As the world moves to secure lithium for electric vehicles and other power-hungry products, Alberta is advancing an approach that could offer both environmental and strategic advantages.

A new assessment of Alberta’s lithium resources confirms the enormous scale of the province’s potential.

A new approach to lithium production

Rather than relying on sprawling solar evaporation ponds or energy-intensive hard-rock mining operations, Alberta is pursuing lithium production centred on direct lithium extraction (DLE) from deep underground deposits. 

Using technology adapted from decades of oil and gas experience, DLE uses solvents to selectively remove lithium from salty formation water before reinjecting the spent brine back underground, significantly reducing land disturbance and water loss.

Work underway in the province is showing the feasibility of lithium production from DLE.

“We have a great resource base, and our oil and gas industry has set us up to pursue a more environmentally friendly way of producing lithium,” said Kim Mohler, vice-president of project development for energy consulting firm GLJ Ltd. 

Much of Mohler’s time is spent supporting clients’ lithium and geothermal projects across Canada and the U.S., including key DLE developments underway in Alberta.

“Alberta has an advantage because a lot of the knowledge and infrastructure for drilling wells and producing deep subsurface brines is already in place,” she said. 

The province is also a step ahead because the exploration work that has to be done in other parts of the world has already been done here, Mohler added.

One of the world’s largest lithium resources

According to a new report by the Alberta Geological Survey and Alberta Energy Regulator, the province’s subsurface contains an estimated 82.5 million tonnes of lithium carbonate equivalent, one of the largest known accumulations in the world. 

Most of the resource is concentrated in the Devonian-age Leduc formation, the same geologic formation that launched the province’s modern oil industry in 1947. 

Significant additional resources are also found in the Swan Hills and Nisku formations.

Source: Alberta Geological Survey/Alberta Energy Regulator

The new report outlines the enormous scale of the lithium industry’s opportunity. 

Alberta’s lithium resources could supply material for more than 10 billion electric vehicle battery packs and could theoretically generate more than US$1 trillion in revenue over time, the analysis found. 

Rising demand, limited North American supply

North American lithium demand is projected to grow sharply over the next several years. 

According to S&P Global, U.S. consumption is forecast to increase by roughly 74 per cent annually while Canadian demand grows by about 40 per cent by the end of the decade. 

Right now the vast majority of the world’s lithium supply comes from outside of North America, which produced just 40,000 tonnes of lithium carbonate out of a global supply of 1.28 million tonnes in 2024. 

Canada accounted for approximately 2.5 per cent of that, at 5,983 tonnes, according to the Canada Energy Regulator.

Alberta emerging as a new lithium player

As global demand for lithium accelerates, driven by rapid growth in electric vehicles and battery storage, Alberta is emerging as a new player in a market long dominated by countries such as Chile, Argentina and Australia. 

Approximately two million hectares have already been leased for lithium exploration in Alberta, and the province is a hot spot in the nascent DLE industry.

The E3 Lithium pilot plant near Olds, Alta., September 2023. CP Images photo

E3 Lithium is the province’s most advanced lithium developer. 

The Calgary-based company produced Alberta’s first battery-grade lithium carbonate at its demonstration facility near Olds in 2025. 

The milestone marked a major step toward commercial production and validated the technical feasibility of extracting lithium from Alberta brines. 

Path to commercialization

E3’s project leverages Alberta-based DLE technology and existing oilfield infrastructure, and the company is working toward commercial-scale production later this decade.

“Nobody has proven they can do DLE production at commercial scale yet,” Mohler said. 

“The potential for Alberta to be among the first is very good if they can make the economics work, and I think following the oil and gas industry’s value chain of having companies specialize in upstream production, transportation, processing and refining will likely be a good business strategy.”

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As Canada moves to diversify markets for its vast oil and gas resources, experts say one reality remains: the United States will continue to be its largest energy customer.

Maintaining and strengthening that relationship is critical to North American energy security amid global instability and shifting U.S. policies.

“Market diversification for the oil and natural gas industry is not about ‘replacement.’ Diversification means growing our customer base, growing production, growing exports, and growing the Canadian economy,” said Lisa Baiton, CEO of the Canadian Association of Petroleum Producers. 

“We should work to forge a renewed continental energy alliance that is attuned to new global realities.”

An integrated energy machine

A recent analysis by the Montreal Economic Institute (IEDM) outlines the scale of current Canada-U.S. energy relationship. 

In 2024, Canada exported $169.8 billion worth of hydrocarbons — including crude oil, natural gas, natural gas liquids and refined petroleum products — to the United States. 

Led by crude oil, that accounts for 22 per cent of all Canadian goods exports and the bulk of the U.S.’s imported energy supply.

The trade flows in both directions, with Ontario, Quebec and the Atlantic region driving $33.4 billion of U.S. oil and gas imports in the same year. 

“In many ways, the border is an afterthought for this integrated North American energy machine, which has kept churning for a century, regardless of political winds,” wrote IEDM researchers Taylor MacPherson and Gabriel Giguère.

“But we can’t take it for granted; we must be steadfast in protecting this unique, mutually beneficial relationship.”

Growing pressures from global instability

The long-standing North American partnership is being tested by geopolitical uncertainty. 

