Ottawa announces funding for five Alberta carbon capture projects

Carbon capture and storage projects are seen as a key to meeting emission goals, and five projects in Alberta are getting an influx of federal funds.

Ottawa has announced more than $21.5 million of federal funding towards Alberta-based carbon capture, utilization and storage (CCUS) technologies.

The new federal Minister of Energy and Natural Resources, Tim Hodgson, made the announcement just outside of Cochrane Friday.

It’ll give money to five different projects in the province that aim to lower the cost of capturing and storing carbon dioxide emissions.

The made-in-Canada tech will be put to, according to Ottawa, “advancing CO2 storage sites and subsurface analysis technologies to cleaner diesel engines.”

“Canada can develop a world class, multi-billion dollar industry that allows us to responsibly grow our oil and gas production, and allows us to decarbonize other heavy industries,” he said. “CCUS technologies will be an essential part of this, presenting tremendous opportunity for clean growth and long-term competitiveness.”

The largest chunk of the money — $10 million — will go towards the Bow Valley Carbon Hub.

The partnership between Inter Pipeline Ltd. and Entropy Inc., will add equipment to a gas extraction plant northwest of Calgary.

The goal is to capture 40,000 tonnes of CO2 a year of emissions, roughly equivalent to taking 12,255 cars off the road annually.

“And this will create a path for long-term emissions reduction,” Inter Pipeline CEO Paul Hawksworth said. “We will be capturing and sequestering CO2 from existing operations that will be safely and permanently stored four kilometers underground.”

Enbridge Inc. is to get $4 million and Enhance Energy Inc. is to receive $5 million for separate storage hubs in Central Alberta.

The remainder of the funds are going toward a project looking to improve analysis technologies and another to test small-scale carbon capture from emitting engines.

Hodgson says Friday’s announcement shows a willingness to work together with the province.

“When I gave my first speech as a minister just six weeks ago, it was here in Alberta and I promised to be back soon,” he said. “I’m keeping my promise. Working closely with provinces is crucial, and I have to say Alberta is an MVP in our game plan.”

Alberta’s Energy Minister is thrilled with the investment.

“I think it’s great news,” Brian Jean told CTV News. “I’m glad to see the federal government coming to the table on CCUS, because it’s a situation that Alberta has a lot of natural competitive advantages in.”

“We are just scratching the surface now on the opportunities. It’s sort of like putting your money in a bank for later use.”

-with files from The Canadian Press