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 🧪 $400M Bet on Blue Ammonia: Industry Giants Push Carbon Capture in Louisiana 🏭 Linde Signs Long-Term Agreement to Supply Industrial Gases to World-Scale Low-Carbon Ammonia Facil...
Inside This Issue 🔌 BP's Indiana Exit Is Not the Endgame for Clean Hydrogen ☀️ Cadiz Signs Second MOU for Hydrogen - Solar Development at Cadiz Ranch 🏗️ Heidelberg Materials Inaugurates Brevik CCS...
Inside This Issue 🧩 Who Gets Left Behind? Inside the Senate Plan Reshaping America's Clean Energy Future 🌿 TMD Energy Limited Enters into Strategic Memorandum of Agreement to Advance Green Bioener...
Carbon Upcycling Technologies ("Carbon Upcycling"), a leader in carbon and resource utilization, announced today the closing of its USD 18 million investment round led by Builders Vision, a team of...
BUSE Gases Limited is excited to announce a transformative 10-year offtake agreement with Acorn Bioenergy, marking a significant leap forward in our commitment to sustainability and innovation. Un...
Back by Aramco Ventures, Khosla Ventures, Mitsubishi Heavy Industries America, and TDK Ventures, Spiritus is set to transform carbon removal, turbocharging America’s AI-driven future with energy an...
WOKING, England--Linde (Nasdaq: LIN) today announced it has signed a new long-term agreement with Blue Point Number One, a joint venture between CF Industries, JERA and Mitsui & Co.. Under the ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.