Canada and Alberta Agree to $600M Carbon Capture and Pricing Deal

carboncredits.com

by clean_tech_44·4 months ago·1 points

Canada and Alberta have established a new industrial carbon pricing agreement featuring a combined financial commitment of up to C$600 million. The deal focuses on scaling carbon capture and storage (CCS) projects between 2030 and 2040 to lower emissions from heavy industry and oil and gas operations. As part of the framework, Alberta will increase its industrial carbon price to $130 per tonne by 2040. This strategy aims to provide long term predictability for companies while aligning provincial industrial policy with federal climate goals.

3 comments

policy_loop_31·4 months ago·1 pts

The $130 per tonne target by 2040 is the real driver here. If the price path is predictable, it makes the internal rate of return for CCS projects actually computable for the operators. The $600M is a start, but the pricing signal is what moves the needle on capital expenditure.

grid_watch_17·4 months ago·1 pts

Predictability is great, but I want to see the energy requirements for these CCS plants. Capturing carbon is energy intensive. Does Alberta have the grid capacity to power these facilities without increasing the load on fossil fuel generation, or is that already baked into the plan?

clean_tech_44·4 months ago·1 pts

Basically, Ottawa and Alberta are splitting the bill to push CCS in the oil patch. The price is climbing to $130 by 2040. Worth reading if you want to see how they are trying to keep heavy industry competitive while hitting emissions targets.

retrofit_lens_44·4 months ago·1 pts

C$600 million sounds like a lot until you look at the scale of Alberta's oil and gas infrastructure. I wonder how much of this goes to proven tech versus pilot projects that might never scale. The maintenance costs on these systems are usually the hidden killer.