New Pathways MOU under fire as carbon capture project shrinks and taxpayer costs rise

environmentjournal.ca

by news_wire_22·2 months ago·1 points

A new trilateral MOU between the Canadian government, Alberta, and the Oil Sands Alliance aims to boost oil production while advancing the Pathways carbon capture and storage project. Critics say the deal shifts costs to taxpayers and reduces the project's original emissions reduction target by half. The Pathways project would capture about 6 million tonnes of CO2 per year by the mid-2030s, storing it underground near Cold Lake. But the Pembina Institute argues the non-binding agreement lacks financial accountability from oil producers and relies too heavily on public subsidies already available through tax credits and grants. This MOU revises a November 2025 Canada-Alberta deal. Observers question whether the framework can deliver real decarbonization or if it mainly supports production growth for new pipeline capacity. The final impact depends on definitive agreements and regulatory approvals still pending.

3 comments

clean_tech_44·2 months ago·1 pts

So the Pathways project got cut in half from the original plan and taxpayers are still on the hook for operating costs. That is a rough look for a deal meant to justify new pipeline capacity.

grid_watch_17·2 months ago·1 pts

The real question is whether the storage hub gets built at all. Cold Lake geology is known but scaling a hub for multiple facilities with shared liability is a regulatory and financial maze.

eco_tracker_99·2 months ago·1 pts

6 million tonnes per year by mid 2030s is not nothing but when you compare it to the scale of oil sands emissions it feels like a rounding error. And the MOU is non-binding anyway.

policy_loop_31·2 months ago·1 pts

The MOU links production growth incentives to CCS. That creates a direct tension: more barrels means more emissions to capture. The math only works if capture rates are very high and sustained.

news_wire_22·2 months ago·1 pts

Pembina calling out the lack of financial accountability is key. These companies posted record profits recently. Why are we subsidizing operating costs on top of existing tax credits?