Canada To Provide C$63 Million Funding For Carbon Capture Pipeline
25 November 2009 - 6:44AM
Dow Jones News
The Canadian government said Tuesday it will provide C$63
million (US$59.6 million) in funding for a carbon capture and
storage system near Edmonton, Alberta, that will capture carbon
dioxide emissions for use in enhanced oil recovery in the
province.
The Alberta Carbon Trunk Line project will capture carbon
dioxide emissions created by the process of upgrading heavy oil
produced in western Canada to lighter petroleum products, and then
store and transport emissions for use in improving oil recovery at
declining fields. The emissions will be pumped underground for the
dual purpose of extracting more oil and for keeping the emissions,
seen as a key contributor to global warming, from entering the
atmosphere.
The project will be operated in a partnership between Enhance
Energy Inc., a carbon capture technology company, and North West
Upgrading Inc., an oil upgrading company, according to a release by
Canada's Natural Resources department. Both companies are privately
owned and based in Calgary. The project will capture carbon from
North West's facilities near Edmonton and transport it south for
enhanced oil recovery in fields near Red Deer, Alberta, according
to a spokesman for the Alberta government.
The Carbon Trunk Line is the third major carbon capture
initiative announced in Alberta, which has set aside C$2 billion in
funds for carbon capture and storage projects in the province. Last
month, the Canadian and Alberta governments announced their intent
to award C$865 million in funding for a carbon capture system at a
Royal Dutch Shell PLC (RDSA, RDSB) refinery near Edmonton, and
C$774 million in funding for a similar system at a power generation
plant owned by TransAlta Corp. (TAC).
Alberta is also the main source of Canada's oil sands industry,
which has been criticized by environmentalists for its relatively
high levels of carbon emissions.
-By Edward Welsch, Dow Jones Newswires; 613-237-0669;
edward.welsch@dowjones.com
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