(Left to right) Brian Jean, Minister of Energy and Minerals, Susannah Pierce, president and country chair, Shell Canada, and Bob Myles, chief operating officer, ATCO EnPower, sign historic carbon sequestration agreement. (Government of Alberta)

By rdnewsNOW staff

"Big Step Forward"

Government says historic signing drives Alberta towards decarbonization

Jul 8, 2024 | 3:01 PM

Carbon capture, utilization and storage (CCUS) in Alberta is taking a big step forward as the Atlas project signs a carbon sequestration agreement with Alberta’s government.

The Atlas carbon storage hub, a partnership with Shell and ATCO EnPower is described as the first hub project to convert Phase 1 of their evaluation agreement into a sequestration agreement. According to the Alberta government, this allows them the right to inject and store captured carbon dioxide on their lease, approximately 45 kilometres east of Edmonton.

Provincial officials say Alberta already produces the most ethical energy in the world, but this is described as a critical milestone for Alberta as the province works to decarbonize the industry. Officials say CCUS projects in the province have already sequestered carbon dioxide equivalent to taking more than 2.5-million cars off the road. This project, when complete, is hoped to accelerate the province’s goals.

“This is a historic agreement for CCUS development in our province,” says Brian Jean, Minister of Energy and Minerals. “We’re moving as quickly as anywhere in the world to develop CCUS, which is a critical tool in meeting our emissions targets. I am confident other hub operators won’t be far behind Atlas to get their projects moving in this new and exciting energy sector.”

With the agreement in place, the government says Atlas can now apply for necessary regulatory approvals, including Directive 65 project approval from the Alberta Energy Regulator (AER) for carbon capture, transportation and subsurface injection activities. Officials say part of this approval process also includes addressing concerns from potentially impacted stakeholders. The government say the AER only approves projects that meet Alberta’s rigorous safety and environmental standards.

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“Carbon capture and storage is a key technology to help reduce emissions from our own operations,” shares Susannah Pierce, president and country chair, Shell Canada. “Alberta is a leader in developing regulations to support CCS development and investment, and this leadership was critical in reaching today’s agreement which enables us to take the important next steps in advancing the Atlas carbon storage hub along with our partner ATCO EnPower.”

“Carbon capture and storage is vitally important in ATCO’s pathway towards net zero and advancing the Atlas Carbon Storage Hub is proof that Alberta is leading a progressive and balanced energy transition,” adds Bob Myles, chief operating officer, ATCO EnPower. “The ongoing support of the Government of Alberta and the deep expertise of our partners at Shell underscore the joint dedication needed to actively create a lower carbon future.”

When fully developed, Alberta’s government says the sequestration hubs will allow operators to safely collect, transport and permanently store captured carbon dioxide. Provincial officials say carbon storage hubs will help diversify the energy sector, including development of clean hydrogen, support a shift towards a cleaner electricity grid and help Alberta reach the goal of a carbon-neutral economy by 2050.

The government says carbon storage hubs also support plans to reduce emissions in oil sands operations and other industries such as power generation, petrochemical manufacturing, cement and steel manufacturing, biodiesel production and natural gas processing.

Alberta government quick facts

• In 2022, the government selected 25 projects to begin exploring how to develop environmentally safe carbon storage hubs.
• All projects have signed evaluation agreements to determine the suitability of their locations to safely store carbon dioxide.
• Alberta is also exploring other carbon storage scenarios and is now accepting applications for small-scale and remote carbon storage projects.
• By 2035, CCUS development is expected to generate approximately $35 billion in investment in Alberta and add up to 21,000 jobs.
• In November 2023, the government announced the Alberta Carbon Capture Incentive Program (ACCIP) to help businesses in multiple industries, such as oil and gas, power generation, hydrogen, petrochemicals and cement, reduce their emissions by incorporating CCUS technology into their operations. ACCIP provides grants of up to 12 per cent for new eligible capital costs. Alberta’s program is conditional on the federal government implementing their CCUS investment tax credit and operating support, like carbon contracts for difference for example.

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