Positioned for success
Medicine Hat could be a promising location for a CCS hub for several reasons.
Geology
Deep subsurface reservoirs in the Medicine Hat area offer potential options for carbon injection and storage. The region is seismically inactive and there are thick, continuous caprock deposits with few well penetrations.
Proximity
The underground reservoir is close to certain source emissions, such as the City’s electricity generation facilities. Proximity to emissions means that shorter pipelines are required to transport the CO2 for sequestration.
Emissions
Medicine Hat is home to carbon-intensive industry with a stated interest in decarbonization. A carbon capture and storage hub in the Medicine Hat region has the potential to mitigate emissions from regional industrial facilities.
Project Milestones
The Government of Alberta oversees the development of carbon sequestration hubs. Learn about the carbon sequestration hub development process on their website.
1. Pore space evaluation rights
In 2022 the Government of Alberta awarded the City of Medicine Hat the right to evaluate the geology for carbon sequestration within a permitted area. The Carbon Sequestration Evaluation Agreement granted the City exclusive rights to evaluate the potential of reservoir rock deep in the subsurface for injection and storage of CO2 within the evaluation area.
2. Early-stage pre-commercial evaluation
The City began facilitating efforts to evaluate the technical and economic feasibility of a potential carbon capture and storage hub in Southeast Alberta. This evaluation included analyzing existing seismic data, and acquiring new data in order to complete necessary modelling and planning. It also included commercial feasibility work such as discussions with potential hub operators.
3. City transfers Carbon Sequestration Evaluation Agreement to Imperial
In making the decision to transfer, the City of Medicine Hat identified that Imperial, the Canadian affiliate of ExxonMobil, has sufficient technical and financial resources – along with an unwavering commitment to safety, the environment, and the Medicine Hat community – to continue exploring the feasibility of a CO2 sequestration hub.
4. Carbon sequestration agreement
If the evaluation work indicates that a carbon capture and storage facility is technically and economically feasible, a hub operator would apply to the Province for a Carbon Sequestration Agreement which, if awarded, would grant the pore space rights to inject CO2 into specified geologic zones. The open access hub is intended to allow all emitters in the region access to the hub. Only projects that meet Alberta’s safety and environmental standards will be approved and awarded by Alberta Energy.