Methane Reduction Deployment Program

Overview of the Methane Reduction Deployment Program program:

The Methane Reduction Deployment Program, delivered by Modern West Advisory (MWA) on behalf of Emissions Reduction Alberta (ERA), is a province-wide incentive initiative designed to accelerate methane emissions reductions within Alberta’s upstream and midstream oil and gas sector. The program is funded through Alberta’s Technology Innovation and Emissions Reduction (TIER) system and focuses on supporting the deployment of proven, commercial-ready methane reduction technologies that can be quickly adopted and implemented at operational facilities. By covering up to 50% of eligible project costs, the program reduces the financial burden associated with methane mitigation projects, enabling operators to adopt solutions that strengthen regulatory compliance, reduce emissions, and enhance long-term competitiveness across the sector. The program remains active through March 31, 2029, or until all funding has been fully allocated. Projects must begin on or after January 1, 2025, and be completed within two years of approval. Eligible projects must produce measurable methane reductions using approved technologies, including engine retrofits, tank vent mitigation solutions, pneumatics upgrades, SCVF capture, casing gas conservation, digital monitoring solutions, and other innovations listed on ERA’s Eligible Technologies List. All projects must include GHG quantification to compare emissions before and after implementation. An application portal is used for registration, company profile creation, pre-application eligibility review, and submission of full documentation, including cost workbooks and engineering details. Funding is released in two installments: 50% upon procurement approval and 50% at final project completion. Contractors must register separately and meet ERA’s Contractor Code of Conduct. Costs must fall within the eligibility period, and certain expenses—including GST/PST and pre-2025 costs—are excluded. Environmental attributes from the project must be transferred to ERA. The program emphasizes transparency, quality assurance, and compliance through site verifications and strict documentation requirements.

Benefits of the Methane Reduction Deployment Program program:

• Reduces methane emissions (high-impact, commercial-ready technologies).
• Lowers capital risk for producers by covering 50% of project costs.
• Supports regulatory readiness and compliance.
• Strengthens competitiveness and reduces operational costs.
• Encourages modernized infrastructure and emissions monitoring.
• Provides access to pre-screened eligible technologies.
• Supports aggregation across multiple facilities for efficiency.
• Offers dedicated support channels and program guidance.

Eligibility criteria of the Methane Reduction Deployment Program program:

• Applicant Eligibility
• Legal entity authorized to operate in Alberta.
• Must own or operate an eligible upstream/midstream oil & gas facility.
• Must not exceed ERAs cumulative funding limit.
• Must meet all requirements in Program Terms & Conditions.
• Facility Eligibility
• Must be located in Alberta.
• Must be part of a TIER aggregate or not regulated under TIER.
• Not eligible: Large Final Emitters (LFEs), opted-in TIER facilities.
• Project Eligibility
• Must start on or after Jan 1, 2025.
• Must involve only eligible technologies.
• Must be completed within 2 years or before Mar 31, 2029.
• Must demonstrate methane reductions and acceptable abatement cost.
• GHG quantification required.
• Technology Eligibility
• Must be from ERAs Eligible Technologies List (engine optimization, SCVF capture, pneumatics upgrades, venting mitigation, etc.).
• MMV must be integrated into methane-abating equipment.
• Contractor Eligibility
• Must be registered as an Eligible Contractor and adhere to the Code of Conduct.