Canada proposes to back giant oil sands carbon capture – Globe and Mail

Canada’s federal financing agency has proposed funding support for a multibillion-dollar carbon capture investment by Pathways Alliance, representing Canada’s biggest oil sands producers, The Globe and Mail reported Sunday.

The offer to back capital costs for the industry group’s six members who collectively represent 95% of oil sands production recently was made by the Canada Growth Fund, according to the report.

Pathways Alliance has been proposing a C$16B (~US$11.5B) investment in a carbon capture and storage project to cut carbon emissions from the oil sands, but the plan has been criticized by environmentalists for slow progress and seeking more government financial support.

But the renewed engagement between the CGF and Pathways could mark long-awaited progress toward the carbon capture project which Pathways – whose members include Canadian Natural Resources (NYSE:CNQ), Cenovus Energy (CVE), ConocoPhillips (COP), Imperial Oil (IMO), MEG Energy (OTCPK:MEGEF), and Suncor Energy (SU) – has long touted as the centerpiece of its plans to reduce greenhouse gas emissions from oil sands production.

In July, Canadian oil producer Strathcona Resources announced a C$2B partnership with CGF to build carbon capture and sequestration infrastructure in Saskatchewan and Alberta.