Canadian hydrocarbons hotspot Alberta plans to develop a CAD 250-billion (USD 173-billion) fund to wean itself off oil and gas revenue, Bloomberg reported on Wednesday.
The province aims to have the money secured in its sovereign wealth fund by 2050.
To assist in its growth, the government targets investments in areas such as technology, energy and infrastructure, the report said.
Alberta is home to massive bitumen deposits in its oil sands. The province’s reserves equate to around 160 billion barrels of oil. The hydrocarbons sector contributes around a quarter of the province’s revenue.
The provincial government has formed a corporation, Heritage Fund Opportunities Corp., to oversee investments from its sovereign wealth fund, the Heritage Savings Trust Fund.
The Heritage Savings Trust Fund was formed in the 1970s to channel oil revenue into strengthening and diversifying the local economy. Today it holds around USD 17 billion.
The new corporation will aim to secure 9% annual returns for the fund.
Source: theenergyyear.com