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Canada Embracing Carbon Capture and Storage (CCS) to Reduce Emissions and Sustain Energy Industry

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From EnergyNow.ca

Alberta has firmly led the Canadian charge on CCS. It has more CO2 storage capacity than Norway, Korea, India, and double the entire Middle East, according to the Global CCS Institute.

Back in 2007, the Alberta and federal governments established a task force on carbon capture and storage (CCS) as a way of reducing emissions from oil, gas, and energy operations. That led to a report in 2008 that said: “CCS is seen as a technological solution that allows Canada to continue to increase its energy production while reducing (carbon dioxide) emissions from these activities. . . .

“CCS is strategically important to Canada for several reasons. First and foremost, Canada is endowed with an abundance of fossil fuels (including an unparalleled oil sands resource).”

The task force noted that public support for CCS was high, with 64% of the public being open to the idea of government financial support for CCS. All that happened under the Conservative Stephen Harper government, which, in 2015, lost power to the Justin Trudeau Liberals.

Trudeau himself went on to say in 2017 these memorable words: “No country would find 173 billion barrels of oil in the ground and leave them there.”

That’s not a message repeated since, and certainly not by his relentless minister of environment and climate change, Steven Guilbeault. On CCS, Guilbeault maintains that while carbon capture and storage “is happening in Canada,” it is not the “be-all and end-all.”

Much more positively, we now have Jonathan Wilkinson, Canada’s energy and natural resources minister, saying he expects 20 to 25 commercial-scale CCS projects to break ground in Canada within the next decade.

And we finally have what Ottawa first promised in 2021: a system of tax credits for investments in carbon capture — which industry sees as a way to get those 20 to 25 carbon-capture projects built.

The tax incentive covers up to 50 per cent of the capital cost of CCS and CCUS carbon-capture projects. Although energy company Enbridge points out that tax incentives in the U.S. are more attractive than what Canada is offering.

“CCUS” is one of the carbon-capture models. It stands for Carbon Capture Use and Storage or Carbon Capture Utilization and Sequestration. Under CCUS, captured carbon dioxide can be used elsewhere (for example, to increase the flow from an oilfield, or locked into concrete). Or it can be permanently stored underground, held there by rock formations or in deep saltwater reservoirs.

Canada’s climate plan includes this: “Increased use of CCUS features in the mix of every credible path to achieving net zero by 2050.”

As well, the feds have supported a couple of smaller CCS projects through the Canada Growth Fund and its “carbon contract for difference” approach.

To date, Alberta has firmly led the Canadian charge on CCS. It has more CO2 storage capacity than Norway, Korea, India, and double the entire Middle East, according to the Global CCS Institute.

post-image_(1).jpgFrom the Alberta government’s Canadian Energy Centre

In the most recent move in Alberta, Shell Canada announced it is going ahead with its Polaris carbon capture project in Alberta. It is designed to capture up to 650,000 tonnes of carbon dioxide annually from Shell’s Scotford refinery and chemicals complex near Edmonton.

That works out to approximately 40 per cent of Scotford’s direct CO2 emissions from the refinery and 22 per cent of its emissions from the chemicals complex.

Shell’s announcement sparked this from Wilkinson: “The Shell Polaris announcement last week was a direct result of the investment tax credit.”

Also in Alberta, the Alberta government notes: “The Alberta government has invested billions of dollars into carbon capture, utilization and storage (CCUS) projects and programs. . . . The Alberta government is investing $1.24 billion for up to 15 years in the Quest and Alberta Carbon Trunk Line (ACTL) projects.”

Quest is Shell’s earlier Scotford project. “The project is capturing CO2 from oil sands upgrading and transporting it 65 km north for permanent storage approximately 2 km below the earth’s surface. Since commercial operations began in 2015, the Quest Project has captured and stored over 8 million tonnes of CO2.”

The Alberta Carbon Trunk Line is a 240-km pipeline that carries CO2 captured from the Sturgeon Refinery and the Nutrien Redwater fertilizer plant to enhanced oil recovery projects in central Alberta. Since commercial operations began in 2020, the ACTL Project has captured and sequestered over 3.5 million tonnes of CO2.

Shell and partner ATCO EnPower now plan a new CCS project at Scotford. And, on a smaller scale, Entropy Inc. will add a second phase of CCS at its Glacier gas plant near Grande Prairie.

And those are just two of Alberta’s coming CCS projects. That province is working on at least 11 more that could lead to over $20 billion in capital expenditures and reduce about 24 million tonnes of emissions annually — the equivalent of reducing Alberta’s annual industrial emissions by almost 10 per cent.

And then there’s the giant CCS project proposed by the Pathways Alliance, a partnership representing about 95% of Canada’s oil sands production.

“The project would see CO2 captured from more than 20 oil sands facilities and transported 400 kilometers by pipeline to a terminal in the Cold Lake area, where it will be stored underground in a joint carbon-storage hub. . . . A final investment decision is expected in 2025.”

Alberta alone has more CO2 storage capacity than Norway, Korea, India, and double the entire Middle East, according to the Global CCS Institute.

When Wilkinson spoke in favor of CCS, Capital Power had just backed away from building a carbon-capture facility at its Genesee power plant in Alberta. But Enbridge, which would have built the associated storage hub, is still “strongly interested.”

In Saskatchewan, which also offers government support for CCS, more than 5 million tonnes of CO2 have been captured at SaskPower’s Boundary Dam 3 power plant. “Someone would have to plant more than 69 million trees and let them grow for 10 years to match that.”

In B.C., natural gas company FortisBC offers small-scale carbon-capture technology to help businesses that use natural gas to save energy and decrease greenhouse gas emissions.

And the B.C. government says that, potentially, two to six large-scale CCS projects could be developed in northeast B.C. over the next decade.

“Small-scale operations currently exist in B.C. that inject a mixture of CO2 and H2S (hydrogen sulfide) deep into underground formations. This process, which is referred to as acid-gas disposal, already occurs at 12 sites.”

Elsewhere, CCS projects are operating or being developed around the world, including in Australia, Denmark, and the U.S. A CCS project in Norway has been in operation for 28 years.

It took a while to get the ball rolling in Canada, but CCS/CCUS is here to stay, reducing emissions and keeping industries alive to contribute to the economy.

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New children’s book demonstrates how the everyday world is connected to natural resources

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From the Canadian Energy Centre

‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’

After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.

Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.

“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.

“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.

The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.

Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.

Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre

“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.

“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”

Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.

She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.

Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.

Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.

“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”

Richens’ books can be purchased on her website at tcrenvironmental.com.

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Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean

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From Energy Now

By Calgary MP Greg McLean

Government in Full Reverse

Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.

It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:

  • We need to diversify our resource trade
  • We need to build pipelines and infrastructure to get our exports to tidewater
  • We need to streamline our regulatory burden that stands in the way of development
  • We need to halt the escalating carbon tax
  • We need to reverse the capital gains tax increase

The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.

If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.

I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.

Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.


Minister Late to Critical Mineral Strategy

Here’s a gem of wisdom from December’s Fall Economic Statement:

Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices.  This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.

Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:

During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.

Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.

What a great idea!

Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:

Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.

Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.

FULL REPORT

Conservative Dissenting Recommendations

My question to the Minister:  ‘What took you so long?’

This approach was presented three and a half years ago – and the Government chose to ignore it then.  

No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:

  • The Clean Electricity Regulations (still opaque)
  • Canada’ role in shipping hydrocarbons to the world
  • Building energy infrastructure

To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies.  We effectively have not had a Minister of Natural Resources under his tenure.

Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.

It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day.  Time and our future have been wasted.

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