Shell Canada is in the project planning stages of a carbon capture and storage project called Quest. Shell’s plan is to take over a million tonnes of CO2 per year from the Scotford Upgrader and transport it safely via an 84-kilometre pipeline to an injection location north of the Scotford Complex. The CO2 will then be stored permanently more than two kilometres underground in thick layers of impermeable geological formations.
Shell’s Quest project would capture more than
one million tonnes per year of CO2
emissions from its
ScotFord Upgrader near Fort Saskatchewan.
Shell Canada Energy, on behalf of the Athabasca Oil Sands Project, a joint venture among Shell Canada (60 per cent), Chevron Canada Limited (20 per cent) and Marathon Oil Canada Corporation (20 per cent), is progressing Quest.
The proposed Quest project received a huge boost on June 24, 2011 when Shell announced it had signed agreements with the governments of Alberta and Canada to secure $865 million in funding for the Quest project, bringing Shell one step closer to developing a CCS project in Alberta.
The Government of Alberta will contribute $745 million from its $2 billion CCS fund while the Government of Canada will provide $120 million from its $650 million CCS fund.
“Both the Government of Alberta and Government of Canada should be commended for their leadership and vision on advancing CCS deployment in Canada,” said John Abbott, Shell’s Executive Vice President, Heavy Oil. “Finding ways to manage greenhouse gas (GHG) emissions is one of the most important challenges facing society and developing substantial CCS capability with governments and key stakeholders is one of our greatest priorities.”
“Quest would be the first application of CCS technology for an oil sands upgrading operation. Not only will it allow us to signficantly reduce the carbon footprint of our oil sands operation here in Alberta, but it will contribute to the global knowledge that will help to get other CCS projects up and running more quickly,” says Abbott.
Shell views CCS as one of the key pathways to reducing CO2 emissions along with others such as energy efficiency and developing alternative energies. The appeal of CCS stems from the technical feasibility of implementing large-scale projects, thereby starting to address the emissions of the existing base of large CO2 emitters while developing the framework and infrastructure to support broader deployment of CCS technology and maturing parallel pathways.
Regulatory applications for the Quest project were submitted in November 2010. A final investment decision depends on a range of factors including the outcome of the regulatory process and economic feasibility.
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