Ottawa and the Alberta government have promised $865-million to help oil major Royal Dutch Shell PLC develop carbon capture and storage at its oilsands processing plant near Edmonton.
In a letter of intent, the governments pledged to spend the money over 15 years on the project, which Shell said has a total estimated cost of $1.35-billion. The funding comes as governments across Canada seek to meet emission-reduction goals, curb global warming and preserve oil and gas investment.
Alberta has indicated it will contribute $745-million and Ottawa will kick in $120-million for the Quest project at Shell's Scotford upgrader.
Shell, the world's second-largest non-state oil company, is still in the early stages of developing Quest, which would start storing emissions from the plant underground by the end of 2015, Shell vice-president Graham Boje said.
“There's a couple of years of work ahead of us. There's a lot more technical work to do, and then there's also the regulatory application process and approval process, as well as consultation with people in the area,” Boje told reporters.
The government support may serve as forerunner of future funding of carbon-capture systems on large industrial projects.
For more details, check out this story in The Globe and Mail.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ottawa-alberta-to-fund-carbon-capture-project/article1317268/
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