The Alberta government has reversed a controversial beer tax increase that would have significantly raised costs for mid-sized breweries, including Big Rock Brewery. The original policy lowered the production threshold for the highest tax rate from 40 million litres to 18 million, which Big Rock said would have cost them an extra $1.4 million annually. Citing US aluminum tariffs and the need to support local businesses, the Province has now raised the threshold to 30 million litres and made tax increases more gradual. Big Rock welcomed the move, noting the timing is ideal as summer production ramps up and aluminum costs rise. The company had already paid an estimated $400,000 more under the short-lived fee schedule. Alberta’s Small Brewers Association praised the reversal and is pushing for a 50 million litre cap, similar to Saskatchewan. While Beer Canada initially supported the original change as fairer to smaller brewers, it is now calling for broader, lasting tax relief.
Speaking of alcohol, Alberta Gaming, Liquor and Cannabis (AGLC) has announced the immediate return of US liquor products to store shelves after a three-month suspension. The original ban, imposed in March, was meant to support Canadian producers in response to American tariffs. Premier Danielle Smith had justified the move as a way to prioritize local alcohol purchases amid trade tensions. While US liquor imports are now allowed again, products shipped after March 4th will still face a 25% surtax. Minister Dale Nally said lifting the restrictions reflects Alberta’s renewed commitment to fair trade with the US and opens the door for smoother negotiations ahead of the next Canada-US-Mexico trade agreement renewal.
The Alberta Electric System Operator (AESO) has introduced a temporary cap on how many large-scale data centres can be added to the provincial power grid due to an overwhelming surge in demand. Until 2028, only 1.2 gigawatts of capacity will be allocated for new data centre projects exceeding 75 megawatts, despite receiving proposals totalling over 16 gigawatts. AESO CEO Aaron Engen emphasized the need to balance investment with grid reliability and said the limit is designed to maintain system integrity while enabling gradual development. The cap still allows for billions in potential investment, and AESO is prioritizing projects based on municipal support and financial readiness. Alberta’s government remains optimistic about attracting up to $100 billion in AI-focused data centres, many of which may generate their own off-grid power. AESO is currently evaluating 15 filtered proposals, with more possibly being excluded based on feasibility. While it’s unclear how many projects relate to AI, cloud computing, or cryptocurrency, all must demonstrate their impact on the grid before gaining approval.
Alberta has signed a new agreement with the Canadian Association of Energy Contractors to reduce inspection stops for oilfield service rigs. Under the deal, rigs that meet specific safety standards and subscribe to the Drivewyze pre-clearance program will be allowed to bypass certain weigh and inspection stations. Transportation Minister Devin Dreeshen said the move addresses long-standing industry concerns and will allow rigs to spend more time in the field and less time on administrative tasks. The rigs, which often operate in consistent convoys with little variation in weight or equipment, will now be equipped with transponders for automated clearance, similar to the Nexus system for border crossings. Industry leaders say the change reflects the unique operating conditions of oilfield service rigs, which often travel limited distances annually.
Premier Danielle Smith says she sees a “breakthrough” in talks with US officials on energy cooperation, particularly regarding Canada's potential role in supporting American energy dominance. During meetings in Washington, Smith emphasized Alberta’s resources - such as oil, gas, uranium, and electricity - as crucial to a shared North American energy strategy. Despite ongoing concerns over President Trump’s steep tariffs on steel and aluminum, Smith believes there’s growing recognition in the US of Canada's value as an energy partner. She criticized the aluminum tariffs as counterproductive, noting that the US relies heavily on Canadian aluminum, which is produced more efficiently using hydroelectricity. Smith acknowledged that discussions around other sectors like manufacturing, food, and timber remain unresolved, but the tone of the talks has been positive. She also expressed hope for progress on trade issues before the G7 summit in mid-June, possibly through a temporary agreement.
Alberta and Ottawa have announced what they’re calling a “grand bargain” that would link new oil pipelines with major investments in decarbonization technology. Premier Danielle Smith and Prime Minister Mark Carney signalled openness to fast-tracking a West Coast pipeline if it carries “decarbonized barrels.” While both leaders expressed optimism, energy experts are skeptical, warning that carbon capture may not be profitable and could deter future investment. The proposed $16.5-billion Pathways project, which aims to store emissions underground, has stalled due to lack of funding and uncertain returns. Smith argued that revenues from expanded exports could make such initiatives viable, but critics say international competitors like Mexico and Venezuela have an advantage by not requiring costly emissions technology.
