- Strathcona Resources (TSX:SCR) signed a carbon capture and sequestration partnership with Canada Growth Fund worth up to C$2 billion
- Both companies will split the cost of building carbon capture and sequestration infrastructure on Strathcona’s steam-assisted gravity drainage oil sands facilities across Saskatchewan and Alberta
- Strathcona’s oil sands facilities in Lloydminster and Cold Lake are located near suitable CO2 storage reservoirs, allowing for it to be injected directly on site
- Strathcona Resources Ltd. opened trading at C$30.60 per share
Strathcona Resources (TSX:SCR) signed a carbon capture and sequestration partnership with Canada Growth Fund worth up to C$2 billion.
Both companies will split the cost of building carbon capture and sequestration infrastructure on Strathcona’s steam-assisted gravity drainage oil sands facilities across Saskatchewan and Alberta. Strathcona seeks to capture and permanently store up to 2 million tonnes of carbon dioxide (CO2) annually.
Strathcona’s oil sands facilities in Lloydminster, Saskatchewan, and Cold Lake, Alberta, are located near suitable CO2 storage reservoirs, allowing for it to be injected directly on site.
Strathcona’s share of capital costs is expected to be mainly funded through the federal carbon capture investment tax credit and other grants.
“This partnership is a breakthrough in Canada’s journey towards decarbonizing the oil and gas sector,” Patrick Charbonneau, president and CEO of Canada Growth Fund investment management said in a news release. “Alongside CGF, Strathcona intends to advance Canada’s first carbon capture and sequestration projects in the heavy oil sector. Given the economic and environmental importance of the oil and gas sector – which represents 9 per cent of Canada’s nominal GDP and 31 per cent of its emissions – Strathcona’s leadership is essential and worth celebrating.”
The final investment decision on the first project is targeted by mid-2025 and is expected to be in Saskatchewan. Earlier this year, Saskatchewan’s government granted Strathcona subsurface CO2 injection rights, making it the first oil sands producer in Canada with approval to capture and permanently store CO2.
The Canada Growth Fund is a C$15 billion independent public investment firm that aims to attract private capital to foster a cleaner Canadian economy. It utilizes investment tools designed to mitigate specific risks, working to encourage private investment in low-carbon projects, technologies, businesses and supply chains.
Strathcona Resources Ltd. is Canada’s fifth-largest oil and gas producer with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. The company has three operations: Lloydminster Heavy Oil, Cold Lake Thermal and Montney Gas.
Strathcona Resources Ltd. (TSX:SCR) opened trading at C$30.60 per share.
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(Top image: file photo)
