Canada Backs Three CCUS Projects With $5.8M Funding

The government of Canada is spending $5.8m to support carbon capture, utilisation and storage (CCUS) projects in British Columbia.

Tim Hodgson, Minister of Energy and Natural Resources, announced yesterday (8 September) that the funding would be divided between three made in Canada carbon management technologies.

"With these investments, Canada is moving quickly to become a global supplier of secure, reliable and low-carbon energy," said Hodgson.

>> In Other News: Investment in Low-Carbon Hydrogen Jumps

The investments include $1.3m for Svante to build new testing facilities and $2m for Anodyne Chemistries to demonstrate and scale up technologies that can produce chemicals such as formate (HCO2) from captured carbon dioxide.

Formate is an industrial feedstock used in applications including de-icing, dyeing, leather tanning and drilling fluids, with the global sodium formate market valued at around $136m in 2024 and projected to approach $195m by 2032.

Iain Evans, Chief Executive of Anodyne, said the funding will support the transformation of CO2 from a liability to a valuable asset.

"Converting CO2 into chemicals offers a profitable and scalable pathway for companies to both reduce emissions and generate new revenue streams," he said.

Vancouver-based Agora Energy Technologies will also receive $2.4m to develop CO2 capture and utilisation processes using impure flue gas.

"This grant affirms the government’s commitment to climate leadership and a decarbonised future," said Christina C. Gyenge, CEO of Agora Energy Technologies.

As part of Canada’s Budget 2021, the government allocated $219m over seven years to research, development and demonstrations to advance CCUS technologies from lab to market.

The latest projects were funded under the Energy Innovation Program, which aims to advance clean energy technologies in Canada.

In Budget 2024, the federal government announced a $93bn incentive package to be delivered by tax year 2034–35, including a CCUS investment tax credit to help Canada reach Net Zero by 2050.