Carbon Capture and Storage

Carbon Capture and Storage (CCS) has the potential to be applied to reduce the carbon footprint of an industry or region.

Carbon dioxide (CO2) is a greenhouse gas (GHG) that, when present in the atmosphere, contributes to climate change. In Canada, there is a concerted effort to minimize future emissions. Industry and consumers are being asked to restrict and reduce their CO2 emissions, both voluntarily and through regulation, including carbon pricing.

Evaluating carbon capture and storage

In 2021, the City of Medicine Hat initiated a project to evaluate the technical and economic feasibility of developing a carbon capture and storage hub in the Medicine Hat area.

In 2022, the Government of Alberta awarded the City a carbon sequestration evaluation permit, required to advance development of a carbon capture and storage hub in the area.

In 2025, the City of Medicine Hat announced that the Government of Alberta had agreed to assign the carbon sequestration evaluation permit to Imperial Oil Resources Limited.

Imperial will continue to advance the feasibility work started by the City of Medicine Hat.

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. 
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.
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.
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.
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. 

Frequently asked questions

Glossary of terms

Carbon Dioxide (CO2) – A colourless, odorless gas that’s produced when animals (including humans) breathe or when carbon-containing materials (including biomass and fossil fuels) are burned. Carbon dioxide is essential to the photosynthesis process that sustains plant and animal life. But, it can accumulate in the air and trap heat near the Earth’s surface (the ‘greenhouse effect’).

Greenhouse Gas (GHG) – Greenhouse gases are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride.

Pore Space – A cavity or void, formerly occupied by minerals or water, in rocks below the surface of the land.

Sequestration – Storing something so that it’s no longer available. Carbon sequestration involves the removal or storage of carbon dioxide so that it can’t be released into the atmosphere.
What is Carbon Capture and Storage?

Carbon capture and storage (CCS) is the process of capturing carbon dioxide (CO2) from large emissions sources, such as power generation and industrial facilities, and storing it in deep underground geologic formations so that it is not emitted into the atmosphere. 
How does CCS work?

Carbon dioxide (CO2) is first captured at the source of emission. It is then purified, compressed, and injected into underground geological formations.

In the capture stage, equipment attached to industrial facilities diverts gas containing CO2 (before it reaches the atmosphere) into vessels. Then a chemical separates and captures the CO2.

The captured CO2 is then compressed and transported via pipeline to a storage hub.

Finally, the CO2 is injected into the geologic rock deep underground (a storage well) where it is trapped underneath cap rock.
Is CCS safe?

CCS has been in use all over the world for decades. Alberta is a leader in developing this technology and has guidelines in place designed to protect public safety, the environment, and landowners.
Why did the City initiate this project?

The City of Medicine Hat generates CO2 in our power generation business and has a responsibility to meet environmental obligations facilitate the transition to a greener economy.

The Government of Canada has set a legally binding net-zero GHG emission target by 2050. 

The City recognizes the potential role that CCS can play in achieving federal climate objectives and is committed to being an engaged partner in the transition to a sustainable and prosperous future for our community.
Does the carbon price play a role in this initiative?

In July 2022, City Council approved $11 million in working capital and third-party funding for early-stage evaluation and development of Project Clear Horizon.

 

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