An analyst says a corporate decision to mothball Canada’s largest carbon capture and storage project is likely the result of financial uncertainty and technological risks.
Capital Power announced Wednesday it would no longer pursue carbon capture at its Genesee power plant near Edmonton.
The $2.4-billion project would have captured about three million tonnes of carbon dioxide a year, much more than other Canadian carbon capture facilities.
Capital Power CEO Avik Dey says the economics of the project don’t add up.
- Vancouver working to avoid ‘the great sigh’ following FIFA World Cup excitement
- Port of Vancouver expansion project referred to Canada’s Major Projects Office
- Close to 800,000 have applied for $100 rebate, payments coming: Alberta’s Smith
- Canfor closing Prince George pulp mill, hundreds of jobs lost
Scott MacDougall of clean energy think tank the Pembina Institute says that’s probably because of uncertainty over the future value of carbon credits and the political fate of carbon pricing.
Get breaking National news
He says Capital Power would have been the first to use the technology in a gas plant, which also carries risk and adds cost.
He says he doesn’t expect other carbon capture proposals to be put on hold.
The technology is different and better understood in other industries, he says, meaning the risks are lower.
Comments
Want to discuss? Please read our Commenting Policy first.