EDMONTON, AB –  Emissions Reduction Alberta (ERA) is investing up to $35 million to accelerate the development and commercialization of innovative drilling technologies. This investment will help reduce emissions in the oil and gas sector while advancing emerging opportunities in geothermal energy, geologic carbon sequestration, critical minerals extraction, and more.

Building on more than a century of drilling expertise, Alberta is uniquely positioned to lead in developing next-generation solutions that reduce costs, mitigate risks, and unlock economic and environmental benefits. ERA’s new funding leverages the province’s skilled workforce and established infrastructure to keep Alberta as a world leader in safe, cost-effective, low-emission drilling.

The $35 million Drilling Technology Challenge is funded through the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) fund. It directly supports the targeted outcomes of the Alberta Drilling Accelerator (ADA), announced by the Government of Alberta in April 2024. The application deadline is January 29, 2026, at 5:00 p.m. Mountain Daylight Time (UTC-6h), and a free, online informational webinar will be held on October 22, 2025, at 2:00 p.m.

“Alberta's drilling leadership continues to drive progress here and around the world. With each new technology developed and commercialized, we build on our province's expertise and continue to lead the world in providing the responsible, affordable, and reliable energy that people and communities need.”

Rebecca Schulz, Minister of Environment and Protected Areas                           

“Built on decades of responsible resource development, Alberta is home to the world’s best drilling expertise. We’ve been at it for over 100 years, and this investment will ensure Alberta remains a global leader in cost-effective, reliable, and responsibly produced energy.”

Justin Riemer, CEO, Emissions Reduction Alberta

Funding will range from $250,000 to $8 million per project. Eligible technologies may include, but are not limited to:

• Advanced drilling methods such as percussive, water-jet, or thermal systems

• Downhole tools and sensors for high-pressure, high-temperature environments

• Automation and digital optimization including AI-driven drilling and predictive maintenance

• Efficient and low-impact rigs including electrified or hybrid rigs, low impact drilling fluids, etc.

• Geothermal and critical mineral applications such as superhot well completions or drilling in lithium-rich brines

• Enabling infrastructure and support systems like mobile labs or simulation platforms.

All projects will be selected through ERA’s rigorous and transparent review process, overseen by a Fairness Monitor. As with all ERA funding, final outcomes will be shared publicly to help advance technology toward commercialization.