Alberta CCEMC providing $46M for carbon capture and storage and cleaner energy projects in oil sands region
13 July 2012
Alberta, Canada’s Climate Change and Emissions Management (CCEMC) Corporation is providing C$46 million (US$45 million) in funding to support six new carbon capture and storage and cleaner technology projects in the Canadian oil sands region. The projects have a combined value of more than $327 million (US$321 million).
The organizations receiving funding from CCEMC are:
Cenovus Energy Inc.: $10 million for a Chemical Looping Steam Generator - 10 MW Pilot at Christina Lake near Fort McMurray.
Husky Energy: 2.9 million for the Lashburn CO2 Capture Demonstration Project near Lloydminster
Imperial Oil: $10 million for a Cyclic Solvent Process pilot in Cold Lake
Inventys Thermal Technologies Inc.: $3 Million for the VeloxoTherm CO2 Capture Project at Joffre
MEG Energy Corp.: $10 million for Heavy Crude Quality Improvement in the Alberta Industrial Heartland Region
N-Solv Corporation: $10 million for the N-Solv BEST Pilot Plant at Suncor Dover in Fort McMurray
CCEMC estimates these six projects will combine to reduce emissions by more than 183,000 tonnes over 10 years, and that does not consider further emissions reductions as technology is commercialized. The potential emissions reductions that could be realized through build out and commercialization of these technologies is estimated at five megatonnes by 2021. For every dollar CCEMC invests in these projects, about another seven dollars are also invested.
The six projects are from the CCEMC's fourth round of funding that was announced in April 2011. The maximum CCEMC funding per project for this round is $10 million.
With this announcement, CCEMC has announced plans to support 31 projects with a total commitment of more than $156 million. In total, these 31 projects are valued at more than $828 million. Combined, the CCEMC estimates they will reduce emissions by nearly eight megatonnes over 10 years in Alberta. In addition, the organization has also announced support for biological and adaptation projects.
Funding for CCEMC is collected from industry. Since 2007, Alberta companies that annually produce more than 100,000 tonnes of greenhouse gas emissions over a baseline are legally required to reduce their greenhouse gas intensity by 12%. Companies have three options to meet their reduction target: improve the efficiency of their operations; buy carbon credits in the Alberta-based offset system; or pay $15 into the Climate Change and Emissions Management Fund for every tonne over the reduction limit.
CCEMC is now in the fourth year of operations. By the end of the 2011/12 operating year, the CCEMC expects to be involved in close to $1 billion of active projects.
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