Wars involving Ukraine and Iran have driven volatility in global energy markets. At the same time, the U.S. has introduced tariffs and incentives aimed at strengthening domestic energy supply chains.

While the U.S. often describes its strategy as one of “energy dominance,” that does not necessarily mean independence from Canada. 

As production of light oil from the Permian Basin has grown, so too have imports of heavier Canadian crude, primarily from Alberta’s oil sands.

Many U.S. refineries are built for heavy oil, particularly in the Midwest and Gulf Coast — but the U.S. doesn’t produce much of it, RBN Energy analyst Jason Lindquist noted recently.

“[This] makes heavy crude from nearby Canada and Latin America essential,” he wrote in a March research note. 

Canadian oil and gas underpins U.S. energy exports

Since the United States lifted its oil export ban in 2015, its light crude exports have surged, averaging about 4 million barrels per day last year, according to the U.S. Energy Information Administration (EIA).

That’s roughly equal to the volume of Canadian oil – primarily heavy oil – that the U.S. imported over the same period.

America depends on Canada to complement its natural gas supply as well. 

The U.S. is now the world’s largest liquefied natural gas (LNG) exporter, yet its natural gas imports have remained steady since LNG exports began in 2016. 

In 2025, 99.7 per cent of those imports came from Canada, according to the EIA.

Strengthening the Canada-U.S. energy relationship

While diversification work continues, observers say Canada must also keep strengthening the partnerships that bind its energy system to that of the United States.

The Washington D.C.-based Atlantic Council has advocated for a North American-wide approach. 

It urges Canada, the U.S. and Mexico to pursue a continental energy security strategy that aligns emissions reduction policies, regulatory systems and infrastructure development plans to give all three countries a global advantage.

The former CEO of the Canada Energy Regulator says Canada’s importance as a reliable energy supplier is increasing as energy prices spike amid conflict in the Middle East and a review of the Canada-United States-Mexico (CUSMA) trade agreement.

“The volatility of the current situation will make Canada more attractive as an investment location because we are seen as stable,” Gitane De Silva said in a recent interview. 

The IEDM argues that Canada needs to adopt clear “energy diplomacy” objectives to advance commercial deals with key international customers.

“As North America’s share of global oil and gas trade grows, every extra barrel or cubic foot we move strengthens our allies, thins our adversaries’ leverage, and maximizes value for the benefit of all Canadians,” MacPherson and Giguère concluded.

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On frigid winter nights in northern Alberta, the glow from the outdoor hockey rink warms Tyler Letendre’s heart. 

This year more than ever, the lights are bright, the ice is smooth, and the boards are solid — built to last, not patched together year after year like they used to be.

For Letendre, the operations manager and economic development officer for Peerless Trout First Nation (PTFN), the rink is more than a place for friends and families to get together to skate. It’s proof that something fundamental has changed in his community.

“Two years ago, this wouldn’t have been possible,” Letendre says. “Now, it’s something our kids can rely on.”

The transformation didn’t come from a one-time grant or a short-term program. 

It came from equity ownership in energy infrastructure — a model that is quietly reshaping how Indigenous communities build wealth, plan for the future, and assert economic self-determination.

Why ownership matters in remote communities

Photo courtesy Peerless Trout First Nation

Peerless Trout First Nation is a rural, semi-isolated community in northern Alberta. Its two main settlements sit 29 kilometres apart, meaning the Nation must often build and maintain two of everything, from roads to recreation facilities.

“In communities like ours, location matters,” Letendre explains. 

“If you’re near a major city, like Tsuu T’ina or Enoch, business development is easier. If you’re not, it’s very hard to generate own-source revenue.”

For PTFN, oil and gas development in the region created opportunity.

In 2023, the Nation and 11 other communities acquired an 85 per cent stake in $172 million in oil and gas pipeline assets operated by Tamarack Valley Energy in the Clearwater play. The deal was supported by the Alberta Indigenous Opportunities Corporation.

Since closing, the 12 First Nations and Métis communities have secured stable revenue streams that have proven more valuable than traditional impact benefit agreements (IBAs), long central to Indigenous engagement in the energy sector.

Photo courtesy Tamarack Valley Energy

“IBAs fluctuate with oil and gas prices,” Letendre says. “You can’t borrow against them. Banks won’t look at you.”

Equity ownership, by contrast, creates a tangible asset.

“With equity, you have ownership and predictable returns,” he says. “Banks recognize that.”

A ‘significant shift’ in energy development

Indigenous ownership of oil and gas projects has surged in the past five years, according to the Canada Energy Regulator (CER).

The CER reports that since 2021, Indigenous communities have acquired ownership interests in more than 5,000 kilometres of pipelines across the country. 

This is in addition to ownership stakes in four LNG terminals in B.C. and Manitoba at various stages of development. 

Many of the agreements are supported by government loan guarantee programs like the Alberta Indigenous Opportunities Corporation. 

“Overall, the growing role of Indigenous ownership in pipelines and LNG projects in Canada marks a significant shift in how major energy projects in the country are developed, financed, and managed,” the CER said.

Turning revenue into community infrastructure

Over the past two years, PTFN and the other communities have used Clearwater equity revenues to support education initiatives, emergency preparedness, wildfire evacuations and other community priorities without the restrictions that often come with government funding.

“There are no strings attached,” Letendre says. “We decide what our community needs most.”

