Alberta, Ottawa, and five oilsands firms finalize Pathways carbon capture deal

The Alberta government, Ottawa, and five major oilsands producers signed a memorandum of understanding July 2 to advance the multibillion-dollar Pathways carbon capture and storage project.

Pathways is a condition for a new West Coast oilsands pipeline to move forward and would offset some of the carbon emissions that infrastructure would enable. The governments have agreed to pursue regulatory and fiscal policies to spur oilsands production growth, ensuring the pipeline from Alberta to a tanker port in southern British Columbia can operate at capacity.

The memorandum says the project would proceed in stages, with infrastructure in service by January 1, 2032, and the project completed three years later. The Pathways Project will have capacity to transport and store about six million tonnes per year of captured carbon dioxide by the mid-2030s.

The five energy companies behind the alliance are Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy, and ConocoPhillips. "We believe we've achieved a framework that is positive for the oilsands industry," said Kendall Dilling, president of the Oil Sands Alliance.

The federal government has committed to extending investment tax credits for various carbon capture equipment to 2035. Alberta says it will finalize its own incentive program for carbon capture.