Alberta adds industrial facilities to energy efficiency program with extra $88 million

Industrial heat boiler

Single industrial facilities are eligible for incentives of up to $1 million per year, multiple facilities up to $2 million

Industrial facilities will save energy and money by upgrading equipment and making energy improvements through a new Energy Efficiency Alberta program, according to a Government of Alberta press release.

The $88-million Custom Energy Solutions program is supported by funding from the Alberta government through Energy Efficiency Alberta, and the federal government through the Low Carbon Economy Leadership Fund, over three years.

“We understand that industries are diverse – that there are rarely one-size-fits-all solutions to drive energy savings and emissions reductions. That’s why this program is designed to work directly with each facility to identify their unique goals and needs. These technologies will reduce emissions while helping industrial operators lower their energy costs and stay competitive,” said Shannon Phillips, Minister of Environment and Parks and Minister responsible for the Climate Change Office.

Industrial and commercial facilities in a broad range of sectors, including manufacturing, oil and natural gas, wholesale trades, warehousing and waste management, can apply to receive incentive funding for custom energy upgrades.

Funding will be available on a wide variety of equipment and systems such as heat recovery, combined heat and power, steam, compressed air, refrigeration, and more.

The Custom Energy Solutions program provides funding for industrial operators to assess their energy use and build a plan to present the most cost-effective energy upgrades. Facilities that move forward with custom projects will see up to 50 per cent of the capital cost of the upgrades and retrofits covered by the program, minus the cost of their initial assessment, which is fully covered.

Single facilities are eligible for incentives of up to $1 million per year while parent companies making upgrades to multiple facilities can receive up to $2 million per year.

“For Alberta manufacturers, energy efficiency is a competitive advantage. The Custom Energy Solutions program will return carbon levy dollars to manufacturers and enable them make new investments in equipment and technology that will drive down costs, improve productivity, and enhance competitiveness. Canadian Manufacturers & Exporters looks forward to helping manufacturers succeed through Custom Energy Solutions applications,” said David MacLean, Alberta vice-president, Canadian Manufacturers & Exporters.

Examples of eligible upgrades include:

  • heat recovery systems
  • boiler systems
  • building controls
  • insulation
  • gas compression
  • gas pumping
  • variable frequency drives
  • compressed air
  • refrigeration
  • water/wastewater

Implementing a wide range of energy investments can reduce operating costs and improve the comfort and performance of facilities which delivers a return on investment over time.

Operators defined as large final emitters or facilities that have opted into the Carbon Competitiveness Incentive Regulation are not eligible.

For a complete list of eligible facilities and upgrades, visit

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