Ottawa and Alberta sign Pathways carbon capture agreement with oil companies
The federal government and Alberta have reached an agreement with Pathways Alliance oil companies on carbon capture, but details of Alberta's own incentive program remain unfinalized.
The update
- Ottawa committed to extending investment tax credits for carbon capture equipment to 2035
- Alberta announced it will finalize its own incentive program for carbon capture as part of the agreement
Why this matters
Carbon capture is a central plank of both federal and provincial strategies to reduce emissions from Alberta's oil sands while sustaining energy production. An agreement between Ottawa, Alberta, and the Pathways Alliance could shape billions in investment decisions for the sector, which is a major driver of Alberta's economy. However, with Alberta's own incentive program still not finalized, the full scope and terms of the deal remain unclear.
Confirmed details
Ottawa has committed to extending investment tax credits for various carbon capture equipment to 2035.
Alberta says it will finalize its own incentive program for carbon capture, though no details of that program have been released.
Oil prices stand at $75.54 per barrel, up $5.78, providing a relatively supportive backdrop for capital-intensive carbon capture investments.
What happens next
Watch for Alberta's release of the specific terms of its provincial carbon capture incentive program, which will determine the scale of provincial support alongside the federal tax credits.