Friday, May 24, 2024

Is the momentum behind carbon capture and storage waning in Canada?

Must read

Alan Binder
Alan Binder
"Alcohol scholar. Twitter lover. Zombieaholic. Hipster-friendly coffee fanatic."

Messages CCS Nevertheless, it remains on the lips of the oil companies. A conference entirely dedicated to the topic opens Tuesday in Edmonton. last called power failure In Calgary Tech Roundtable.

But the projects are progressing more slowly than expected, admits the head of climate policy at SuncorMartha Hall Findley. The company has a large carbon capture and storage project jointly with five other oil companies in the alliance arcade.

Going forward, this alliance needs more financial and political support from the federal and provincial governments.

It’s not just a matter of the will to reduce emissions as quickly as possible, but to build the infrastructure we need, it’s taking a long time in Canada.she explained.

This summer, the United States put more pressure on the demands of Canadian companies. President Joe’s Environmental Reform Bidenadopted in mid-August, increased financial incentives for development projects CCS south of the border.

American competition

A ton of CO2 separated went from $50 to $85. The direct atmosphere capture tax credit has been increased to $180 per tonne of carbon dioxide. Even projects that use carbon dioxide to recover oil get a tax credit of $60 per ton.

Conversely, this type of technology use is not included in the tax credit declared by the Canadian government. The tax exemption, which is still subject to consultation, will apply only to the cost of building the infrastructure.

There is a lot of certainty and clarity in the United StatesAbstract Heather LeahyVice President of the Enverus Research Team. In Canada, the puzzle consists of several pieces working together, but it is also more dangerousas you say.

Assistant Director of Energy at EY Canada Participation in the conference power failure Lance Mortlock compares American and Canadian politics to a carrot and stick strategy. Instead, the United States uses the carrot to encourage companies to use CCS Whereas in Canada we use the stick with the carbon tax for examplehe explains.

According to Heather Leahey, this wand doesn’t provide enough certainty for businesses. The concern is that if there is a change in government, there will be a change in the carbon tax. It creates a mixture of hesitation and uncertaintyto remember.

The end result, according to Martha Hall Findlay, is that the United States is ahead and Canada is lagging.

What the federal government has done with the budget is an amazing and important step, but we can now look at what’s going on in the United States. There is a lot of pressure on the federal government and the provincial government to increase supportadmit.

Doubts remain

As Canadian companies urge governments to emulate the American approach, voices are being raised to halt public funding for this technology.

Earlier this month, the Australian Think Tank Institute of Energy Economics and Financial Analysis A study was published entitled L.Carbon capture: the delusional dream of decarbonization.

We look at 13 of the biggest projects in CCS Worldwide, the report shows that the vast majority do not achieve the carbon sequestration goals these projects themselves set.

Co-author Bruce Robertson points out that even projects that achieve their goals, such as Search From Shell in Canada, it produces emissions to capture and isolate emissions, which partially negates the interest CCS.

See also  Edmonton: Two companies will rent electric scooters, but with conditions

In the end, it’s a technology that generates emissions that you don’t reducesummarizes. Over the past fifty years, it has risen and failed and yet, [les entreprises] They are still able to get government support.

He’s not the only one asking for proof that the technology works before he sees millions of dollars of public money invested.

At the beginning of the year, 400 academics asked the federal government not to support the creation of carbon capture and storage projects. British NGO world witness He also questioned the track record of Shell’s Quest facility.

Martha Hall Findley

Martha Hall Findlay leads Suncor’s greenhouse gas emissions reduction initiatives.

Photo: Radio Canada

Martha Hall Findlay does not think these demands carry much weight. According to her, the more technology is used, the more it can be improved and proven to be effective.

We know it works, but it’s expensive. This is why we need to cooperate with the governmentciting the project Search. These negative voices are becoming less important and the federal government is supporting us.

She stressed that if Canada is to achieve its climate goals, it is urgent to act and help companies like hers set up their project.

Additional details on the Economic Update Investment Tax Credit will be provided in the fall of 2022. The Alberta government has not responded to our questions.

Latest article