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Market News

 October 08, 2009
Canada and Alberta to Invest in Major Carbon Capture Project

 Globe-net - The Governments of Canada and Alberta are investing more than $850 million in clean energy technologies that will dramatically reduce greenhouse gas emissions in the heart of Alberta’s Tar Sands.

Natural Resources Minister Lisa Raitt and Alberta Energy Minister Mel Knight, announced the signing of a letter of intent with Shell Canada on behalf of the Athabasca Oil Sands project which will support the development of a large-scale carbon capture and storage (CCS) project at the Shell Quest project in Alberta.

A total of $865 million will be invested by the two governments in the project, a joint venture among Shell Canada (60 percent), Chevron Canada Limited (20 percent) and Marathon Oil Sands L.P. (20 percent). This project will integrate CCS technology at Shell Canada’s Scotford oil sands upgrader, near Edmonton.

The provincial government has committed $745-million over the next 15 years to the Quest project, while the Canadian government will contribute $120-million through the Clean Energy Fund,  the first project supported by the Fund.

Ms. Raitt said this project could capture 1 million tonnes of carbon per year, a reduction of about 40 percent the equivalent of getting 200,000 cars off the road.

"The most viable emission-reducing technology for fossil fuels is carbon capture and storage," said Minister Raitt. "The Government of Canada is backing up our support for carbon capture and storage with substantial investments. These projects will reduce greenhouse gas emissions while creating high-quality jobs for Canadians now and benefiting our environment for future generations."

"A key goal of Alberta’s provincial energy strategy is to achieve clean energy production through leadership of technology development," said Alberta Energy Minister Mel Knight. "Commercial scale projects such as this will not only reduce greenhouse gas emissions in Canada but advance technology that can be used around the world," he added.

According to the Canada-Alberta ecoENERGY CCS Task Force report, CCS technology could allow Canada to cut its greenhouse gas emissions by as much as 600 million tonnes a year by 2050 - an amount equal to almost three-quarters of Canada’s current annual emissions.

While the project has a long way to go before completion -"The Government of Alberta and Government of Canada should be commended for their leadership and vision on advancing deployment of CCS," said Graham Bojé, VP, HSSE & Sustainable Development, Shell Canada. "Finding ways to reduce greenhouse gas emissions is one of the most important challenges facing society, and developing substantial CCS capability with governments and key stakeholders is one of our greatest priorities," he added.

The Government of Canada’s Clean Energy Fund is a $1-billion program over five years and is part of Canada’s Economic Action Plan to advance Canada’s leadership on clean energy technologies and reduce greenhouse gas emissions from energy production.

For its part the Alberta has set aside $2-billion for greenhouse gas reduction projects. Once fully developed, CCS projects in Alberta could reduce greenhouse gas emissions by four to five million tonnes per year beginning in 2015 according to the province.

For More Information: Natural Resources Canada