Alberta Mirror

Sunday, February 5, 2023

With a windfall from Ottawa arrives significant weather anticipations for the oilpatch

Alberta

Key takeaways: 

  • Thanks to a new tax credit, the enterprise ought to deliver on its promise to cut emissions.
  • Since opening in late 2015, Shell’s Quest facility close to Edmonton has caught and held nearly one million tonnes of CO2 every year, stored two kilometers underground. 

For almost a decade, the oilpatch has launched a particular answer to its issue of being the largest source of carbon emissions in the nation — to suppress them.

There are numerous ways the industry is attempting to tackle its greenhouse gas woes. Still, the tool with the most possibility is carbon capture and storage technology, which collects the carbon dioxide and stores it deep underground.

A few projects already exist in Saskatchewan and Alberta, with several facilities more prosperous than others.

As the need for the world to act on weather change grows and the stress on the oilpatch mounts, the industry has increasingly pushed for more government support to develop, build and scale up carbon capture and storage (CCS).

On Thursday, the federal government came to the table, promising quick and long-term economic help for CCS in the budget.

Read more: What Alberta can glimpse for in the federal funding

For almost a decade, the oilpatch has launched a particular answer to its issue

In the next few years, it’s not a big-ticket cost for the government, but it will escalate with the underway overload of offered facilities. 

Starting in 2026, the tax credit will cost $1.5 billion yearly.

Attached to the budget comes a stiff notice from the federal government for the sector not to pull its feet but quickly turn talk into action and deliver on its commitments.

It’s as if Ottawa called the industry’s best.

New CCS help

Ottawa has financed many projects to lower emissions in the oilpatch over the previous few years. Still, the federal funding had the most enterprising initiative yet with its new investment tax credit.

Source – cbc.ca

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