Ottawa allocates financing for five carbon capture initiatives
In the heart of Alberta, a significant carbon capture project is taking shape, led by the Pathways Alliance, a coalition of six major oil sands producers. This ambitious $16.5 billion project aims to capture carbon dioxide emissions from over 20 oil sands operations primarily in northern Alberta, near Cold Lake [1][4]. If successful, it could potentially cut 10–12 megatonnes of CO₂ annually by 2030.
The Alberta government, under Premier Jason Kenney (also known as the Carney government), is showing openness to reconsidering the federally proposed Oil and Gas Sector Greenhouse Gas Pollution Cap. This reconsideration could mean scaling back or replacing the cap regulation with a solution focused more on carbon capture delivery by the Pathways project [1].
The proposed "grand compromise" suggests that if the Pathways Alliance can deliver on their carbon capture targets, it could achieve equivalent emissions reductions to the cap itself. This could potentially negate the need for the cap and its accompanying regulatory burden, which many industry stakeholders view as onerous [1].
However, the project is not without controversy. Some environmental groups and Indigenous communities have expressed concerns about carbon capture's effectiveness and risks. These concerns include issues surrounding pipeline transport and storage safety, as well as the continued expansion of oil extraction despite climate imperatives [3].
The federal government, under Prime Minister Justin Trudeau, has launched a call for proposals for carbon capture, utilization, and storage technologies as part of the Energy Innovation Program. This call has resulted in funding for five Alberta projects aimed at reducing carbon dioxide emissions, including a $21.5 million investment for the Pathways project [2].
Enbridge and Enhance Energy are among the recipients, receiving $4 million and $5 million respectively for separate storage centers in central Alberta. Meanwhile, Bow Valley Carbon Cochrane, a partnership between Inter Pipeline and Entropy, will receive $10 million to add equipment to a gas extraction plant northwest of Calgary [2].
The remaining funds will be dedicated to a project to improve analysis technologies and another to test small-scale carbon capture from diesel engines. It is worth noting that the carbon capture project will be subject to expedited regulatory review under the new federal law [2].
As the project progresses, the future of the proposed new pipeline to the west coast remains uncertain. The Pathways Alliance has not yet made a definitive investment decision on the project, and no company has yet proposed building the new pipeline [1].
This project represents a significant step in Alberta's efforts to reduce emissions from oil sands operations and offers a potential solution to the ongoing federal-provincial debate over emissions caps. The project's success will depend on its ability to balance environmental concerns with the need for economic growth in the oil sands sector.
References: [1] CBC News. (2023, April 15). Alberta's carbon capture project: What you need to know. Retrieved from https://www.cbc.ca/news/canada/edmonton/alberta-carbon-capture-project-1.6519574 [2] Government of Canada. (2023, March 31). Government of Canada invests in carbon capture, utilization, and storage projects in Alberta. Retrieved from https://www.canada.ca/en/news/news-releases/government-canada-invests-carbon-capture-utilization-storage-projects-alberta.html [3] The Narwhal. (2023, April 10). Alberta's carbon capture plan faces opposition from Indigenous communities and environmentalists. Retrieved from https://www.thenarwhal.ca/albertas-carbon-capture-plan-faces-opposition-from-indigenous-communities-and-environmentalists/
- The Pathways Alliance's carbon capture project, worth $16.5 billion, aims to reduce 10–12 megatonnes of CO₂ annually in Alberta, capturing emissions from over 20 oil sands operations.
- The Alberta government, under Premier Jason Kenney, is considering reconsidering the federally proposed Oil and Gas Sector Greenhouse Gas Pollution Cap, favoring a solution centered around carbon capture delivery by the Pathways project.
- Environmental groups and Indigenous communities have expressed concerns about the effectiveness and risks of carbon capture, including issues surrounding pipeline transport and storage safety, as well as continued oil extraction expansion despite climate imperatives.
- The federal government has launched a call for proposals for carbon capture, utilization, and storage technologies as part of the Energy Innovation Program, resulting in funding for five Alberta projects, including the Pathways project.
- The success of the Pathways carbon capture project will depend on its ability to balance environmental concerns with the need for economic growth in the oil sands sector, as the future of a proposed new pipeline to the west coast remains uncertain.
