The Alberta province offered on Feb. 16 to collaborate on carbon capture utilization and storage (CCUS) investments with the federal government in Canada under certain conditions, Reuters reported. Alberta asked that the government considers the province’s input and full agreement to climate policies related to oil and gas.
Alberta Premier Danielle Smith addressed Prime Minister Justin Trudeau in an open letter that said such policies include a proposed oil and gas emissions cap, regulations on clean power, and green energy jobs legislation.
Smith proposed coordinating an income tax credit on CCUS with an expansion of Alberta’s Petrochemicals Incentive Program (APIP) to feature CCUS projects.
She also called for the creation of a federal and provincial working group led by ministers to help reach an agreement on a joint incentive program in the upcoming weeks.
“Although Alberta is willing to work as an active partner with the federal government on a coordinated approach to reducing Alberta’s and Canada’s net emissions, under no circumstances will our province accept the imposition of arbitrary and unachievable targets or policies that spell the end of meaningful long-term investment in Alberta’s energy sector,” Smith wrote.
The federal government in Canada last year disclosed a C$2.6 billion ($1.93 billion) CCUS investment tax credit worth C$2.6 billion ($1.93 billion) over the next five years.
Canada’s largest oil sands producers, collaborating under the Pathways Alliance group, have requested more public financing for the development of multi-billion-dollar CCUS technology projects.
The Pathways Alliance said the fact that Alberta considers an expansion to its petrochemicals incentive program is encouraging and that Canada needed to stay competitive with U.S. green energy incentives.
Canada, which is the fourth-largest oil producer globally, aims to reduce CO2 emissions by 40%-45% below 2005 levels by the end of the decade. The oil and gas industry in the country accounts for over a quarter of all emissions.