Hodgson Says Oil Sands Companies Can Afford Carbon Capture

Alberta Energy Minister Tim Hodgson is confident that oil sands companies can absorb the cost of building carbon capture technology. The project, known as Pathways, would capture carbon dioxide and transport it over 400 kilometers to a storage hub in eastern Alberta. The federal government has agreed with Alberta on the trajectory of its industrial carbon price, which will generate credits for cutting greenhouse gas outflows.

The Pathways project is spearheaded by five of the largest oil sands companies: Cenovus Energy Inc., Imperial Oil Ltd., and Suncor Energy Inc. Hodgson said that the cost of the project can be readily absorbed, given how the framework for carbon pricing has been structured.

Under the agreement, Alberta plans to unveil its pipeline proposal by July 1, which will then be assessed by the federal government's Major Projects Office. If approved, construction is expected to begin in September 2027. Hodgson emphasized that technology will have advanced substantially by then, offering more choices for carbon capture.