Oilsands giants continue work on proposed $16.5B carbon capture project, despite lingering questions

Canadian oilsands companies are working to develop a proposed $16.5 billion carbon capture project,amid mixed support fromlocal communities and ongoing questions about whether such projects are effective in the global fight againstclimate change.

The Pathways Alliance, a consortium of the country's six largest oilsands companies, says engineering and other work is ongoing forthe proposed project in northeastern Alberta,with about 250 employees.

Emissions from the oilsands representabout 12 per cent of Canada's total greenhouse gases. The sector has a goal of reaching net zero by 2050, primarily through collecting emissions and storing them underground.

Governments are committing new funding to these projects, butareport from the International Energy Agency last week warns against banking on carbon capture and storage technology to reduce emissions,urging companies to start "letting go of the illusion" that "implausibly large" amounts of carbon capture are the solution to the global climate crisis.

The IEA released thereporton the eveof this year's UN climate summit, also known as COP28, which starts on Thursday.

Some experts expect the use of carbon capture and storage will be a point of contention during climate negotiations, because some countries want to use the technology to reduce emissions, while others want limits on its use.

The IEA report isn't dissuading the Alberta government from announcing new financial support for the carbon capture sector, which Premier Danielle Smith is expected to unveil on Tuesday. Earlier this month, the federal government announced its own financial incentives for the sector, including tax credits.

Ten carbon capture and storage facilities are already operating in Alberta and Saskatchewan, with several more projectsin development.

The proposed Pathways project has the highest profile because of its focus on reducing emissions specifically in the oilsands.

The Pathways group has not yet made a decision to go ahead with the project, which would capture CO2 emissions from more than 20 oilsands facilities in northern Alberta.

The gases would be transported south by a proposed 400-kilometrepipeline to the Cold Lake region, where they would be injected underground.

"So far, we haven't seen the kinds of investments that are needed to actually make these carbon capture projects a reality, but we have seen some progress in terms of permitting," said Jan Gorski, program director for oil and gas at the Pembina Institute, a clean energy think-tank.

"Carbon capture only addresses the emissions from producing the oil. You still have emissions from when it's burned. And I think we need to [address] both."

Proposed carbon capture facilities often face criticism because the projects aren't cheap, and some environmental experts say the money could be better spent on renewable energy and other low-carbon projects.

Jobs, rent andspending

At a recent open house in Cold Lake, a city of about 15,000 peoplelocated about 300 kilometresnortheast of Edmonton, local residents came to learn more about the project, including the location of the proposed pipeline, the safety of transporting CO2, and other possible impacts.

"The impact to local residents, I think, will be minimal compared to what the speculation was," said Jerry Smith.

Cold Lake has previously experienced boom times because of oilpatch activity, which often provides an economic boost for the communitybut can have social impacts, too.

"I worry about an influx of workers making it really difficult for people working lower-wage jobs to find housing," said business owner Brooke Cory.

"I'm a little bit worried about health care provided here because we're pretty short on health-care professionals, and I'm worried about school spaces for the kids. We're pretty tight already and we're going to have, I assume, a few hundred more kids show up and then we'll be even tighter."

Cold Lake Mayor Craig Copeland is a firm supporter of the Pathways project, especially because he expects it will help fill hotel rooms, restaurants and other businesses.

The last economic boom from the oilpatch in Cold Lake was about 10 years ago, said Copeland, when the influx of workers contributedabout $250,000 every month in rent and hotel bills alone.

"This project is a very significant project and if it doesn't go through, it's going to be devastating," said Copeland.

He also expects this type of project to help keep more young people in the community, because the industry can provide jobs with a six-figure salary for people graduating high school.

"What industry can provide that for any kid right now?" he asked.

Indigenous community questionsenvironmental impact

On the nearby Cold Lake First Nations, there is much less support for the Pathways project, primarily because of safety concerns and mistrust of industry.

There have been pipeline spills in the past, along with other impacts to the First Nations' land because of nearby oilpatch activity and other development, including athe Canadian Armed Forces air weapons range.

"We've had nothing but loss from one end to the other," said Daniel Mclaughlin, a member of the Cold Lake First Nations.

He understands the urgency of climate change and the need to reduce emissions in the oilsands, but he doesn't want the project to be rushed because of its potential impacts for decades to come.

A large section of the planned storage area lies beneath their feet, where they have fished, hunted and lived for generations.

"Even with every safeguard in place, nothing seems to work perfectly," Mclaughlin said."[I have] serious concerns about pressurized carbon dioxide being pumped right across the entire land."

Alleviating those concerns is a central focus for the Pathways group executives say the project won't proceed without the support of Indigenous groups in the area.

"Honestly, we can't envision moving forward with any major infrastructure project without great partnership from Indigenous communities," said Pathways president Kendall Dilling.

"They're valid concerns. We're proposing to inject millions of tonnes per year of CO2 deep underground and in proximity to their communities, and those are very natural questions around the safety of that, that any one of us would ask."

Still, the Pathways group wants to move quickly. The group plans to file its regulatory applications in the next few months, while design and other development work continues. Construction could begin within the next 12 months.

It will be difficult for the carbon capture facility to be operational by 2030and there is no time to lose, Kendall said.

WATCH | Bulkof emissions would be stored beneath the land of Cold Lake First Nations:

Massive carbon capture facility worries Alberta residents

9 months ago

Duration 2:01

Canadian oilsands companies want to build a $16.5-billion carbon capture project near Cold Lake, Alta. Residents fear that pumping millions of tonnes of CO2 underground will endanger their communities.