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.