Natural Resources Minister Seamus O'Regan has launched the $750-million Emissions Reduction Fund to help oil and gas companies invest in green technologies to reduce methane emissions. Methane accounts for 43% of all greenhouse gases (GHGs) in the oil and gas sector. Support will be primarily in the form of repayable loans to eligible onshore and offshore oil and gas companies. The fund was first promised by Prime Minister Justin Trudeau in April 2020.
The fund provides up to $675 million to eligible onshore oil and gas companies to invest in green technologies to reduce methane emissions. The remaining $75 million are available to offshore oil and gas companies for capital investments, and research, development and demonstration projects to reduce GHGs from offshore production in Newfoundland and Labrador.
Separately, Environment and Climate Change Minister Jonathan Wilkinson announced that approximately $100 million from the Low Carbon Economy Leadership Fund have been allocated to support initiatives in Alberta aimed at growing the clean economy.
The federal money will finance innovative programs administered by the Alberta government. Eligible projects include operational energy retrofits, the scaling up of biofuel production, clean technology deployment, and geothermal generation.
Ottawa says the funding will support the cumulative reductions estimated at 10 million tonnes of GHG emissions by 2030 and create approximately 3,100 jobs in construction, energy efficiency retrofits, clean technology innovation, industrial transformation and research.