OTTAWA, Nov. 28 (Xinhua) -- Canada's major oil-producing province Alberta said on Tuesday it will provide major industries with up to 12 percent of new eligible capital project costs to accelerate carbon capture and emissions reductions.
The provincial government said in a news release that the new Alberta Carbon Capture Incentive Program (ACCIP) will help businesses in multiple industries, such as oil and gas, power generation, hydrogen, petrochemicals and cement, reduce their emissions by incorporating carbon capture, utilization and storage (CCUS) technology into their operations.
The ACCIP CCUS is currently the only viable option available for these industries to significantly reduce their emissions, the release said.
Provincial funding will be available once the federal government has legislated its CCUS investment tax credit and related operating supports, such as contracts for difference and ACCIP will build on the federal investment tax credit, according to the release.
"Alberta is doing its part to encourage CCUS and now we're calling on Ottawa to cooperate with the provinces and kick-start its investment tax credit to support this important work. ACCIP will help ensure Alberta remains competitive internationally, as competing jurisdictions use similar project incentives," Minister of Energy and Minerals of Alberta Brian Jean said in the release.
By 2035, CCUS development is expected to generate approximately 35 billion Canadian dollars (26 billion U.S. dollars) in investment in Alberta, the release said.
The cost of ACCIP is expected to be between 3.2 and 5.3 billion Canadian dollars (2.36 to 3.91 billion U.S. dollars) over the next decade. The actual cost depends on the development timelines of these large capital-intensive projects that are still to be determined, according to the release.