The Government of Canada is taking a major step toward lowering greenhouse gas emissions and modernising its energy sector with a new $21.5m investment in carbon capture and storage (CCS) technologies.
The funding, announced by Minister of Energy and Natural Resources Tim Hodgson, will support cutting-edge Canadian innovations focused on reducing the environmental impact of industrial activity while supporting economic growth.
The investment is part of Canada’s broader effort to become a global clean energy leader and reduce its carbon footprint.
The funded projects span a range of CCS-related developments, including subsurface analysis for CO₂ storage, advanced transportation infrastructure, and cleaner diesel engine technologies.
Commenting on the investment, Hodgson said: “We are taking action to make Canada a conventional and clean energy superpower – getting good products to market, cutting emissions, creating jobs and delivering the technologies that will power our economy for decades to come.
“This announcement highlights how Canada is showing the world that we are not just talking about clean energy – we are building it.”
What is carbon capture and storage?
Carbon capture and storage is a suite of technologies designed to capture carbon dioxide (CO₂) emissions from industrial sources before they enter the atmosphere.
Once captured, the CO₂ is either permanently stored underground in geological formations or reused in industrial processes.
This approach is especially vital for hard-to-abate sectors such as cement, steel, power generation, and oil and gas. By integrating CCS technologies, these industries can significantly cut emissions while maintaining operations during the transition to a low-carbon economy.
Strategic investment for a cleaner economy
The new funding supports projects under Natural Resources Canada’s Energy Innovation Program (EIP), specifically through its Carbon Capture, Utilisation and Storage RD&D call for proposals.
This initiative focuses on accelerating the commercial viability of CCS solutions across three key areas:
- Capture: Improving performance and reducing the costs of technologies that collect CO₂ from industrial sources.
- Storage and transportation: Enhancing subsurface CO₂ storage capabilities and developing safe and efficient transportation systems across Canada.
- Utilisation: Advancing technologies that repurpose CO₂ into useful products or processes, while also enabling long-term sequestration.
Long-term commitment to clean technology
This $21.5m funding announcement is part of a larger $319m commitment outlined in Budget 2021.
Spread over seven years, the federal investment aims to solidify Canada’s position in global clean tech innovation and reinforce its commitment to fighting climate change through practical, scalable solutions like carbon capture and storage.
With continued support, Canada’s energy sector is poised to lead the way toward a more sustainable and resilient future.
