On March 26, 2009, the federal government announced up to $140 million will be invested in eight carbon capture and storage projects in Canada. Between $3 million to $30 million will be allocated to projects by Spectra Energy Transmission in British Columbia; Enhance Energy, ARC Resources, TransAlta, Epcor and Enbridge in Alberta; and Husky Energy and TransCanada in Saskatchewan. The parties are now negotiating the formal agreements and conditions under which funding will be delivered.
Carbon capture and storage involves capturing carbon dioxide emissions from industrial sources and moving them through a pipeline to locations where they are injected into deep rock formations for permanent storage. It is a key tool in the reduction of Canada's greenhouse gas emissions and has been identified by the Province of Alberta as the main mechanism by which Alberta will reduce its carbon dioxide emissions.
Pursuant to its Climate Change Action Plan, Alberta aims to cut its projected greenhouse gas emissions in half by 2050 through three key ways: carbon capture and storage; energy conservation and efficiency; and greening energy production. In January, 2008, the Stelmach government announced it would allocate $2 billion dollars towards carbon capture and storage projects. It invited 20 applicants for the funding to submit full project proposals by March 31, 2009 and is expected to choose 3 to 5 of these projects by June.