Canada advances energy innovation with major investments in carbon technologies and AI solutions

TORONTO, Oct. 29, 2025 /CNW/ - Canada is at a pivotal moment in history. Faced with global volatility, a changing environment and an affordability crisis, it is clear that the conventional ways of doing business no longer serve us. Canada must undertake bold and decisive action when it comes to retooling our economy and protecting our security and prosperity. Multilateralism with our allies can speed up clean energy innovation, enhance resilience and reduce emissions worldwide.

Today, in support of its 2025 G7 Presidency, Canada co-hosted the second annual Energy Innovation Forum with the International Energy Agency. The Honourable Tim Hodgson, Minister of Energy and Natural Resources, welcomed experts from governments, major companies, startups, researchers, international finance and venture capital investors to discuss the opportunities, challenges and partnerships needed to scale up innovative energy technologies and maximize their contribution to global energy systems and security.

In a keynote speech opening the event, Minister Hodgson announced more than $11 million toward cutting-edge, made-in-Canada carbon utilization and storage technologies. These projects, located in Quebec and Newfoundland and Labrador, will improve the safety and efficiency of subsurface CO₂ storage while driving innovation in carbon utilization technologies that reduce costs, energy use and carbon intensity across key industrial sectors.

In addition, the Minister announced the launch of the Artificial Intelligence (AI) for Canadian Energy Innovation Call for Proposals, which will fund high-impact RD&D projects that catalyze national expertise in Canadian-made AI solutions that accelerate the pace of domestic energy innovation and lower the associated costs. 

In support of Canada's leadership role in Mission Innovation's Carbon Dioxide Removal (CDR) Mission, the Minister also announced a second edition of the SMART-CDR Student Prize Competition, to be run in December 2025 by the University of Toronto's Lawson Climate Institute with a $89,000 grant from Natural Resources Canada. The challenge will foster more young talent in the carbon management sector as students from around the world propose novel CDR solutions.

Our energy future depends on innovation focused on enhancing energy security and building out grids that are affordable and reliable. The federal government is focused on getting projects built, supporting our industries and catalyzing a new era of economic growth. We will secure our position as a global supplier of secure, reliable and low-carbon energy and natural resources, getting more energy to market to become an energy superpower.

Quotes

"Canada is building a cleaner, stronger future. By investing in made-in-Canada clean energy innovation, we're supporting homegrown innovation, creating good jobs, reducing pollution and keeping our economy competitive. This is about growing opportunities for Canadians and protecting our environment as we become an energy superpower and the strongest economy in the G7."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"Canada has significant CO₂ emissions that must be mitigated to meet our climate targets. The Atlantic offshore region offers vast, proven storage capacity for Eastern Canada's CO₂ emissions -- enabling us to achieve these targets and remain a global leader in climate action."

Professor Grant Wach, DPhil, FGS, PGeo
Dalhousie University (for Evaluation of Carbon Storage Potential in Atlantic Canada project, Memorial University of Newfoundland)

"Solutions to reduce CO₂ emissions come from working together across disciplines, institutions and boundaries. Contributing to the evaluation of Canada's carbon storage potential and educating and training the next generation is an honour."

Professor Lesley James, PhD, P.Eng., CAEF
Memorial University of Newfoundland (for Evaluation of Carbon Storage Potential in Atlantic Canada project)

"The Geological Carbon Storage Atlas of Eastern Canada is a critical step toward advancing Canada's low-carbon future. By providing a regional assessment of viable CO₂ storage opportunities in Quebec and Atlantic Canada, and making this study publicly available, we will accelerate CCS development, inform regulatory and policy decisions, and support transparent public dialogue."

Robert Pockar, M.Sc.
Chief Executive Officer, Canadian Discovery Ltd. (for The Geological Carbon Storage Atlas of Eastern Canada)

"The reduction of CO₂ emissions is not a burden for our society but a significant opportunity for evolution in various industries for the sustainable production of energy and critical minerals. Carbon mineralization provides a promising method to permanently store CO₂ gas by forming stable mineral carbonates while simultaneously enhancing critical metal recovery from various feedstocks including nickel laterites and ultramafic silicate minerals."

