Carbon capture projects require significant investment. In Alberta, capital costs for carbon capture, utilization, and storage (CCUS) often reach hundreds of millions. The Alberta Carbon Capture Incentive Program helps reduce these costs by offering grants for approved projects located in the province. The grant covers up to 12% of eligible capital spending.
This guide explains who can apply, what expenses qualify, and how to submit your application.
The Alberta Carbon Capture Incentive Program is a provincial funding program for large-scale CCUS projects. It provides a grant of up to 12% of eligible capital costs for projects that capture, transport, store, or use carbon dioxide in Alberta.
Key facts:
This program is often paired with federal CCUS tax credits, but stacking rules apply.
To qualify for the Alberta Carbon Capture Incentive Program, your project must meet all of the following requirements:
There are no restrictions based on business size, but applicants are usually energy, industrial, or infrastructure operators with large capital investments.
Only capital costs directly related to the CCUS project are eligible.
Eligible expenses include:
Ineligible expenses include:
If you are unsure about your expenses, tools like GrantHub’s eligibility matcher can help filter programs by cost type and project stage.
Applying for the Alberta Carbon Capture Incentive Program requires more documentation than a typical small business grant. The process involves both technical and financial reviews.
Check your project scope and costs against program rules. Make sure your funding plan follows capital-only rules and avoids duplicate benefits.
You will need:
Applications are submitted through Alberta’s official intake process. There is no fixed annual deadline while the program remains open. Approval is not automatic, and each application is reviewed.
If your application is approved, you will sign a funding agreement. This agreement confirms eligible costs, the funding percentage (up to 12%), and outlines reporting and compliance requirements.
Approved costs incurred from January 1, 2022 onward can be claimed. All claims are subject to verification and audit.
Do not include operating or maintenance expenses. Only capital costs are eligible for funding.
Pilot and demonstration projects do not qualify. Only commercial CCUS projects are eligible.
You cannot claim the same costs under this program and Alberta royalty regimes or petrochemical incentives.
Incomplete or vague cost breakdowns can delay your application or lead to rejection.
Q: Can projects started before approval still qualify?
Yes. Eligible capital costs incurred on or after January 1, 2022 may qualify, even if the project started earlier.
Q: Are operating costs eligible under the Alberta Carbon Capture Incentive Program?
No. Only capital costs are eligible. Operating, maintenance, and staffing costs are excluded.
Q: Can this incentive be combined with federal CCUS tax credits?
Usually, yes. However, provincial stacking rules apply, and you must avoid duplicate benefits. Check with the program administrator for details.
Q: Is funding from this program taxable?
Grant funding is often considered taxable income. Confirm the tax treatment with your accountant or tax advisor.
Q: Is there a maximum project size?
No maximum project size is stated. Funding is capped at 12% of eligible capital costs, regardless of total project value.
GrantHub tracks active grant programs across Canada and helps you check which ones match your business profile.
The Alberta Carbon Capture Incentive Program helps cover a significant portion of CCUS capital costs. Make sure your project structure and expenses follow program rules from the beginning. Review your cost categories and funding strategy before you apply. GrantHub helps Alberta businesses track funding programs, compare eligibility rules, and stay updated as incentives change.
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