Nov 18, 2021
Carbon capture projects are a popular topic of conversation in some provinces with Canada’s carbon tax set to more than quadruple by 2030. There are some limitations to these projects that need to be considered, Osler’s Sander Duncanson, partner, Regulatory, Environmental, Indigenous and Land, said in an interview with Engineering-News Record.
“There is a lot of interest – that’s for sure – it’s too early to say how many of these projects are actually going to proceed,” says Sander. “The economics around carbon capture are still challenging.”
Sander says that profit margins are thin and paying another operator, such as a pipeline operator, to funnel carbon to an underground storage hub would be an added expense. For some oil and gas operators, it may make more sense to store carbon on site, although that isn’t possible for companies working in Alberta’s oil sands region where geological conditions prevent building underground carbon storage complexes.
Read the full article by author Scott Van Voorhis posted on November 18, 2021