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Capital Power has scrapped a planned $2.4-billion carbon capture and storage facility southwest of Edmonton for financial reasons.

Capital Power Scraps $2.4B CCS Project

Capital Power has scrapped a planned $2.4-billion carbon capture and storage facility southwest of Edmonton for financial reasons.

The project was to be located at the company’s Genesee generating station in Warburg, Alberta. Capital Power announced the decision in its quarterly earnings report.

“Through our development of the project, we have confirmed that CCS is a technically viable technology,” said Edmonton-based Capital Power. “However, at this time, the project is not economically feasible.”

CCS involves capturing carbon dioxide in emissions from large industrial projects, such as oil and extraction, or manufacturing, facilities and then inserting it into the ground. In some cases, the carbon is used for green energy projects and industrial purposes, such as making carbon-free cement.

The Globe and Mail reported that Capital Power had been considering a cancellation. Jason Comandante, a Capital Power senior vice-president told the Globe earlier this year that the company was disappointed by the pace of its negotiations with the Canada Growth Fund.

The $15-billion fund is designed to accelerate the development and use of technologies that reduce emissions and help facilitate the global energy transition and a greener economy.


Inside The Story

Joe ComandanteCapital Power

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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