Carbon Dioxide Capture and Storage Projects Receive Funding

CALGARY - Four Canadian companies will soon lead the way in demonstrating the capture and storage of carbon dioxide (CO₂) as a way to reduce greenhouse gas (GHG) emissions. The Honourable R. John Efford, Minister of Natural Resources Canada (NRCan), today announced the awarding of $10.8 million in funding under the CO₂ Capture and Storage Incentive Program to Anadarko Canada Corporation, Apache Canada Ltd., Penn West Petroleum Ltd. and Suncor Energy Inc.

At the same time, Minister Efford put forward a call for a second round of proposals available in April 2005. A total of $4.2 million in funding is available. This round of proposals will continue to build on the cooperation between NRCan and the Government of Alberta to manage GHG emissions and enhance conventional-resource recovery.

"The Government of Canada is committed to supporting innovative uses of CO₂ to reduce GHG emissions," said Minister Efford. "It will be exciting to see the results of these projects - CO₂ storage is an important part of our climate change strategy, and we need to continue supporting new approaches that significantly reduce harmful emissions."

The four projects are located in Alberta and involve converting and reconfiguring existing wells or using new processes to explore the potential and benefits of CO₂ storage. The technology involves capturing CO₂ and storing it underground in geological formations.

"CO₂ storage has tremendous potential, particularly here in Alberta with our fossil-fuel resource base," said the Honourable Anne McLellan, Deputy Prime Minister and Minister of Public Safety and Emergency Preparedness. "These projects will help increase awareness of and investment in CO₂ capture and storage as a viable industry in Canada."

The CO₂ Capture and Storage Incentive is a two-year, $15-million program. The four companies were selected after a call for proposals on March 1, 2004.

This initiative enhances our quality of life by contributing to knowledge, innovation and technology in the natural resources sectors, which are a vital part of Canada's economy and society. It also supports the Government of Canada's commitment to building on the strength of our country and our people.