28 Mar 2019, Off Grid Energy, Simark Academy

Cash for compliance: Methane reduction incentives in Alberta

There’s no question that upstream oil and gas companies are under increased pressure due to new emissions reduction regulations like those found in Directive 60. In Alberta, the provincial government is offering financial incentives to offset some of the cost of compliance, providing financial incentives for energy-efficient repairs and equipment upgrades.

Methane Emissions Reduction incentives from Energy Efficiency Alberta

Facility owners can receive up to $250,000 per facility, per fiscal year for oil and gas facilities operating in Alberta that do not exceed 40,000 barrels of oil per day. This incentive includes two categories:

1) Baseline Opportunity Assessments and Leak Detection and Repair Studies provide incentives for:

  • completing a Baseline Opportunity Assessments template,
  • conducting leak detection and repair and
  • developing a baseline opportunity summary report (including an emissions summary) of each facility surveyed.

Cost Incentives

Facility Type/Category Incentive Amount per site
Single Well Site $600
Multi-Well Site $1,200
Battery Site $1,800
Gathering Site $2,300
Processing Plant $5,000

Study applications must be submitted for pre-approval. The approved incentive will be paid out upon completion, submittal and acceptance of final study report.

2) Methane Emissions Reduction Direct to Capital Applications offer up to $8000 per application and consist of two components with the following incentives:

  • Direct to Capital Studies provide incentives to identify and quantify Methane Emissions Reduction eligible capital projects that reduce methane emissions and associated CO2e.
  • MER Direct to Capital Projects provide incentives for implementing capital-based projects that reduce methane emissions and associated CO2e. To be eligible for this incentive, all applicants must first complete a Direct to Capital Study.

Eligible methane emission reduction measures include:

  • Pneumatic injection pumps to solar, fuel cell or grid
  • Pneumatic to electric (grid, solar, fuel cell) Retrofit
  • Pneumatic (fuel gas) to instrument air conversion (powered electrically via fuel cell)
  • Wellhead casing seal
  • Test and repair pressure safety valves
  • Glycol dehydration system: Reduce circulation rate and energy exchange pumps to electric
  • Air/fuel ratio controls
  • Vent gas capture
  • High-efficiency boiler upgrade, Boiler Management System (BMS)
  • Compressor seal retrofits

Direct to Capital Studies applications must be submitted for pre-approval. The final project application must be submitted within 30 days of r the application pre-approval. A minimum methane emission reduction of 500 tonnes CO2e must be documented per approved application.

50% of the study incentive will paid out upon final study approval. The remaining 50% of the approved incentive will be paid out upon completion, submittal and acceptance of post install verification report.

Need help navigating the incentives available to reduce methane emissions? SIMARK is here to help.

Get in touch with an emissions reduction specialist

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