Financial Uncertainty and Technological Risks: Why Canada’s Largest Carbon Capture Project is on Hold

The decision to suspend Canada’s largest carbon capture and storage project may be due to financial uncertainty and technological risks, according to an analyst. Capital Power announced that it would no longer pursue carbon capture at its Genesee power plant near Edmonton. The $2.4-billion project was expected to capture about three million tonnes of carbon dioxide per year, more than other Canadian facilities.

Scott MacDougall of the clean energy think tank, the Pembina Institute, believes that the uncertainty over the future value of carbon credits and the political direction of carbon pricing may have contributed to this decision. He also mentioned the risk and cost associated with being the first to use carbon capture technology in a gas plant. However, he does not anticipate other carbon capture proposals being put on hold.

MacDougall notes that while there are risks associated with using carbon capture technology in a gas plant, these risks are well understood and can be managed effectively. Additionally, he points out that the technology is well understood and has less risk in other industries, making it more viable for future projects.