Strathcona and CGF to Build $2 Billion Carbon Capture Infrastructure in Canada
(Reuters) — Canadian oil producer Strathcona Resources said on Wednesday it has partnered with Canada Growth Fund (CGF) to build carbon capture and sequestration (CCS) infrastructure in Saskatchewan and Alberta provinces.
Strathcona and CGF, a federal clean-tech financing agency, will each invest up to C$1 billion ($734.38 million) to fund the project that will seek to capture and permanently store up to 2 million tonnes of carbon dioxide annually.
Carbon capture is a process through which carbon dioxide generated from industrial activity is stored underground.
Context
CGF will initially commit C$500 million to funding the project, with the option to upsize its commitment to C$1 billion.
The partners will each fund 50% of the capital costs to build CCS infrastructure on the energy producer's oil sands facilities.
Strathcona will build, own and operate the CCS projects and receive all investment tax credits. The company expects to eliminate a substantial part of its future carbon tax liability through this project.
Why It's Important
Last year, Canada said it will finance investment tax credits for CCS and net-zero energy technologies, following through on previously announced subsidies meant to attract more green investment.
Canada, the world's fourth-biggest petroleum producer, sees the process as the key to decarbonizing the country's oil sands.
Last year, Prime Minister Justin Trudeau had said he wanted his country to be a leading global supplier of green technology.
($1 = 1.3617 Canadian dollars)
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments