Canada’s energy minister was in southern Alberta Friday to announce millions in new funds for projects that would store carbon from oil and gas operations underground. But he was unwilling to disclose any progress on the single-largest proposal to capture the industry’s emissions. Tim Hodgson , minister of energy and natural resources, said the five projects getting federal funds will advance the government’s agenda to deliver cleaner energy to global markets. But they pale in comparison to the giant $16.5-billion carbon capture network proposed by the Pathways Alliance, a group of the country’s largest oilsands producers. “Those conversations are going on; they’re going to happen in private,” Hodgson told a small crowd gathered outside a natural gas facility northwest of Calgary. “When there’s a transaction, we’ll let everybody know, but you should assume that everyone is focused on trying to make that happen.” Hodgson is looking to repair Ottawa’s strained relationship with the oilpatch after 10 years of Liberal rule under Justin Trudeau that executives widely viewed as hostile to their industry. A former board member at MEG Energy Corp., Hodgson said Canada will remain a global supplier of oil for decades. “The real challenge is not whether we produce, but whether we can get the best products to market before someone else does,” he said. The “best” kind of oil, according to Hodgson, is the cheapest with the lowest levels of risk and carbon, which underscores the urgent need for cleaner technologies. To that end, the government will spend $21.5 million supporting five projects that are involved in capturing carbon from Alberta energy plants and storing it deep underground, rather than allowing the pollution to reach the atmosphere. Inter Pipeline Ltd. , which hosted Friday’s event, said its joint project with Entropy Inc. would use their share of the funds to create a system that would capture 40,000 tonnes of carbon a year at a natural gas facility near Calgary, which the partners said is equivalent to the emissions of more than 12,200 cars. The Pathways Alliance’s signature project would create a 400-kilometre pipeline connecting more than 20 oilsands facilities in northern Alberta to an underground storage hub. The alliance was first announced in 2022, but the oilsands partners have still not made a final investment decision. The Liberal government in Ottawa recently passed legislation that empowers Prime Minister Mark Carney and his cabinet to fast-track large infrastructure projects that they consider to be in the national interest. Alberta Premier Danielle Smith recently told Bloomberg News she expects a company will emerge in the coming weeks with a proposal to build a new oil pipeline from Alberta to the northern coast of British Columbia. Enbridge Inc. had spent millions on its proposed Northern Gateway pipeline from Alberta to B.C.’s coastal community of Kitimat. But the former Trudeau government effectively cancelled the project and banned large oil tankers from stopping in the area because of its proximity to the Great Bear Rainforest. New era of nation building in Canada fuels surge in oil and gas supportHow does Canada's burgeoning LNG industry measure up to its ambitions? Hodgson said Friday he is not aware of any companies that may be looking to build an oil pipeline to the northern coast. And he would not say whether the government would lift or override the tanker ban, known as Bill C-48, to allow a project to move ahead. “When (proposals) come forward, they will be evaluated against the criteria,” he said. • Email: rsouthwick@postmedia.com