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Alberta

Oil sands technology competition to generate low emissions carbon fibre moves into final phase

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Bryan Helfenbaum, associate vice-president of clean energy with Alberta Innovates, holds a hockey stick made with carbon fibre derived from oil sands bitumen. Photo by Dave Chidley for the Canadian Energy Centre

From the Canadian Energy Centre

By Will Gibson and Deborah Jaremko

Study found carbon fibre made from oil sands bitumen has 69 per cent lower emissions than conventional sources

Having spent most of a long and distinguished academic career working with metals, Weixing Chen became fascinated by the potential of repurposing a heavy hydrocarbon from Alberta’s oil sands into a high-value product for a low-carbon economy. 

The product is carbon fibre – thin as human hair but four times stronger than steel – and research has shown producing it from oil sands bitumen generates lower greenhouse gas emissions than today’s sources.  

“This is a great opportunity for me to challenge myself moving forward to develop this technology that will benefit society,” says Chen, a chemical and material engineering professor at the University of Alberta.  

His team at Edmonton-based Thread Innovations is one of five receiving a total $15 million in funding in the final round of the Carbon Fibre Grand Challenge, announced in December. 

Great potential for carbon fibre 

With its light weight and high strength, today carbon fibre is used in products like aircraft and spacecraft parts, racing car bodies, bicycles, hockey sticks and golf clubs. 

It has great potential, but its use is limited by cost. Carbon fibre averages $10 to $12 per pound, compared to less than $1 per pound for steel.   

Part of the Alberta competition is that the carbon fibre derived from oil sands bitumen must cost 50 per cent less than current carbon fibre products.  

This would unlock new markets for carbon fibre, says Byran Helfenbaum, associate vice-president of clean energy for Alberta Innovates, which is funding the challenge along with Emissions Reduction Alberta.  

“At the end of this phase, the intention is the technology is at a point where a company could make a funding decision for if not a commercial project, then at least a commercial demonstration project,” he says. 

“It’s really to get it out of the lab and start hitting the key specifications, identifying the existing and new markets, and pumping out prototypes that can be tested.  We have already generated our first two prototypes, a truck side mirror and a hockey stick, but we need to go bigger and faster and test a wide range of market opportunities.” 

Long-term need for carbon-based products 

The future is likely to be full of carbon fibre products, Helfenbaum says. 

“This ‘low-carbon future’ is a misnomer. When we say low-carbon future, what we mean is let’s keep carbon out of the atmosphere. Carbon is still going to be around us in solid form, and probably in increasingly higher amounts,” he says.  

“We’re going to have 10 billion people on the planet by mid-century. They need energy, but they also need stuff. They need housing, infrastructure, and consumer goods. And most of that stuff is or can be made of pure carbon.” 

Lower emissions from oil sands carbon fibre 

Most carbon fibre today is generated from a chemical compound called polyacrylonitrile (PAN), which is derived from a component of natural gas. 

recent study by researchers at the University of Alberta found that life cycle emissions from carbon fibre derived from oil sands bitumen are 69 per cent lower than PAN-based product.  

It’s the high carbon content of oil sands bitumen that provides the benefit, Helfenbaum says.  

“The heaviest fraction of bitumen takes more energy to break down to be turned into fuels. But that same fraction can be used to produce carbon fibre with fewer greenhouse gas emissions than the current PAN process,” he says. 

“If we are successful in reducing its cost, then it can be deployed into new markets that will further reduce carbon emissions, such as lightening passenger vehicles and improving the longevity of concrete infrastructure.” 

Adding value while reducing emissions 

The Carbon Fibre Grand Challenge is part of Alberta Innovates’ broader Bitumen Beyond Combustion  research program. The work considers opportunities to use bitumen to create value-added products other than fuels like gasoline and diesel.   

“From an economic perspective, the Bitumen Beyond Combustion program could triple the value of a barrel of bitumen,” Helfenbaum says.  

“Carbon fibre is among the most valuable of those products, but it’s not the only one. This is potentially in the tens of billions of dollars a year of gross revenue opportunity, so this is transformational.” 

It also presents environmental benefits.  

“Eighty per cent of the emissions associated with petroleum happen at combustion of gasoline, diesel, and jet fuel so by diverting into these products, that becomes carbon that is sequestered forever and doesn’t get into the atmosphere,” he says.  

Pathway to commercial production 

Winners of the grand challenge will have a credible pathway to manufacturing 2,000 tonnes or more of carbon fibre per year. The challenge is scheduled to end in summer 2026.  

Thread Innovations is building a new facility to produce samples for potential buyers and demonstrate the ability to scale up production. This phase will also focus on improving characteristics of the carbon fibre produced by their technology to build commercial demand. 

“Our target is to complete the current project and then establish a commercialization plan in 2025,” says Chen.  

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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