Carbon Capture and Storage
Carbon Capture and Storage (CCS) balances the economic benefits our province receives from the development of its resources and our responsibility to reduce greenhouse gas (GHG) emissions.
Alberta has committed a total of $1.3 billion over 15 years to fund two large-scale CCS projects:
These projects will reduce Alberta's GHG emissions by 2.76 million tonnes annually beginning in 2015. That's the equivalent of taking 550,000 Alberta vehicles off the road.
Additionally, the use of CO2 for enhanced oil recovery (EOR) means that CCS has the potential to generate future royalty revenue.
The sharing of these consolidated, unofficial copies of the agreements that have been signed for CCS projects in Alberta is part of the ongoing effort to provide information about CCS projects and their development. The agreements are posted for information purposes only and shall not be reproduced in any manner, in whole or in part, except with the prior written consent of the Government of Alberta and the appropriate project.
The agreements are legal documents and are separated into a number of sections that cover a range of complex issues that may or may not arise through the course of project development, deployment, and operation.
The agreements are based on the CCS program’s principles, which were laid out in the 2008 Full Project Proposal. The goal of the project selection process, which was completed in 2009, was to encourage the development of integrated CCS facilities that will capture and permanently store up to five million tonnes of carbon dioxide per year in 2015.
The following questions and answers have been prepared to answer some common questions people have about the agreements. Printable FAQ
The following funding principles are reflected in the agreements:
- The percentage of funding provided by all government bodies (provincial and federal) will be limited to a maximum of 75% of total incremental CCS costs.
- Funds disbursed prior to commencement of operations will be limited to a maximum of 40% of the total approved funding for the project and will be paid on specific project milestones. These funds are fully repayable if construction is not completed by December 31, 2017.
- A maximum of 20% of the total approved funding for the project will be paid on commencement of operations.
- The remaining approved funding (at least 40%) will be disbursed as CO2 is captured and sequestered, over a maximum period of 10 years.
- After all incremental CCS costs, plus a mutually accepted rate of return have been recovered by the project, no funding is provided to the project.