With defence and security at the top of the global agenda, attention is turning to the strategically important location of the Arctic, and Alberta has an integral role to play.
The Arctic is an essential location for intelligence gathering and early warning systems against emerging threats. As polar ice melts due to a warming climate, it creates faster, more direct shipping routes between North America, Europe, and North Asia. China and Russia have already expressed their desire to optimise the new opportunities in the Arctic and exploit the largely untapped resources available such as oil and gas, and critical minerals.
Increased activity close to the north of Canada’s borders makes it more important to maintain a permanent presence in the Arctic to monitor activities, supported by the strengths and capabilities in Alberta.
Investing in the infrastructure to strengthen Arctic security in Canada
Canada is investing heavily in defence and security. It was announced in March that Canada met the NATO target of 2% of GDP on defence spending and has committed to increasing this to 5% by 2035. The Arctic is fundamental to Canada’s long-term security strategy, backed by a series of strategic funding announcements in recent years.
The same month, Canadian Prime Minister Mark Carney announced C$35bn of investment over the next ten years in infrastructure relating to military air bases and airports in the north of Canada.
Twelve months previously, the Canadian Government revealed it would be awarding C$420m to support operations in the Arctic, which includes the development of technologies such as drones and sensors to monitor the Arctic and expand marine surveillance.
In addition, a further C$6.69bn will be allocated to Canada’s part of the North American Aerospace Defense Command (NORAD) modernisation projects. Special funding has been designated to protect national Arctic sovereignty and upgrade Canadian surveillance systems. Over the same period, the Canadian Government has identified C$15.6bn for projects relating to NORAD infrastructure and upgrades.
Alberta is emerging as a prime location for numerous defence investments due to its existing infrastructure and potential for growth. An example includes the province’s robust development and refinement of drone technologies. An example includes the University of Calgary’s Electrical & Software and Mechanical & Manufacturing Engineering departments. Both departments conduct research into robotics and unmanned aerial vehicles (UAVs). To scale-up concepts in the field, there are dedicated testing ranges and NATO-affiliated facilities in the province.
Alongside this, the unique infrastructure available in Alberta will be vital for bolstering defence and security capabilities. “Alberta plays a pivotal role in protecting Canada’s arctic sovereignty. Alberta is the only province in Canada with the critical infrastructure capable of sustaining Canadian operations in the Arctic,” says Thomas Kargacin, senior advisor of manufacturing, aerospace and defence investment at Invest Alberta. “Alberta sits upon the junction of the CN and CPKC mainlines and the CANAMEX highway corridor, making it easy to ship goods from across the country to get them into the hands of the Canadian Armed Forces.”
Strengthening Canada’s defence supply chain for Arctic operations
A strong industrial base with domestic capabilities is essential to strengthen Canadian operations in the Arctic and beyond. A prime example of this industrial focus is the city of Edmonton in Alberta. Defence, security, and dual-use technologies are all advancing through a partnership called the Edmonton Region Defence Alliance (ERDA), which brings together the University of Alberta, Edmonton Global, Edmonton International Airport (YEG), and the Northern Alberta Institute of Technology (NAIT).
The talent and established infrastructure available in Edmonton, as well the more northern municipalities in Alberta, along with the spirit of innovation that runs through the province, all position the region as a strategic location to bolster Canada’s sovereignty for defence and security.
The ambition is to build a more resilient domestic defence supply chain that is insulated against international disruptions, which will benefit security in Canada and the Arctic. Alberta has other notable advantages that further strengthen defence and security in the Canadian Arctic.
The energy resources in Alberta that support Arctic operations
Alberta’s energy resources continue to be a critical asset in supporting Canadian operations in the Arctic. Alberta’s long history of refining hydrocarbons into fuels at scale will help Canada sustain its long-term operations in the northern polar region. A good example is jet fuel. Alberta is Western Canada’s largest producer of jet fuel. An estimated 40% of jet fuel used by Toronto Pearson Airport – the largest airport in Canada – comes from Alberta.
The abundant energy resources in Alberta also help support other dual-use technology developments, such as critical minerals. The province sits upon one of the largest lithium reserves in the world.
Companies such as Fortune Minerals have plans to extract critical minerals to build next-generation technologies. Processing of materials could take place in Alberta to access the abundant energy resources and extensive connections for logistics, with materials used to manufacture next-generation energy technologies such as batteries and other vital components.
“In order to process this lithium, a proponent will need vast amounts of energy. Alberta’s natural gas reserves and deregulated energy market make it a prime location for critical mineral processing. Companies such as E3 Lithium and Fortune Minerals are key examples,” adds Kargacin. “For Canada and its allies to sustain operations in the Arctic, they need to secure their access to critical minerals to produce the technology needed to support these operations.”
Indigenous communities and defence cooperation
Indigenous and Inuit communities have lived in the Arctic long before Canada was even a country. The insights and leadership provided through collaboration with First Nations and Inuit are profound.
Knowledge gathered over generations of the ice and terrain informs the Canadian Armed Forces and its allies how to live in the Arctic and navigate the landscape.
To support 43 Indigenous community groups throughout the province, the Alberta Indigenous Opportunities Corporation (AIOC) has issued loan guarantees totalling C$745m, covering aspects such as energy, education, infrastructure, health, and natural resources.
“Indigenous communities across Canada also play a pivotal role in Canadian procurement,” adds Kargacin. “Providing skills and solutions that can help Canada protect its Arctic domain.”
Alberta is also working closely with other Canadian provinces on the Arctic strategy. Historically, Alberta was once part of the Northwest Territories, and strong connections remain to this day across a range of industries.
With its existing infrastructure, abundant energy supplies to sustain operations and security, and Indigenous expertise, Alberta is strongly positioned as a crucial gateway to the Arctic.
To learn more about the investment opportunities in Alberta, download the document below.
