Strathcona Resources Ltd. has unveiled a pivotal partnership with Canada Growth Fund (CGF), marking a significant step forward in the realm of carbon capture and sequestration (CCS) infrastructure in the province. This collaboration, valued at up to $2 billion, aims to facilitate the deployment of CCS technology across Strathcona’s steam-assisted gravity drainage (SAGD) oil sands facilities in Saskatchewan and Alberta.
Under the agreement, CGF will initially invest $500 million towards CCS infrastructure, with a total commitment potentially reaching $1 billion. Strathcona will lead the construction, operation, and ownership of the infrastructure, with funding split equally between CGF and Strathcona for the initial capital costs. Strathcona anticipates recovering a substantial portion of its investment through federal CCS investment tax credits and other grants.
Strathcona, which currently produces approximately 90,000 barrels per day of heavy oil and bitumen, expects the CCS projects to capture up to two million tonnes of CO2 annually, significantly mitigating its carbon tax liabilities. This move is expected to counterbalance current and anticipated carbon taxes, which are a substantial component of Strathcona’s operational costs.
CLRA is encouraged by this significant new project, with the knowledge that our workforce possesses the expertise to effectively contribute to such energy initiatives. Projects like these create lucrative employment opportunities in the construction and maintenance sectors, cementing Alberta’s reputation as the best province in which to work, invest, build, and live.
Read the full announcement here.
