The Methane Technology Implementation Program (MTIP) targets deployment and use of commercially available technologies that emphasize reductions in methane emissions in the discovery, recovery, and processing of Alberta’s energy resources.

The program will achieve immediate methane emissions reductions from upstream oil and gas operations while supporting the growth of Alberta’s technology sector.

This program was designed to:

  • support the oil and gas industry’s GHG emissions performance

  • provide industry and the provincial government with the performance metrics required to demonstrate GHG emissions reduction leadership on the global stage

  • accelerate export capacity and support the growth of Canada’s technology sector.

“ Alberta’s second annual progress report for the 2021 reporting year shows that oil and gas methane emissions went down by about 44% between 2014 and 2021. “

- Reducing methane emissions | Alberta.ca

Program Results

TIER fund cuts methane emissions, creates jobs.

Environment and Parks Minister, Jason Nixon, announced new methane emissions reduction programs supported through Alberta’s $750-million Technology Innovation and Emissions Reduction fund.

Latest Program Updates

HIGHER INCENTIVE MAXIMUM: MTIP incentive maximum has been increased from $1 million to $2 million per operator. Operators whose incentives were previously capped at $1 million will be eligible to receive funds up to the new maximum of $2 million.

ELIGIBLE PROJECT TYPES: Project Type 1b – High Bleed Pneumatic Instruments Conversion to Low Bleed Pneumatic Instruments will no longer be eligible for MTIP funding effective January 31, 2022. That is, approvals for Project Type 1b will continue until January 31, 2022, beyond which no approvals will be granted for this project type (ensure that new applications are submitted well in advance of this date).

PROGRAM TIMELINE FOR PROJECT APPROVAL: Project approvals for MTIP will continue until September 30, 2022 (extended from June 30), or until funds have been reserved in full, beyond which no project approvals will be granted. NOTE THAT FUNDS ARE VERY LIMITED AND ARE BEING SHARED BETWEEN THE MTIP AND BROA PROGRAMS ON A FIRST COME, FIRST SERVED BASIS. Project applications should be submitted for approval well in advance of this date to allow sufficient time for application review and approval.

PROGRAM TIMELINE FOR PROJECT COMPLETION: All approved MTIP projects must be completed by March 31, 2023 (extended from December 31, 2022). Absolutely no extensions will be granted beyond this date. Please note that MTIP projects still have a maximum timeframe of 6 months from project approval to completion.

 FAQs

  • MTIP funding is available for upstream oil and gas operators, with opportunities for methane reduction projects that meet all of the following criteria:

    * Eligible facilities are subject to Section 8 requirements set out under Alberta Energy Regulatory (AER) Directive 60*;

    * Eligible facilities are located in Alberta;

    * The operator has the right to install equipment at the facility for the duration of the project;

    * Eligible facilities are either:

    * Part of an aggregate facility as defined in the Technology Innovation Emissions Reduction (TIER) Regulation, OR

    * Facilities that are not regulated under TIER

    Please note that facilities that are defined as “large emitters” or or “opted-in facilities” under TIER are not eligible.

    *For Surface Casing Vent Flow (SCVF) projects, suspended, inactive, or shut-in wells are eligible for MTIP funding only if the project results in those wells returning to Active status as defined by the AER and regulated under Directive 60

  • Eligible projects will receive 50% funding for project expenses up to $2,000,000 per operator. There is a minimum total project cost of $20,000, with $10,000 in incentives.

    50% of the approved incentives will be paid out upon successful proof of procurement and the remainder of the approved incentives will be paid out upon successful project completion. Incentives are only payable to the operator.

  • Yes, a service provider, any technology provider, or manufacturer, can submit an application on behalf of an operator. However, the confirmation of the relationship form, which can be found on the Document/Templates tab on the MTIP Portal, needs to be filled out and signed by the Operator as part of the application submission. Incentives are only payable to the operator.

  • Operators can have multiple projects and multiple applications, but their total company incentive value cannot exceed $2 million. Each application has a minimum total project cost of $20,000, with $10,000 in incentives, and projects can be aggregated to meet this minimum. Please see the Program Guide for more information on project aggregation.

    A service provider does not have a maximum value as the maximum is applied to the operator alone.

  • There is a defined list of eligible technologies listed above. The project must be a retrofit (“brownfield”); new build projects (“greenfield”) are not eligible. Project equipment must be new, with the exception of VRUs, which may be new or refurbished. Please see the Refurbished VRU Requirements document on the CCI Portal in the MTIP Documents and Templates Tab. Also, please note that some eligible expenses can be incurred prior to project approval; however, project construction or installation cannot occur before the project is approved.

    Other technologies may be considered, but the Eligible Technology Application must be submitted. CCI will evaluate the technology and, if approved, it will be added it to the list of eligible project types.

  • Greenfield means (1) a new facility that was previously undeveloped (2) a facility expansion which significantly alters the footprint, capacity or function of the facility. Brownfield means an existing facility where the project is a retrofit, modification, or upgrade.

  • Suspended, inactive, or shut-in wells or facilities are eligible for funding through MTIP as long as the MTIP funded project results in those wells or facilities returning to Active status, as defined by the AER.

    Project which result in the abandonment of a well are not eligible for MTIP funding. Please visit Alberta's Site Rehabilitation Program for abandonment projects.

