Pathways Alliance Sets Late 2027 Target for Carbon Capture Decision

The Pathways Alliance, a group of Canadian oil sands producers, is aiming to make a final investment decision on its carbon capture and storage project by late 2027 or early 2028. This timeline hinges on regulatory approvals and the completion of policy conditions outlined in a deal with the federal and Alberta governments.

The project, which aims to reduce greenhouse gas emissions from oil sands operations, has faced significant challenges since its inception in 2021. Construction costs have been a major sticking point, with estimates reaching as high as C$30 billion. The revised plan targets 6 million tonnes of emissions reductions by the mid-2030s, down from an original proposal of 22 million tonnes by 2030.

The project's fate is now tied to Prime Minister Mark Carney's support for a new Pacific Coast export pipeline, which could carry up to 1 million barrels per day. The pipeline is part of Canada's broader strategy to strengthen its economic resilience against U.S. tariffs and boost oil production. However, environmentalists have criticized the scaling back of emissions targets as a significant retreat from what the oil sector needs to deliver to align with Canada's climate commitments.

The Pathways Alliance CEO, Ken Dilling, has pushed back against criticism, arguing that the revised targets are more realistic and achievable without breaking the bank. However, cost concerns remain a major issue for the project, and its success is far from guaranteed.