One of the most visible examples is the Nation’s upgraded outdoor hockey rinks — $1.4-million structures with shells, lighting, boards and higher construction standards.

“These aren’t temporary fixes,” he says. “They’re built to last.”

Letendre says the energy partnership has strengthened and diversified PTFN’s economic base. 

While the community’s locally owned construction company creates much-needed jobs and builds capacity, expansion also brings added risk and expense.

“The equity deal is straight revenue. It did in one year what our construction revenue did in three – more than $500,000 a year – and if the company does well in production, it could be more,” he says.

A pattern repeating across Canada

Peerless Trout’s experience is not unique.

At Willow Lake Métis Nation, ownership of energy infrastructure has been transformative in similar ways. 

After investing in Suncor Energy’s Northern Courier Pipeline, the Nation was able to purchase 205 acres of land near Fort McMurray — its first modern homeland — now known as Sohkastwâwin, a Cree word meaning “resilience.”

Astisiy Limited Partnership, representing eight Indigenous communities, acquired Suncor’s 15 per cent interest in the Northern Courier Pipeline. Photo courtesy Alberta Indigenous Opportunities Corporation

Revenue from that deal has since been used to support housing, cultural programming and the purchase of a campground and RV park that Willow Lake plans to redevelop into an Indigenous tourism destination.

“For us, ownership means stability, being able to plan for the long term and invest in what matters most to each community,” says Justin Bourque, former CEO of the Nation who now leads a consulting firm specializing in negotiation and management of meaningful Indigenous-led industry partnerships. 

“Equity ownership doesn’t replace consultation requirements for energy companies. When you add the two together, it’s a deeper relationship that’s more well-rounded and more engaged.”

That same principle underpins Enbridge’s Project Rocket, a landmark partnership that saw 23 First Nations and Métis communities acquire an ownership stake in seven major pipeline assets in northern Alberta in 2022. 

One of the largest Indigenous equity transactions in North America, the deal has provided about $25 million over the last three years – steady, long-term revenue that communities are using for housing, education, elder supports and economic diversification.

Enbridge’s latest Indigenous partnership saw 38 First Nations acquire 12.5 per cent equity ownership of the company’s Westcoast natural gas pipeline system in British Columbia for approximately $736 million.

Squiala First Nation Chief David Jimmie said the deal will generate sustained economic benefits for the community from an asset that has operated within its traditional territories for more than 65 years. 

“People often ask what economic reconciliation for Indigenous Peoples looks like. This is it,” he said when the partnership was announced last May.

From ‘too good to be true’ to a new normal

Photo courtesy Peerless Trout First Nation/Facebook

For Peerless Trout First Nation, equity ownership has also unlocked the ability to think beyond immediate needs.

The Nation is now in the design phase of a fishing lodge and resort, a project aimed at diversifying the local economy and creating sustainable employment based on the fantastic fishing in the area’s lakes and rivers.

With equity in energy assets under its belt, the community is now able to leverage other financing for business ventures that were previously out of reach.

“At the beginning, it felt too good to be true, but it’s not,” Letendre says.

“Now we’re not just sitting back waiting for opportunities to arrive. We have the experience to be able to go out and approach industry on our own and pursue more partnerships,” he says.

“If we can do 10 more deals like this, it will benefit our people hundreds of times over for generations.”

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In the heart of the Canadian Shield, the Tenaris pipe mill in Sault Ste. Marie, Ont., has been running at record levels, thanks in large part to growing oil and gas production in Western Canada. 

In 2025, the factory reached its highest-ever output of seamless pipe in its 25-year history. 

And it’s on track to exceed that mark again in 2026, a milestone that reflects the company’s critical role in the steel town’s economy, as well as in Canada’s broader energy supply chain.

A worker checks steel pipe at the Tenaris manufacturing facility in Sault Ste. Marie, Ont. Photo courtesy Tenaris

Tenaris employs about 1,200 people nationwide, including roughly 800 in Sault Ste. Marie, manufacturing high-grade steel pipe that is shipped by rail to service centres in Alberta and British Columbia, where it supports oil and gas drilling and production.

“Our steel pipe manufacturing in the East allows oil and gas exploration to advance and flourish in the West,” says Jessica Tett, communications manager for Tenaris in Canada. 

“As the country strengthens its position as a global energy superpower, we are committed to powering that growth through our manufacturing, industrial expertise and support for Canada’s energy industry.”

As momentum builds around discussions of a new oil pipeline to Canada’s west coast, the country’s steel producers are sounding a clear, unified message: this isn’t just a project about energy transport — it’s a chance to strengthen Canada’s industrial core, support jobs and build supply chains that ensure national resilience.

Workers complete the “golden weld” signifying mechanical completion of the Trans Mountain Expansion project on April 11, 2024 in the Fraser Valley between Hope and Chilliwack, B.C. Photo courtesy Trans Mountain Corporation

Among other things, the recent energy agreement between Alberta and Canada to pursue a major new export pipeline to reach Asian markets commits both governments to develop Canadian steel and pipe production supply chains.

For steelmakers and manufacturers, the agreement signals a potential shift toward nation-building projects that prioritize Canadian materials, Canadian labour and Canadian expertise.

