Lab Services Incentives Program

LSIP Program Overview

LSIP is the Alberta Laboratory Services Incentive Program created in 2024 to improve collaboration and access to lab services for early stage clean technology developers. The program was created through the Emissions Reduction Alberta (ERA) and is funded from the Government of Alberta's Technology Innovation and Emissions Reductions (TIER) fund. 

LSIP enables eligible companies to access the advanced technology available in post-secondary research institutions in Alberta, with easy access, improved efficiency and enhanced affordability. 

For detailed information on the program, see the LSIP Program here.

Objectives of the Lab Services Incentive Pilot Program:

The intended outcomes for LSIP include:

1. Improved Accessibility: Laboratory services are designed to be easily accessible to clients by enhancing responsiveness, fostering collaboration, and minimizing barriers to entry.
2. Service Efficiency: Lab services are delivered within defined targets for timelines, budgets, and other key performance metrics.
3. Increased Affordability: Clients benefit from reduced costs for lab services due to the provided incentives.
4. Technological Progress: Supported technologies advance on the Technology Readiness Level (TRL) scale toward commercialization through performance improvements, cost reductions, claim validations, and other enhancements.
5. Capacity Development: Alberta's PSIs and SMEs work together to share knowledge, insights, and best practices, strengthening their collaborative capabilities through the lab services provided.

Eligibility for the LSIP Program

LSIP Program Delivery Overview

Under the LSIP program, participating Post-Secondary Institutions (PSIs) will continue offering lab services to the private sector through their established processes. LSIP funding is designed as an incentive to reduce the cost of accessing lab services for industry while motivating PSIs to enhance access and improve service delivery.

Each PSI will independently manage the administration and finances associated with their lab services. ERA will allocate funding directly to PSIs to subsidize service costs for private sector clients and encourage researchers, laboratories, and PSI administrators to improve the accessibility and quality of their services.

PSIs will be required to report to ERA on their use of funds and progress on key performance indicators. ERA will consolidate this reporting to evaluate and communicate the program’s outcomes. By tracking the companies and technologies supported, ERA will ensure that LSIP funding aligns with its mandate and the Alberta Emissions Reduction and Energy Development Plan.

The pilot phase of LSIP will be guided by an Advisory Committee comprising representatives from participating PSIs and key stakeholders within Alberta’s innovation ecosystem, providing oversight and strategic input.

Incentive Financial Structure

The LSIP incentive for each lab service request will be offered on a partial cost-matching basis. This incentive will cover up to 50% of the total cost of a lab services project, with the client responsible for the remaining portion. An additional 10% of the project cost (capped at $10,000) will be allocated directly to the participating PSI as part of the incentive.

Incentive Amounts & Limits

The LSIP incentive for lab services projects will cover 60% of the nominal project cost, subject to the following conditions:

• Maximum Incentive: The highest incentive value for a single project is capped at $60,000.
  • For projects with a nominal cost exceeding $100,000, the incentive will be capped at $60,000.
  • ERA reserves the right to decline projects where the LSIP incentive constitutes less than 10% of the total project cost. This applies to projects with budgets exceeding $600,000.
• Minimum Incentive: The lowest incentive value available is $12,000.
  • Projects with a nominal cost below $20,000 are ineligible for LSIP.
• Client Incentive Cap: Clients may apply for multiple projects; however, the total incentive amount for any given client is capped at $100,000.

Use of LSIP Funds

LSIP funds must be directed toward services that align with the program’s focus of supporting the development of new technologies in energy, environment, and emissions reductions. For the purposes of LSIP, laboratory services are defined as activities performed by a PSI to test, validate, characterize, or advance elements of a novel technology solution being developed by an eligible client.

Eligible laboratory services may include:

• Experimental design
• Empirical studies
• Sampling and testing
• Imaging and characterization
• Compositional analysis
• Prototyping
• Other specialized activities requiring advanced equipment and expertise

Eligibility and Scope

ERA will independently assess and approve the eligibility of proposed project activities. LSIP incentives are granted for specific projects, defined as a set of lab services provided to a client within a predetermined scope and timeline to achieve a specific objective. Open-ended research programs are not eligible for funding.

Project Duration

LSIP-supported projects are expected to have a defined duration, typically completed within 3 to 9 months, depending on the project scope and services required.

Funding Breakdown

The nominal cost of services includes:

• Client Contribution: 50% of the total cost paid by the client.
• LSIP Incentive: 60% of the nominal cost, covering 50% of the project cost, plus a 5% top-up allocated to the Principal Investigator and an additional 5% top-up provided to the PSI.

This structure ensures a collaborative approach between clients and PSIs to advance novel technologies efficiently and effectively.