CIAC congratulates Shell on announcement to build carbon capture and storage projects in Canada

CIAC congratulates Shell on announcement to build carbon capture and storage projects in Canada

June 26, 2024

The Chemistry Industry Association of Canada (CIAC) congratulates its member Shell Canada Products on its final investment decision announced today for its Polaris project, a carbon capture project at the Shell Energy and Chemicals Park in Scotford in Alberta. The project will capture approximately 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.

Shell also announced today it will proceed with the Atlas Carbon Storage Hub in partnership with ATCO EnPower to provide permanent underground storage for CO2 captured by the Polaris project.

"Our members are compelled by Responsible Care® to continually innovate for safer, and more sustainable processes and products. We congratulate Shell on this important announcement today," said Bob Masterson, President and CEO of CIAC.

"This final investment decision is the direct result of Clean Economy Investment Tax Credits (ITCs) and the Alberta Government's Carbon Capture Incentive Program. We thank Federal Finance Minister Chrystia Freeland and Alberta Premier Danielle Smith for implementing these incentives. They will continue to play an essential role in attracting investment, supporting Canadian innovation and creating jobs while transitioning our industry to a low carbon economy," said Mr. Masterson.

With the passing of Bills C-59 and C-69 into law, companies can now apply for the first four Clean Economy ITCs which include: the Clean Technology ITC, the Carbon Capture, Utilization and Storage (CCUS) ITC, the Clean Technology Manufacturing ITC, and the Clean Hydrogen ITC. The federal government anticipates providing eligible companies approximately $93 billion in federal incentives by 2034-35.

For many companies in the chemistry and plastics sector, ITCs are essential to expanding carbon capture and storage (CCS) projects which will play a key role in reducing greenhouse gas emissions (GHG). The federal government has committed to reducing GHG emissions to 30 per cent below 2005 levels by 2030.

The federal ITCs are a complement to the Alberta Carbon Capture Incentive Program. That program also provides grants to help accelerate the development of carbon capture, utilization and storage in Alberta and were finalized upon the Royal Ascent of Bill C-59.

All CIAC members are compelled to innovate for safer and more sustainable products and processes, and work to continuously improve their environmental, health and safety performance through CIAC's UN-recognized chemistry sustainability initiative, Responsible Care. Founded in Canada in 1985, it is now practiced in 73 countries and by 96 of the 100 largest chemical producers in the world.

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