A cornerstone of Canada’s industrial economy

Tenaris’s experience reflects the broader importance of Canada’s steel industry, which is a cornerstone of the national economy and a critical supplier to energy, construction, transportation and manufacturing sectors. 

Tenaris employees work with pipe threading equipment at the company’s manufacturing facility in Sault Ste. Marie, Ont. Photo by Peter Power for the Canadian Energy Centre

Canada’s steel industry generates roughly $15 billion in annual output, directly employs about 23,000 people, and supports more than 100,000 additional jobs across related industries, according to the Canadian Steel Producers Association (CSPA).

Energy is one of the steel sector’s most important markets. 

The CSPA estimates oil and gas, wind towers and power generation together account for roughly 30 per cent of steel demand in Canada.

“We’re excited about it,” said François Desmarais, vice-president of trade and industry affairs at the CSPA, referring to the agreement and the prospect of a major new pipeline. 

“It’s a signal that we have an interest in the energy sector. It creates more certainty for our business.”

A worker looks on as crews build the Coastal GasLink pipeline in B.C. The project was completed in November 2023. Photo courtesy Coastal GasLink

Domestic supply in a volatile global market

Industry leaders say expanding Canadian energy infrastructure has become increasingly important as steel producers face mounting international trade pressures. 

The U.S. now charges a 50 per cent tariff on the first tonne of steel imported from any country, sweeping Canada into a broader move to deal with global steel oversupply.

“The net was too wide, and we got caught in it,” Desmarais said. 

“Many countries are trying to protect their national industries from surplus steel, particularly with China producing too much.”

Against that backdrop, building domestic demand through major energy projects could help offset lost export opportunities.

“We supply about 50 per cent of steel consumption in Canada,” Desmarais said. 

“There’s no reason why we can’t supply more.”

Steel pipe in storage for the Trans Mountain Expansion project in 2022. Photo courtesy Trans Mountain Corporation

Tenaris, which sells most of its Canadian-made production domestically, says it has less exposure to U.S. tariffs but strongly supports federal efforts to maintain a level playing field by countering unfairly traded imports.

“Made-in-Canada steel is critical to Canadian sovereignty in our energy supply chain,” Tett said.

Manufacturing ripple effects

The potential benefits of a west coast pipeline would extend well beyond steel mills. 

Canadian Manufacturers & Exporters (CME) says the energy agreement reflects a positive shift in how governments view Canada’s energy and industrial potential.

“Energy policy is manufacturing policy,” said Ryan Greer, CME’s senior vice-president of public affairs and national policy. 

“Canadian manufacturers will supply steel, fabricated metal, valves, pumps, electrical components, coatings, heavy equipment, control systems and more.”

An employee applies final adjustments on a new premium line at the Tenaris pipe manufacturing hub in Sault Ste. Marie, Ontario on October 31, 2022. Photo by Peter Power for Canadian Energy Centre

Greer said megaprojects have become increasingly important as Canadian manufacturers navigate tariff uncertainty and volatile trade relationships.

“While we hope Canada and the U.S. can get North American trade back on a more predictable trajectory, it has become clear that Canada must assertively try to generate jobs, growth and prosperity in ways that aren’t reliant on U.S. decision-making,” he said.

Becoming Canada’s own best customer

Steel producers say governments can maximize the economic benefits of a major pipeline by clearly identifying material needs early and prioritizing domestic procurement.

“Map out what the needs are or will be,” Desmarais said. “That allows companies to make the business case to retool if necessary.”

With billions already invested in Canadian facilities — including $255 million Tenaris has invested in Sault Ste. Marie, since 2020 — industry leaders say Canada is well-positioned to deliver.

The “Golden Weld” marked mechanical completion of the Trans Mountain Expansion project on April 11, 2024. Photo courtesy Trans Mountain Corporation

“Everybody is doing it — the U.S., Europe and others are looking out for their own industries,” Desmarais said. 

“Canada needs to do the same and become our own best customer.”

For companies like Tenaris, that approach would reinforce a truly national supply chain — one that starts in Ontario steel mills and ends at energy projects powering Canada’s economic future.

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In the heart of Alberta’s oil sands region, a lake sits next to Suncor Energy’s Mildred Lake operation. 

On the surface, it looks like one of the countless natural lakes dotting the boreal forest north of Fort McMurray. But several metres below, it tells a different story. 

Base Mine Lake is not a natural lake—it’s a demonstration pit lake at one of the industry’s oldest mines. 

Once a tailings pond, Base Mine Lake was capped with water in 2012 and is now undergoing reclamation, drawing on decades of innovation to restore the land and water affected by development. 

Base Mine Lake. Photo courtesy Suncor Energy

“Tailings ponds aren’t meant to be a permanent part of our closure landscapes,” said Rodney Guest, Suncor’s senior development advisor, mine water closure. 

“We’re investing significant resources to advance tailings treatment technologies in support of land and aquatic reclamation to meet our commitments.”

Those commitments include fully reclaiming mine sites, including tailings facilities, and returning the land to Albertans and local communities, he said. 

Pit lakes: widely used around the world

Pit lakes are a common mine reclamation and closure practice used worldwide. 

According to the Canadian Association of Petroleum Producers (CAPP), a pit lake is basically any lake formed within a former mine pit. 

Over time, as the site stabilizes, these lakes generally come to look and function much like natural lakes. 

