Alberta announces funding for drilling tech accelerator program

Key Takeaways:

• Alberta is committing up to $50 million from the TIER program to establish Canada’s first open-access, technology-agnostic drilling test site. This initiative aims to leverage Alberta’s advanced drilling expertise to accelerate the development of innovative energy technologies.
• Initial studies have demonstrated the economic and environmental viability of the Alberta Drilling Accelerator, which could fast-track advancements in geothermal, helium, critical minerals, and carbon capture technologies. Industry interest is strong, with companies like Eavor Technologies, Tourmaline Oil Corp, and Halliburton expressing interest as anchor tenants.
• The accelerator is a key part of Alberta’s strategy to achieve carbon neutrality by 2050. By fostering innovation in energy technologies and creating jobs, it sets the stage for sustainable development in industries critical to reducing emissions and diversifying Alberta’s economy.

The Whole Story:

Alberta plans to invest up to $50 million from the Technology Innovation and Emissions Reduction (TIER) program to support Canada’s first test site to advance energy technologies.

Alberta officials explained that the province has some of the most advanced and skilled drilling expertise in the world. Yet, unlike the United States, Japan and other countries, Canada does not currently have an open-access test site, which is critical for spurring innovation and leading-edge drilling technologies, such as geothermal, lithium, oil and natural gas.

To help fill this gap, Alberta’s government says it will invest up to $50 million from the industry-funded TIER program to support the Alberta Drilling Accelerator through a public-private partnership model. Funding will help create Canada’s first open-access, technology-agnostic, industry-led hub, leveraging Alberta’s drilling expertise to develop the technologies needed to reduce emissions, create jobs and deliver energy to the world.

“What we’re doing here today is setting the stage for innovation and prosperity far into the future,” said Premier Danielle Smith. “The Alberta Drilling Accelerator means big things for oil and gas exploration in our province, but also for industries that will be vital for achieving our goal of carbon neutrality by 2050. We are setting the stage for innovation and prosperity, pushing Alberta’s drilling expertise to places it’s never been before.” 

In April, Alberta’s government invested $750,000 to help kick-start this project, supporting a feasibility study facilitated by Calgary-based Eavor Technologies in partnership with the Canadian Association of Energy Contractors and Canadian Geothermal Energy Association. 

The initial findings suggest that creating an industry-led Alberta Drilling Accelerator is both economically and environmentally viable. The accelerator would allow companies to test and develop drilling techniques and technologies, accelerating geothermal, helium, critical minerals, carbon capture and other industries relying on the drilling sector.

Notably, several industry leaders have already expressed strong interest in serving as anchor tenants, including Calgary-based Eavor Technologies, Tourmaline Oil Corp and international oilfield service supermajor Halliburton. While no binding contracts have been signed, the province says tens of millions of dollars in private sector capital investment could potentially be secured.

The Alberta Drilling Accelerator could potentially start drilling in 2026, or sooner. Once operational, the Alberta Drilling Accelerator could help speed up the development of geothermal, helium, critical minerals, carbon capture, utilization and storage and other technologies and commodities that rely on Alberta’s drilling expertise.