Bitumen Partial Upgrading Program

Overview of the Bitumen Partial Upgrading Program program:

The Bitumen Partial Upgrading Program (BPU), managed by Alberta Innovates, is a strategic initiative designed to advance the development and adoption of partial upgrading technologies for Alberta’s bitumen resources. The program aims to support innovations that enable the production of bitumen-based products that are lighter, easier to transport, and more valuable, without requiring full upgrading or dilution with expensive light hydrocarbons. Bitumen partial upgrading refers to technological processes that alter the properties of raw bitumen to improve flow characteristics and market value, while significantly reducing the need for diluent (a thinning agent used for pipeline transport). This has the dual benefit of increasing pipeline capacity and reducing transportation costs. Technologies supported through the program include thermal, catalytic, and chemical upgrading solutions, and other emerging methods that reduce carbon intensity and enhance economic performance. The BPU program targets late-stage technology development, demonstration, and early-stage commercial deployment. It prioritizes projects with clear pathways to commercialization, strong industry partnerships, and measurable environmental and economic benefits. Applicants may include consortia of industry players, post-secondary institutions, startups, or established energy companies. Funded projects must be conducted in Alberta and demonstrate how they will advance Alberta’s strategic goals related to energy diversification, emissions reduction, and sustainable resource development. The program was developed in partnership with Emissions Reduction Alberta (ERA) and aligns with the province's innovation and clean technology priorities.

Benefits of the Bitumen Partial Upgrading Program program:

• Supports late-stage technology development and pilot/commercial demonstration
• Reduces or eliminates the need for diluent in transporting bitumen
• Increases value-added processing in Alberta
• Enhances pipeline efficiency and export competitiveness
• Reduces greenhouse gas emissions and environmental footprint
• Promotes energy innovation and diversification
• Enables collaboration between industry, research institutions, and government
• Aligns with Albertas clean energy and emissions reduction goals

Eligibility criteria of the Bitumen Partial Upgrading Program program:

• Eligible applicants must:
• Be legally incorporated entities in Alberta or able to operate in Alberta
• Be for-profit companies, not-for-profit organizations, or research institutions
• Demonstrate the ability to deliver a technology-ready pilot, demonstration, or early commercial project
• Have matching funding sources confirmed or planned
• Operate a project that:
• Is based in Alberta
• Focuses on partial upgrading of bitumen
• Demonstrates environmental and economic impact (e.g., reduced emissions, reduced reliance on diluent, job creation)
• Has a defined commercialization plan and pathway to market adoption
• Projects must be at TRL 69 (technology readiness level), moving from demonstration to early commercialization