Analysts predict that financial and technology risks may cause delays in Alberta carbon capture project

Capital Power’s decision to mothball Canada’s largest carbon capture and storage project at the Genesee power plant near Edmonton has raised concerns about the future of carbon capture technology in the country. The $2.4-billion project, which would have stored three million tonnes of carbon dioxide a year, was seen as a promising way to reduce carbon emissions in industries like cement manufacture and the oilsands.

Analysts suggest that the decision reflects financial uncertainty and technological risks associated with carbon capture. While some believe that carbon capture is essential for decarbonization, others point out that it adds costs and uncertainties about who will pay for it.

Capital Power CEO Avik Dey expressed confidence in the technology’s future but cited factors like the uncertainty over carbon credits, carbon prices, and the cost per tonne of captured carbon as reasons for pulling the plug on the project. The company’s decision highlights the challenges of being the first natural gas plant to use carbon capture technology, which comes with added risks and costs.

Despite the setback, experts believe that carbon capture technology could still have a future with the right government support and technological innovations. However, until it becomes commercially viable, projects like the Genesee plant may continue to rely on public funding to move forward. The future of carbon capture in Canada remains uncertain, with the need for breakthroughs or government intervention to make it a viable solution for reducing carbon emissions.