The government will shell out millions to launch 11 carbon capture projects that could generate $20 billion


Emissions Reduction Alberta (ERA) has revealed that the government of the Canadian province of Alberta will invest more than $40 million in 11 projects focused on advancing carbon capture, use and sequestration (CCUS ) to accelerate Alberta’s transition to a low-emissions future.

On July 13, 2022, Emissions Reduction Alberta and the government of this western Canadian province announced approved projects for the Launch of carbon capture: design and engineering funding opportunity. The funding will advance CCUS-related technologies in step with emerging policies, with many of these projects representing the first stage of “significantly larger” overall plans of the project. According to ERA, all funded projects include be operational by 2030.

Sonya wildAlberta Energy Minister, said: “We are committed to advancing and commercializing CCUS technologies in this province. There’s a reason Alberta has been home to several world-first commercial projects. Carbon Capture Kickstart is another significant investment that will help improve the competitiveness of our energy sector and strengthen Alberta’s position as a world leader in the development of CCUS technologies.

ERA explained last Friday that if the investment proves successful, these projects could lead to more than 20 billion dollars in capital spending, creating thousands of jobs and reducing approximately 24 million tonnes of emissions per yearwhich is equivalent to reducing Alberta’s annual industrial emissions by almost 10%.

The projects that will receive funding represent industrial sectors including power generation, cement, fertilizer, forest productsand oil and gas. ERA said major Alberta transmitter sites from Medicine Hat to Industrial Heartland, Hinton to Exshaw, and in the Alberta Oilsands will participate, while this investment comes from the Technology Innovation Fund and Emissions Reduction (TIER) of Alberta.

justin rimerCEO, Emissions Reduction Alberta, said: “This significant investment will create a diverse slate of investment-ready projects, support shared knowledge of the economic and emissions reduction potential of this critical technology, and position Alberta and Canada to develop and deploy CCUS technologies including the world needs.

Additionally, this investment is expected to help Alberta businesses position themselves to take advantage of the federal government’s tax credit for capital invested in CCUS projects beginning in 2022, as well as the sequestration center approach. carbon capture program, and is aligned with the province’s $305 million over four years for future carbon capture projects.

In addition, Natural Resources Canada (NRCAN) is also committed to $50 million through its CCUS Front End Engineering Design Study (FEED) funding program to 11 projects, five of which are Alberta-based projects that also receive ERA funding. The two have worked closely to raise funds for Alberta-based projects and successful Carbon Capture Kickstart projects include:

  • Canadian Natural Resources Limited
    Oil Sands CCUS Pathways to Net Zero
    ERA funding: $5 million
    Project cost: $46.33 million
    Fort McMurray, AB
  • Heartland Generation Ltd.
    Innovative integration of carbon capture for clean energy
    ERA funding: $5 million
    Project cost: $38.37 million
  • Lafarge Canada
    Exshaw Cement Carbon Capture and Decarbonization of the Bow Valley
    ERA funding: $5 million
    Project cost: $27 million
  • Capital Power Company
    Genesee CCS
    ERA funding: $5 million
    Project cost: $12.35 million
  • Strathcona Resources Ltd.
    Carbon Capture from Post-Combustion Flue Gases at Cold Lake Area SAGD Facilities
    ERA funding: $5 million
    Project cost: $10 million
  • Entropy Inc.
    Carbon Capture Athabasca Leismer
    ERA funding: $3.3 million
    Project cost: $10.65 million
  • Agrium Canada Partnership
    Nutrien Redwater Carbon Capture Study
    ERA funding: $3.28 million
    Project cost: $12.6 million
  • ENMAX Energy Company
    Shepard Energy Center Carbon Capture Unit FEED Study
    ERA funding: $3.06 million
    Project cost: $6.11 million
    Calgary, AB
  • City of Medicine Hat
    Clear Horizon Project
    ERA funding: $2.5 million
    Project cost: $5 million
    Medicine Hat, Alta.
  • Trunk 44.01
    Hinton Bioenergy Carbon Capture and Storage Project
    ERA funding: $2.49 million
    Project cost: $15.58 million
  • Suncor Energy Services Inc.
    CO of Svante2 capture process for Suncor’s fluid catalytic cracker
    ERA funding: $950,000
    Project cost: $9.9 million

Kendall DillingPresident of Pathways Alliance, said: “Collaboration and support for Pathways Alliance’s ambitious carbon capture and storage project from governments and forward-thinking organizations like Emissions Reduction Alberta is essential to help Canada meet its climate goals. These efforts will help make our country the preferred global supplier of responsibly produced energy.

ERA further explained that these 11 projects were selected through its competitive review process, which involved a team of experts in science, engineering, business development, marketing, financing and greenhouse gas quantification. greenhouse, which led “an independent, rigorous and transparent review” supervised by an equity monitor.

Greg RetzerSenior Vice President, ENMAX Energy, said: “ENMAX is pleased to receive funding from Emissions Reduction Alberta to support our FEED study at Canada’s benchmark facility, Shepard Energy Centre. The FEED study will help advance the technology and financial analysis for adding a carbon capture unit to the largest commercial-scale natural gas-fired combined cycle facility in Canada.

Those who have received ERA funding are required to produce a final report on the results that is shared publicly for the benefit of Alberta, along with other funding proposals. In addition, they will be required to report on project results, achievements and lessons learned, including GHG reductions, job creation and other environmental, economic and social benefits.

Brian VaasjoPresident and CEO, Capital Power, explained: “ERA and the Government of Alberta play a critical role in helping industry advance advanced technologies that will help decarbonize our economy while improving competitiveness. The Genesee CCS project is expected to capture up to three million tonnes of CO2 per year and would make the re-engined Genesee 1 and 2 units a near-zero emissions source of firm, dispatchable capacity supporting Alberta’s path to decarbonization.

Since its inception in 2009, ERA has committed $830 million to 230 projects worth $6.6 billion that are helping to reduce GHGs, build competitive industries and create new business opportunities in Alberta. These projects are expected to deliver cumulative GHG reductions of 40 million tonnes by 2030.

Source link


Comments are closed.