Government of Canada Takes Strides to Advance Decarbonization of Heavy-Emitting Industries in British Columbia

Press Release

November 28, 2024

Carbon management technologies and alternative clean fuel sources will play an important role in the decarbonization and competitiveness of Canada’s economy. Recognizing the urgency of climate action, the Government of Canada is working to strengthen the country’s advantages in these areas.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced $5 million in funding for Squamish-based Carbon Engineering ULC under the Energy Innovation Program to support the development of new, alternative energy solutions for powering direct air capture (DAC) systems, which pull carbon dioxide (CO₂) from the air. The project also aims to explore further electrification of the DAC process, which can address CO₂ emissions from anywhere by decoupling the source of the emissions from the point of capture, providing an important tool to support a low-carbon future.

Once successfully developed, these technologies are expected to offer environmental benefits through reducing the DAC facility’s land footprint and further improving the existing resource efficiency of current DAC processes while strengthening Canada’s leadership in carbon management technologies.

Minister Wilkinson also announced an additional $7.5 million for five projects to accelerate the development of clean technologies that can significantly mitigate emissions from industrial activities in British Columbia, including:

$2.5 million to British Columbia Biocarbon Ltd.
$1.8 million to Arca Climate Technologies Inc.
$1.5 million to the University of British Columbia
$980,500 to Parkland Refining (BC) Ltd.
$710,000 to Highbury Energy Inc.

Through the work of the Regional Energy and Resource Tables, a carbon management profile for British Columbia was provided, detailing the province’s carbon management leadership, opportunities and regulatory framework.

Quotes

“With a thriving research and development sector, British Columbia is well positioned to leverage the expertise of established innovators leading projects that reduce emissions and drive net-zero-focused innovation in Canada. The Government of Canada is committed to working with British Columbia and other provinces and territories to help achieve Canada’s climate objectives.”

The Honourable Jonathan Wilkinson

Minister of Energy and Natural Resources

“British Columbia continues to drive innovations that are cutting emissions and creating meaningful jobs for people. The federal government’s support for projects like Carbon Engineering’s air-capture technology shows our province’s shared commitment to building a greener, more sustainable future for generations to come.”

The Honourable Adrian Dix

Minister of Energy and Climate Solutions

“Canada is a world leader in clean technologies, and British Columbian innovations and companies are the driving force behind it. Canada is advancing Carbon Engineering’s Squamish-developed direct air capture technology as part of our work to seize regional economic opportunities in this fast-growing sector that will continue to create good local jobs, secure long-term prosperity and fight climate change.”

Patrick Weiler

Member of Parliament for West Vancouver–Sunshine Coast–Sea to Sky Country

Quick facts

Budget 2021 committed $319 million over seven years into research, development and demonstrations (RD&D) to advance the development and commercial viability of CCUS technologies.
NRCan is delivering on this commitment through the Energy Innovation Program, which advances clean energy technologies that will help Canada meet its climate change targets while supporting the transition to a low-carbon economy. It funds research, development and demonstration projects and other related scientific activities.
The Government of Canada is also prioritizing the implementation of major economic investment tax credits (ITCs), including the CCUS ITC, as part of Canada’s economic plan to reach net-zero.
Carbon management technology and systems, and clean fuels/hydrogen have been identified as key areas of economic opportunity under the British Columbia Regional Energy and Resource Table (Regional Table) – Framework for Collaboration on the Path to Net-Zero (Collaboration Framework).
The British Columbia Collaboration Framework, released on June 27, 2023, was the first of its kind to emerge from the eleven Regional Tables launched to date. The Regional Tables are joint partnerships between the federal government and individual provincial and territorial governments in collaboration with Indigenous partners — and with input from key stakeholders — to identify and accelerate shared economic priorities for a low-carbon future in the energy and resource sectors.