Canada Growth Fund and Strathcona Resources to partner on carbon capture project

CALGARY — The Canada Growth Fund is partnering with Strathcona Resources Ltd. on a carbon capture and sequestration project, with each group contributing up to $1 billion in funding.

In a press release Wednesday evening, Strathcona announced that the project will involve building carbon capture and sequestration infrastructure on the company's steam-assisted gravity drainage oilsands facilities across Saskatchewan and Alberta.

The company says it expects to capture and permanently store up to two million tonnes of carbon dioxide a year through the project, for which a final investment decision has not yet been made.

Strathcona says it will build, own and operate all the carbon capture projects, and will retain full ownership of the associated carbon credits.

The company says it expects to recoup substantially all of its share of the capital costs through the federal carbon capture tax credit and other grants.

A press release from the Canada Growth Fund says the partnership is a first-of-its kind approach to sharing the risk of carbon capture and storage.

This report by The Canadian Press was first published July 10, 2024.

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The Canadian Press