BANFF — Premier Danielle Smith believes the “carbon dioxide story is not over,” despite continued questions from some parties over whether the Pathways carbon capture project is necessary and will provide sufficient value for the cost.During an event hosted by the Canadian Energy Executive Association in Banff on Thursday, the premier was asked why Canada should spend billions of dollars on carbon capture when competing global oil producers do not face the same expense.Smith said that during her travels and discussions with energy and political leaders in Saudi Arabia, the United Arab Emirates and the United States, she has found that major producers are interested in reducing emissions even if the international conversation has changed in the last 18 months.“When I go to Saudi Arabia, one of the things we talk about is carbon capture, utilization and storage, how to build useful products, how they’re decarbonizing their grid and how they’re investing in some of these things as well,” Smith said.“I know that because there has been a bit of a change in the discussion in the last 18 months, it doesn’t mean that every energy producer has now said, ‘We’re not caring about these things anymore.’ They might be doing it in a different way.”The premier’s comments come as Canada’s major oil sands producers continue to work toward a final investment decision (FID) on the proposed Pathways carbon capture and storage network..Pathways Alliance president Kendall Dilling has previously stated that producers are targeting late 2027 or early 2028 for the FID, and the companies expect to settle key fiscal and policy terms with the federal and Alberta governments by mid-November, clearing the way for regulatory applications.The project has been scaled back from its original ambition of reducing annual emissions by 22 million tonnes by 2030.The revised plan now targets six million tonnes of annual carbon storage by the mid-2030s, followed by an additional 10 million tonnes by 2045.Prime Minister Mark Carney has repeatedly linked Ottawa’s support for the Smith government’s new West Coast oil pipeline proposal to the commercial advancement of Pathways.Smith did, however, acknowledge on Thursday that there are still questions as to whether carbon capture and storage will ultimately prove to be the most effective way to reduce emissions from Alberta’s energy industry, adding that nuclear power, geothermal energy and other emerging technologies could offer alternatives to spending tens of billions of dollars capturing and storing cardon dioxide.“Is carbon capture the right way to do it?” Smith asked.“Or is working with [Saskatchewan Premier] Scott Moe to get a nuclear plant on the border of Saskatchewan and Alberta so that we can decarbonize using nuclear power — is that a better way to do it?”Smith added that the memorandum of understanding (MOU) on energy she signed with Prime Minister Mark Carney does not presume that all emissions reductions will come from carbon capture alone and that some reductions will be achieved through a technology-neutral approach, which will allow industry to determine what method will work best..However, some industry insiders remain skeptical of Pathways, with Cenovus Energy CEO Jon McKenzie saying in June that Pathways would impose a substantial cost on Canadian energy producers while barely reducing global emissions.“For $20 billion to $30 billion of spend, we will reduce global emissions by 0.021%,” McKenzie said.“It’s difficult to imagine anybody would believe that this is a good use of funds, regardless of their political orientation.”Dilling has acknowledged that international attention to climate policy has diminished but said oil sands producers are taking a long-term view.He believes that reducing emissions associated with each barrel could be essential to accessing the global marketplace if climate policies regain importance, something that Smith has also suggested.“I don’t think that the carbon dioxide story is over,” Smith said on Thursday.“It may feel like no one else is focused on it, but I would say my experience has suggested otherwise.”
