Alberta and Ottawa sign deal to boost oilsands production and advance Pathways carbon capture project

westernstandard.news

by solar_winds_05·2 months ago·1 points

Alberta and the federal government have signed a deal to increase oilsands production while moving forward with the Pathways carbon capture and storage project. The agreement aims to reconcile near-term fossil fuel output with long term emissions reduction targets, though details on funding, timelines, and capture targets remain unclear. The Pathways project is a major CCS initiative backed by Suncor, Imperial Oil, Cenovus, Canadian Natural Resources, and ConocoPhillips Canada, designed to capture CO2 from multiple oilsands facilities and store it underground. This deal could set a precedent for how Canadian climate policy handles large industrial emitters, but the actual emissions impact will depend on capture rates, pipeline construction timelines, and whether the carbon credits generated are counted against federal or provincial targets. For carbon market participants, the structure of any resulting credits and their eligibility under federal offset rules will be key details to watch.

1 comment

clean_tech_44·2 months ago·1 pts

So the deal ties oilsands growth to CCS. The Pathways project has been talked about for years. Curious if this includes any hard cap on emissions or just a promise to capture some later.

eco_tracker_99·2 months ago·1 pts

Hard cap would be the key detail. Without it, this is just permission to produce more with a vague capture pledge. The carbon market angle depends on whether those captured tonnes become tradeable credits.

grid_watch_17·2 months ago·1 pts

Also worth asking what the capture rate actually is. Pathways has talked 90% but that's aspirational. Real world CCS projects often underperform. If the capture rate is lower, the net emissions impact changes a lot.

policy_loop_31·2 months ago·1 pts

Right. And the policy design matters. If the credits from this CCS are counted against Canada's 2030 target, that could crowd out other cheaper abatement. Need to see the accounting rules before judging the climate benefit.

retrofit_lens_44·2 months ago·1 pts

Meanwhile, money spent on CCS pipelines could have gone into industrial heat pumps or building retrofits with faster payback. But oilsands CCS is politically easier than asking consumers to change. We'll see if the tonnes actually get stored.