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Alberta

Alberta piloting test to supply industry with fuel derived from worn-out tires

Published

6 months ago

6 minute read

Turning industrial waste into energy

Alberta is launching a Tire-Derived Fuel pilot to test the effectiveness of turning old, worn-out tires into energy to power industrial facilities.

Alberta’s government is helping industry reduce emissions, save money and turn landfill waste into energy – all through technology.

Around the world, demand for industrial and manufacturing products is rising rapidly. Companies are looking for more ways to repurpose waste, decrease costs and increase operational efficiency while reducing emissions, but these improvements can be expensive and complex.

Alberta’s government and industry are stepping up and setting an example for the world, investing in two new programs to help more industrial and manufacturing companies reduce emissions, re-use waste and keep powering the world. In partnership with Lafarge Canada, the province will launch a program to expand the use of recycled spare tires and will invest $10 million in a second program to help industry save on their energy bills.

“We are investing in lower-emission fuels and facility upgrades to set our energy sector up for continued success. These new initiatives will keep our province at the forefront of technological advancement and ensure Alberta continues to lead the way to reduce emissions and turn waste into energy.”

Rebecca Schulz, Minister of Environment and Protected Areas

New Tire-Derived Fuel Pilot Project

Alberta is launching a Tire-Derived Fuel pilot to test the effectiveness of turning old, worn-out tires into energy to power industrial facilities. Led by the Alberta Recycling Management Authority (ARMA), the pilot will turn up to 1.5 million used tires into up to 15,750 tonnes of chips that will become tire-derived fuel in the coming months.

Lafarge Canada’s new Low-Carbon Fuel Facility will participate in the pilot project. They have the equipment needed to burn waste-derived fuels, reducing their use of natural gas. Results from the pilot will be used to help determine whether tire-derived fuel should be permanently added to the province’s existing Tire Recycling Program.

New Strategic Energy Management for Industry Program

Alberta’s government is also investing $10 million from the industry-funded Technology Innovation and Emissions Reduction (TIER) fund to help launch the new Strategic Energy Management for Industry program, open for applications on Oct. 17.

Delivered through Emissions Reduction Alberta, the program will cover the cost of energy assessments and capital retrofits to save Alberta-based industrial and manufacturing facilities money on their energy bills. It will also provide energy management training, knowledge sharing and technical support.

Agriculture, forestry, fishing, hunting, mining, oil and gas, and cement companies will all be eligible for funding. Additional funding will also be provided by the Government of Canada and announced soon. More information will be shared on Emissions Reduction Alberta’s website.

New Low-Carbon Fuel Facility

Thanks in part to $10 million in TIER funding delivered through Emissions Reduction Alberta, Lafarge Canada has opened a cutting-edge Low-Carbon Fuel Facility that will replace up to 50 per cent of the natural gas it uses with low-carbon fuel from construction demolition waste. This will keep up to 120,000 tonnes of construction and demolition materials out of landfills and produce up to 30,000 fewer tonnes of emissions.

“The Tire-Derived Fuel Pilot program is another step in resource recovery. We appreciate the support from the Government of Alberta and industry partners like Lafarge Canada, enabling us to explore innovative recycling technologies to assess its viability. This pilot initiative not only addresses near-term tire stockpile reduction needs from our Tire Recycling Program, but also brings the potential to further boost economic opportunities across the province.”

Ed Gugenheimer, president and CEO, Alberta Recycling Management Authority

“Improving the efficiency of industrial and manufacturing processes and facilities is the quickest, most cost-effective way to lower energy bills and stay competitive. But it takes knowledge, expertise, training and capital. With SEMI, Alberta companies will soon have even more opportunity to invest in energy and cost-saving technologies.”

Justin Riemer, CEO, Emissions Reduction Alberta

“We’re pleased to see the Government of Alberta’s continued commitment to technology and innovation funding, which plays a crucial role in driving innovation and sustainability across all industries. Lafarge Canada has directly benefited from past support, helping us advance our low-carbon solutions. These funding opportunities empower us to accelerate our efforts to reduce emissions and contribute to a more sustainable future for Alberta.”

Brad Kohl, president and CEO, Lafarge Canada (West)

Quick facts

  • Albertans have recycled more than 149.5 million tires and diverted hundreds of thousands of tonnes of tires from landfills since 1992 through ARMA’s existing Tire Recycling Program.
  • Scrap tires are currently processed under ARMA’s Tire Recycling Program and turned into drainage material in municipal landfills, playground surfaces, sidewalk blocks, roofing tiles and landscaping mulch, but with markets for recycled tire products declining, alternative outlets are needed to avoid tire stockpiles.
  • To date, Emissions Reduction Alberta has invested $960 million from the industrial carbon price toward more than 290 projects worth over $8.6 billion, estimated to reduce 40 million tonnes of emissions by 2030.

Related information

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This is a news release from the Government of Alberta.

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Alberta

Big win for Alberta and Canada: Statement from Premier Smith

Published on April 2, 2025

By

Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

“This is precisely what I have been advocating for from the U.S. administration for months.

“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

Published on April 2, 2025

By

From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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