Policy Overview
The Saskatchewan Petroleum Innovation Incentive (SPII) is one of Canada’s most effective sub-national tools for accelerating energy technology commercialization. The program offers transferable Crown royalty and freehold production tax credits equal to 25% of eligible project costs for qualified innovations, including Carbon Capture and Storage (CCS). SPII covers both pilot and commercial-scale deployments, providing a flexible financial bridge for high-risk ventures.
In 2024 and 2025, SPII has been tightly integrated with the Saskatchewan Technology Fund, which recently allocated $47.5M to nine flagship projects, including Federated Co-Operatives’ Bio-CCS complex. A key strength of the policy is the transferability of credits, allowing developers who are not yet profitable to monetize their tax benefits by selling them to established producers. This mechanism has successfully mobilized over $600M in private investment, anchoring major infrastructure developments like the 4.2 Mtpa Southeast Saskatchewan CCUS Hub.