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Alberta government announces $50M investment in first-ever Canadian drilling test site

The Alberta government has committed $50 million to establish the Alberta Drilling Accelerator (ADA), Canada’s first test site dedicated to advancing drilling technologies.

The ADA will support industries such as geothermal energy, lithium, and carbon capture, offering an open-access site for testing innovative technologies in high-temperature subsurface conditions across various rock formations. Eavor, alongside Halliburton and Tourmaline Oil Corp., is among the companies expressing interest in becoming anchor tenants for the project.

Alberta Premier Danielle Smith emphasized the site’s importance, stating it will help develop drilling methods essential for reaching the province’s carbon neutrality goals by 2050.

Minister of Environment and Protected Areas Rebecca Schulz emphasized Alberta’s leadership in energy production, stating: “We are increasing production, reducing emissions, all while meeting those rising demands for energy for years to come. This is thanks to our geology, expertise, and highly skilled workforce of Albertans.”

Eavor CEO John Redfern affirmed Alberta’s rich drilling legacy, spanning over seven decades, as a key reason the province is ideally positioned to host this new initiative. “By establishing this technology incubator, we’re ensuring Alberta remains an international leader in geothermal innovation,” he stated.

Funding for the ADA comes from the Technology Innovation and Emissions Reduction (TIER) program, which supports Alberta in minimizing environmental impacts. With private investment expected to complement the provincial funding, drilling at the ADA is anticipated to begin in 2026.

“Alongside our $50 million investment, we expect the ADA to attract tens of millions of dollars in private investment,” stated Premier Smith.

“We can’t wait to get moving on this, and with collaboration from our industry partners, to start pushing Alberta’s drilling to places it’s never been before.”

Watch the full press conference here:

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