Alberta
Clean energy think tank says Alberta has the resources to lead Canada in carbon capture and storage
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From the Canadian Energy Centre
By Cody Ciona
In August, two new CCS projects in the province got the green light to proceed
Alberta has strategic advantages in carbon capture and storage (CCS), a core technology to achieve carbon neutrality, says a director with the low-carbon energy think tank Clean Prosperity.
“I think it’s important for us to remember that we have the people, we have the geography and we have that great policy environment to be able to lead on CCS across the country,” Adam Sweet said during a recent webinar.
According to the International Energy Agency, 45 commercial CCS facilities are in operation worldwide.
Alberta has five operational CCS projects, which have stored roughly 14 million tonnes of CO2, and dozens more projects are in various development stages.
The province is situated atop the Western Canada Sedimentary Basin, which boasts an abundance of potential storage space for captured carbon.
According to a study by Clean Prosperity, Alberta has around 79,000 megatonnes of pore space available in underground saline aquifers and mature or depleted oil and gas wells.
“One of the main reasons why CCS is so big in Alberta is, frankly, we have the geology,” said Sweet.
In August, two new CCS projects in Alberta got the green light to proceed.
Shell and partner ATCO EnPower announced they will build a new CCS project at the Scotford refinery and chemicals complex near Edmonton, while on a smaller scale, Entropy Inc. will add a second phase of CCS at its Glacier gas plant near Grande Prairie.
Combined, the projects are expected to capture and store about 810,000 tonnes of CO2 per year, the equivalent of taking nearly 200,000 cars off the road annually. Entropy’s project is to start in 2026 and Shell/ATCO’s in 2028.
Sweet said that in addition to Alberta’s geological ability to store vast quantities of CO2 underground, the province has advantages including the Technology Innovation and Emissions Reduction (TIER) regulation, an industrial carbon price that has existed for nearly 20 years.
This regulation covers around 60 per cent of Alberta’s total emissions and around half of Canada’s total industrial emissions, according to Clean Prosperity. The ability to generate carbon credits makes TIER attractive for companies considering CCS.
“Those facilities that invest in carbon capture and storage and can reduce or can create these carbon credits by coming underneath the benchmark, they can then sell those carbon credits,” said Sweet.
He said that in addition to the TIER regulation, Alberta’s expertise and knowledge of energy production are another key asset that makes it an attractive jurisdiction for CCS.
“We often forget that we have knowledge and experience of working underground, as well as working with everything from the valves to the pipes and all the different pieces that exist in this low carbon energy economy.”
Government support is helping drive new CCS development.
Alberta is finalizing its carbon capture incentive program, which covers up to 12 per cent of eligible capital costs, while the federal government has implemented its CCS investment tax credit, which covers up to 60 per cent of capture equipment and 37.5 per cent of the cost for transportation, storage or usage equipment.
Both governments have supported CCS projects in the past: Shell’s $1.3 billion Quest project received $745 million from Alberta’s government and $120 million from Ottawa, while the $1.2 billion Alberta Carbon Trunk Line received $495 million from Alberta and $63.2 million from the federal government.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
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