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HomeCanadian NewsAlberta to 'kickstart' carbon seize initiatives with $40-million fund

Alberta to ‘kickstart’ carbon seize initiatives with $40-million fund


The funding comes from Alberta’s carbon levy on giant industrial emitters

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Practically a dozen carbon seize initiatives from Alberta’s oilpatch and industrial sectors will obtain an injection of money from the provincial authorities aimed toward accelerating the deployment of greater than $20 billion in capital spending on emissions discount.

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Emissions Discount Alberta (ERA) introduced this week it might present greater than $40 million to 11 carbon seize utilization and storage (CCUS) initiatives throughout the province by way of its Carbon Seize Kickstart fund.

“What we’re actually attempting to do is catalyze a whole lot of the technical work that must be undertaken (to) really see carbon seize applied sciences deployed,” ERA CEO Justin Riemer stated in an interview with the Monetary Put up.

“What’s thrilling about that is that there are a number of sectors which might be profiting from this chance and pursuing plans for Class 3 (value estimates) and Class 4 feasibility research to evaluate the readiness for carbon seize within the power sector, oil and fuel, oilsands, fertilizer sector, cement (and) electrical energy.”

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Among the many recipients of the funds are power producers, together with a consortium of oilsands firms proposing a significant trunkline and carbon sequestration hub, in addition to particular person carbon seize initiatives from Suncor Power and Strathcona Assets. Funds may also go to initiatives proposed by Enmax, Lafarge Canada and Nutrien.

The funding comes from Alberta’s carbon levy on giant industrial emitters. 5 of the initiatives may also obtain extra funds from Pure Assets Canada to advance engineering and design work.

The money enhance is a part of a set of latest authorities bulletins — together with the federal authorities’s new funding tax credit score for carbon seize — aimed toward pushing firms to reaching the purpose of constructing a remaining funding choices sooner in the case of carbon seize.

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Consultants say there’s no time to waste if Canada’s giant emitters are to fulfill the daunting greenhouse fuel targets specified by the newest federal emissions discount plan. These embody a requirement that Canada’s oil and fuel sector obtain a discount of 31 per cent from 2005 emissions ranges over the following eight years.

The velocity at which some giant emitters are actually pursuing carbon seize got here as a shock, stated ERA govt director Justin Wheler. First-generation initiatives in Canada such because the Shell Quest carbon seize mission, or SaskPower’s Boundary Dam carbon seize mission took seven to 10 years to stand up and up and working.

“(These newest initiatives) are concentrating on getting these services completed in half the time (and) the one manner to do this is to begin as we speak on the detailed engineering and economics,” Wheler stated. “That’s why I known as it a kickstart: it’s a small amount of cash within the grand scheme of issues, nevertheless it’s actually focused at getting getting individuals transferring as we speak.”

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Nonetheless, the initiatives are terribly costly and face an existential threat within the type of the political uncertainty round carbon pricing sooner or later.

The Pathways Alliance — previously generally known as the Oilsands Pathways to Web Zero alliance — is within the early phases of evaluating a large $46.33-million funding in a carbon seize mission in northern Alberta.

The proposal includes 11 separate initiatives tied right into a pipeline that might carry carbon to a sequestration hub. The group — comprised of Canadian Pure Assets, Cenovus Power, ConocoPhillips Canada, Imperial Oil, MEG Power Corp. and Suncor — will obtain $5 million from the Kickstart fund to assist advance engineering on the mission that would seize round 12 million tonnes of emissions a 12 months in its first section.

Kendall Dilling, president of the Pathways Alliance, stated the power sector is cognizant of the necessity to get transferring on initiatives whether it is to take care of the goodwill of governments and Indigenous communities.

“The Pathways (Alliance)’s raisons d’être is to do stuff. To get metal within the floor, to get constructing (options) to deal with our greenhouse fuel emissions,” Dilling stated. “There’s solely so lengthy you can plan and discuss and design. It’s vital to get to execution.”

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