Alberta is primed to be at the forefront of the growing carbon capture, utilization and storage (CCUS) sector, drawing on its rich history and expertise in oil and gas. The energy-experienced province is at the centre of CCUS research and development, providing opportunities for an influx of jobs and a significant contribution to the economy. According to a research study by Custom Market Insights, the CCUS market was already valued at CAD $3.5 billion in 2022, and is expected to grow to over $10 billion by 2032, with Alberta positioned to be a global leader in the sector.
In April 2016, 175 countries signed the United Nation’s Paris Agreement, which included a commitment to reduce the world’s greenhouse gas emissions to net-zero by the year 2050. In the years since the agreement, CCUS has emerged as a leading technology to significantly and efficiently reduce carbon emissions on the journey to net-zero.
Where Do Emissions Come From?
Emissions come from both natural and artificial sources. Forest fires, decomposing organic material, animals, volcanic activity, and human and industrial activities all contribute to the release of carbon dioxide (CO2), methane and other greenhouse gases into earth’s atmosphere.
Some natural processes absorb CO2, such as photosynthesis in plants, and it dissolves in water. However, when the production of emissions outpaces absorption through natural processes, they become out of balance. Carbon-emitting industries—like transportation, agriculture, oil and gas, steel, cement, manufacturing, pulp and paper, and power generation—provide products the world needs and enable the modern lifestyle we enjoy. As our reliance on the products these industries produce increases, so does the imbalance of greenhouse gas in the atmosphere.
The good news is, these high-emitting sectors can leverage CCUS technologies to reduce Canada’s emissions footprint. According to the International Energy Agency, generation of electricity is the largest carbon-emitter in the energy sector, creating almost 40 per cent of global energy-related emissions. As demand for electrical power increases, fossil fuels will provide the majority of the world’s electricity for decades to come, even with the rise of renewable energy sources.
While CCUS is an important tool to help reduce emissions and positively impact the global environment, it is also an incredible opportunity for a new industry to bloom. The demand is clear, and Alberta is ready to answer the call.
The Driving Forces Behind CCUS
There are several factors advancing the growth and development of the CCUS sector:
- Funding Incentives and Support — Governments around the world have made carbon reduction a priority. One way they can encourage commercial participation is to offer grants, tax breaks, and other financial incentives to support CCUS projects. The resulting influx of investment contributes to the overall growth of the CCUS market.
- Environmental Goals and Regulations — Collective commitments like the Paris Agreement made the CCUS industry essential to achieving global emissions reduction goals. The biggest carbon emitters are industries supplying products and services that are in high demand, and CCUS is the sector best poised to manage those emissions.
- Carbon Credit Trading — Mechanisms for trading carbon credits are already in place. This market is a powerful incentive for industry players to capture and store carbon to generate credits that can be traded as a commodity, which increases the value of CCUS beyond environmental incentives.
- Corporate Initiatives — Companies working towards a net-zero future are looking for opportunities to support and adopt CCUS technologies to fulfill corporate mandates to offset their carbon footprint.
- CCUS Innovation — The growth of the CCUS industry is attracting innovators and startups, bringing bright minds and talent to the sector. New processes and technologies then lead to greater efficiencies and solutions, further stimulating the market.
- Utilization — The newest component of CCUS and still early in its development. Utilization refers to using captured C02 in the production of synthetic fuels, chemicals and materials. For instance, it can be combined with hydrogen to create synthetic hydrocarbons, called e-fuels, for use in transportation or as feedstock for the chemical industry. The regulations and funding will take some time to sort out, but as utilization innovations advance, they will increase the overall value of the CCUS market.
The Next Energy Labour Market
The CCUS value chain begins with capturing CO2 from the air (termed Direct Air Capture, or DAC) and industrial processes. The carbon is transported by train, truck or pipeline, and then injected into naturally occurring subsurface formations. These injection sites, as they are called, have geological formations deep underground that provide safe and permanent storage for CO2, and are constantly measured and monitored.
Given that the processes of CCUS align so closely with oil and gas, Alberta has unparalleled expertise and opportunity to be an international leader of this emerging industry into the future. Many of the jobs that flourished in oil and gas—including engineering, geoscientists, construction, operations, maintenance, and research—are now in demand for CCUS.
There is also an immediate demand for workers in this sector. After weaving the Paris Agreement goals into its own federal policies, Canada’s target is to reduce emissions to between 40 per cent below 2005 levels by the year 2030. That translates to a reduction of about 300 million tonnes of carbon a year across all sectors and processes, and Canada needs trained, experienced workers to meet that goal.
CCUS Infrastructure in Alberta
Alberta’s network of CCUS facilities and organizations already has a strong foundation:
- The Pathways Alliance Carbon Capture Storage Hub aims to capture carbon from more than 20 oil sands sites, and transport the CO2 by pipeline to a storage site in the Cold Lake area.
- CNRL, Cenovus Energy, ConocoPhilips, Imperial, MEG Energy, and Suncor are partnering to grow the CCUS network.
- Other collectives like carbonNEXT and the Alberta Carbon Hub are bringing companies together to accelerate the development and commercialization of CCUS technologies.
- Carbon Management Canada provides information, expertise and research opportunities, at its Newell County Field Research Station near Brooks, where institutions from around the world test innovative technologies for the measurement, monitoring, and verification of stored CO2.
- The Alberta Carbon Conversion Technology Centre (ACCTC) is a facility built to research, validate and demonstrate prototypes, and mitigate the risk of carbon capture and utilization technologies.
At all points in the value chain, these networks offer opportunities, expertise, and resources to continue growing CCUS in Alberta.
Canada recently announced its new Carbon Management Strategy aimed at reducing greenhouse gas emissions. One of the commitments is investment in clean energy technologies, including CCUS, and much of the federal funding will come to Alberta—the province leading the sector’s development.
Alberta’s Capacity
With industry experience and infrastructure already in place, Alberta is poised to help Canada become a global leader in CCUS, growing the economy while reducing greenhouse gas emissions for a net-zero future. The abundance of geological formations suitable for permanent storage of an estimated 100 billion tonnes of CO2 holds vast potential for workers Likewise, Alberta has province-wide coalitions dedicated to growing this industry that will bring with it tens of thousands of jobs for experienced, transitioning, and new workers. CCUS offers great potential for all Albertans: those who will directly participate in the growth of the sector, and those who will benefit from the overall economic health of the province.