Emissions Reduction Fund Onshore Program on Track to Reduce Methane Emissions
April 9, 2021 Ottawa, Ontario Natural Resources Canada
Reducing emissions from methane, one of the most potent greenhouse gases, is a key part of Canada’s strengthened climate plan and its commitment to achieving net zero by 2050, ensuring a healthy economy and a healthy environment for Canada. By acting now, Canada is building a clean energy future that powers economic growth, creates good jobs and dramatically reduces our greenhouse gas emissions.
Today, the Honourable Seamus O’Regan Jr., Minister of Natural Resources, announced that the $750-million Emissions Reduction Fund (ERF) onshore program is on track to cut, in its first year, methane emissions equivalent to 3.1 megatonnes of carbon dioxide, roughly equal to removing 674,000 cars from the road, highlighting encouraging results from the program’s first intake.
Since the program launched in October, the Government of Canada has signed contribution agreements with 15 companies totaling $71.5 million, representing 40 projects across British Columbia, Alberta, Saskatchewan and Manitoba.
This includes the interprovincial project involving Manitoba’s Tundra Oil & Gas Limited and Alberta’s Steel Reef Infrastructure Corp., which will use ERF funding to eliminate a projected 1.5 megatonnes of greenhouse gas emissions.
For its part, Tundra will use $8.7 million in ERF funding to conserve methane emissions from eight upstream facilities in Manitoba. Tundra will install a 47-kilometre pipeline and new gas-gathering infrastructure. To support these efforts, Steel Reef is proposing to build essential infrastructure that safely transports the conserved natural gas to its processing facility in Saskatchewan. The $12.7 million emissions reduction funding granted to Steel Reef also supports the installation of infrastructure to eliminate methane emissions from five upstream facilities in Saskatchewan.
These projects are helping maintain skilled personnel and jobs in the oil and gas sector, and across a number of clean energy technology and service sectors, including transport, manufacturing, trades and construction.
The $750-million ERF supports eligible onshore and offshore oil and gas companies in lowering emissions by adopting green solutions while maintaining jobs. The federal government’s top priority is supporting Canadians and businesses as the country weathers the COVID-19 pandemic, and it has launched an extensive suite of business support measures, including the ERF.
“Canada is the fourth-largest producer of oil and gas in the world. It’s the biggest part of our economy. What that means is we have hundreds of thousands of workers who know how to build energy infrastructure: engineers, trades workers, scientists, investors. These are the same people who will lower emissions, the same people who will build renewables, the same people who will meet our targets. The Emissions Reduction Fund supports the hard work, ingenuity and determination of our energy workers.”
Seamus O’Regan Jr.
Minister of Natural Resources
“Tundra Oil & Gas is pleased to partner with the Emission Reduction Fund to help Canada reach its emissions reduction goals. Our project significantly reduces GHG emissions and supports new jobs in our rural communities while developing the infrastructure in Manitoba that is necessary to conserve natural gas that is used to heat homes and power industry through our energy transition.”
President and CEO, Tundra Oil & Gas Limited
“Steel Reef specializes in building and safely operating essential infrastructure to capture associated natural gas and convert it into a productive resource that supports Canadian families’ quality of life. We are pleased to work with Natural Resources Canada to invest in meeting important environmental commitments, creating jobs and supporting a lower-carbon future.”
President and CEO, Steel Reef
“The Emissions Reduction Fund is a timely and welcomed investment to improve Canada’s oil and gas sector’s global competitiveness while supporting our efforts in reducing emissions and achieving net-zero carbon emission objectives.”
Dr. Tristan Goodman
President, Explorers and Producers Association of Canada
The $750-million Emissions Reduction Fund provides financial support for onshore and offshore companies to help them adopt greener technologies and maintain jobs in the oil and gas sector to help withstand the impacts of COVID-19.
The $675-million onshore program will:
- help companies deploy clean solutions that will reduce costs or increase revenues while lowering emissions; and
- support companies in their transition to a low-carbon economy, allowing them to attract investments and raise their global competitiveness.
The $75-million offshore program comprises two streams:
- The first, the Offshore Deployment Program, is a $42-million investment supporting capital projects designed to either reduce offshore GHGs or improve the environmental performance of offshore oil spill monitoring, detection and response activities.
- The second, the Offshore RD&D Program, is a $33-million investment supporting environmental research, development and demonstration projects that advance solutions to decarbonize Newfoundland and Labrador’s offshore industry. It is being delivered in collaboration with Petroleum Research Newfoundland and Labrador.
Natural Resources Canada
Office of the Minister of Natural Resources
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