Pathways Carbon Capture Project Raises Questions About Public Support
The Pathways carbon capture project has become increasingly nebulous in terms of both environmental impact and who is paying for it. The initiative, initially aimed at reducing emissions from Alberta's oilsands, was first announced four years ago.
The federal government has committed to offering further financing and support to cover the operating costs for Pathways even after it's built. This seems like a significant public support package for the oilsands, which are an extremely profitable industry.
One major issue with the current market for carbon storage is the price of carbon credits in Alberta, which are trading at around $35 per tonne far below the official carbon price of $95 per tonne. This has created a problem for oil companies to make back the money they spent on a carbon capture project.
The agreement between the federal and Alberta governments, along with the five Oil Sands Alliance companies, includes increasing Alberta's industrial carbon emissions prices to $130 per tonne by 2040, a significant climbdown from the initial proposal to capture 22 million tonnes of carbon by 2030.