Former Syncrude executive Eric Newell has been named head of a multimillion-dollar provincial climate change technology fund that could begin allocating money to Alberta companies by the end the year.

"Alberta should be the energy province, not the fossil fuel province," said Newell, who retired as chancellor of the University of Alberta last year.

"Believe me, we need every form of energy that we can find for this planet. And we need to use every form in the most responsible and efficient way."

Major industrial greenhouse gas emitters who exceed Alberta government-set limits can either buy offset credits, or pay $15 into the Climate Change and Emissions Management Fund for every tonne over their cap.

Newell will chair the board for what government calls an independent, arms-length corporation to administer the climate change fund--which currently holds a balance of more than $122 million.

He and a board will be in charge of distributing funding to Alberta companies working on in-province greenhouse gas-reducing research or facilities. Alberta Environment says Newell will decide the size of his board, and which representatives from industry and the academic world will be appointed.

The board will decide how the money is allocated. Companies do not have to contribute to the fund to be eligible for a grant. Newell said he wants the money to go toward energy efficiency, carbon capture and storage, and green energy sources such as solar and wind power.

Alberta NDP Leader Brian Mason said the Stelmach government should be more accountable for the millions in the fund.

Instead, a figure with a long history in the oilsands "has been give carte blanche to establish this board and administrate the fund in any way that he deems appropriate," Mason said. "That's too much responsibility and authority for one non-elected person."

The Alberta government often points to the fact it's one of the few jurisdictions that has set mandatory caps on industrial greenhouse gas emissions.

But it has been routinely criticized by environmental groups for using intensitybased targets-- which measure reductions against business-as-usual predictions. This means in the near future, total emissions are allowed to increase as industrial activity expands.

kCryderman@tHeHerald. Canwest.Com