Capital Power Cancels $2.4B Carbon Capture Project In Canada

Capital Power Cancels $2.4B Carbon Capture Project In Canada - Carbon Herald

In a chilling turn of events for the carbon capture sector, Capital Power Corp. announced it will no longer be pursuing its planned $2.4-billion carbon capture project. 

Although the company has confirmed the project’s technical viability, the reason cited for its withdrawal is the lack of economical feasibility. 

The proposed carbon capture and storage (CCS) project was to be built at the company’s Genesee natural gas-fired power plant.

Alberta’s energy grid relies strongly on natural gas, which most analysts say will require a mix of decarbonization solutions, including renewables, nuclear power and CCS, to reduce its carbon footprint.

Relevant: CO280, Aker Carbon Capture And Microsoft To Scale-Up Carbon Capture Projects In US And Canada

The Genesee project would have also been a significant step forward for Edmonton-based Capital Power toward its goal of reaching net-zero emissions by 2045. 

However, the company’s decision to pull the plug quickly cast a shadow over the entire CCS industry, reinforcing existing doubts and skepticism as to its ability to bring about meaningful climate action.

Activist group Environmental Defence immediately labeled the move as yet another example of carbon capture’s terrible track record. 

“It should serve as a lesson for governments on how reckless it is to be using taxpayer dollars to subsidize these projects,” the group stated.

Relevant: Canada’s Manitoba Province Announces CCS Legislation

“Carbon capture is unnecessary, ineffective and expensive. The bottom line: the most effective way to deal with carbon dioxide emissions is to prevent them from ever being created, rather than trying to pluck them from the air or smokestacks and inject them underground.”

The Canadian government is heavily invested in the support of the nascent technology with separate provinces already making significant steps towards limiting the amount of CO2 to enter the atmosphere.

Manitoba is among the latest examples, as the province just recently introduced legislation aimed at facilitating CCS initiatives by industries.

Similarly, British Columbia, Alberta, and Saskatchewan already have implemented federally approved carbon capture, utilization and storage (CCUS) frameworks.

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