Calgary: Opening Doors To Energy Technology

Part Four: Future Energy Innovation

In parts one through three of this four part series we made the case for Calgary as a leader in global energy innovation, introducing you to certain existing programs, incentives and supporting infrastructure that is contributing to Calgary’s success in this space and also to highlight certain companies that are taking advantage of these resources. In this piece, part four, we close the loop and explore recent initiatives that, coupled with existing supporting infrastructure, are positioning Calgary to capitalize on its resources and lead the world in energy technologies.

Why We should Care

If we don’t do it, someone else, somewhere else, will. The new Alberta Provincial Government has a clear mandate and defined goals to establish Alberta as both an energy and environmental leader – but we must take that further and be adamant in our plan to be innovative in our approach to energy leadership.

We must establish policies that incent and drive towards those desired outcomes.  We must work with the industry so that they are leading the way. And we must create systems, policies and environments where innovative technologies and people are encouraged, rewarded, and can thrive with, new local market opportunities.

This isn’t only about better production practices and sensitivity to the environment – and those things are critical – nor is it about switching from fossil fuels to cleaner and renewable energy sources – but that is important, too.  It’s about enabling creative thought and innovation to help the energy industry evolve in new ways. It’s about funding and supporting ideas that are not tried and true but believing in those that could lead us in ways we can’t yet dream of.  It’s about giving both permission and support to a new generation of companies that operate in new paradigms and think about what’s possible for the future.

And in this regard, on July 17, 2014, the Alberta Innovation Council (AIC), a council comprised of government, university and industry members, began its vital role in the evolution of Alberta’s innovation ecosystem. The purpose of AIC is to advise the Premier and Cabinet on innovation policies, strategies and initiatives with a view of creating greater strategic alignment and coordination and integration among the organizations within Alberta’s existing research and innovation system.

Incubating the Future

Collaboration, partnership and risk-taking are the personal and strategic qualities that have created technology hubs like Silicon Valley, Boston, Houston, Tel Aviv and others, but people didn’t do this alone. It takes a determined finance community, a dedicated and involved University ecosystem along with government systems, policies and programs that support defined and desired outcomes – all working in concert.

Calgary can be known globally as the Energy Technology Capital if we continue to push forward on these fronts. We’ve talked a little about some of the pieces that are already in play, however recently announced initiatives will help propel Calgary, and Alberta in general, to a position of leadership in the energy technology space.

In December 2014, with a funding commitment from Canada’s new Canada Accelerator and Incubator Program (CAIP), Innovate Calgary officially launched Calgary-based Kinetica Ventures (Kinetica), an accelerator program for the energy industry that will “bridge the gap between new technologies and industry demands to transform the energy sector”. Kinetica will assist local, national and international technology researchers and entrepreneurs by providing access to the necessary capital, expertise and relationships to commercialize their industry-validated technologies. Partnering with Calgary Economic Development, Kinetica will also have access to, and offices in, the startup friendly Global Business Centre in the heart of downtown Calgary.

Over the last number of months the energy sector has experienced a fundamental shift in supply and demand principals upsetting long-held conventional views of ever-tightening supply of oil. “As energy prices continue to change, energy companies with enhanced access to innovative technologies will enjoy an increasingly important competitive advantage. We intend for this to be a ‘made in Canada’ story,” says Kevin Frankowski, program lead for Kinetica.

The federal government’s funding of Kinetica is a great example of government funding being used to support market-focused technologies to help expand Canada’s technology presence. This is a much needed first step in establishing an ecosystem designed to reach our goals of technology expansion and economic diversification.

Pushing Forward

When we push forward with initiatives like Innovate Calgary’s Kinetica, we begin to lay the foundation for existing businesses and investors to collaborate, partner and co-invest in opportunities that have the best chance for market success.

For Alberta to gain ground and get to a position of leadership in the energy technology space, they must put technology, innovation and entrepreneurs at the heart of policy and government strategy. Such policies and programs must be clearly defined and measured by the policy/program outcomes and not simply relying on inputs or funds spent as the benchmarks for success. Further, these policies and programs must align with federal programs and work to ensure we get the best possible outcomes from all sources of public funds.

Over the last few years, important steps have been taken by both federal and provincial governments (in addition to CAIP and AIC) that will assist in positioning Calgary, and Alberta generally, as an energy innovator including, among others, the Western Innovation Initiative, the Start-up Visa Program and Alberta Enterprise Corporation Accelerate Fund. In conjunction with government backed programs, industry and institutional initiatives such as GE’s North American Innovation Centre, the Climate Change and Emissions Management Corporation (CCEMC), Canada’s Oil Sands Innovation Alliance (COSIA), Innovate Calgary’s Invest-Tech and now Kinetica, the Propel Energy Technology Forum, the University of Calgary’s Energy new Venture competition, SAIT’s award-winning Applied Research and Innovation Services and Mount Royal University’s Institute for Innovation and Entrepreneurship, are setting the stage for the critical mass of industry, government, research and finance that are necessary to drive Calgary into a global leadership role and innovator in energy technologies.

With all of this happening in our own backyard, and in the context of depressed oil prices, it is even more important that we now hammer down on the gas pedal of energy innovation and build on the talent and market opportunities here to help Alberta lead the world through the evolution of the energy economy.