Shell to move forward with Polaris carbon capture project near Edmonton

Shell Canada indicated Wednesday that it will continue its investment in its Polaris carbon capture project, located at the industrial complex Scotfordnortheast of Edmonton.

The company also announced its decision to invest, jointly with ATCO EnPowerin a carbon storage project called Atlas.

Both projects are expected to begin operating around the end of 2028, Shell wrote in a statement, adding that it is an equal partner in the Atlas project, of which the first phase will permanently store the carbon dioxide captured by the Polaris project.

CO emissions₂ captured by Polaris will be transported to the Atlas facility, via an approximately 22 km pipeline to two storage wells. The CO₂ will be stored there approximately 2 km underground.

A future phase of the Atlas project, which would possibly store carbon for Shell, ATCO and other companies, remains subject to a future investment decision.

Objectives revised downwards

In a press release, the Calgary-based company specifies that the Polaris project is designed to capture approximately 650,000 tonnes of CO₂ per year. This is 100,000 tonnes per year less than what was first announced three years ago.

Asked why it lowered its ambitions, Shell, through Stephen Doolan, its public relations director, explains: 2 that the project could capture.”,”text”:”After first announcing Polaris in 2021, we performed further engineering and design work and revised the projected amount of CO2 the project could capture.”}}”>After first announcing Polaris in 2021, we conducted additional engineering and design work and revised the projected amount of CO₂ that the project could capture.

An announcement against a backdrop of doubt about the effectiveness of capture

Huibert Vigeveno, division director at Shell, says Polaris and Atlas are important steps in reducing emissions from the oil company’s refinery and chemical complex, Scotford.

According to him, Carbon capture and storage (CCS) is a key technology to achieve the climate goals of the Paris Agreement.

According to Susannah Pierce, president of Shell Canada, the Polaris project will reduce emissions from the refinery by approximately 40%, and those from the chemical complex by approximately 22%. So this is a substantial amount in our eyes and a very good step forward.

However, Shell’s announcement comes amid recent failures of other CSC across the country, despite considerable investments from the federal and provincial governments, have ended up casting doubt on this technology.

For example, Capital Power had to abandon its carbon capture project at its $2.4 billion Genesee coal-fired power plant, citing economic viability concerns.

The coal-fired power plant capture project Boundary Dam, in Saskatchewan, is capturing less carbon than the promised rate.

Susannah Pierce assures, however, that both projects will benefit from the success of her Questalso located at Scotford. Valued at $1.35 billion, it benefited from provincial assistance of $745 million and $120 million in federal assistance.

We have greater certainty about the project. We have carried out additional design and engineering work. We are very excited to move forward.

The project Questalready operational since 2015, has made it possible to store nine million tonnes of CO₂ at a lower cost than expected. Its capture rate, of 77%, however, remains lower than the 90% initially announced.

Susannah Pierce adds that the company has the experience and financial support necessary for the success of its projects.

Projects galvanized by tax incentives

M^me Pierce explains, moreover, that the recent approval of the federal tax credit for carbon capture and sequestration, a credit intended to help launch capture projects, also played a role in Shell Canada’s decision to moving forward with the Polaris project

We were delighted to see that the Carbon Capture and Sequestration Investment Tax Credit finally received Royal Assent. So that was a key element.

However, critics continue to point out that Canada’s goals for reducing emissions from the oil and gas sector should not depend on a technology that continues to face serious setbacks.

A recent report from the International Energy Agency said oil companies need to start abandon the illusion that quantities implausibly high carbon capture solutions are the solution to the global climate crisis.

With information from Wallis Snowdon, Kyle Bakx and The Canadian Press