CALGARY, AB — Matt Dreis, Senior Analyst at the Pembina Institute’s oil and gas program, made the following statement in response to the Canada Growth Fund’s announcement of a carbon capture funding partnership with Strathcona Resources:
“This is a positive development, demonstrating that the public funding on offer for carbon capture projects can fulfill its intended purpose and has the potential to spur other companies to move closer to final investment decisions. If these projects go ahead, they may be the first commercial carbon capture deployments in Canada’s oilsands.
“Although the structure of this deal would mean the producer assumes the risk of future changes to the carbon price, it remains the case that public money is being used to significantly de-risk these investments in carbon capture technology. As these projects move closer to final investment decision, we would like to see more details about the financing terms, so that we can be sure that the loan will be fully repaid, and Canadians receive a return on this investment within a reasonable period.
“The oilsands alone represents 12 per cent of Canada’s overall emissions – by far our heaviest emitting industry. Oilsands emissions have grown 142 per cent since 2005, during which time all other oil and gas sub-sectors have made progress to reduce emissions. Carbon capture technology isa crucial tool that oilsands companies will need to deploy to meaningfully reduce their emissions, play their part in meeting Canada’s climate targets, and remain competitive in a world based on low-carbon energy resources.
“This is also an important moment for other hard-to-decarbonize sectors, such as cement, which will also rely on carbon capture technology to decarbonize their operations. As such, it is aligned with the Canada Growth Fund’s mandate to speed the deployment of technologies that will reduce emissions and support the long-term prosperity of Canadian industries in a low-carbon world.”
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Contact
Alex Burton
Communications Manager, Pembina Institute
825-994-2558
