Saskatchewan Petroleum Innovation Incentive (SPII)

• SPII's one-of-a-kind design makes it one of the most flexible and usable oil and gas innovation commercialization incentives in North America. When undertaking an innovative pilot, market validation, or commercial scaling project across any segment of Saskatchewan's oil and gas industry, companies with eligible projects have the ability to redeem 25 per cent of their eligible costs for transferable royalty/freehold production tax credits. These credit redemptions can even occur during the construction and operational phases of a project to help improve a company's cash flow.
• The credits are fully transferable which gives non-producers/non-royalty payers an opportunity to benefit from the program because they have the ability to transfer credits to royalty/freehold production tax payers. Also, SPII encourages multi-company projects as costs can be incurred by an entity other than the principal applicant.
• SPII has a project-specific awarded credit cap of $5 million (i.e. a $20 million project).
• SPII can be used alongside other incentive and grant programs available in Saskatchewan.

1. Eligible innovation – in order for a product, service, process or operation to be considered an eligible innovation, it must be assessed to be at least Level 7 on the Technology Readiness Level. If it satisfies the Technology Readiness Level, the innovation must also satisfy one of the following criteria:

• The project can clearly be demonstrated to be new to Saskatchewan's oil and gas industry. This means an innovation must be the first of its kind in Saskatchewan’s oil and gas industry or it must be a significant advancement on the current state of the art in terms of concept, function or design, relative to other similar innovations deployed in the industry; or 
• The eligible project can be clearly demonstrated to be at a new and significantly different commercial scale that has no technical equivalent in Saskatchewan’s oil and gas industry. The eligible project also possesses unique features and/or benefits that offer significant differentiation from current competitive offerings in the Saskatchewan marketplace, and the project itself poses new and significant technical challenges as a result of deploying the innovation at this unmatched scale. 

2. Eligible activity – the eligible innovation must be applied in a project of which the aim is:

• To improve oil and gas recovery;
• To manage adverse environmental impacts;
• To increase value-added processing capacity; or
• To commercialize oil and gas production byproducts or waste.

3. Eligible Costs – the eligible project must involve a minimum investment of $1 million in eligible costs.


4. The project must not be commercially operational prior to submitting an application to the Ministry of Energy and Resources.
   

To apply for the SPII program, companies need to complete and submit the SPII Application Form. If you have questions about the application process, refer to the SPII Program Overview and Application Instructions or contact spii@gov.sk.ca. Completed SPII Application Forms may be submitted to the Ministry of Energy and Resources via spii@gov.sk.ca

The ministry will be accepting applications from 8:00 a.m. (CST) July 8, 2019, to March 31, 2024.

SPII Program Overview and Application Instructions

SPII Application Form

For additional information on the program, contact spii@gov.sk.ca.