Quebec Introduces First Legal Framework for Underground CO2 Storage

Quebec has tabled legislation that would establish the province's first regulatory system for geological carbon sequestration, clearing a path for CCS projects that have been stalled without legal authorization.

Bill 17, introduced by Minister Delegate Samuel Poulin, creates rules for exploring and using underground reservoirs for carbon storage, compressed air energy storage, geothermal projects, and geological hydrogen. The legislation sets out requirements for site approvals, public consultation, operations, and eventual closure of storage sites.

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According to Poulin, multiple CCS projects are already in development across regions like Chaudière-Appalaches and Centre-du-Québec but can't proceed without a permitting framework. Bill 17 aims to fill that gap.

Projects Ready to Launch

If passed, the bill would unlock progress for companies like Deep Sky, which is targeting 2028 for its first phase of permanent CO2 storage at a site in Thetford Mines.

Deep Sky has already completed exploratory drilling and injection testing at the location, including injections of water and a water-CO2 mixture using carbon captured directly from the air. The company says this marked Quebec's first permanent underground storage of direct air capture CO2.

The firm is also conducting site assessments in Bécancour for potential future storage operations.

Another project involves a partnership between BASF and Exterra, which are working together on carbon capture and storage plans in Quebec. That project would also benefit from clearer regulatory guidelines under the proposed bill.

Balancing Climate Goals and Economic Growth

Quebec's government framed Bill 17 as part of a broader push to meet climate commitments while supporting economic development in energy and industrial sectors. By regulating underground storage of CO2 and other strategic resources, the province aims to create certainty for investors and developers while ensuring environmental oversight.

The bill is expected to undergo review and debate in the National Assembly before potential adoption. If approved, it would provide the legal foundation needed for Quebec to move forward with large-scale carbon sequestration and position the province as a hub for CCS infrastructure in Canada.