GEOTHERMAL CANADA
Emissions Reduction Alberta: Drilling Technology Challenge

Emissions Reduction Alberta (ERA) is investing up to $35 million to accelerate the development and commercialization of innovative drilling technologies. This investment will help advance emerging opportunities in geothermal energy, carbon capture and storage (CCS), critical minerals extraction, oil and gas, and more, while reducing costs and emissions associated with resource access and extraction.

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.

DEADLINE FOR SUBMISSION

Thursday, January 29, 2026
5 p.m. Mountain Daylight Time (UTC-6h)

Apply Now

Register for the Webinar

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 Alberta Drilling Accelerator (ADA), announced in April 2024.

Successful applicants can receive between $250,000 and $8 million per project.  The maximum ERA contribution to a single project will be no more than 50 per cent of the project's eligible expenses.

A free, hour-long informational webinar will be held on, which will share details about the opportunity, the application process, and answer questions from potential applicants.

WHO SHOULD APPLY

Innovators, technology developers, industrial facility owners and operators, industrial associations, small and medium-sized enterprises (SMEs), research and development organizations, universities, not-for-profit organizations, government research labs, and individuals are invited to apply.

Technology solutions can originate from anywhere globally, but must be demonstrated or implemented in Alberta during the project. On a case-by-case basis, ERA will evaluate projects that are piloted outside of the province, provided the technology provider or one of the lead project partners is an Alberta-based company with the potential to commercialize the technology in Alberta. Projects that involve the demonstration or implementation of a technology at multiple Alberta sites are eligible for funding under this Call.

PARTNERSHIPS

Collaboration between multiple organizations is eligible for this opportunity.  Applicants are strongly encouraged to partner with Alberta's post-secondary and research institutions, Indigenous communities, and municipalities where appropriate. These partnerships can offer significant benefits, including the attraction and training of highly skilled workers, increasing Alberta's innovation capacity, engagement of local communities, and leveraging complementary resources. Proposals will be assessed on the extent and quality of engagement with local communities and on their potential to enhance research and oversight capacities in these areas.

ELIGIBLE TECHNOLOGIES

This Call is seeking transformative opportunities, novel technologies and solutions in the prototype testing, development, piloting, demonstration, and implementation stages of readiness that improve the performance of the drilling and completion process in terms of cost, speed, performance, energy use/emissions, environmental impacts, and other considerations. Applicants must demonstrate how the proposed technology or application represents an advancement over current technology for drilling in Alberta.

This Call for Proposals is not technology prescriptive and is deliberately resource- and end-use-agnostic. All novel drilling approaches are eligible regardless of whether they are targeted to resource extraction (conventional or emerging), geothermal, carbon management, waste disposal, exploration, or other applications.

Example Technology Areas

• Advanced Drilling Methods

  • Percussive, water-jet, plasma, millimeter-wave drilling, etc.

  • Hybrid mechanical-thermal systems (e.g., for superhard rock environments)

  • Large-bore drilling and other unconventional drilling

• Downhole Tooling and Sensors

  • High-temperature, high-pressure sensors

  • Real-time telemetry and diagnostics

  • Corrosion-resistant materials and coatings

  • Drill control devices (e.g., downhole flow control for geothermal)

• Automation and Digital Optimization

  • AI-driven drilling optimization (e.g., real-time bit path prediction)

  • Autonomous rig operations

  • Predictive maintenance systems, digital twins, and similar

• Energy-Efficient and Low-Impact Systems

  • Electrified, hydrogen dual-fuel, or hybrid rigs and equipment

  • Low-emission fluid systems (e.g., formulations with reduced VOCs, improved biodegradability, etc.)

  • Reduced-footprint drilling platforms

• Geothermal and Critical Mineral-Specific Innovations

  • Novel completion and control techniques (e.g. super deep/super hot completions)

  • Drilling solutions for unconventional geology (e.g., compatible with lithium-rich brines or hard rock formations)

  • Innovative shallow- or medium-depth drilling for geoexchange systems

  • Solutions to enable re-entry of existing wells for the development of new resources.

• Enabling Infrastructure and Support Systems

  • Modular test rigs and mobile labs

  • Virtual data repositories and simulation platforms

Out-of-Scope Technologies and Projects

Examples of opportunities that are out of scope for this Call include:

• Business-as-usual technologies or solutions

• Incremental efficiency improvements that do not go beyond legislated requirements

• Scopes that represent only a portion of a complete project, such as:

  • Standalone infrastructure, facilities, or building envelopes

  • Standalone pre-construction studies (FEED, feasibility, etc.)

• Geological assessments (except in the context of downhole tooling)

  • Conventional exploration wells for resource characterization

PROJECT DEVELOPMENT STAGE

Proposals are invited for projects that will advance technology to the stages of field pilot, demonstration, or first-of-kind commercial implementation by project completion (e.g., TRL 7-9+ by project completion), as described below:

• Field Test/Pilot: At this stage, the solution is ready to be field tested in an operational environment. Projects in this category include the scale-up of prototypes to a representative pilot scale and subsequent in-field testing of pilot units.

• Demonstration: At this stage of development, the technology or innovation is approaching the final commercial product, and representative systems have been built. Projects in this category include demonstration of near- or full-commercial-scale systems in an operational environment.

• First-of-Kind Implementation: At this stage, the technology is ready for first-of-kind commercial deployment. Projects in this category will involve design, construction, and operation of the technology in its final commercial form and at commercial scale, with the intent to operate the technology for its full commercial life.

APPROVAL PROCESS

Submissions will be selected through ERA's competitive review process. A team of experts in science, engineering, business development, commercialization, financing, and GHG quantification will conduct an independent, rigorous, transparent review overseen by a Fairness Monitor. Projects will be approved by ERA's Board of Directors.

TIMELINE

• January 29, 2026: Proposal application deadline

• March 2026: Shortlist notification and presentation invitations

• April 2026: Applicants' presentation sessions

• June 2026: Funding decision notification

ABOUT EMISSIONS REDUCTION ALBERTA

For 16 years, ERA has invested revenues from the carbon price paid by large emitters to accelerate the development and adoption of innovative clean technology solutions. Since its establishment in 2009, ERA has committed over $1 billion toward 322 projects valued at over $10.6 billion, which are helping to reduce emissions, create competitive industries, and lead to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of over 33 million tonnes of CO e by 2030 and 95 million tonnes of CO e by 2050.

ABOUT TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION (TIER) FUNDING

The Technology Innovation and Emissions Reduction (TIER) Regulation is at the core of emissions management in Alberta. The TIER system implements Alberta's industrial carbon pricing and emissions trading system. TIER helps industrial facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.