In light of financial uncertainty and technological risks, an analyst suggests that the decision to suspend Canada’s largest carbon capture and storage project was likely the result of these factors. Capital Power announced that it would no longer pursue carbon capture at its Genesee power plant near Edmonton, a $2.4-billion project that was expected to capture about three million tonnes of carbon dioxide per year, more than other Canadian facilities.
The CEO of Capital Power, Avik Dey, stated that the economics of the project did not add up. The Pembina Institute’s Scott MacDougall believes that uncertainty over the future value of carbon credits and political direction on carbon pricing may have contributed to this decision. He also mentioned the risks and costs associated with being the first to use carbon capture technology in a gas plant.
Despite this setback, 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.