Canada launches $2b carbon capture initiative

The Canada Growth Fund and Strathcona Resources Ltd. are partnering on a carbon capture and sequestration project, with both parties committing up to $1 billion in funding each.

Announced Wednesday, the project aims to install carbon capture infrastructure at Strathcona’s steam-assisted gravity drainage oilsands facilities in Saskatchewan and Alberta.

Strathcona expects to capture and permanently store up to two million tons of carbon dioxide annually, though a final investment decision is still pending.

The company will retain full ownership of the carbon credits generated and expects to recoup most of its capital costs through federal tax credits and grants.

The Canada Growth Fund highlighted this collaboration as a first-of-its-kind risk-sharing approach for carbon capture and storage initiatives.