Published by Todd Bush on July 15, 2024
Canada’s government-backed Canada Growth Fund (CGF) announced the creation of a new strategic partnership with oil and gas producer Strathcona Resources agreement to jointly invest up to C$2 billion (USD$730 million) for the development of carbon capture and sequestration (CCS) infrastructure on Strathcona’s Saskatchewan and Alberta oil sands facilities.CGF commenced operations in 2023, capitalized with $15 billion for deployment over five years, aimed at helping develop a clean economy in Canada, and attracting private capital to help absorb risks and encourage investment in low carbon projects, technologies, businesses, and supply chains. The new agreement marks CGF’s sixth investment to date, with other investments including $200 million in Calgary-based carbon capture startup Entropy, and $90 million in Calgary-based geothermal energy company Eavor Technologies.
>> In Other News: NewHydrogen's CEO and Sustainable Farming Expert Explore the Role of Green Hydrogen in Agriculture
Patrick Charbonneau, President & CEO of CGF Investment Management, said:
“This partnership is a breakthrough in Canada’s journey towards decarbonizing the oil and gas sector. Alongside CGF, Strathcona intends to advance Canada’s first CCS projects in the heavy oil sector. Given the economic and environmental importance of the oil and gas sector–which represents 9% of Canada’s nominal GDP and 31% of its emissions–Strathcona’s leadership is essential and worth celebrating.”
Under the new partnership, CGF and Strathcona will each fund 50% of the capital costs to build CCS infrastructure on Strathcona’s oil sands facilities, with CGF initially committing $500 million, with the option to upsize to $1 billon.
Strathcona operates seven major oil sands facilities across Saskatchewan and Alberta, which generate approximately 3 million tonnes of production-related CO2 emissions. The new CCS partnership is anticipated to capture and permanently store up to 2 million tonnes of CO2 annually. Strathcona will retain full ownership of the CCS infrastructure and associated carbon credits, while CGF will earn a return over time through cash flows generated by the CCS infrastructure, based on actual captured volumes and costs.
Strathcona said that its rationale for investing in CCS is to mitigate its current and future carbon tax obligations, which the company said form a significant part of its operating costs, totalling approximately $65 million per year, and increasing over time based on current legislation. The company also pointed out that the agreement was made possible by the positioning of its oil sands assets directly over suitable CO2 storage reservoirs, allowing for local injection, compared to other oil sands sites in the region which would require additional CO2 transport prior to sequestration.
Adam Waterous, Executive Chairman of Strathcona, said:
“Strathcona is proud to be leading the Canadian oil and gas sector towards reducing our carbon intensity, prudently and profitably. We hope this innovative partnership with CGF will serve as a template for other producers and serve notice to the global oil and gas industry that Canada not only has one of the largest and most profitable oil resources in the world, but soon through these CCS projects, on a path toward becoming the least carbon intensive.”
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue ⚖️ CDR at a Crossroads: Is Private Sector Innovation Enough to Offset Washington's Wobble? 🌱 Exomad Green’s Biochar Field Study Reveals Significant Crop Yield Improvements In Bol...
Inside This Issue 🚀 Climeworks Raises USD 162M to Scale Up Technology 🛠️ DNV Advances Skylark to Enable Safe Scaling of CO2 Pipelines for Carbon Capture and Storage 🍁 Canada’s Rising Role in the G...
Inside This Issue 🏗️ Hyundai Unveils $6B Hydrogen-Powered Steel Mill in Louisiana, Aims to Position State as National Energy Leader 🤝 Deep Sky Inks Next DAC Deal in Germany with Greenlyte Carbon T...
Bayotech Shifts Northern California Hydrogen Hub Development to New Site to Accelerate Impact
Strategic decision enables faster path to clean hydrogen delivery and community investment HOUSTON /PRNewswire/ -- BayoTech, a global leader in hydrogen production and distribution solutions, toda...
Clean-energy Backers Blast US Budget Bill as a Setback
Bill cuts solar and wind tax credits, keeps nuclear and geothermal Energy Innovation projects 300 GW capacity fall due to bill Oil and gas industry praises bill for advancing energy dominanc...
WASHINGTON--"As Congress passes the One Big Beautiful Bill Act today, FCHEA is proud to have played a central role in helping restore the critical Section 45V hydrogen production tax credit. We com...
Next-Gen Construction: 200 & 500kVA Hybrid Fuel-Cell Power USA - English
Elemental Energy launches its latest 200 & 500kVA hybrid hydrogen-BESS solution to optimise power supplies and eliminate combustion generators LONDON, July 3, 2025 /PRNewswire/ -- Elemental En...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.