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.   

Knowledge Sharing Reports 

Alberta's investment in CCS will also help make carbon capture and storage technologies more accessible. Both funded CCS projects are required to share technical information and lessons learned.  This will help future CCS projects from around the world benefit from the lessons learned in Alberta. Your acceptance of the disclaimer and terms of use is required prior to viewing the reports.

Project Funding Agreements

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 ProposalPDF icon. 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.

Alberta Carbon Trunk Line Project Funding AgreementPDF icon
Alberta Carbon Trunk Line Knowledge Sharing Schedule 

Quest Project Funding AgreementPDF icon
Quest Project Knowledge Sharing Schedule

The following questions and answers have been prepared to answer some common questions people have about the agreements. Printable FAQPDF icon

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.

Frequently Asked Questions about the Funding Agreements

How does the Government of Alberta ensure that funds are being used for the activities described in the funding agreements?
What happens if the projects are not completed on schedule, and do not reach commercial operation by 2015?
Where are the schedules to the agreements?
Is there any relationship with funding agreements from the federal government?
What is going to happen with the projects after 2025 when all funding has been provided?