Alberta Heralds Start of New CCS Project

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Carbon at the Meadowbrook facility in Alberta will be stored underground in a saline aquifer. Rich in oil, the province is working to create a carbon-neutral economy by 2050.

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3 Million Metric Tons in CO2 Storage

Known largely for its oil riches, the provincial government of Alberta welcomed the start of commercial operations at The Meadowbrook Carbon Storage Hub, the first project of its kind in Canada.

Industrial Info Resources data show the facility is located in Legal, Alberta, where the carbon is stored in a deep saline aquifer. The facility started ramping up in December and operators believe it could eventually store 3 million metric tons of carbon dioxide per year.

It received the green light to proceed in December 2024.

"Projects like Meadowbrook show how Alberta is creating the conditions for long-term growth and continued private investment," the provincial government said. "As a cutting-edge, first-of-its-kind facility in Canada, the project highlights Alberta's leadership in advancing innovative, investment-driven solutions for energy production."

Alberta is the lead crude oil producer in Canada, churning out a heavy bitumen that sometimes requires open-pit mining to extract. The province, however, outlined a series of goals it needs to meet to reach a carbon neutral economy by 2050.

The project was backed by initial investments of around US$12.2 million in private funding, and was supported at the provincial level by Invest Alberta Corporation.

"Investments like this showcase the confidence in Alberta as the best place to invest, grow and build," Joseph Show, the provincial minister of the economy, said in a statement Thursday. "Alberta's government is helping companies like Bison Low Carbon Ventures innovate and create good jobs while keeping Alberta competitive on the global stage."

Carbon capture is already in service at the Quest facility, among Canada's largest. Led by Shell, the facility is designed to capture 1.2 million tons of carbon dioxide (CO2) emissions annually and cut emissions from its Scotford Upgrader by around 35% by storing emissions underground.

In May, meanwhile, the provincial government of Alberta praised a memorandum of understanding that extended federal tax credits for projects that utilize enhanced oil recovery (EOR).

EOR utilizes the injection of carbon dioxide into a well to increase the pressure for production stimulation, leaving the greenhouse gas stored underground. Alberta Premier Danielle Smith said the measure is a win-win because it enhances production while at the same time lowering emissions.

Enhance Energy is utilizing EOR at its Clive facility in Alberta. The company said operations there have permanently stored more than 7 million tons of carbon dioxide (CO2) emitted from the Alberta industrial sector since 2020.

By the Numbers

• 3 million metric tons of carbon dioxide sequestered annually
• 2050 is when Alberta wants a carbon-neutral economy

Alberta Says It's the Best Place to Do Business

In announcing Meadowbrook, the provincial government said it's the best place to do business in Canada, touting low corporate taxes and a highly-skilled labor force. While Premier Smith said she'd vote to stay, she allowed for a referendum for provincial independence to move forward.

Speaking to The Edmonton Journal, Doug Griffiths, the head of the Edmonton Chamber of Commerce, said Alberta is playing with economic fire with the referendum.

"I would say that at least the biggest consequence in Alberta right now is people putting money back into their pockets and businesses holding on to see what's going to unfold," he said in an interview published Friday.

Key Takeaways

• CCS running strong in oil-rich Alberta
• An independence referendum could detract investors

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).