Thousands of examples exist globally, particularly in coal and hard-rock mining operations such as gold and copper, CAPP says.

Helping address oil sands tailings

Even as the oil sands sector has reduced its freshwater use per barrel by nearly one-third since 2013, the total volume of fluid tailings has reached about 1.4 billion cubic metres, reflecting continued production growth. 

Aquatic reclamation techniques like pit lakes are helping address the tailings challenge. 

This is evident in the reduction of “legacy tailings,” or tailings placed in storage before 2015. 

Since 2015, the volume of legacy tailings across Alberta’s oil sands has fallen by 40 per cent, according to Alberta Energy Regulator data. 

Base Mine Lake has contributed to this reduction, which overall is helped by water-capped tailings and permanent aquatic storage structure (PASS) technology.

How water-capped tailings technology works

Oil sands tailings are a mixture of fine clay, water, sand, and residual bitumen left over from the bitumen extraction process. 

Traditionally stored in large ponds, these liquid tailings settle very slowly—a process that can take decades. Water-capped tailings technology provides a more controlled solution.

In this approach, a layer of water is placed over tailings within a mined-out pit, forming a pit lake. 

The water cap isolates the tailings from the surface environment while promoting the development of a natural aquatic ecosystem.

Supported by long-term research

Numerous pit lakes, with and without tailings, are proposed or planned for the oil sands region. 

Each is designed to integrate into the final reclaimed landscape, supporting sustainable water management and creating new habitats for aquatic and terrestrial life.

Long-term research and monitoring at several sites—some dating back to the 1980s—has shown that water-capped tailings can be effective. 

Bacteria quickly break down many compounds within the tailings, while the solids settle naturally within weeks. The water layer above largely prevents tailings sediments from migrating back to the surface.

Base Mine Lake. Photo courtesy Pathways Alliance

Base Mine Lake performance

At Base Mine Lake, for example, a water cap currently between 10 and 13 metres covers the tailings. Ongoing research and monitoring show it’s performing as expected, Guest said.

“The tailings remain contained at the bottom and don’t mix with the water,” he said. 

“Water quality continues to improve, diverse habitats are forming, and typical boreal lake life including insects, invertebrates, plants and mammals are present in and around the demonstration watershed.”

While the lake doesn’t currently discharge to the environment, the long-term plan is for its water to eventually integrate into the regional watershed. 

Prior to release, water will be monitored and tested to ensure it meets regulated water quality guidelines, Guest said. 

In the meantime, Suncor adds fresh water and withdraws water for use in its mine operations. 

PASS technology demonstration

Suncor is implementing permanent aquatic storage structure (PASS) technology at a demonstration site that includes Lake Miwasin, a 10-metre-deep lake with a five-metre water cap. 

PASS uses common treatment agents to help tailings settle and release water more quickly. The process speeds up consolidation and helps improve overall water quality.

The company says early results are promising, showing expected improvements in water quality and the re-establishment of vegetation.

Insights from local Indigenous communities have helped refine techniques, including influencing landform design and identifying culturally important plants and trees.  

Confidence in pit lakes

“Results from Base Mine Lake and Lake Miwasin give us the confidence that pit lakes are a safe and integral component of our planned closure landscape,” Guest said.

The transition to a fully reclaimed boreal landscape in Alberta’s oil sands will take time. 

Most of the reclaimed area will consist of forests and wetlands, with pit lakes expected to account for less than 10 per cent. 

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*References to land that is reclaimed, permanently reclaimed and surface reclaimed meet the definition of “permanently reclaimed” as defined in the Alberta Energy Regulator Direction for Conservation and Reclamation Submissions (December 2018).

To the naked eye, it looks about as exciting as baking soda or table salt. 

But to the scientists in the University of Calgary chemistry lab who have spent more than a decade working on it, this white powder is nothing short of amazing. 

That’s because the material they invented is garnering global attention as a new solution to help address climate change.

Known as Calgary Framework-20 (CALF-20 for short), it has “an exceptional capacity to absorb carbon dioxide” and was recognized in connection with the 2025 Nobel Prize in Chemistry.

A jar of CALF-20, a metal-organic framework (MOF) used in carbon capture. Photo courtesy UCalgary

“It’s basically a molecular sponge that can adsorb CO2 very efficiently,” said Dr. George Shimizu, a UCalgary chemistry professor who leads the research group that first developed CALF-20 in 2013.

The team has been refining its effectiveness ever since.

“CALF-20 is a very exciting compound to work on because it has been a great example of translating basic science into something that works to solve a problem in the real world,” Shimizu said.

Advancing CCS

Carbon capture and storage (CCS) is not a new science in Alberta. Since 2015, operating projects in the province have removed 15 million tonnes of CO2 that would have otherwise been emitted to the atmosphere. 

Alberta has nearly 60 proposed facilities for new CCS networks including the Pathways oil sands project, according to the Regina-based International CCS Knowledge Centre. 

This year’s Nobel Prize in Chemistry went to three of Shimizu’s colleagues in Japan, Australia and the United States, for developing the earliest versions of materials like CALF-20 between 1989 and 2003.

Custom-built molecules

CALF-20 is in a class called metal-organic frameworks (MOFs) — custom-built molecules that are particularly good at capturing and storing specific substances. 

