Overview

Alberta is among the global leaders in carbon capture, utilization and storage (CCUS), and continues to advance this technology to help our province capitalize on emerging opportunities and reduce emissions in industries across the energy sector.

To help manage the growth of this technology, Alberta is issuing carbon sequestration rights through a competitive process that enables the development of carbon storage hubs. A carbon sequestration hub will be an area of pore space, such as rock formations, overseen by a company who can effectively plan and enable carbon sequestration of captured carbon dioxide from various emissions sources as a service to industrial clients.

Alberta is seeking efficiencies in the use of pore space for carbon sequestration in the province. The intent is to ensure carbon sequestration operators plan for additional volumes and accommodate other sources of carbon dioxide. Hubs that capture carbon dioxide from a cluster of industrial emission sources will allow for efficient pore space management working with other resource development activities. This approach will ensure that carbon capture and sequestration will be deployed in a responsible, safe and strategic manner. It will be an effective way to avoid challenges associated with numerous, and potentially overlapping, sequestration proposals.

In the fall of 2021, the government requested Expressions of Interest (EOI) from companies interested in developing and operating a carbon sequestration hub in Alberta. The government received numerous EOI submissions illustrating a range of proponents (large and small), emissions sources, and storage scenarios across Alberta. Thank you to those who submitted an EOI. These voluntary submissions informed the Request for Full Project Proposals (RFPP) outlined below. 

Ensuring public and environmental safety

CCUS is a safe and proven technology that is operated in several jurisdictions in world, including Saskatchewan, the United States, and Norway. The Alberta government remains committed to ensuring public and environmental safety as we advance this technology in the province.

Located in the Western Canadian Sedimentary Basin, Alberta has the ideal geology for storing carbon. Rock formations that have securely stored oil and gas for millions of years can also safely store carbon dioxide permanently. Captured carbon dioxide from large-scale projects is stored deep below the earth’s surface, typically more than one kilometre underground.

Research demonstrates that various geological trapping mechanisms will contain the carbon dioxide deep underground. Careful site selection and rigorous monitoring serve to ensure the injected carbon dioxide remains sequestered and does not have any impact on fresh water, plants, or the soil.

For more information on the safety of carbon capture and storage. (PDF, 303 KB)

Request for Full Project Proposals

The province recognizes the need for timely and safe development of sequestration hubs and allocation of sequestration pore space.

This RFPP process will ultimately facilitate the granting of a carbon sequestration agreement (Agreement) to the successful proponent(s), establish the boundaries of the Location, and facilitate the hub manager role. The intent of this Agreement will be to:

  1. grant the successful proponent the right to drill wells, conduct evaluation and testing, establish monitoring baselines, and inject captured carbon dioxide into deep subsurface formations within previously defined zones for sequestration, while also:
  2. placing requirements on the Agreement holder that include:
    • managing the development of the hub and the efficient use of the pore space
    • ensuring open access to affordable use of the hub where appropriate
    • providing just and reasonable cost recovery to the Agreement holder

Additional information on the intended Agreement provisions, conditions and requirements can be found within the RFPP Guidelines document.

All required regulatory approvals are the responsibility of the proponent and will not be granted through this process.

Results of the First Request for Full Project Proposals

To meet the large interest that has been expressed and to move forward in a manageable manner, the province initially requested proposals that would primarily enable sequestration of carbon emissions from Alberta’s industrial heartland region near Edmonton. Government selected 6 proposals to begin exploring how to safely develop carbon storage hubs in the region. They are:

  • Meadowbrook Hub Project, Bison Low Carbon Ventures Inc. for a potential sequestration hub north of Edmonton
  • Open Access Wabamun Carbon Hub, Enbridge Inc. for a potential sequestration hub west of Edmonton
  • Origins Project, Enhance Energy Inc. for a potential sequestration hub south of Edmonton
  • Alberta Carbon Grid™, Pembina Pipeline Corporation and TC Energy for a potential sequestration hub north and northeast of Edmonton
  • Atlas Carbon Sequestration Hub (Atlas Hub), Shell Canada Limited, ATCO Energy Solutions Ltd., and Suncor Energy Inc., for a potential sequestration hub east of Edmonton
  • Wolf Midstream and partners for a potential sequestration hub east of Edmonton

Companies will begin exploring how to safely develop carbon storage hubs in the industrial heartland region. If the evaluation demonstrates that the proposed projects can provide permanent storage, companies will be able to apply for the right to inject captured carbon dioxide. Only projects that meet the rigorous safety and environmental standards will ultimately be approved by the Alberta Energy Regulator.

For more information on Public and Environmental Safety (PDF, 303 KB) and Storage Hub Development (PDF, 271 KB).

Second Request for Full Project Proposals

A second competition was launched to provide carbon storage services to regions across the rest of the province not covered by the first RFPP. This includes potential projects in the oil sands of the East Alberta region, and conventional oil and gas activity in the Northwest Alberta region. Government is currently reviewing more than 40 applications received for the second competition that closed on May 2. We expect to announce the successful projects for the second competition in the fall 2022.

The Request for Full Project Proposals (RFPP) Guidelines (PDF, 1.2 MB) will remain temporarily available for reference.

Subscribe for ongoing updates

Check back to this webpage for updates to the clarifications above. To receive updates you can subscribe to the Carbon Sequestration Tenure Updates, the link will launch a new message in your email application with pre-populated information. When you send the email a confirmation email will be sent to you. If you do not reply, your request will be cancelled. For more information see our subscription page. This list and website are the primary sources of information for this process.

Read about the collection of your personal information

This information is collected so we may provide you with updates.

The email address you provide to Alberta Energy is collected under the authorization of Section 8 (1) (2) of the Government Organization Act, and is being managed in accordance with Section 33 (c) of the Alberta Freedom of Information and Protection of Privacy Act.

Submitting this information is strictly voluntary and by providing your email address you are giving Alberta Energy your permission to use your email address to subscribe to updates via the Carbon Sequestration Tenure Management expressions of interest (EOI) Mailing List. Your email address will be shared in confidence with the System Administrator. Your personal information will not be used or disclosed for any other purpose without your consent by Alberta Energy.

If you want to have your personal information removed, changed or have any further questions or concerns, contact [email protected].

Contact

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