In light of financial uncertainty and technological risks, it is believed that the decision to suspend Canada’s largest carbon capture and storage project was made. 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.
According to Capital Power CEO Avik Dey, the economics of the project did not add up. Scott MacDougall, a clean energy expert from the Pembina Institute, believes that uncertainty over the future value of carbon credits and political direction on carbon pricing may have contributed to this decision. Additionally, being the first to use carbon capture technology in a gas plant comes with significant risk and cost.
While MacDougall does not anticipate other carbon capture proposals being put on hold, he notes that the technology is well understood and has less risk in other industries, making it more viable for future projects.