MOFs are leading to new technologies for harvesting water from air in the desert, storing toxic gases, and capturing CO2 from industrial exhaust or directly from the atmosphere. 

CALF-20 is one of the few MOF compounds that has advanced to commercial use.

“There has been so much discussion about all the possible uses of MOFs, but there has been a lot of hype versus reality, and CALF-20 is the first to be proven stable and effective enough to be used at an industrial scale,” Shimizu said.

It has been licensed to companies capturing carbon across a range of industries, with the raw material now being produced by the tonne by chemical giant BASF.

CO2 pipeline at the Quest CCS project near Edmonton, Alta. Photo courtesy Shell Canada

Carbon capture filter gigafactory

Svante Inc. has demonstrated its CALF-20-based carbon capture system at a cement plant in British Columbia.

The company recently opened a “gigafactory” in Burnaby equipped to manufacture enough carbon capture and removal filters for up to 10 million tonnes of CO2 annually, equivalent to the emissions of more than 2.3 million cars.

The filters are designed to trap CO2 directly from industrial emissions and the atmosphere, the company says. 

Svante chief operating officer Richard Laliberté called the Nobel committee’s recognition “a profound validation” for the entire field of carbon capture and removal. 

CALF-20 expansion

Meanwhile, one of Shimizu’s former PhD students helped launch a spinoff company, Existent Sorbents, to further expand the applications of CALF-20.

Existent is working with oil sands producers, a major steel factory and a U.S.-based firm capturing emissions from other point sources, said CEO Adrien Côté.

“The first users of CALF-20 are leaders who took the risk of introducing new technology to industries that are shrewd about their top and bottom lines,” Côté said.

“It has been a long journey, but we are at the point where CALF-20 has proven to be resilient and able to survive in harsh real-world conditions, and we are excited to bring this made-in-Canada innovation to the world.”

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As a lifelong farmer, entrepreneur and community leader, Alanna Hnatiw knows first-hand the crucial role energy plays in a strong and diverse economy. 

The mayor of Sturgeon County, a sprawling rural municipality northeast of Edmonton, Hnatiw has spent much of the last decade working to protect its agricultural roots while building new industries that support the jobs and services families and businesses rely on every day.

Hnatiw says there is widespread appreciation among the county’s 20,000 residents for the opportunities afforded by the province’s oil and gas resources. That’s why she joined other leaders in Alberta’s Industrial Heartland region to applaud a major new natural gas pipeline planned for the area.

“Natural gas is an integral to all the industrial operations in Sturgeon County and the surrounding area. It goes beyond just burning it to turn turbines, it is the feedstock for all kinds of value-added processing. From fertilizer and plastics to petrochemicals and hydrogen, natural gas is the lynchpin for us into the future,” she said.

Filling growing demand

Hnatiw is one of more than a dozen community and industry leaders who sent letters of support to the Alberta Utilities Commission (AUC) last year endorsing ATCO Energy Systems’ proposed Yellowhead Pipeline project. 

The project achieved a significant milestone in August when the AUC approved ATCO’s application determining the pipeline is needed. 

The largest infrastructure investment in the company’s history, the 230-kilometre pipeline from Peers to Fort Saskatchewan will transport more than 1.1 billion cubic feet of natural gas per day when operational in late 2027.

For context, Alberta produced about 11 billion cubic feet per day of natural gas in 2024, according to the Alberta Energy Regulator. 

Proposed route map of the Yellowhead Pipeline. Map courtesy ATCO

The Yellowhead Pipeline will boost deliveries to the greater Edmonton area as demand continues to grow for power generation, manufacturing, petrochemical processing and residential use. 

Industrial customers have reserved 90 per cent of the pipeline’s capacity to meet their future needs. 

This includes Dow Chemical, which plans to build an $8.9-billion net-zero ethylene processing facility in Fort Saskatchewan, Heidelberg Materials’ Edmonton facility that aims to be the world’s first full-scale cement plant equipped with carbon capture and storage (CCS), and McCain Foods, which requires more natural gas for a planned expansion of its French fry factory in Coaldale.

Prosperity driver

Edmonton Global CEO Malcolm Bruce described the Yellowhead Pipeline as a “visionary” infrastructure project in his letter of support to the AUC. 

“The [project] will create jobs, enable billions in new investment and drive Alberta’s hydrogen roadmap and natural gas vision and strategy.”

ATCO’s projections show the pipeline will generate substantial economic benefits. The company estimates that during construction, it will support 12,000 jobs and contribute $1.6 billion per year to Alberta’s economy. 

Once in operation, the pipeline is expected to support 23,700 jobs per year and add $3.9 billion annually to Alberta’s GDP.

For Sturgeon County, the project also provides much-needed certainty that natural gas will be available for the $30 billion in new industrial investments the region is hoping to attract in the coming years. 

Future plans

The municipality is already home to major operations including the NWR Sturgeon Refinery and Nutrien fertilizer plant, both of which capture carbon dioxide emissions that are transported through the Alberta Carbon Trunk Line for deep underground storage near Clive, Alberta. 

Hnatiw said future development may include hydrogen production with CCS, petrochemical processing, gas-fired power plants and large-scale data centres.

“With our operations running near capacity right now, this new pipeline helps alleviate the uncertainty around gas supplies for industrial developers,” Hnatiw said.

