Alberta’s carbon capture plan draws criticism from industry

Their grievances against the plan relate in particular to aspects related to the processing times for files submitted by companies interested in investing in the sector, the choice of projects by the government, or even the economic viability of the system.

Given its geology considered ideal by experts for carbon storage, Alberta is of interest to many oil companies and industries. They want to invest in carbon capture and storage facilities in order to reduce their emissions in the context of climate change.

The provincial government has received many files in this regard and has approved, to date, six project proposals near Edmonton. He is currently reviewing bids for projects across the province and wants each one to be a sort of hub designed to collect emissions from nearby facilities and store them underground.

However, companies say the provincial system creates uncertainty because they don’t know if their project will be approved or when. Furthermore, if they have to use a platform operated by another company, there are no rules in place, according to them, regarding costs or access.

There’s no doubt that it delays thingssaid Craig Golinowski, associate director of Carbon Infrastructure Partnersa Calgary-based company that invests in many projects, including carbon capture and storage.

Another Calgary-based company, Entropy Inc.., says he has a dozen projects of varying sizes that have been proposed to the Alberta government. Several of these projects are now delayed, as the company does not know whether or not the government will approve their deployment.

Two of its projects are ready for a final investment decision, but when you lose six months this year, this delay affects the actual implementation of the project. So everything is postponeddeplores Michael Belenkie, the president of the company.

In addition to the aspect of uncertainty, that relating to transparency was also mentioned. Companies wonder, for example, why certain projects are approved while others are rejected.

There is a bureaucratic process for picking winners and loserswhich is too time-consuming and favors larger companies, says Jackie Forrest, chief executive of theARC Energy Research Institutean industry-related analytics group in Calgary.

Fear of losing investments

Alex Puddifant, spokesperson for Alberta’s Department of Energy, explains that the government favors the development of central hubs, as we believe this approach is the most efficient use of porous underground space present in Alberta.

According to him, the province continues to be a leader in Canada in Carbon Capture, Utilization and Sequestration (CCUS).

This system of poles, however, is too focused on large companies and ignores small players, reacts for his part Craig Golinowski.

The effectiveness of such a system is also questioned by Jackie Forrest, who believes that the government should create an open system where any project could go ahead as long as it respects the rules of the game in force.

By limiting the number of projects, you really limit, I think, the total amount of investment in Albertashe regrets.

She adds that the current system would push some companies to turn away from the Alberta market to invest elsewhere, particularly in the United States.

Consultation promise

Alberta Energy Minister Sonya Savage was unavailable for an interview on the subject.

Alex Puddifant, however, mentions more consultations with the industry.

Our government will continue to engage with stakeholders to ensure Alberta is well positioned to deploy CCUSCarbon capture, storage and use effectively, fairly and efficiently in the best interest of Albertanshe promises.

The Alberta government, which has received more than 40 applications for carbon capture projects, expects to respond to most of those applications as early as this fall.

In addition, the federal government recently announced a new tax credit to further stimulate investment in carbon capture and storage.

With files from Kyle Bakx