Shell mulls new carbon capture complex in Alberta
Royal Dutch Shell PLC on Tuesday announced it is considering investing in a new large-scale carbon-capture complex at its Scotford refinery and chemicals plant near Edmonton as the multinational oil and gas company looks to achieve net zero emissions by 2050.
The proposed complex, to be called Polaris, would capture 750,000 tonnes of carbon dioxide per year from the refinery and chemical plant, and could eventually store CO2 on behalf of other industrial emitters.
Shell said it will not decide whether to build Polaris until 2023, and declined to disclose the estimated capital or operating costs.
Still, the company has set a goal to capture 25 million tonnes of CO2 per year by 2035 and has already disclosed or invested in projects in Canada, Australia, the Netherlands and Norway.
The company has also said reducing emissions at Scotford and other facilities will ensure it remains competitive as the carbon tax and clean fuel regulation increasingly create an economic advantage for cleaner companies.
“Our customers have made commitments to net zero, they've made commitments to reduce their carbon footprint,” Susannah Pierce, Shell Canada president said.
“Our product offering is going to give them something to say we're actually procuring low-carbon fuels.”
Pierce added that in the absence of efforts to reduce carbon emissions, “frankly, I don't think we could compete in terms of customer demand and then also in terms of our own commitments to net zero.”
Since 2015, the company has been operating its $1.35-billion Quest carbon-capture project, which captures about one-third of the emissions from the Scotford bitumen upgrader.
The Scotford complex, which Shell opened in 1984, includes an upgrader and refinery that convert synthetic crude oil into gasoline, diesel, jet fuel, propane and butane.
An adjacent chemical plant makes styrene monomer, which is used in food containers, home insulation and other products, as well as ethylene glycol, which is used to make drinking bottles and antifreeze. Quest's captured emissions from the upgrader are transported via a 65-kilometre pipeline to a sandstone rock reservoir two kilometres below surface level.
As of 2020, Quest had captured more than five million tonnes of CO2 — equivalent to about 1.25 million cars — thereby reducing about one-third of the upgrader's emissions.
Polaris, by contrast, could reduce emissions by 40 per cent at the refinery and by 30 per cent at the chemicals plant.
Chris Severson-Baker, Alberta regional director at the Pembina Institute, said the most exciting aspect of the project is that it reduces emissions from an existing facility, which will be crucial for Canada to reach net zero emissions by 2050.
“The challenge we have in Canada is we need to drive down the emissions from existing production,” he said.
“We haven't been able to do this so far from oil and gas or the transportation sector. This is an important project from that perspective and we need to see more like it.”