The county’s industrial goals are inextricably tied to ensuring its farming sector continues to flourish, she said.

“Eighty per cent of our land base is agricultural, but it only accounts for one per cent of our budget as far as taxes go, so we need our industrial residents to support our rural way of life,” she said. 

“We don’t want people to have to leave our community to make a living. We want a future that is full of opportunity, and one that is also sustainable for the families that produce our food, our fuel, and all the other value-added products we can provide.”

ATCO’s next step is to file for AUC approval to build the pipeline later this year. The company expects construction to begin in 2026. 

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A deal to supply Asian customers with butane shipped from the coast of B.C. promises to expand Canada’s global energy footprint, underscoring untapped potential and the benefits of diversifying beyond the U.S. market.

Butane and propane are what’s known as liquid petroleum gases (LPGs).

Produced during natural gas processing and oil refining, these versatile energy products are in high demand for a wide range of uses including feedstock for plastics and synthetic rubber production, fuels for heating and cooking, and solvents in industrial applications.

“Demand remains strong going forward for the Asian markets as consumers continue to increase living standards and income levels and use more of the everyday items that we take for granted,” said Martin King, managing director of North America energy market analysis for Houston-based RBN Energy.

The new deal commits Calgary-based AltaGas to supply German chemical giant BASF with butane for chemical manufacturing and industrial use in Asian markets. 

Butane and propane from Alberta can be shipped by rail to reach terminals on the West Coast, including the AltaGas Ridley Island Energy Export Facility that is under construction near Prince Rupert. 

Known as REEF, it is an expansion of the company’s LPG export operations that is scheduled to start operating in 2027. AltaGas opened Canada’s first marine propane export terminal on Ridley Island in 2019.

BASF president of global procurement Matthias Dohrn said partnering with AltaGas secures “reliable and competitive access” to butane from Western Canada. 

While details on the scope of the agreement were not released, King said AltaGas is already talking about expanding REEF capacity by 2030. 

“I suspect that the expansion has a good chance of going ahead given that the demand for LPGs out of Asia has remained very robust,” he said.

Canada’s success in growing propane exports offers a model for butane’s potential. 

According to the Canada Energy Regulator (CER), propane exports – most of which come from Alberta – have more than doubled over the past decade as the new B.C. terminal infrastructure came online. 

As of June 2025, shipments to non-U.S. locations were nearly even with exports south of the border, CER reports. 

According to the Canadian Propane Association (CPA), the largest customers after the U.S. are Japan, South Korea and Mexico. 

Earlier this year, the CPA joined Alberta government officials, industry representatives and Indigenous leaders on a trade mission to Japan aimed at diversifying Canada’s energy exports.

“Canadian propane, with its lower carbon footprint, is uniquely positioned to support Japan’s decarbonization efforts,” said the CPA’s President and CEO Shannon Watt. 

“By collaborating with Japan, we can demonstrate how Canadian propane meets the demand for sustainable energy solutions while enhancing energy security in a complex geopolitical landscape.”

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From his desk in Marathon, Ont., a small community on the north shore of Lake Superior, Mayor Rick Dumas sees the concept of an energy corridor to Western Canada’s oil and gas as a chance to reshape his region’s future.

The Ontario government issued a request for proposals on August 7 for a feasibility study into the idea, which would move energy products from across the Prairies and Northern Ontario to consumers and exporters in the East. 

Rick Dumas, Mayor of Marathon, Ontario.

“Projects like the East-West Energy Corridor are exactly what Northwestern Ontario has been calling for — an opportunity to be at the forefront of a nation-building initiative,” said Dumas, who is also president of the Northwestern Ontario Municipal Association, representing the districts of Kenora, Rainy River and Thunder Bay. 

“It means new jobs, greater economic opportunity, and a real commitment to building a cleaner, stronger, and more resilient country together.”

The feasibility study will map potential pipeline routes linking Alberta to Southern Ontario’s refining sector and new tidewater ports, including on James Bay, Hudson Bay and the Great Lakes. 

It will also assess the construction or expansion of a refinery, examine Indigenous equity opportunities, and even explore the creation of a Canadian strategic petroleum reserve.

Support for the corridor also comes from Southern Ontario, where the region’s petrochemical and energy industries depend on oil and gas supplies delivered by a pipeline that crosses Michigan.

“We believe this represents an opportunity to achieve both energy security for Ontario and Canada, and economic growth and diversification potential,” said Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership. 

“Long-term, reliable and secure feedstock supply is necessary for the sustained success and potential growth of our current operations.” 

The Sarnia-Lambton region is home to Ontario’s largest concentration of energy infrastructure, including refineries, chemical plants, power generators, and Enbridge Gas’s Dawn Hub, where much of the province’s natural gas supply is gathered for commercial distribution. 

The region is also exploring new opportunities in liquefied natural gas (LNG), hydrogen, and alternative fuels.

“Very few of Ontario’s cars would drive, flights would fly, or homes would be heated without the products that originate from the Sarnia-Lambton energy and chemistry complex,” Slotwinski said.

“Our industry leaders need to be front and centre in identifying how they can be harnessed as part of any nation-building exercise.” 

