Capital Power has halted Canada’s largest carbon capture and storage project at the Genesee power plant near Edmonton due to financial uncertainty and technological risks. The $2.4-billion project aimed to capture three million tonnes of carbon dioxide annually, making it larger than other similar projects in Canada. However, Capital Power CEO Avik Dey has stated that the economics of the project do not make sense.
According to Scott MacDougall of the Pembina Institute, political landscape around carbon pricing likely played a role in the decision. The use of technology in a gas plant would have been a first for Capital Power, adding additional risk and cost to the project. Despite this setback, MacDougall does not believe that other carbon capture proposals will be put on hold. He notes that the technology is more established and better understood in other industries, reducing the risks associated with its implementation.
The decision by Capital Power reflects challenges and uncertainties facing the carbon capture and storage industry in Canada. It highlights the need for continued innovation and investment in clean energy technologies to address climate change. The decision also underscores the importance of ensuring that these projects are financially viable before investing significant resources into them.