Canada Expands Tax Credit for Carbon Capture with Enhanced Oil Recovery

The Canadian government has confirmed plans to extend the carbon capture, utilization and storage (CCUS) investment tax credit to include enhanced oil recovery (EOR) projects in Alberta.

This move follows the Canada-Alberta energy accord, which aimed to advance environmental goals and economic interests simultaneously.

Enhanced oil recovery involves injecting captured CO2 into mature oil reservoirs to increase production, extending the life of existing oil fields while storing greenhouse gases underground.

Six of Canada's eight operating commercial-scale CCUS projects use EOR, including the Weyburn-Midale project in Saskatchewan, which has safely stored CO2 equivalent to the annual emissions of over 9.5 million cars since 2000.