Lowest cost carbon capture technology will reduce emissions and create jobs across oil sands in Saskatchewan and Alberta
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the announcement of the Canada Growth Fund's sixth investment.
The Canada Growth Fund and Strathcona Resources-Canada's fifth-largest oil producer-have agreed to invest up to $2 billion combined to build carbon capture and sequestration infrastructure on Strathcona's steam-assisted, gravity drainage oil sands facilities in Saskatchewan and Alberta. Upon completion, the partnership will capture and permanently store up to two million tonnes of carbon dioxide annually, unlocking Canada's pathway to lead the world with low-carbon resource exports.Supported by an initial $500 million investment from the Canada Growth Fund-which could be upsized up to $1 billion-Strathcona will begin its final detailed engineering work for the first carbon capture and sequester project, with a final investment decision expected next year. This partnership was made possible by and will benefit from the federal government's Carbon Capture, Utilization, and Storage investment tax credit, which investors are already able to claim.
The Canada Growth Fund will earn a targeted return over time with the annual cash flows generated by each carbon capture and sequestration project based on actual captured volumes, actual operating costs, and a fixed carbon price guaranteed by Strathcona.
At the heart of the federal government's economic plan is creating good-paying jobs today and for generations to come. Through the Canada Growth Fund's innovative investments in clean technology, and beyond, the government is empowering industry to decarbonize its operations and turn their ideas into success stories, helping to unlock a brighter, more prosperous future, with more good-paying jobs for Canadians.
