Carbon Capture and Storage

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

Carbon dioxide 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.

Project Clear Horizon

The City of Medicine Hat envisions Project Clear Horizon as a potential carbon dioxide mitigation solution for the region’s large industrial facilities, providing an avenue toward helping to meet Canada’s net-zero greenhouse gas emissions target by 2050.

Project Clear Horizon will assess the technical and economic feasibility of developing a CCS hub in the Medicine Hat area. If Project Clear Horizon is determined to be technically and economically feasible, work may progress to build facilities and infrastructure that will transport captured carbon to an injection site where it will be stored and monitored in a reservoir two kilometres underground.

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 currently under evaluation 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, which could result in lower capital and operating costs for the carbon capture and storage hub.

Emissions

Medicine Hat is home to carbon-intensive industry with a stated interest in decarbonization. Project Clear Horizon 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 

On October 4, 2022 the Government of Alberta announced the City of Medicine Hat had been awarded the right to evaluate the geology for carbon sequestration within a permitted area. The Carbon Sequestration Evaluation Agreement grants 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.

You can use the Government of Alberta’s online Carbon Sequestration mapping tool to view the evaluation area. 

Early-stage pre-commercial evaluation 
The City is facilitating efforts to evaluate the technical and economic feasibility of Project Clear Horizon, a potential CCS hub in Southeast Alberta. This evaluation includes analyzing existing seismic data, and acquiring new data in order to complete necessary modelling and planning. 
Final investment decision 
If the evaluation work indicates that Project Clear Horizon is technically and economically feasible, the City or a hub operator would work through a final investment decision (FID) to decide whether or not to advance Project Clear Horizon to the next phase of project development. 
Carbon sequestration agreement 

The City or 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 are we doing this?

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 pledged a 40-45% emissions reduction target from 2005 levels by 2030 and has set a legally binding net-zero GHG emission target by 2050.

Electricity generation will face this challenge even sooner with net-zero targets initially set for 2035. 

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 addition to the net-zero emissions targets on electricity generation by 2035, federal carbon pricing is expected to rise from $65 per tonne in 2023 to $170 per tonne in 2030.

The rising cost of carbon emissions will increase the cost of electricity generated from burning natural gas or other fossil fuels.

The potential availability of CCS infrastructure will provide the City with an option to capture the CO2 and avoid the carbon price cost.

If Project Clear Horizon moves forward, where will the carbon hub be located?

The City was granted tenure from the Government of Alberta to evaluate subsurface pore space for a potential sequestration location northwest of Medicine Hat.

Use the Government of Alberta’s online Carbon Sequestration mapping tool to view the evaluation area.

How much carbon can we sequester?

The capacity of the formation is unknown at this time. Early characterization of the reservoir suggests that it can contain the volumes of CO2 produced within the region. Further study is required to inform development of the geologic model.

How long will Project Clear Horizon take?
Subsurface work could take two years, during which design, construction and operations plan would be developed. If feasible, a CCS solution could be operational in the latter part of this decade.
How much will this project cost?

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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