Canadian driller Strathcona Resources Ltd. is planning up to C$2 billion ($1.5 billion) in carbon capture projects for its oil sands operations, with support from a Canadian public investment fund. Strathcona will own and operate the assets, sharing the upfront costs equally with the federal Canada Growth Fund. The Fund will be repaid through cash flows from the carbon credits generated by the system, which aims to capture up to 2 million metric tons of CO2 annually, according to a Wednesday statement.
Strathcona Executive Chairman Adam Waterous stated that a successful carbon capture system could reduce the company’s oil-sands production carbon intensity from nearly double the global crude average to about one-fifth of that benchmark. If widely adopted by other producers, this technology could significantly improve the environmental reputation of Canada’s oil sands, which are currently a major target for environmentalists.
“I’m optimistic that community support will follow the data on carbon intensity. As carbon intensity comes down, the reputation will follow,” Waterous said in an interview.
The extraction process for Canada’s oil-sands crude is notably carbon-intensive due to the large amounts of steam required for making the oil. Strathcona’s carbon capture systems will work by capturing CO2 produced from burning natural gas at central steam-production facilities and storing it underground.
