Strathcona Resources announces up to $2 billion carbon capture investment with Canada Growth Fund
CREDIT: Strathcona Resources
Strathcona Resources, a Canadian oil and gas producer, announced plans to build carbon capture and storage infrastructure at its facilities in Saskatchewan and Alberta, in partnership with the Canada Growth Fund.
The total capital to be invested will total up to $2 billion, and be split equally between the two partners, according to a statement from the Calgary-based oil producer. The carbon capture assets will be fully owned by Strathcona, which will repay the government-owned Canada Growth Fund “over time” out of cash flows generated by the infrastructure.
It’s the second major announcement in the past few weeks of a carbon capture investment by a large Canadian oil producer. Last month, Shell Canada announced it was moving ahead with a carbon capture project at its Scotford refinery and chemicals complex near Fort Saskatchewan, Alberta to capture about 650,000 tonnes of CO2 annually.
The investment by Strathcona is expected to capture up to 2 million tonnes of CO2 annually. The company said an advantage of its facilities is that they sit atop suitable carbon storage reservoirs and don’t require the carbon to be transported.
Strathcona said it expects to recoup its own capital costs - worth up to $1 billion - from investment tax credits and grants. The investment will hedge against the company’s future carbon tax liabilities, Strathcona said.
