In Canada, the decision made by Capital Power to stop its largest carbon capture and storage project at the Genesee power plant near Edmonton is believed to be due to financial uncertainty and technological risks. The $2.4 billion project aimed to capture three million tonnes of carbon dioxide annually, making it larger than other similar projects in Canada. However, Capital Power CEO Avik Dey stated that the economics of the project do not make sense.
The uncertainty surrounding the future value of carbon credits and the political landscape around carbon pricing likely played a role in the decision, according to Scott MacDougall of the Pembina Institute. The use of this technology in a gas plant would have been a first for Capital Power, adding additional risk and cost to the project.
Despite this setback, MacDougall does not believe that other carbon capture proposals will be put on hold. He notes that while there are risks associated with implementing this technology in a gas plant, it is more established and better understood in other industries. This reduces some of these risks and costs.
The decision made by Capital Power highlights the challenges facing the carbon capture and storage industry in Canada as well as uncertainties associated with climate change solutions like these technologies. Nevertheless, it also emphasizes the need for continued innovation and investment in clean energy technologies to address climate change effectively.
