The federal government was busy doling out research grants this week for carbon capture utilization and storage (CCUS) projects even as industry leaders were complaining they're struggling to meet deadlines to slash emissions from their own operations..Natural Resources Minister Jonathan Wilkinson was in Hamilton Thursday to open expressions of interest for federally funded R&D projects focused on carbon storage and transportation funded under a $319-million program announced in 2021. The intake is also expected to support planning to address “technical, scientific or social licence barriers and generating knowledge to support the development of regulatory frameworks, codes and standards,” NRCan said in a news release..Applications will remain open until April 17 when successful applicants will then be invited to submit full project proposals for approval later this summer. The first call under the program last year focused on front-end engineering and design (FEED) studies for 11 large-scale projects representing a total outlay of $50 million.."Many of the technologies needed to reach our goal of net zero by 2050 are still in various stages of development, including decarbonization solutions such as CCUS. The Government of Canada is investing in innovative clean energy RD&D projects to help grow the economy, fight climate change and create good jobs for Canadian workers," Wilkinson said in a statement..It comes ahead of an expected rush in CCS projects after the Trudeau government ordered the oil industry to slash emissions some 42% by 2030. Time is running short because any proposed projects will subject to the same interminable environmental review and permitting processes as a pipeline or oil sands mine..In its most recent budget the feds also proposed a refundable investment tax credit valued at $2.6 billion over five years covering up to 60% of the capital cost to incentivize the development and adoption of CCUS technology. The kicker is none of the funds are available to find ways of using CO2 to increase oil production — in enhanced oil recovery for example — effectively shutting out the oil industry. .It's ironic because the world’s largest carbon capture project at Weyburn, SK has been in operation since 2008 under the auspices of the International Energy Agency (IEA). The field, which was formerly operated by Cenovus Energy, was sold in 2017. Both Alberta and Saskatchewan are considered ideal candidates for geological sequestration of CO2 owing to their long and established history of oil production..Indeed, Cenovus CEO Alex Pourbaix, speaking on behalf of the Pathways Alliance — a consortium of the country’s largest oil sands producers — told the Canadian Press the oil sands industry will be hard pressed to to meet those deadlines despite spending upwards of $70 billion over the next 30 years to decarbonize oil production. In the same interview Pourbaix defended record industry profits amid repeated criticism from Environment minister Steven Guilbeault that the energy isn’t taking enough action — ie, spending cash — to reduce its environmental footprint..Pourbaix said the companies are moving “as aggressively as (they) can. “We’re not yet at the point where we can invest billions in these projects,” he said..Meanwhile, the Alberta government last week took its own first steps to creating CCUS hubs by inviting bids for long-term leases to permanently store CO2 in underground rock formations.
The federal government was busy doling out research grants this week for carbon capture utilization and storage (CCUS) projects even as industry leaders were complaining they're struggling to meet deadlines to slash emissions from their own operations..Natural Resources Minister Jonathan Wilkinson was in Hamilton Thursday to open expressions of interest for federally funded R&D projects focused on carbon storage and transportation funded under a $319-million program announced in 2021. The intake is also expected to support planning to address “technical, scientific or social licence barriers and generating knowledge to support the development of regulatory frameworks, codes and standards,” NRCan said in a news release..Applications will remain open until April 17 when successful applicants will then be invited to submit full project proposals for approval later this summer. The first call under the program last year focused on front-end engineering and design (FEED) studies for 11 large-scale projects representing a total outlay of $50 million.."Many of the technologies needed to reach our goal of net zero by 2050 are still in various stages of development, including decarbonization solutions such as CCUS. The Government of Canada is investing in innovative clean energy RD&D projects to help grow the economy, fight climate change and create good jobs for Canadian workers," Wilkinson said in a statement..It comes ahead of an expected rush in CCS projects after the Trudeau government ordered the oil industry to slash emissions some 42% by 2030. Time is running short because any proposed projects will subject to the same interminable environmental review and permitting processes as a pipeline or oil sands mine..In its most recent budget the feds also proposed a refundable investment tax credit valued at $2.6 billion over five years covering up to 60% of the capital cost to incentivize the development and adoption of CCUS technology. The kicker is none of the funds are available to find ways of using CO2 to increase oil production — in enhanced oil recovery for example — effectively shutting out the oil industry. .It's ironic because the world’s largest carbon capture project at Weyburn, SK has been in operation since 2008 under the auspices of the International Energy Agency (IEA). The field, which was formerly operated by Cenovus Energy, was sold in 2017. Both Alberta and Saskatchewan are considered ideal candidates for geological sequestration of CO2 owing to their long and established history of oil production..Indeed, Cenovus CEO Alex Pourbaix, speaking on behalf of the Pathways Alliance — a consortium of the country’s largest oil sands producers — told the Canadian Press the oil sands industry will be hard pressed to to meet those deadlines despite spending upwards of $70 billion over the next 30 years to decarbonize oil production. In the same interview Pourbaix defended record industry profits amid repeated criticism from Environment minister Steven Guilbeault that the energy isn’t taking enough action — ie, spending cash — to reduce its environmental footprint..Pourbaix said the companies are moving “as aggressively as (they) can. “We’re not yet at the point where we can invest billions in these projects,” he said..Meanwhile, the Alberta government last week took its own first steps to creating CCUS hubs by inviting bids for long-term leases to permanently store CO2 in underground rock formations.
