Alberta Carbon Trunk Line receives major funding boost

The world's largest carbon capture and storage (CCS) project has received a significant funding boost – nearly half a billion dollars from the provincial government of Alberta and another $63.3 million from the federal government of Canada in Ottawa.

Executives at Enhance Energy Inc. and North West Upgrading Inc. signed a letter of intent with Alberta in June 2009 that led to the recent award of $495 million for the Alberta Carbon Trunk Line (ACTL) project. In addition, the Canadian government awarded the ACTL project a total of $63.3 million as part of the federal government's econENERGY Technology Initiative and the Clean Energy Fund.

"This project has been in the works for more than four years and our team is excited to have this support which will allow us to bring it to completion," said Susan Cole, Enhance Energy's president and CEO. "This is an example of industry and government working together on a long-term vision for Albertans. We appreciate the governments' confidence in the ACTL and look forward to working with them as we move ahead."

"The governments' investment is an environmental win for Canada," added Ian MacGregor, North West Upgrading's chairman. "Canadians will see world-scale environmental benefits, and our project will create employment for thousands while providing increased revenues to the government in the form of taxes on the margins we create by adding value to Alberta's raw materials."

Enhance Energy and North West Upgrading submitted a joint proposal for monies from the province's $2 billion CCS fund, which was developed to encourage construction of Alberta's first large-scale CCS projects. North West Upgrading is building the world's first green upgrader, which combines gasification and an integrated CO₂ management plan.

Cole said leadership by both governments has been the catalyst for the development of the CCS industry and enhanced oil recovery (EOR) development. "Their forward-thinking on CCS is going to make Canada a world leader in this increasingly important field and will generate thousands of advanced technical jobs."

Enhance is building the ACTL, a 240-kilometer pipeline that will capture, transport and distribute CO₂ for EOR. The project will safely and permanently store up to two billion tonnes (1.968 billion tons) of CO₂ in depleted oil and gas reservoirs. The initial project will occur at a field in Clive, Alberta under a joint venture with Fairborne Energy Ltd., which will act as the operator.

The environmental benefits of the project will be significant. While operating at full capacity, the amount of carbon stored will be equivalent to removing 2.6 million cars from the road.