Labour groups are also throwing their weight behind the energy corridor initiative, pointing out that Michigan’s governor wants to shut down the pipeline that carries Canadian oil and gas through its borders. 

Mike Gallagher, business manager of the International Union of Operating Engineers (IUOE) Local 793, told CBC that he supports the corridor as a source of jobs and independence.

“As far as I’m concerned, the sooner this gets done, the better,” he said. 

“A new pipeline would not only create jobs, it would strengthen our country’s independence and is exactly the kind of nation-building project that Prime Minister Carney promised to deliver.”

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The recent expansion of the Trans Mountain pipeline helped drive a surge in the value of Alberta’s energy production, which rose to $139 billion in 2024, according to the latest Alberta Energy Outlook. 

The Alberta Energy Regulator (AER) reported that last year was the second-highest value of the province’s energy production on record, after 2022’s banner year of $167 billion.

For comparison, the annual average between 2015 and 2019 was just $74 billion.

Industry experts say the strong numbers highlight the continued importance of oil and gas to Canada’s economic prosperity.

“Every Albertan will benefit from this windfall, but it trickles through the Canadian economy as well, notably in higher GDP, productivity, exports and trade diversification: all things we badly need,” said Heather Exner-Pirot, director of energy, natural resources and environment at the Ottawa-based Macdonald-Laurier Institute. 

“If the case for another bitumen pipeline wasn’t already clear, this seals the deal.” 

The additional export capacity provided by the Trans Mountain expansion has enabled producers to move more oil to international markets at stronger prices — fueling both production growth and higher revenues for companies and governments. 

An economic powerhouse

Bitumen from the oil sands remains the largest contributor to Alberta’s energy economy, according to the AER’s analysis, and improved market access has narrowed the discount faced by Western Canadian Select crude.

“Alberta continues to lead Canada’s energy story — not only through robust oil and gas production but also by accelerating momentum in emerging resources like hydrogen, lithium, and geothermal,” said AER principal economist Afshin Honarvar. 

The regulator’s annual outlook found that the value of bitumen production in 2024 totaled $95.8 billion. 

Natural gas liquids including propane, butane and ethane generated $19.7 billion, followed by conventional crude oil at $18.2 billion and natural gas at $5 billion. 

A drilling rig operates near Cremona, Alta., July 2021. CP Images photo

Western Canada also stands to benefit from continued growth in natural gas production to meet global demand, particularly with the LNG Canada export terminal now operating. 

The AER undertook a reassessment of natural gas reserves, which saw Alberta’s volume increase by 440 per cent, taking Canada from 15th place to ninth place globally.

Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels.

“This is telling us that Alberta is a crucial part of the energy supply in North America,” Honavar said.

“We are a reliable source and an affordable source, without any worries that we will run out of reserves or resources.”

LNG Canada announced its first official cargo of liquefied natural gas destined for global markets on July 1, 2025. Photo courtesy LNG Canada

Benefits across the country

According to Canada Energy Regulator data, Alberta is responsible for about 84 per cent of Canada’s total oil and equivalent production and about 60 per cent of the country’s natural gas output.

Across the country, Natural Resources Canada estimates the sector employs about 450,000 people directly or indirectly. 

Energy products were by far Canada’s top export in 2024, valued at $196 billion — more than double the next largest category, metal and mineral products, at $94.8 billion, according to Statistics Canada.

In 2023, the most recent year of data available, oil and gas contributed 7.7 per cent of Canada’s GDP, or $209 billion, the federal department says. 

“It’s a huge industry, dominated by the oil sands, that Canada really benefits from and will continue to benefit from for decades,” said Richard Masson, executive fellow with the School of Public Policy at the University of Calgary. 

He said the rise in Alberta’s production value translates directly into fiscal gains for the provincial and federal governments. 

Well pad at Cenovus Energy’s Christina Lake oil sands facility southeast of Fort McMurray, Alta. CP Images photo

Alberta collected $19.2 billion in resource royalties during the 2023–24 fiscal year, with corporate taxes and income tax revenues also boosted by high industry activity. 

The province also reported an unexpected $8 billion budget surplus for 2024-25 due to higher energy revenues.

“Energy royalties provide almost as much as personal income tax does for Alberta. If we didn’t have it, we would have to have a sales tax and other government revenues,” Masson said.

Rising production

According to the AER, bitumen production climbed by 4.3 per cent last year to an average of 3.56 million barrels per day. Driven by continued investment, the regulator forecasts output will rise to about four million barrels per day by 2034.

The key to realizing this potential is further expansion of export pipeline capacity to ensure additional oil production can reach international markets.

Investment in emerging energy technology

Wells at the Clive carbon capture, utilization and storage (CCUS) project near Red Deer, Alta. Photo courtesy Enhance Energy

The AER report says capital investment in Alberta’s energy sector hit $30.9 billion in 2024, the highest level in nearly a decade. 

That spending included not just oil and gas, but growing investments in hydrogen, helium, lithium, and carbon capture and storage (CCS) projects.

The regulator forecasts continued momentum in both traditional and emerging sectors. 

Hydrogen production in Alberta is expected to grow from 2.6 million tonnes per year to 4.4 million tonnes by 2034. 

Since 2015, CCS projects have captured and stored 16 million tonnes of CO₂ deep underground — equivalent to taking over 3.7 million cars off the road for a year.

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