Ottawa announces funding for 5 Alberta carbon capture projects
Natural Resources Minister Tim Hodgson has recently announced $21.5 million in federal funding for five innovative projects in Alberta that are focused on reducing the cost of capturing and storing carbon dioxide emissions. These projects have been selected under the Energy Innovation Program, which called for proposals related to carbon capture, utilization, and storage technologies.
One of the recipients of this funding is Bow Valley Carbon Cochrane Ltd., a partnership between Inter Pipeline Ltd. and Entropy Inc. They are set to receive $10 million to enhance a gas extraction plant located northwest of Calgary. The goal of this project is to capture emissions that are equivalent to removing over 12,000 cars from the road annually.
Enbridge Inc. and Enhance Energy Inc. are also among the recipients, receiving $4 million and $5 million respectively for their separate carbon storage hubs in Central Alberta. The remaining funds will be allocated towards a project focused on advancing analysis technologies and another project aimed at testing small-scale carbon capture from diesel engines.
Despite these positive developments, there is still uncertainty surrounding the $16.5 billion carbon capture project proposed by the Pathways Alliance, a consortium consisting of six major oilsands producers. The companies involved have yet to make a final investment decision on the project, which would be one of the largest of its kind globally. Additionally, the level of support from federal and provincial governments remains uncertain.
The Pathways project involves capturing carbon dioxide emissions from numerous oilsands facilities in northern Alberta and transporting them via pipeline to a storage hub in the Cold Lake area in eastern Alberta. This storage hub is intended to prevent the emissions from entering the atmosphere.
In light of these developments, Alberta Premier Danielle Smith has proposed a “grand bargain” in which the emissions-cutting Pathways project would move forward alongside the construction of a new crude oil pipeline to the West Coast. However, no company has yet come forward with a proposal to build such a pipeline.
The Canadian government is currently evaluating which projects, deemed to be in the national interest, will undergo an expedited regulatory review under new federal legislation. This decision will play a crucial role in shaping the future of carbon capture and storage initiatives in the country.
Overall, the funding announcement for these Alberta projects marks a significant step towards advancing carbon capture and storage technologies in the region. As the government continues to prioritize emissions reduction and environmental sustainability, these initiatives will play a key role in achieving these goals.
