The Pathways Project, a multibillion-dollar initiative aimed at transporting and storing oilsands greenhouse gas emissions, has taken a significant stride forward towards implementation. This move comes following collaborative efforts between the Alberta government, Ottawa, and five major oil companies to push the project forward while also focusing on boosting Canada’s bitumen production.
A crucial aspect of the project involves supporting a new West Coast oilsands pipeline, which would help mitigate some of the carbon dioxide emissions associated with the infrastructure. To facilitate this, the governments have committed to implementing regulatory and fiscal measures to encourage growth in oilsands production, ensuring the pipeline from Alberta to a port in southern British Columbia can operate at full capacity.
The agreement for the Pathways Project was unveiled recently, having been formally signed on July 2, coinciding with Alberta’s submission of the pipeline proposal to the federal major projects office. This partnership underscores the significance of collaboration between governments and industry in driving economic growth, enhancing energy security, and creating new opportunities across Canada, as highlighted by Alberta Premier Danielle Smith.
The Pathways-pipeline arrangement forms part of a broader agreement inked by Ottawa and Alberta in November, covering various energy-related aspects. Tim Hodgson, the federal energy and natural resources minister, emphasized the commitment to fulfilling the terms of the Canada-Alberta memorandum of understanding, focusing on infrastructure development, emission reduction, job creation, and energy sovereignty.
Under the newly announced agreement, the federal government has extended investment tax credits for carbon capture equipment and associated transportation, storage, and usage equipment. Alberta, on the other hand, has pledged to finalize its incentive program for carbon capture and provide financial support to boost oil production necessary for the new West Coast pipeline and other expansions.
Moreover, the Pathways Project is anticipated to progress in phases, with infrastructure expected to be operational by January 1, 2032, and the entire project completed three years later. The consortium comprising Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy, and ConocoPhillips, collectively known as the Oil Sands Alliance, expressed optimism about the framework established for the project’s advancement.
The initiative involves a network of pipelines to transport captured carbon dioxide from northern Alberta’s oilsands sites to an underground storage hub near Cold Lake, Alberta. Initially estimated to cost $16.5 billion, Cenovus CEO Jon McKenzie indicated at a conference that the project’s cost could range between $20 billion and $30 billion.
The Pathways Project aims to have the capacity to transport and store approximately six million tonnes of captured CO2 annually by the mid-2030s, with a further target of achieving an additional 10 million tonnes of reductions by 2045. Notably, the Oil Sands Alliance had set a goal of reducing 22 million tonnes of emissions by 2030.
Despite these commitments, critics have raised concerns about the agreement’s environmental impact, with Greenpeace Canada’s senior energy strategist, Keith Stewart, referring to it as a form of greenwashing due to the limited scope of pollution reductions compared to the emissions enabled by the new pipeline.
The agreement also includes provisions for Pathways to prioritize the use of Canadian construction materials where feasible. Future binding agreements between the federal and Alberta governments and each of the Oil Sands Alliance partners are scheduled to be finalized by November 15.
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