Natural Resources Canada

Natural Resources Canada

June 24, 2011 13:30 ET

Governments Team Up for Carbon Capture and Storage Technology in Alberta

FORT SASKATCHEWAN, ALBERTA--(Marketwire - June 24, 2011) - The Honourable Joe Oliver, Minister of Natural Resources, today joined Premier Ed Stelmach in announcing that the Governments of Canada and Alberta have signed contribution agreements to invest a total of $865 million in the Shell Quest project, a large-scale carbon capture and storage (CCS) project.

"Canada is a world leader in carbon capture and storage and we are in an excellent position to use this technology on a wide scale," said Minister Oliver. "The Government of Canada is committed to supporting innovative clean energy technologies such as those at the Shell Quest project which will help to bring high-quality jobs to Alberta while contributing to the responsible development of Canada's energy resources."

"The funding provided by the Government of Canada, in partnership with the Government of Alberta and Shell, continues our Government's commitment to strengthening industries that contribute to protecting and to strengthening the long-term financial security of hard-working Canadians," added the Honourable Tim Uppal, Minister of State (Democratic Reform). "As Member of Parliament for Edmonton–Sherwood Park, I absolutely welcome this significant investment in our community and in our future. Investment in CCS promotes economic growth and opportunity in our community, as well as prosperity and job creation throughout the region."

"By continuing to move CCS technology forward, Alberta is demonstrating its ongoing leadership in realizing the commercial-scale deployment of this technology and greening our energy production," said Premier Stelmach.
The Quest project is a joint venture among Shell Canada (60 percent), Chevron Canada Limited (20 percent) and Marathon Oil Canada Corporation (20 percent). This project will integrate CCS technology at Shell Canada's Scotford oil sands upgrader, near Edmonton.

The Government of Canada is contributing $120 million through its Clean Energy Fund to the Quest project, and the Government of Alberta will invest $745 million from a $2-billion Carbon Capture and Storage Fund.

"CCS is recognized as one of the most promising technologies to reduce greenhouse gas emissions from fossil fuels. To realize that potential, government support in this important demonstration phase is essential. We would like to thank both levels of government for their commitment to progress CCS technology by investing in Quest," said John Abbott, Shell's Executive Vice President of Heavy Oil.

The Government of Canada's investment comes from the Clean Energy Fund which is part of Canada's Economic Action Plan. This program provides $795 million over five years to support research and development projects that will advance Canada's leadership on clean energy technologies and reduce greenhouse gas emissions from energy production.


The Governments of Canada and Alberta are investing a total of $865 million in clean energy technologies to reduce greenhouse gas emissions and support high-quality jobs for Canadians. The funding will support a large-scale carbon capture and storage project at Shell Canada's Scotford facility, near Edmonton.

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