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Planned CCS project in Canada at risk of failing despite high subsidies

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Published: February 20th, 2024,
Last updated: May 30th, 2025

Ölsand-Förderung in der Syncrude-Mine nördlich von Fort McMurray, Kanada.
Oil sands production at the Syncrude mine north of Fort McMurray, Canada.

The world’s largest planned CCS project for capturing and storing CO2 in Canada is at risk of failing due to uncertainties about government subsidies. According to an analysis by the consulting firm Wood Mackenzie, there are uncertainties about whether promised government support will flow permanently. The pledged subsidies could be „changed at any time during the project lifespan based on political discretion and even reduced to zero,“ says Peter Findlay, Director of CCUS Economics at Wood Mackenzie. There is also uncertainty about the contribution that the Canadian federal government and the province of Alberta should make to support the project.

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CCS Inflation Reduction Act