Federal investment moves ahead while talks on $16.5 billions Pathways plan stay behind closed doors
With a $16.5bn carbon capture initiative still in limbo, the federal government has committed $21.5m to five carbon capture, utilization and storage (CCUS) projects in Alberta, targeting emissions reductions and infrastructure development.
According to BNN Bloomberg, the announcement was made by federal Energy and Natural Resources Minister Tim Hodgson, who visited the site of Bow Valley Carbon Cochrane Ltd. near Calgary.
That project—a partnership between Inter Pipeline Ltd. and Entropy Inc.—will receive $10m to equip a natural gas extraction plant with CCUS technology.
The facility aims to capture 40,000 tonnes of carbon dioxide annually, which Hodgson said is equivalent to removing over 12,000 cars from the road each year.
Enbridge Inc. is to receive $4m and Enhance Energy Inc. will be allocated $5m for separate storage hubs in Central Alberta, as per CBC News.
Remaining funds will support development of analysis technologies and small-scale carbon capture from diesel engines.
According to CTV News, the funding comes through the Energy Innovation Program, which issued a call for CCUS proposals with the goal of reducing carbon storage costs and supporting long-term emissions cuts in energy-heavy sectors.
Hodgson emphasized federal-provincial collaboration, stating, “Working closely with provinces is crucial, and I have to say Alberta is an MVP in our game plan.”
Inter Pipeline CEO Paul Hawksworth described the investment as “a tangible step forward,” and added, “We will be capturing and sequestering CO₂ from existing operations that will be safely and permanently stored four kilometres underground.”
The funding announcement comes amid ongoing uncertainty around the proposed $16.5bn project by the Pathways Alliance, a consortium representing six major oilsands producers.
As reported by BNN Bloomberg, the project would capture emissions from over 20 oilsands sites and transport them 400 kilometres to a terminal near Cold Lake for underground storage.
Companies involved in the Pathways project have yet to make a final investment decision.
Hodgson told reporters the matter is “being worked on actively” but declined to comment on whether Ottawa would offer additional funding beyond the existing tax credit, stating, “I’m not going to negotiate publicly.”
Alberta Premier Danielle Smith has pitched a “grand bargain,” proposing that the CCUS project move forward alongside construction of a crude oil pipeline to the West Coast.
However, no company has announced plans to build such a pipeline.
As per CBC News, Ottawa is currently reviewing which projects could be fast-tracked under new legislation that enables accelerated regulatory reviews for initiatives deemed in the national interest.