Professor Fei Wang, P.Eng. 
Université Laval (for Utilization of Carbon Mineralization for Critical Metal Recovery and Permanent Carbon Storage from Various Feedstocks) 

"Confirming the potential for CO₂ storage at a local scale and demonstrating its environmental and economical viability are critical for its adoption and deployment. INRS is proud to partner with the federal government to make this assessment possible in Quebec."

Professor Bernard Giroux, PhD
Institut national de la recherche scientifique (for Toward a Pilot Project in the Lower Saint Lawrence Lowlands in Quebec)

Quick Facts 

• Canada's co-hosting of the Energy Innovation Forum delivers on a commitment made as part of Canada's G7 2025 Presidency to bring together Canadian and international industry and thought leaders to engage in discussions on accelerating energy innovation, including in key areas like AI for energy innovation, carbon dioxide removal, and batteries.
• Earlier today, Minister Hodgson also announced new investments and progress in Canada's carbon removal industry:
  • NorthX Climate Tech -- founded in 2021 with initial investments from the Government of Canada, the Government of British Columbia and Shell Canada -- announced an investment of $3.4 million in four Canadian carbon removal ventures: CarbonRun, Skyrenu Technologies, NULIFE Greentech and pHathom Technologies.
  • Arca Climate Technologies, one of NRCan and NorthX's previous investments, announced a new offtake agreement with Microsoft to deliver nearly 300,000 tonnes of durable carbon dioxide removal over 10 years. Supported through an $1.83-million investment from NRCan's Energy Innovation Program, this $2.88-million project is based in British Columbia and advances made-in-Canada solutions to capture and store carbon permanently.
• Projects announced today were funded under the EIP's Carbon Capture, Utilization and Storage RD&D call for proposals. The call supports the research, development and demonstration of next-generation carbon capture and storage technologies that have the potential to significantly reduce the costs of capturing and storing carbon through three streams:
  • Capture: to drive down the cost and enhance performance of capture technologies for different emission sources
  • Storage and Transportation: to characterize and develop safe, permanent subsurface CO₂ storage and technologies that support safe and efficient transportation of CO₂ and storage opportunities across Canada.
  • Utilization: RD&D of CO₂ utilization technologies that reduce costs, energy use and carbon intensity while enabling large-scale, long-term CO₂ sequestration
• As referenced in Budget 2024, the federal government delivered, on a priority basis, a suite of major economic investment tax credits, representing $93 billion in incentives by 2034–2035, to create jobs and keep Canada on track to reduce pollution and reach net zero by 2050. This includes a Carbon Capture, Utilization and Storage Investment Tax Credit.
• Building on commitments from the G7 Leaders' Summit to invest in AI solutions that accelerate Canadian energy innovation, the call is accepting Expressions of Interest until December 4, 2025.
• Canada co-led the first Mission Innovation SMART-CDR Competition, which challenged students from around the world to propose novel solutions for one of CDR's biggest challenges: monitoring, verification and reporting. The Competition exposed young, bright minds to the career opportunities in the carbon management sector while mentoring them, developing their professional networks and investing in their ideas. One of the winning teams -- a Canadian American team -- has already used their winnings to launch a new startup.

Related Product

• Backgrounder: Carbon Capture, Utilization and Storage

Associated Links 

• Energy Innovation Program – Carbon capture, utilization and storage RD&D Call
• Energy Innovation Program – CCUS Front-End Engineering and Design (FEED)
• Carbon Management
• Capturing the opportunity: A Carbon Management Strategy for Canada
• CCUS Investment Tax Credit
• Carbon Dioxide Removal Mission – Mission Innovation
• AI Call for Proposal

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SOURCE Natural Resources Canada

Contacts: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Greg Frame, Office of the Minister of Energy and Natural Resources, [email protected]