The government has entered into three-year partnership with the companies through National Research Council of Canada (NRC) to use algae to convert greenhouse gas emissions from oilsands into biofuels.
Canadian Minister of State Gary Goodyear said that the new technology has a potential to benefit the country’s environment and economy, besides positioning it as a global manager of greenhouse gas emissions.
"What the results of this project could mean for the future of the oil sands and Canadian businesses makes this a significant day for Canada," added Goodyear.
Under the partnership, the government will provide $9.5m and Canadian Natural will invest $6.3m, while Pond Biofuels will bear the remaining costs.
This facility is expected to recycle industrial emissions from their oil sands facility using carbon dioxide to grow algal biomass, which will undergo further processing into products, such as biofuels, livestock feed and fertilizer, the council said.
