Alberta government criticizing clean electricity targets, incentivizing carbon capture at Global Energy Show

Alberta’s energy policy was centre stage at the Global Energy Show in Calgary on Tuesday.

The show returned to Calgary this week running from June 11 to 13 as the first official large-scale event held at the newly expanded BMO Centre in Stampede Park.

“It brings close to 30,000 people into the city for the week, which is unprecedented from a scale standpoint. It’s one of the largest events that happens in Calgary and Canada,” dmg events senior vice president Nick Samain said.

“The Global Energy Show Canada is one of Calgary’s oldest events, we go back 55 years.”

This year, some of the key topics are increasing energy demands, changing energy policies and providing clean, affordable and accessible energy.

New technologies and innovations will also be highlighted.

The convention will feature various energy systems from oil sands, petrochemicals and hydrogen to wind, solar, electric and nuclear.

“Energy continues to be one of those topics that is transformative and discussed around the world. It’s linked to many big issues and challenges like affordability, the environment, jobs and the economy,” Samain said.

Alberta government slams federal electricity plan

The Alberta government says the findings of a new report from a federal advisory committee are proof that Ottawa should abandon its “reckless” 2035 clean electricity targets.

Premier Danielle Smith spoke at the show on Tuesday morning and used a portion of her speech to reinforce that her government will stick to its 2050 carbon neutral target.

It comes as the federally-appointed Canada Electricity Advisory Council – a group made up of industry leaders, Indigenous leaders and executives – released a report Monday with suggestions on how Ottawa can accomplish its goal of decarbonizing the country’s electricity grid.

In the report, the council says decarbonizing the grid is a daunting challenge in jurisdictions like Alberta and Saskatchewan, where fossil fuels still make up the majority of electricity generating capacity.

The council says these provinces will need both federal financial support and “flexibility” around expectations to decarbonize their grids.

Alberta has long said that it can’t achieve a net-zero grid by 2035, but will work toward a 2050 target instead.

Smith reiterated Tuesday the advisory council’s report supports its stance that “one-size-fits-all” electricity regulations are unrealistic and setting it up for failure.

“For over two years, provinces, utilities, businesses and Canadians have demanded federal electricity regulations that reduce emissions without sacrificing affordability and reliability,” Smith said.

“Yet the federal government has stubbornly stuck to its plans to implement unrealistic targets for a net-zero grid by 2035, regardless of the costs and risks to Albertans.”

Smith went on to say that Alberta is rapidly decarbonizing its grid, but refuses to gamble with winter blackouts and crippling energy bills.

“Alberta already has a plan to reach carbon neutrality by 2050 – the federal government should work with us to achieve this goal,” Smith said.

Alberta promises carbon capture incentives

A central theme of this year’s Global Energy Show involves ongoing discussions surrounding how to bring renewables into the traditional oil and gas market and offset emissions through carbon capture technologies.

The Alberta government has promised to provide grants to carbon capture projects built in the province, including a large-scale $16.5 billion development proposed by the Pathways Alliance.

In November 2023, the province also unveiled details of its Alberta Carbon Capture Incentive Program offering 12 per cent grants for these types of projects. It’s an initiative that would cost anywhere between $3.2 billion and $5.3 billion by 2035, with the hope of triggering $35 billion in capital investment.

Pathways represents six of the largest oil sands operators including Canadian Natural Resources, Cenovus Energy and Suncor Energy. The hope would be to link more than 20 oil sands facilities via a pipeline, to a storage hub in the Cold Lake area capturing up to 12 megatonnes annually.

But to see these decarbonization projects built, the federal government is establishing an investment tax credit that would cover up to half of the eligible capital costs for carbon capture, utilization, and stores (CCUS) projects.

Federal legislation for the credit is expected to be passed later in June and Ottawa is also promising to offer carbon contracts for difference (CCFDs) that would lock in the future carbon price for such an initiative.

Martha Hall Findlay, the director of the University of Calgary’s School of Public Policy, says Ottawa must ensure these CFFDs are available, which potentially won’t cost the federal government anything if the industrial carbon price rises to $170 a tonne by 2030.

 “The way that works in this case is simply, it's not extra money from the federal government and that's key, right? It's not over and above the income tax credits, it is just contractually committing subsequent governments to make up the difference if the carbon credit value disappears or is reduced

“So, you know, we may have a change in government in a year and a half. This is exactly the kind of thing the current federal government could do and should do, to frankly ensure its legacy. So everyone is saying ‘Do this,' it’s not going to cost the federal government any more money.”

With files from The Canadian Press