  • There is a list of all eligible and ineligible projects costs in the Project Costs Summary Eligible and Ineligible document located on the Documents/Templates tab on the MTIP Portal. Eligible costs include, but are not limited to, Front End Engineering Design (FEED), equipment purchase, labour, and installation costs. Ineligible costs include all taxes and costs incurred between January 1, 2020 and September 25, 2020.

  • Although a project may fall into one of the listed eligible project types, each application will be evaluated for eligibility individually. CCI may consider funding projects with abatement costs above the specified thresholds, where applications are accompanied by evidence providing reasonable justification of project costs. CCI reserves the right to approve or reject projects above the specified thresholds at their discretion.

  • Yes, a maximum of 10% of the total eligible project costs can be for front end engineering design (FEED). For FEED costs to be an eligible project cost, they must have been incurred after September 25, 2020. Projects with costs incurred prior to January 1, 2020 are not eligible for funding through MTIP. For a list of eligible FEED costs, see the Project Cost Summary Eligible and Ineligible document located on the Documents/Templates tab on the MTIP Portal.

  • Carbon Connect International received a $25 Million grant from the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) Fund to support the Methane Technology Implementation Program. The TIER fund is collected through industry payments that are a compliance option under the TIER regulation. The TIER fund is being reinvested by the Government of Alberta into programs that will bring investment to Alberta and continue to build on Alberta’s strong record on environmental, social, and governance matters. The program was proposed and developed by the Methane Emissions Leadership Alliance and Carbon Connect International in response to industry concerns.

  • Projects that are already completed prior to application submission and approval are not eligible.

    Projects that are in progress may be eligible if no costs were incurred prior to January 1, 2020. However, if the project is in progress, costs incurred between January 1, 2020 and September 25, 2020 cannot be included in the total eligible project costs, which determines the incentive amount.

    Note that some eligible expenses can be incurred prior to project approval, including front-end engineering design, flow rate measurements, gas composition analysis, and ordering of project equipment. However project construction or installation cannot occur before the project is approved. Please note that incurring costs prior to project approval is always a risk, as project approval is not guaranteed. If you have any questions about potential project eligibility or the approval process do not hesitate to contact us at info@carbonconnectinternational.com

  • The program manager must be notified immediately if there are any changes to the scope of a project.

    If the change to the project requires a re-evaluation of the application by the MTIP team, then a new application must be submitted.

  • The offer letter indicates the maximum approved incentive available for the project. If costs increase, a larger incentive will not be approved without re-evaluation of a new application. If costs decrease, the incentive value will be adjusted accordingly.

  • Funding will be allocated on a first-come, first-served basis. Once all project information is submitted for approval, the project will be evaluated in the order it was received, and approved or rejected within 20 business days. Once a submission is approved, an offer letter will be sent to be signed by the operator. The operator will have 10 business days to accept the offer letter in order to reserve funds. Upon successful return of the letter and acknowledgement by the program, project funds will be reserved.

  • Projects have a maximum potential timeline of 6 months from approval to completion, and must be completed by the date listed on the offer letter. Project completion includes the submission of all required documents to the MTIP portal. Funding is reserved from the date the offer letter is signed to the completion date listed on the offer letter. If the projects are not completed by the deadline, funding may not be available. Participants can submit a request to extend the project timeline, however, an explanation for the extension and an updated project schedule will be required. Project timeline extensions are subject to the approval by the program and are not guaranteed.

    Please note that projects will not be approved past September 30, 2022 (extended from June 30), or until funds are reserved in full, and all projects must be completed by March 31, 2023 (extended from December 31, 2022) – no extensions will be granted beyond March 31, 2023. A maximum timeframe of 6 months from project approval to completion remains in effect.

  • Please submit projects as soon as possible. No approvals will be granted after September 30, 2022 (extended from June 30) or once funds have been reserved in full. Note that funds are limited and are being shared between the MTIP and BROA programs. To ensure your application is reviewed and approved prior to September 30, 2022, please submit application in advance. Please allow approximately 20 business days for application review and approval. It is always a good idea to contact our team in advance to discuss project requirements and eligibility. Contact us at info@carbonconnectinternational.com.

  • Yes, project approval deadline is September 30, 2022 (extended from June 30). No projects will be approved beyond this date.

    All projects must be completed by March 31, 2023 (extended from December 31, 2022) – absolutely no extensions will be given beyond this date.

  • If there is a technology that is not on the list of eligible project types, please fill out and submit the Eligible Technology Application on the Program website. Note that technologies will be evaluated on an individual basis. Carbon Connect International does not guarantee that all technologies that apply will be approved, and reserves the right to decline a technology at their sole discretion.

  • No, if the project gets funding through MTIP, it is not eligible for credits under the Alberta Emissions Offset system or any other carbon credit system. By accepting MTIP funding, the operator forfeits the rights to environmental attributes that result from the project. **Updated** Participants who receive MTIP funding for a project that would like to retain the associated environmental attributes for the project, can do so by returning all MTIP funding prior to June 30, 2021 (free of interest). If all MTIP funding is not returned by this date, the participant continues to forfeit any rights to associated environmental attributes.

    Alberta Environment and Parks will monitor MTIP to ensure no offsets are generated under the Alberta Offset System through MTIP funded projects.

  • Yes. MTIP allows fund stacking up to 100% of the total eligible project costs, however, the maximum level of total contribution is 90% of eligible expenditures when stacking with the Natural Resources Canada Emissions Reduction Fund (ERF). Please review the ERF Applicant Guide for details about the program and provisions on fund stacking.

  • No, Carbon Connect International does not endorse any technology or service provider.

  • Only installations in Alberta are eligible.