Oil CO2 Royalty Program
As steward of the energy resource in the province, Alberta Energy is responsible for ensuring a fair return from the production of the resource. The department understands that it sometimes should share the risk of development and demonstration of new energy projects required to produce the resource. The department believes that a producer’s ability to undertake certain projects is often limited by the related technical and financial risk. The reduction of royalties offsets some financial risk, to encourage producers to undertake the projects.
The objective of the CO2 Projects Royalty Credit Program (the “program”) is to encourage projects and application of technology that will lead to the expanded production of Alberta’s oil and gas resources through use of CO2 (carbon dioxide) injection into geological formations.
Demonstration projects based in Alberta, which inject a mixture consisting mainly of CO2 for enhanced recovery of oil, natural gas, or coal bed methane were eligible for approval under the program.
Four projects were approved under the CO2 Projects Royalty Credit Program, the program is now part of the Innovative Energy Technologies program.(IETP)