Alberta, Ottawa, and five oilsands producers sign Pathways carbon capture memorandum of understanding
A multibillion-dollar carbon capture and storage project in the oilsands has moved forward after Alberta's government, the federal government, and five major producers signed a memorandum of understanding, with both levels of government committing to financial incentive programs.
The update
- Alberta's government, Ottawa, and five major oilsands producers have signed a memorandum of understanding to advance the Pathways carbon capture and storage project.
- Ottawa has committed to extending investment tax credits for carbon capture equipment to 2035.
- Alberta says it will finalize its own incentive program for carbon capture.
- The agreement is described as a condition for a new West Coast pipeline moving ahead.
Why this matters
The Pathways carbon capture and storage project is one of the largest proposed industrial decarbonization efforts tied to Alberta's oilsands sector, which anchors the economies of Edmonton and Fort McMurray. With oil prices currently sitting at roughly 75.54 dollars per barrel and unemployment in Alberta stable at 6.5 percent as of July 2026, the timing of a firm government commitment on incentives adds some certainty for oilsands producers weighing long-term capital decisions. The federal investment tax credit extension to 2035 and Alberta's forthcoming provincial incentive program together form the financial scaffolding the project needs to advance. The deal also carries a pipeline dimension, as the signing is reported to be a condition for a new West Coast pipeline proceeding, which would affect how Alberta crude reaches export markets.
Confirmed details
Alberta's government, Ottawa, and five major oilsands producers signed a memorandum of understanding to advance the Pathways carbon capture and storage project.
Ottawa committed to extending investment tax credits for various carbon capture equipment to 2035.
Alberta said it will finalize its own incentive program for carbon capture, though details were not specified.
The agreement is described as a condition for a new West Coast pipeline moving ahead.
Oil prices stand at approximately 75.54 dollars per barrel, up 5.78 on the day, providing a relatively supportive backdrop for major oilsands investment commitments.
What happens next
Watch for Alberta to release details of its provincial carbon capture incentive program and for any further announcements on the West Coast pipeline project that the Pathways agreement is said to be a condition for.