Canada Growth Fund (CGF), the federal financing agency, has proposed funding support for a multibillion-dollar carbon-capture project by Pathways Alliance, a coalition of Canada’s largest oil sands producers, as reported by various media houses. Although this proposal could initiate further talks, a final agreement remains months away as both parties negotiate key terms, according to sources.
The Pathways Alliance, which includes companies like Canadian Natural Resources, Cenovus, ConocoPhillips Canada, Imperial, MEG Energy, and Suncor Energy—together accounting for about 95% of Canada’s oil sands production—has proposed a C$16 billion ($11.51 billion) investment in carbon capture and storage (CCS) to curb oil sands emissions. The plan, however, faces criticism from environmental groups for seeking increased government support and slow implementation.
The CGF is a $15 billion public fund aimed at drawing private capital into low-carbon projects by sharing certain risks, according to its website. Earlier in the year, CGF partnered with Strathcona Resources to develop CCS infrastructure in Saskatchewan and Alberta. Pathways Alliance and CGF have not yet commented on the proposed investment.
