Energy Minister defends carbon capture technology following cancellation of Alberta project

Canada’s Energy Minister Defends Carbon Capture Technology Amid Project Setbacks

Canada’s energy minister, Jonathan Wilkinson, is standing firm in his defense of carbon capture and storage technology, despite recent setbacks in Alberta. A power company in Alberta recently abandoned a planned carbon capture project, while another project received public subsidies covering more than three-quarters of its costs.

Wilkinson emphasized the effectiveness and affordability of carbon capture and sequestration technologies, stating that they are continuously improving and becoming more cost-effective over time. He refuted claims that the technology is unproven, highlighting its long-standing presence and the ongoing advancements in scalability and cost reduction.

Carbon capture, utilization, and storage (CCUS) systems are crucial components of Canada’s climate plan, aimed at reducing emissions and meeting climate targets while sustaining the oil and gas industry, a significant contributor to the country’s economy.

The national emissions report revealed that Canada has captured and stored 7.2 million tonnes of carbon dioxide since 2017, primarily at Shell Canada’s Quest CCS facility. Shell received substantial subsidies to cover project costs, with additional funding generated through the sale of carbon credits.

Despite these advancements, challenges persist in the widespread adoption of CCUS technology in Canada. Capital Power recently scrapped a $2.4 billion carbon capture project due to economic feasibility concerns, despite government support.

Wilkinson remains optimistic about the future of carbon capture technology, emphasizing the importance of various approaches to meet clean energy regulations. The Alberta government attributed the project cancellation to delays in implementing a federal carbon capture tax credit, underscoring the need for policy support to drive innovation in the sector.