The Market Development Incentive Payments Fund (MDIP)

Under the terms of a Memoranda of Agreement signed between the Governments of Canada and Alberta in 1981, Market Development Incentive Payments (MDIP) were provided to the federal government by Alberta natural gas producers and the Alberta Government to develop new markets for Alberta natural gas. A total of CAD 160M in MDIP funds were provided to NRcan in 1981 to support a series of five natural gas distribution and promotion programs. A major goal of the MDIP Fund is to undertake projects to demonstrate alternative applications of natural gas as well as their greenhouse gas emission-reduction benefits over other fuels. Current projects focus on 2 themes: 1) natural gas in transportation and 2) combined heat and power.

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