Could Your Methane-Reduction Project Qualify for ERA Funding?

Emissions Reduction Alberta’s Methane Reduction Deployment Program (MRDP) provides financial support to Alberta upstream and midstream oil and gas operators deploying commercial-ready technologies that deliver measurable methane reductions.

ERA currently provides funding for up to 50% of eligible project costs, with:

  • A minimum funding request of $25,000 per project
  • Up to $1 million per eligible technology type
  • Up to $2 million per parent company

The program uses continuous intake and is scheduled to run until March 31, 2029, or until available funding is fully allocated.

Use this ERA funding application support resource to understand current program requirements, identify projects that may qualify and determine what information should be prepared before moving forward.

Check If Your Project May Qualify

What’s New with the MRDP?

ERA has recently expanded the program, creating additional opportunities for Alberta producers.

TIER-Regulated Facilities Are Now Eligible

Under the August 2026 program rules, TIER-regulated facilities, including Large Final Emitters and opted-in facilities, may apply for MRDP funding if they meet all other eligibility requirements. Applications involving Large Final Emitters or opted-in facilities must be submitted before March 31, 2028.

Intricate’s TIER compliance services help operators understand how MRDP eligibility, emissions reporting and environmental attributes apply to their facilities.

Environmental Attributes May Be Available

ERA has also changed how environmental attributes are treated under the program.

Under the current August 2026 terms, applications submitted before March 31, 2028 may support carbon offset credit generation through qualifying Emission Offset Credits (EOCs). Participants may also generate and retain qualifying Emission Performance Credits (EPCs) arising from the funded project, applicable legislation, protocols and program requirements. Costs incurred solely to generate environmental credits are not eligible MRDP project costs.

These changes may make projects worth revisiting that did not fit the program under previous eligibility rules.

Reassess a Project with Intricate

 

ERA Funding at a Glance

The MRDP is intended to lower the capital barrier associated with deploying commercial-ready methane-reduction technologies at existing Alberta oil and gas facilities.

Current program highlights:

  • $2 million maximum funding per parent company.
  • $1 million maximum funding per eligible technology type.
  • The Methane Slip technology category is capped at $15 million in total program funding.
  • Large Final Emitters that meet other eligibility criteria are now eligible
  • Carbon offset credits may be generated and retained for applications submitted before March 31, 2028, provided the project meets the applicable Alberta offset protocol requirements. Costs incurred solely to generate offset credits are not eligible for MRDP funding.

Submitting an application does not itself reserve funding. Under ERA’s terms, funding is reserved after an eligible project is approved and the Participant Agreement is executed.

 

What Types of Projects May Qualify?

ERA maintains an Eligible Technologies List covering several common methane-reduction project types. Intricate can help producers assess opportunities in the following areas.

    Engine Methane-Slip Reduction

    Projects that reduce uncombusted methane from engines and exhaust systems:

    • Lean-burn to rich-burn engine replacement
    •  Optimize engine/system performance (e.g., load optimization)
    • Exhaust methane destruction (e.g., catalytic conversion)
    • Fuel switching/blending (e.g., 100% NG, H2 blending) · Retrofits (e.g., ingestive crankcase controls, closed breathers)

    Routine Venting from Tanks and Compression

    Potential projects include:

    • Storage-tank vapour recovery for destruction
    • Storage-tank vapour recovery for conservation, reinjection or fuel supplementation
    • Eligible compressor retrofits, including piston and crankcase solutions

    Pneumatics

    Potential projects include:

    Casing Gas Capture

    Projects may include:

    • Gas gathering or tie-in projects
    • Onsite utilization or compression
    • Casing gas destruction (Incinerators, combustors, load banks)

    Surface Casing Vent Flow

    Projects may include:

    • Eligible downhole solutions
    • Vent-flow capture solutions
    • Adsorption or catalytic-oxidation technologies

    Specific requirements apply to inactive, suspended or shut-in wells.

