Canada invests $21.5 million in carbon capture projects
The Government of Canada has announced more than CAD $21.5 million towards Canadian-made carbon capture, utilisation and storage (CCUS) technologies to advance the energy sector while fighting climate change through clean technology and supporting emissions reduction.
The funding has been allocated to a range of projects, including the development of CO2 storage infrastructure and subsurface analysis technologies, as well as innovations aimed at reducing emissions from diesel engines.
"We are taking action to make Canada a conventional and clean energy superpower — getting good products to market, cutting emissions, creating jobs and delivering the technologies that will power our economy for decades to come. Today's announcement highlights how Canada is showing the world that we are not just talking about clean energy — we are building it, said Tim Hodgson, Minister of Energy and Natural Resources, in a news release on July 4."
This recent investment falls under Canada's Energy Innovation Program (EIP), a federal government initiative created to invest in research, development, and demonstrations that advance the commercial viability of carbon capture.
As part of Canada's 2021 Budget, CAD $319 million will be allocated over seven years towards these projects. Natural Resources Canada described the move as a significant advancement in Canada's efforts to become an "energy superpower."
Five Projects Announced
The government announced Bow Valley Carbon (a partnership involving Inter Pipeline and Entropy Inc.), Enbridge, Origins CCS, OptiSeis Solutions Ltd., and OCCAM's Technologies as projects included in this plan.
According to Paul Hawksworth, Chief Executive Officer of Inter Pipeline, the Bow Valley Carbon project will facilitate the storage of existing CO2 emissions from Inter Pipeline's Cochrane Extraction Plant. Additionally, it will explore potential opportunities for additional carbon sequestration in Western Alberta.
"[This project] will also create a path for long-term emissions reduction across the region and give other industrial emitters in the region the opportunity to meet their decarbonization goals," said Hawksworth in a statement.
Another recipient, Enbridge, is progressing with its Open Access Wabamun Hub outside Edmonton, which is expected to provide CO2 transport and storage to support industrial decarbonisation in Alberta. Colin Gruending, Executive Vice President and President, Liquids Pipelines at Enbridge, stated that five nearby Indigenous communities will be offered co-ownership of the hub's infrastructure.
Enhance Energy is also advancing its Origins CCS hub in Central Alberta. The project will capture and permanently isolate industrial CO2 emissions. Candice Paton, Vice President at Enhance Energy, stated that 1.5 million tonnes of carbon are stored each year in Origins' existing facilities.
OptiSeis Solutions, working on its geophysical subsurface technology validation project, will also receive funding. "Results from this project will help advance cleaner, data-driven technologies for enabling Canada's low-carbon energy future." stated Andrea Crook, Optiseis' Chief Executive Officer.
Finally, OCCAM's Technologies is developing emissions-reducing solutions for internal combustion engines, focusing initially on engines emitting between five and 30 tonnes of CO2 daily. Matthew Henderson, Chief Executive Officer of OCCAM's Technologies, said the company is "advancing breakthrough solutions to reduce emissions from internal combustion engines — one of the hardest sectors to decarbonize."
A suite of investment tax credits are available as the Canadian government's investments in CCUS technologies. According to Canada's 2024 Budget, these incentives, totalling CAD $93 billion by 2034–35, are intended to generate jobs and ensure the country remains on track to reduce emissions. The government has set a target of net zero by 2050. Among the credits included is the Carbon Capture, Utilization and Storage Investment Tax Credit.