Turning resources into new jobs and products

New funding will advance technologies that turn Alberta’s natural resources, such as bitumen, into materials of the future.

Alberta is Canada’s third-largest producer of manufactured goods and materials and first in clean technology innovation. At the same time, manufacturing companies around the world are looking for ways to make products like concrete, plastics, food, wood, chemicals and machinery more efficient, more durable, easier to recycle and better for the environment.

Alberta’s government is investing $40 million from the industry-funded Technology Innovation and Emissions Reduction (TIER) program to advance technologies that will turn everyday items that would otherwise be wasted or dumped in landfills into modern, low-emission products. These technologies will help create jobs, reduce emissions and help Alberta’s manufacturing industry lead the world.

“We have the resources, expertise and entrepreneurs needed to create some of the most advanced materials in the world. This funding competition will help develop new and exciting technologies that reduce emissions, create jobs, reuse waste and keep growing our economy.”

Rebecca Schulz, Minister of Environment and Protected Areas

Advanced materials are increasing in global demand. They are new or significantly improved materials that provide a distinct advantage in performance when compared to conventional materials. Advanced materials have already been used to create new construction materials, improved batteries and fuel cells and lighter, stronger aircrafts, bicycles and golf clubs, among other products.

Led by Emissions Reduction Alberta, Alberta’s new funding competition will support scale-up, pilot, and demonstration and first-of-kind commercial technologies that improve the extraction, production, manufacturing, and performance of new and existing materials and products in Alberta. It is open to a wide a range of applicants including researchers, businesses, municipalities and Indigenous communities.

“Enhancing existing products and developing new materials with superior performance while embracing circular economy strategies will help deliver deeper emissions reductions, enhance supply chain resiliency and strengthen industrial competitiveness. This funding, sourced from Alberta’s TIER regulation, is critical and the possibilities are endless.”

Justin Riemer, CEO, Emissions Reduction Alberta

The focus of this funding is to help create technologies that turn resources into modern, new products. This includes emerging technologies extracting high value metals like vanadium, titanium and lithium found within natural resources such as bitumen and creating novel, carbon-absorbing materials. These can then be used to improve everything from construction material and consumer electronics to aircrafts and hockey sticks.

“Emerging technology solutions, such as creating advanced carbon products from bitumen, are critical to lowering emissions and creating jobs in the province. Alberta Innovates is pleased to support this call and work closely with Emissions Reduction Alberta to realize a new future for Albertans.”

Dr. Michael Mahon, CEO, Alberta Innovates

“By transforming our abundant natural resources into advanced, low-carbon materials, we are not only driving emissions reductions but also creating valuable opportunities for industry growth and export potential. The Government of Alberta’s investment through Emissions Reduction Alberta’s Advanced Materials Challenge demonstrates a commitment to building a resilient economy that harnesses Alberta’s strengths in new and sustainable ways.”

Md Golam Kibria, co-founder and scientific director, CarboMat Inc.

Quick facts

Applications for the Advanced Materials Challenge close on Wednesday, January 22, 2025, at 5 PM MST.
Successful applicants are eligible for up to $5 million.
Applications are open to innovators, technology developers, commercial and industrial building owners, municipalities, Indigenous communities, small and medium-sized businesses, research and development organizations, universities, and not-for-profit organizations.
Applications are open to emerging technologies. While technology solutions can originate from anywhere globally, they must be piloted, demonstrated or deployed in Alberta.
The TIER system uses industry dollars to help Alberta facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.
Full details on the Advanced Materials Challenge can be found on Emissions Reduction Alberta’s website.

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Low oil prices could have big consequences for Alberta’s finances

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Governments in Alberta should spur homebuilding amid population explosion

Published on April 26, 2025

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in Calgary, Edmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.