The following is a press release from Natural Resources Canada

Canada and Alberta Governments Invest in Major Carbon Capture and Storage Project

EDMONTON - The Governments of Canada and Alberta are investing more than $850 million in clean energy technologies that will dramatically reduce greenhouse gas emissions and generate high-quality jobs for Canadians. The Honourable Lisa Raitt, Minister of Natural Resources, and the Honourable Mel Knight, Alberta Energy Minister, announced the funding today which will support the development of a large-scale carbon capture and storage (CCS) project in Alberta.

“The most viable emission-reducing technology for fossil fuels is carbon capture and storage,” said Minister Raitt. “The Government of Canada is backing up our support for carbon capture and storage with substantial investments. These projects will reduce greenhouse gas emissions while creating high-quality jobs for Canadians now and benefiting our environment for future generations.”

“A key goal of Alberta’s provincial energy strategy is to achieve clean energy production through leadership of technology development,” said Alberta Energy Minister Mel Knight. “Commercial scale projects such as this will not only reduce greenhouse gas emissions in Canada but advance technology that can be used around the world.”

A total of $865 million will be invested by the Governments of Canada and Alberta in the Shell Quest project, a joint venture among Shell Canada (60 percent), Chevron Canada Limited (20 percent) and Marathon Oil Sands L.P. (20 percent). This project will integrate CCS technology at Shell Canada’s Scotford oil sands upgrader, near Edmonton. The application of carbon capture and storage technology could capture up to 1.1 megatonnes of greenhouse gas emissions annually, a reduction of about 40 percent.

“The Government of Alberta and Government of Canada should be commended for their leadership and vision on advancing deployment of CCS,” said Graham Bojé, VP, HSSE & Sustainable Development, Shell Canada.

“Finding ways to reduce greenhouse gas emissions is one of the most important challenges facing society, and developing substantial CCS capability with governments and key stakeholders is one of our greatest priorities.”

According to the Canada–Alberta ecoENERGY CCS Task Force report, CCS technology could allow Canada to cut its greenhouse gas emissions by as much as 600 million tonnes a year by 2050 - an amount equal to almost three-quarters of Canada’s current annual emissions.

The Government of Canada’s investment comes from the Clean Energy Fund, a $1-billion program over five years, as part of Canada’s Economic Action Plan, to advance Canada’s leadership on clean energy technologies and reduce greenhouse gas emissions from energy production.

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This step forward may be of considerable value for companies engaged in this initiative, with respect to advancing international leadership in the development of clean energy technologies.

For more information, please contact:

Jacques J.M. Shore, National Chair, Government Affairs (613) 786-0225 jacques.shore@gowlings.com

Pierre Pilote, Vice Chair, Government Affairs (514) 392-9536 pierre.pilote@gowlings.com

Henry Brown, Q.C., Past Chair, Government Affairs (613) 563-9869 henry.brown@gowlings.com