Industry analysis examines whether oilsands operators have the financial capacity to implement large scale carbon capture and storage. The discussion focuses on the balance between high capital costs and the regulatory pressure to reduce emissions. This evaluation looks at the economic drivers for carbon capture in the Canadian energy sector, including tax incentives and the long term viability of heavy oil production in a decarbonizing global market.
Log in to join the discussion
The affordability argument usually depends on how the tax credits are structured. If the government takes the bulk of the risk, the firms can afford it, but that is a policy choice, not a market reality.
Exactly. Also, nobody mentions the energy penalty. Running these capture plants requires a massive amount of power. Where is that electricity coming from and does the grid have the capacity to handle it?
I want to see the actual O&M costs for these facilities over ten years. It is one thing to build the plant with a subsidy, it is another to maintain the hardware when the novelty wears off.
Interesting piece. It basically boils down to whether the cost of carbon taxes will eventually exceed the cost of the capture tech. The math changes quickly if oil prices dip.
