Carbon capture in Canada

The document distinguishes between 'safe bet' concentrated-stream carbon capture and 'wild card' unconcentrated applications, noting that while the former is commercially viable for certain heavy emitters, the overall sector has a history of underperformance and high costs. In Canada, the technology is projected to contribute between 17 and 50 megatonnes of emissions reductions in the oil and gas sector by 2030, supported by federal investment tax credits of up to 50%. However, the author cautions that deployment depends on policy durability and prudent use of public funds, particularly as demand for oil and gas is expected to decline during the energy transition.

• Concentrated-stream carbon capture is considered a 'safe bet' when applied to point sources with consistent, high-concentration carbon pollution, whereas capturing carbon from unconcentrated sources (such as natural gas-fired electricity) or ambient air (direct-air capture) are 'wild cards' due to higher technical challenges.
• In Canada's oil and gas sector, carbon capture is estimated to contribute between 17 and 50 megatonnes of emissions reductions toward a 2030 target of 110 megatonnes. Long-term modelling for net zero pathways by 2050 suggests carbon capture could account for 1 to 29 per cent of all emissions reductions.
• The commercial viability of the technology is highly dependent on the concentration of carbon dioxide in the waste stream, with costs ranging from $80 to $300 per tonne. In the Canadian oil sands, 8 per cent of emissions are currently suitable for concentrated-stream capture, while 49 per cent are low-concentration and would require a carbon price of at least $170 per tonne to be viable.
• Despite government support, the technology faces significant hurdles, including a history of pilot projects that have underperformed and failed to deliver promised scales. Additionally, the capture component is highly customized for each facility, accounting for up to 80 per cent of total costs, which increases the risk of cost escalation.
• Canada provides significant policy support, including federal investment tax credits of up to 50 per cent and Alberta's Carbon Capture Incentive Program grant of 12 per cent of eligible costs. The document suggests that while subsidies are useful for competitiveness, governments should be cautious about the oil sands industry's request for up to 75 per cent subsidy of total costs.

APA

Canadian Climate Institute (2024). Carbon capture in Canada. https://climateinstitute.ca/safe-bets-wild-cards/carbon-capture-in-canada/

Chicago

Canadian Climate Institute. Carbon capture in Canada. 2024. https://climateinstitute.ca/safe-bets-wild-cards/carbon-capture-in-canada/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Carbon capture in Canada |date=3 December 2024 |url=https://climateinstitute.ca/safe-bets-wild-cards/carbon-capture-in-canada/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2024carbon, author = {{Canadian Climate Institute}}, title = {{Carbon capture in Canada}}, institution = {Canadian Climate Institute}, year = {2024}, month = dec, url = {https://climateinstitute.ca/safe-bets-wild-cards/carbon-capture-in-canada/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }