Capital Power has announced the halt of Canada’s largest carbon capture and storage project at the Genesee power plant near Edmonton. The $2.4-billion project aimed to capture three million tonnes of carbon dioxide annually, making it larger than other similar projects in Canada. However, Capital Power CEO Avik Dey has stated that the economics of the project do not make sense.
The uncertainty surrounding the future value of carbon credits and the political landscape around carbon pricing likely played a role in the decision. The use of the technology in a gas plant would have been a first for Capital Power, adding additional risk and cost to the project.
Scott MacDougall of the Pembina Institute notes that despite this setback, other carbon capture proposals will not be put on hold. He believes that the technology is more established and better understood in other industries, reducing the risks associated with its implementation.
However, this decision reflects the challenges and uncertainties facing the carbon capture and storage industry in Canada. It also highlights
