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Alberta is among the global leaders in carbon capture, utilization and storage, 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 looking at issuing carbon sequestration rights through a competitive process that enables the development of carbon storage hubs. Carbon sequestration storage hubs will see successful operators collect, transport and permanently store captured carbon dioxide from various industrial emissions sources.
This approach will ensure that carbon capture and sequestration will be deployed in a responsible and strategic manner. It will be an effective way to avoid challenges associated with numerous, and potentially overlapping, sequestration proposals.
Government is first requesting expressions of Interest (REOI) from companies interested in building, owning and operating a carbon sequestration hub in Alberta. Expressions of Interest (EOI) submissions will be voluntary; information submitted through the REOI process will be used to inform the subsequent request for Full Project Proposals (RFPP), anticipated for late 2021. Participation in the REOI stage is not required to be eligible to participate in the RFPP stage.
The RFPP stage will call for comprehensive full project proposals (FPP) from interested parties. FPP submissions will be evaluated by the Province, and proponents that best meet the RFPP criteria will be granted a tenure agreement to facilitate the hub operator role.
Purpose of carbon sequestration hubs
Alberta is seeking efficiencies in the use of pore space for carbon sequestration. The intent is to ensure carbon sequestration operators plan for additional volumes and accommodate other sources of carbon dioxide, avoiding stand-alone injection operations where possible. Some carbon hub proponents may be looking to provide services to large centralized emissions sources, where others may look to accommodate smaller and more regional emissions. Part of the intent with the REOI is to gain a better understanding of the scenarios being contemplated and inform the RFPP process.
Hubs that capture carbon dioxide from a cluster of industrial emission sources will limit perforations, reducing risks and will allow for efficient management working with other resource development activities.
The province is not establishing a pre-set number of hubs, nor is it pre-determining hub size or location. We are looking to the market for advice on how to employ this system effectively. Government may approve additional hubs in the future in response to market demand.
This process will ultimately facilitate the establishment of a hub(s) through the granting of a carbon sequestration agreement to the successful proponent(s) following the conclusion of the RFPP competition. The intent of this agreement will be to:
- grant the successful proponent the right to drill wells, conduct evaluation and testing, and inject captured carbon dioxide into deep subsurface formations within previously defined zones for sequestration, while also:
- placing requirements on the agreement holder to:
- ensure open access to the hub,
- provide competitive market service rates,
- address how carbon offsets or future credits will be approached,
- provide opportunity for Albertans, including Indigenous communities, to realize a fair economic benefit as operations advance, and
- other criteria set out in the RFPP and informed by the REOI process and engagement with stakeholders.
All required regulatory approvals are the responsibility of the proponent and will not be granted through this process.
How to Submit
Refer to the Request for Expression of Interest Guidelines (PDF, 763 KB) for submission information.
Submit expressions of interest via email to [email protected] by 11:59 pm MDT
Tuesday, October 12, 2021. Please ensure the Subject Line is in the following format: Carbon Hub Expression of Interest – Company or Project Name.
Government is aiming to post the Request for Full Project Proposals in December 2021 and intends to select successful proponents by the end of March 2022.
Subscribe for Ongoing Updates
Please 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 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.
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