Canada Bets on Carbon Data to Unlock New CCUS Regions

Ottawa’s late-2025 CCUS funding zeroes in on storage data, aiming to lower risk and pull private capital into underexplored regions

9 Feb 2026

Canada is refining its approach to carbon capture, utilisation and storage (CCUS), signalling to investors that the next phase of growth will rest on preparatory work rather than new headline policies.

In late October 2025, the federal government announced more than C$11mn in additional funding for CCUS research, development and demonstration. The support extends existing programmes, but is more narrowly focused on early stage barriers that have delayed projects and deterred investment.

The funding is small by federal standards, yet officials say it targets a persistent problem: limited and uneven data on where captured carbon can be stored safely and permanently. Without credible assessments of storage capacity and integrity, many projects have struggled to reach final investment decisions.

By improving the underlying data, Ottawa aims to shorten development timelines and lower risks that private investors are often unwilling to absorb alone. The initiative sits within a wider policy framework that includes the Energy Innovation Program and federal investment tax credits for CCUS, offering long term support while avoiding a broader policy reset.

Much of the new funding is directed towards Atlantic Canada and Quebec. Unlike Alberta, where decades of oil and gas activity have generated extensive subsurface data, these regions face higher costs and longer timelines for storage assessments. That uncertainty has cooled investor interest and slowed project development.

One recipient, Canadian Discovery, has been tasked with creating a comprehensive storage map for eastern Canada. Industry analysts say clearer geological information can accelerate permitting and infrastructure planning, potentially cutting years from project schedules.

The funding also supports early research into alternative uses for captured carbon, including mineralisation processes that bind carbon into solid materials while producing saleable byproducts. Such technologies remain at an early stage, but are seen as potential complements to long term storage.

Federal officials describe the objective in pragmatic terms: address risks that markets struggle to price and lay the groundwork for CCUS growth beyond Canada’s established hubs. For investors, the message is that progress will depend less on new incentives and more on resolving the fundamentals that underpin viable projects.