

The project will explore opportunities to upgrade landfill gas at Clover Bar Landfill and inject it into Alberta’s natural gas system as renewable natural gas (RNG).

Total project value: $25,000,000 | ERA commitment: $10,000,000

If successful, these technology innovations will lead to cumulative GHG reductions of almost one million tonnes of CO₂e by 2030 — equivalent to the GHG emissions from 750,000 passenger vehicles driven for one year. It is anticipated these projects will also deliver approximately 760 new jobs.

Projects were selected through ERA’s competitive review process. A team of experts in science, engineering, business development, commercialization, financing, and greenhouse gas quantification conducted an independent, rigorous, transparent review overseen by a Fairness Monitor. All recipients are required to produce a final outcomes report that will be shared publicly for the broader benefit of Alberta. All projects involve field piloting, demonstration, or commercial deployment of technology within the province.

We’re very pleased to have the support of ERA in the final steps of commercial validation of our technology. Working with ERA and Westcan will help us showcase our technology’s ability to reduce greenhouse gas emissions in the heavy-duty trucking industry, while also allowing the industry to significantly cut fuel costs.

Leland Oberst, President and Chief Executive Officer, Innovative Fuel Systems

To help streamline the application process, ERA collaborated with the Natural Gas Innovation Fund (NGIF) to leverage funding opportunities beyond ERA’s scope through NGIF’s $3 million Cleantech Competition. Six of ERA’s Natural Gas Challenge winners were shortlisted for NGIF’s funding competition.

For more than 10 years, ERA has been investing the revenues from the carbon price paid by large final emitters to accelerate the development and adoption of innovative clean technology solutions. Since ERA was established in 2009, they have committed $607 million toward 183 projects worth $4.1 billion that are helping to reduce GHGs, create competitive industries and lead to new business opportunities in Alberta.