Today, Energy and Minerals Minister Brian Jean, alongside representatives from Shell and ATCO Energy Ltd., signed the province’s first conversion of a hub evaluation agreement into a carbon sequestration agreement.
Minister Jean was joined by Susannah L. Pierce, President and Country Chair of Shell Canada, and Bob Miles, Chief Operating Officer for ATCO Energy Ltd., at the signing ceremony. The agreement transitions the Atlas Carbon Storage Hub project from evaluation to active development, allowing for the injection and permanent storage of carbon dioxide.
“Alberta is globally recognized as a leader in carbon capture, utilization, and storage (CCUS) technology,” said Minister Jean. “We’ve invested billions of dollars into projects, programs, and regulatory improvements that have streamlined processes and facilitated knowledge sharing. Our efforts have proven extremely successful, and the world is taking notice.”
The province’s Quest and Alberta Trunk Line projects have collectively captured and stored over 12 million tons of carbon dioxide since their inception. CCUS is seen as a critical technology for reducing emissions in hard-to-abate industries such as oil and gas, power generation, hydrogen production, petrochemicals, and cement manufacturing.
The Atlas project, which began development in 2022, will serve as a carbon storage hub, collecting, transporting, and storing emissions from various industries in the region. This agreement enables Atlas to move forward with regulatory approvals and commence operations.
“The geological potential of Alberta gives us a significant competitive advantage,” Jean noted. “This agreement marks a significant step in expanding our CCUS network across the province, essential for reaching our emissions targets and ensuring a sustainable energy sector.”
Susannah L. Pierce emphasized Shell’s dedication to the project and the broader CCUS initiative. “CCUS has the potential to be a generational opportunity for Alberta, creating significant economic development while addressing emissions for decades to come. The supportive policy frameworks from both the Alberta and federal governments were instrumental in our decision to invest.”
Shell’s Polaris project, which will capture approximately 650,000 tons of CO2 annually from the Scotford Refinery and Chemicals Complex, will be the first customer for the Atlas hub. This builds on the success of Shell’s Quest CCS facility, which has safely captured and stored over 9 million tons of CO2 since 2015.
Bob Miles highlighted ATCO Energy Ltd.’s role in the Atlas project and the company’s broader energy transition efforts. “Today’s announcement is a testament to our belief that achieving a lower carbon future is not just a responsibility but an opportunity. We are investing in renewable power generation, energy storage, hydrogen, and now carbon capture and storage.”
Miles also underscored the global significance of the Atlas project. “Our partners in Japan and other regions recognize the importance of this project. Alberta’s leadership in CCUS is not only crucial for the province and Canada but is also being viewed globally.”
Minister Jean addressed questions regarding the economic viability of CCUS. “While initial costs are high, we expect costs to decrease over time as technology and processes improve. This captured carbon is not just a waste product but an asset that can be utilized in various industries, adding economic value.”
The agreement is seen as the first of many, with more projects expected to follow. Alberta’s regulatory and legal frameworks, coupled with its geological suitability, make it an ideal location for CCUS initiatives.
As Alberta continues to forge ahead in the energy transition, the collaboration between government, industry, and local communities will be vital. The Atlas Carbon Storage Hub represents a significant step towards a sustainable and economically vibrant future, positioning Alberta as a leader in the global fight against climate change.