Government of CanadaMarch 1, 2004A NEW INCENTIVE FOR INDUSTRY TO CAPTURE AND STORE CARBON DIOXIDEOTTAWA - Canadians will soon benefit from the results of projects that demonstrate how to capture, store and use carbon dioxide (CO2 ). A two-year initiative announced today will help develop a market for CO2 capture and storage in Canada, as well as innovative new uses for CO2 from industrial emitters. Developed in consultation with industry and provinces in western Canada, this initiative complements provincial initiatives such as Alberta's CO2 Projects Royalty Credit Program, and is designed to reduce duplication of effort for applicants in the Alberta program. The Western Canada Sedimentary Basin is believed to be the most promising location for such projects. "Storing CO2 in an innovative way will bring us closer to meeting our goals for reducing greenhouse gas (GHG) emissions and contributing to climate change solutions," said the Honourable R. John Efford, Minister of Natural Resources Canada (NRCan). "These projects will also help us maximize the benefits from our fossil fuel resources." "This initiative will lead to a greater role for CO2 capture and storage as part of Alberta's action plan on climate change and its energy innovation strategy, while enhancing the economic opportunities in our oil and gas sector," said Alberta Minister of Energy Murray Smith. "In addition, our cooperation with the Government of Canada on this initiative will streamline the process for potential applicants and encourage greater participation." Incentive funding will be used to support projects that demonstrate CO2 -based enhanced resource recovery in small-scale commercial settings, and to help abate the costs of CO2 capture and storage. CO2 is collected during processes such as oil sands recovery, electricity generation and cement, petrochemical and fertilizer production. The captured CO2 can then be processed, compressed, transported and injected into geological sites, such as oil and natural gas reservoirs, deep coal beds or deep saline aquifers. Potential applicants for this incentive include any for-profit firm that will operate a project that injects CO2 from a Canadian industrial source into a geological formation for storage, enhanced oil and gas recovery, and/or disposal in Canada. Applicants must submit detailed economic data for the project. Only eligible recipients who sign contribution agreements with NRCan will receive incentive payments. More information is available at http://www2.nrcan.gc.ca/es/erb/prb/english/View.asp?x=619. This $15-million investment in CO2 capture and storage offers Canada significant long-term potential for addressing GHG emissions, while continuing the pursuit of our industrial economic objectives. This initiative builds on the unique expertise Canada has developed from the Weyburn CO2 Monitoring Project, and enhances our quality of life by supporting knowledge, innovation and technology in the natural resources sectors, which are a vital part of Canada's economy and society. It also advances the Government of Canada's commitment to strengthening the foundations of Canadian life, building a 21 st -century economy and ensuring Canada's place in the world. For more information, media may contact: Alexandra Muir Ghyslain Charron Director of Communications Media Relations Office of the Minister, Natural Resources Canada Natural Resources Canada (613) 992-4447 (613) 947-8246 The following media backgrounder is also available: CO2 Capture and Storage Incentive
