Enbridge’s carbon storage project remains viable despite partner’s withdrawal

Enbridge Inc. remains committed to its proposal to build a major carbon storage hub in Alberta, despite Capital Power’s recent decision to shelve its own $2.4 billion project associated with the plan. Enbridge’s executive vice-president, Colin Gruending, expressed disappointment over Capital Power’s cancellation of the high-profile CCUS project at its Genesee natural gas-fired power plant near Edmonton.

However, Enbridge’s plan for the carbon storage hub remains alive, thanks to another proposed carbon capture project at Heidelberg Materials’ cement plant in the area. This project has garnered more financial support and is moving forward, keeping Enbridge’s storage hub proposal intact.

The Wabamun Open Access Hub, as Enbridge’s underground hub is known, has already received government approval and is designed to meet the carbon storage needs of multiple industrial emitters in the area. The Heidelberg Materials CCUS project aims to capture one million tonnes of carbon emissions annually, making it the world’s first net-zero cement facility.

Despite Capital Power’s decision, Enbridge remains interested in growing its carbon capture, sequestration, and transportation business. CEO Greg Ebel emphasized the importance of only pursuing the most competitive CCUS projects, citing more attractive tax incentives in the U.S. compared to Canada.

Enbridge reported a first-quarter profit decline compared to the previous year, attributed to non-cash losses and costs related to job cuts. However, the company’s adjusted earnings showed an eight percent increase, demonstrating its resilience in delivering energy in a changing market landscape. Analysts view Enbridge as well-positioned to navigate industry changes and transition to a lower-carbon future.