Alberta is slowly becoming a carbon capture hotspot in Canada with companies racing to build carbon capture projects across the province in a push to accelerate the technology to meet Canada’s net zero commitment by 2050.
Companies are at the starting line with several carbon capture developments and key decisions are set to be made in the coming months that will reverberate for years.
Six Canadian oil producers have undertaken the initiative called the Oil Sands Pathways to Net Zero. It includes connecting at least eight facilities with a trunk line linked to a carbon sequestration hub.
The project, however, requires “significant collaboration” from the government. Ottawa is expected to come up with a decision for a planned carbon capture tax credit with consultations having ended on the 7th of December. Government officials are considering project proposals to cut CO2 emissions by at least 15 million tons per year. If the credit is made available, it could give the Pathways project a green light.
The energy company Capital Power is evaluating plans for a carbon capture and storage project near its Genesee Generating Station west of Edmonton. It is supposed to deliver up to 3 million tons of CO2 emissions reductions per year with operations expected to start in late 2026. The company should make an investment decision on the initiative worth $2.3 billion by early 2023.
Enhance Energy also plans for an open-access carbon sequestration hub in central Alberta. The company is already injecting CO2 shipped through the Alberta Carbon Trunk Line (ACTL) into an existing oilfield to boost recovery. According to the CEO, Kevin Jabusch, the project could potentially store up to 20 million tons of emissions a year.
Another critical event will come this year – details on a federal tax credit for carbon capture utilization and storage projects, initially announced in last April’s budget. Alberta claims it wants to see more than $30 billion in federal incentives provided to carbon capture projects over a decade. All proponents of the projects mentioned above are busy working, trying to make their efforts a reality.