Carbon Capture and Storage (CCS) was supposed to be a silver-bullet to save the world from the impacts of climate change — or at least slow Alberta’s growing emissions profile.But far from being an arrow in the quiver of CO2 reduction, Edmonton-based Capital Power has pulled the plug on its $2.4 billion CCS project at its Genesee generating facility for being too expensive.“Through our development of the project, we have confirmed that CCS is a technically viable technology and potential pathway to decarbonization for thermal generation facilities including Genesee,” it said in a statement.“However, at this time, the project is not economically feasible and as a result we will be turning our time, attention, and resources to other opportunities to serve our customers with balanced energy solutions.”.”At this time, the project is not economically feasible and as a result we will be turning our time, attention, and resources to other opportunities to serve our customers with balanced energy solutions.”Capital Power.It comes after the company on Wednesday released slightly lower — but still healthy — first quarter financial and operating results. Total revenues of $1.12 billion compared to $1.27 billion the year before.Consequently, net earnings fell to $205 million or $1.57 per share from $285 million or $2.38 per share in the first quarter of 2023.Capital said it would reconsider CCS at Genesee and other locations “as economics improve.” But it was an indictment on a technology that has already received substantial moral and financial support from both the federal and Alberta governments in the form of investment tax and emissions credits.The company has already received $5 million from the government of Alberta and the project would have been able to access both federal and provincial tax credits. Then there is the matter of the emissions themselves; Capital obviously thinks it cheaper to pay carbon taxes than spend the dollars needed to avoid them..Since 2021, the federal government has offered up more than $4.6 billion in tax credits through three successive budgets.The Genesee project was expected to provide around $5.4 million in local property taxes annually ($151 million over the project life), provide up to 1,000 jobs during peak construction. Once operational In 2027, it was expected to capture up to 3 million tonnes of CO2 per year from the repowered Genesee 1 and 2 units, which would be transported and stored through Enbridge’s Open Access Wabamun Carbon Hub. As recently as last December, the company bragged Genesee 1 and 2 would rank among the cleanest base load thermal generation facilities in the world.Likewise, the Electricty Canada trade group based in Ottawa, said the project was “world-leading” in terms of scope and emissions reductions.It’s a setback for the UCP government and Premier Danielle Smith who has repeatedly touted CCS as a solution that would allow Alberta to continue using natural gas generation while achieving net-zero power production by 2050.Environmentalists were quick to jump on the latest news.Canadian based Environmental Defence issued a statement trashed the decision and CCS as a failed technology that isn’t viable without massive taxpayer subsidies.“This decision is just the latest failure in carbon capture’s terrible track record. It should serve as a lesson for governments on how reckless it is to be using taxpayer dollars to subsidize these projects,” it said.“Carbon capture is unnecessary, ineffective and expensive. The bottom line: the most effective way to deal with carbon dioxide emissions is to prevent them from ever being created, rather than trying to pluck them from the air or smokestacks and inject them underground.
