Ontario has formally opened applications for commercial-scale geological carbon storage projects, marking a major step toward deploying carbon capture and storage (CCS) infrastructure across the province. The program, announced on February 4, is designed to help heavy-emitting industries cut greenhouse gas output while supporting job creation and long-term cost savings.
Provincial officials estimate that large-scale storage deployment could reduce annual emissions by between five and seven million tonnes of CO2. The government also projects the initiative could support more than 4,000 jobs and deliver nearly $1 billion in cumulative cost savings for Ontario’s industrial sector.
Minister of Natural Resources Mike Harris said the province is positioning itself to take advantage of proven carbon storage technologies already operating elsewhere in Canada and internationally, while ensuring projects are developed under a strong regulatory framework.
New Rules Set the Foundation for Deployment
The launch follows the introduction of Ontario’s Geologic Carbon Storage Act in 2025, which established oversight requirements for site selection, project development, monitoring and long-term liability.
According to the province, the framework was shaped through multiple rounds of public consultation, stakeholder engagement sessions and technical discussion papers.
Commercial-scale carbon storage involves injecting compressed CO2 into deep underground geological formations, such as saline aquifers or depleted hydrocarbon reservoirs, where the gas can be permanently contained.
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Ontario officials note that much of the province’s storage potential is concentrated in Southwestern Ontario – a region that also hosts several of the province’s largest industrial emitters, including manufacturing and energy facilities.
Captured CO2 can originate from factories, power plants or direct air capture installations. Once captured, the gas is compressed and transported via pipeline, rail, truck or ship before being injected deep underground into porous rock formations designed to trap the carbon over the long term.
Dawn Gallagher Murphy, Parliamentary Assistant to the Minister of Natural Resources, said the regulatory framework is intended to balance environmental protection with economic development. She added that the province will continue engaging municipalities, Indigenous communities, landowners and industry stakeholders as projects move forward.
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