A carbon capture and storage project in Canada has been suspended due to financial uncertainty and technological risks. 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, making it the largest in Canada.
According to Avik Dey, CEO of Capital Power, the economics of the project did not add up. Scott MacDougall of the clean energy think tank, the Pembina Institute, believes that uncertainty over the future value of carbon credits and the political direction of carbon pricing may have contributed to this decision. Additionally, he mentioned the risk and cost associated with being the first to use carbon capture technology in a gas plant.
MacDougall does not anticipate other carbon capture proposals being put on hold. He noted that while there is uncertainty around the technology’s viability in a gas plant, it is well understood and has less risk in other industries, making it more viable for future projects.