CALGARY — The federal government is pitching a new round of clean energy spending as both an economic necessity and a national security priority, as Ottawa looks to reshape Canada’s energy system amid growing global uncertainty.On Friday, Tim Hodgson announced $28.9 million in funding for 12 projects across the country, aimed at accelerating the development of emerging energy technologies through Natural Resources Canada’s Energy Innovation Program.The funding is split across three key areas: carbon capture, renewable energy, and electricity grid modernization — all sectors the federal government argues are critical to maintaining Canada’s competitiveness while lowering emissions.Of the total, $16.9 million will go toward five projects focused on carbon capture, utilization and storage (CCUS), a technology Ottawa has heavily promoted as a way to reduce emissions from oil, gas and heavy industry without curbing production.Another $9.2 million is earmarked for three renewable energy projects designed to expand clean power generation, while $2.8 million will fund four initiatives aimed at improving how electricity grids are regulated and managed.The government says the investments are intended to speed up the deployment of new technologies while ensuring Canada’s energy systems remain reliable and affordable — a balancing act that has become increasingly central to federal policy..Hodgson puts LNG at heart of Canada’s energy ambition during Calgary event.“Canada is scaling up clean energy while strengthening our electricity grid and responsibly growing our conventional energy industry,” Hodgson said in a statement.“Competitiveness means doing more than one thing at the same time.”The announcement comes as Ottawa faces mounting pressure to secure domestic energy supply and reduce costs for households, while also meeting climate targets.Through the Energy Innovation Program, the federal government is backing early-stage research and demonstration projects, particularly in carbon capture — including technologies for emissions capture, transportation and storage — as well as renewable power generation and grid integration.Officials say the broader goal is to bring more energy projects to market faster, attract private investment and position Canada as what Hodgson described as a “low-cost, low-carbon energy superpower.”The funding push reflects Ottawa’s continued effort to align climate policy with economic growth, though questions remain about whether relatively modest federal investments can deliver the scale of transformation needed to meet both affordability concerns and emissions targets.
