Alberta to Invest $50 Million in First-in-Canada Drilling Test Site

Alberta’s government has announced plans to invest up to $50 million in the creation of a groundbreaking drilling test site that will support technology development in the oil, gas, geothermal, and lithium industries. The Alberta Drilling Accelerator is set to become a first-of-its-kind open-access, industry-led facility where companies can test drilling technologies at deep depths, high temperatures, and varying rock types.

This state-of-the-art site will enable companies to test and refine drilling techniques, ultimately accelerating progress in the geothermal, helium, critical minerals, carbon capture, and other industries that rely on advanced drilling methods. Premier Danielle Smith emphasized the importance of innovation, stating, “The Alberta Drilling Accelerator means big things for oil and gas exploration in our province, as well as for industries crucial to achieving our goal of carbon neutrality by 2050.”

While the exact location for the hub site has yet to be determined, several companies have already expressed strong interest in serving as anchor tenants. Calgary-based geothermal company Eavor Technologies, Tourmaline Oil Corp., and international oilfield service supermajor Halliburton are among those expected to be key participants in the project.

The funding for the Alberta Drilling Accelerator will be sourced from the Technology Innovation and Emissions Reduction (TIER) program, which collects contributions from Alberta’s heavy emitters as part of the province’s industrial carbon pricing system. The government anticipates that drilling activities at the accelerator could commence as early as 2026, signaling a significant step forward in advancing technology and sustainability within the energy sector.