Alberta, Ottawa, and Oilsands Producers Forge Agreement on Pathways Carbon Capture Initiative

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A memorandum of understanding has been signed between the Alberta government, the federal government, and five major oilsands producers to advance the Pathways carbon capture and storage project, crucial for a new pipeline to the West Coast.

CALGARY, ALTA. — A significant development in the Canadian energy sector has emerged as the Alberta government, the federal government, and five leading oilsands producers have entered into a memorandum of understanding (MOU) aimed at propelling the multibillion-dollar Pathways carbon capture and storage project forward. This initiative is critical as it forms a prerequisite for the advancement of a new West Coast pipeline for oilsands, designed to mitigate some of the carbon emissions that the pipeline would facilitate.
The agreement, which was officially announced on Monday, was actually signed on July 2, coinciding with Alberta's submission of its pipeline proposal to the federal major projects office. Alberta Premier Danielle Smith emphasized the collaborative nature of this agreement, stating, "The biggest nation-building projects in Canada’s history have succeeded through partnership. This agreement shows what can be achieved when governments and industry work together to grow our economy, strengthen our energy security, and unlock new opportunities for people across Canada."
Tim Hodgson, the federal minister of energy and natural resources, reiterated the importance of this partnership, remarking, "Over the last eight months, we have been steadily delivering on each commitment in the Canada-Alberta MOU, working with Alberta and the energy industry to build major energy infrastructure, reduce emissions, create jobs and prosperity, and secure energy sovereignty."
As part of the agreement, the federal government has pledged to extend investment tax credits for various carbon capture technologies until 2035. Concurrently, Alberta is set to finalize its own incentive program specifically for carbon capture initiatives. The MOU outlines that the Pathways Project will be executed in stages, with the infrastructure expected to commence operations by January 1, 2032, and the entire project anticipated to reach completion three years later.
The consortium backing the Pathways initiative includes prominent companies such as Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy, and ConocoPhillips. Kendall Dilling, president of the Oil Sands Alliance, expressed optimism regarding the agreement, stating, "We believe we’ve achieved a framework that is positive for the oilsands industry and provides a step forward to help enable production growth and to advance the Pathways Project."
The Pathways Project is projected to have the capacity to transport and store approximately six million tonnes of captured carbon dioxide annually by the mid-2030s. This ambitious project will involve the construction of a pipeline network designed to transport CO2 captured from various oilsands facilities in northern Alberta to a designated underground storage hub located near Cold Lake, Alberta.

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