The Alberta government, along with Ottawa and five prominent oilsands producers, has entered into a memorandum of understanding aimed at advancing the multibillion-dollar Pathways carbon capture and storage project. This initiative is crucial for the development of a new West Coast oilsands pipeline, intended to mitigate some of the carbon emissions that the proposed infrastructure would generate.
The agreement outlines a collaborative approach wherein the federal and provincial governments will pursue regulatory and fiscal policies designed to stimulate the growth of oilsands production. This, in turn, would ensure the pipeline transporting resources from Alberta to a tanker port in southern British Columbia can be fully utilized.
Although the Pathways agreement was officially announced on a recent Monday, it was signed on July 2, coinciding with Alberta’s submission of its pipeline proposal to the federal major projects office. Alberta Premier Danielle Smith emphasized the importance of partnerships in nation-building, stating in a news release, “The biggest nation-building projects in Canada’s history have succeeded through partnership. This agreement shows what can be achieved when governments and industry work together to grow our economy, strengthen our energy security and unlock new opportunities for people across Canada.”
This arrangement between Alberta and Ottawa is part of a broader accord signed in November, which covers various energy-related matters. Federal Energy and Natural Resources Minister Tim Hodgson remarked, “Over the last eight months, we have been steadily delivering on each commitment in the Canada-Alberta MOU, working with Alberta and the energy industry to build major energy infrastructure, reduce emissions, create jobs and prosperity, and secure energy sovereignty.”
The federal government has pledged to extend investment tax credits for an array of carbon capture technologies through until 2035. Concurrently, Alberta is set to finalize its own incentive program designed to support carbon capture initiatives.
The memorandum of understanding establishes that the Pathways Project will be implemented in stages, with infrastructure expected to be operational by January 1, 2032, and the entire project completed three years later. The consortium behind the Pathways initiative includes major players in the oilsands sector: Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy, and ConocoPhillips.
Kendall Dilling, president of the Oil Sands Alliance, expressed optimism regarding the framework established by the Pathways Project, stating, “We believe we’ve achieved a framework that is positive for the oilsands industry and provides a step forward to help enable production growth and to advance the Pathways Project.”
Once operational, the Pathways Project is projected to have the capacity to transport and store approximately six million tonnes of captured carbon dioxide annually by the mid-2030s. The initiative involves a comprehensive pipeline network designed to transport CO2 captured from various oilsands sites in northern Alberta to a designated underground storage hub near Cold Lake, Alberta.