    Digital Solutions

    Digital technologies may qualify when they directly contribute to measurable methane reductions, including:

    • Advanced or predictive process control
    • Digital optimization
    • Artificial intelligence and machine-learning applications

    Other Methane-Reduction Technologies

    Other opportunities may include:

    • Natural-gas-fired building-heater optimization
    • Power generation from captured gas
    • Solution-gas capture, conservation or destruction
    • Other commercial-ready methane-reduction technologies considered by ERA

    Technologies that are not already on ERA’s Eligible Technologies List may be submitted to ERA for consideration through its Eligible Technology Application process.

    Is Your Project a Potential Fit?

    A project may be worth assessing if your organization is:

    • Planning a methane-related equipment upgrade or retrofit
    • Replacing or optimizing engines to reduce methane slip
    • Reducing routine venting from tanks or compression equipment
    • Converting pneumatic equipment to electric, instrument air or another eligible solution
    • Capturing casing gas or Surface Casing Vent Flow
    • Deploying digital technology that directly reduces methane
    • Considering a commercial-ready methane solution but facing capital or project-economics challenges

    MRDP is intended for brownfield projects at existing facilities. New construction and major greenfield expansions are not eligible. Projects must also deliver methane reductions beyond existing regulatory compliance requirements; activities undertaken solely to satisfy an existing regulatory obligation do not qualify.

     

    Important Things to Know Before You Apply

    A few program requirements can significantly affect project eligibility and timing:

    • Construction and installation should not begin before project approval. Certain early-stage activities, including FEED, measurements, analysis and equipment ordering, may be undertaken before approval at the applicant’s risk.
    • Projects must produce measurable methane reductions. ERA requires project emissions to be quantified against baseline conditions.
    • Regulatory compliance matters. MRDP is intended to fund methane reductions beyond what is already legally required.
    • Monitoring alone is generally insufficient. Measurement, monitoring and verification technology must meet ERA’s integration requirements with methane-abatement equipment.
    • LDAR-only projects are currently ineligible.
    • Flares are not eligible as a captured-gas destruction solution. ERA identifies alternatives such as eligible combustors, incinerators and catalytic oxidizers.
    • ERA considers project cost-effectiveness. Projects with lifetime abatement costs above $500/tCO₂e may be required to provide additional justification.
    • Other government funding may be stacked with MRDP funding, provided all sources are disclosed and combined funding does not exceed eligible project costs.

    Because project circumstances differ, these points should be treated as screening considerations rather than a complete eligibility determination.

    How Intricate Can Help

    Understanding whether a project fits the program is only the first step. Producers also need to establish the project scope, quantify methane reductions, document costs and assemble the technical and administrative information ERA requires. Intricate helps connect those pieces.

    Where a methane reduction project may also qualify for offsets, Intricate can coordinate the MRDP application with carbon offset project development so the technical data, timing and documentation support both pathways.

    Funding Readiness Assessment

    We review the proposed project, facility, technology, timing and available information to identify potential eligibility issues and information gaps early.

    Project and Emissions Strategy

    We help establish the project baseline, define the proposed solution and develop credible, defensible emissions-reduction calculations.

    Application Support

    We help organize and prepare the technical, financial and administrative documentation required to support the producer’s MRDP application.

    Project and Implementation Support

    Where appropriate, Intricate can connect funding strategy with emissions testing, field services, technology, data management and project implementation.

    The facility owner or operator remains the MRDP Participant and is responsible for submitting the application. Registered Eligible Contractors can collaborate with Participants and provide supporting documentation through the ERA application process.

    Start with your project, not the application

    Do you have an engine retrofit, pneumatic conversion, venting-reduction project or another methane initiative under consideration?

    The first question does not need to be: How do we complete the ERA application?

    Start with: Does this project make sense to pursue for funding?

    Intricate’s Funding Readiness Assessment can help your team understand:

    • Potential program fit
    • Facility and project eligibility
    • Expected methane reductions
    • Available project information
    • Potential funding range
    • Information or documentation gaps
    • Recommended next steps

    Book a Free 20-Minute Funding Readiness Assessment

    There is no obligation and no guarantee of ERA approval, just a practical first step toward understanding whether your project is worth advancing.