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Proposed $2.6B Alberta methanol project inks deal to add carbon capture ability

The Canadian Press
Proposed $2.6B Alberta methanol project inks deal to add carbon capture ability

CALGARY — A partner in an Alberta carbon capture and storage project that recently celebrated storing its one millionth tonne of CO2 says it has an agreement with a northwestern Alberta chemical plant developer that could result in building a second large-scale system.

Privately held Enhance Energy Inc. says it has agreed with Nauticol Energy Ltd. to work together on the capture and sequestration of up to one million tonnes of CO2 per year from Nauticol’s $2.6-billion proposed methanol facility to be built near Grande Prairie, Alta.

Currently, Enhance takes emissions captured by partner Wolf Midstream from two industrial plants northeast of Edmonton and transports them south on the 240-kilometre Alberta Carbon Trunk Line system to be injected underground in an oilfield for enhanced oil recovery and permanent storage.

Nauticol CEO and co-founder Mark Tonner says adding the carbon capture component is essential to attract financial backers for his company’s plant because it will enable its production to be net carbon emission neutral and thus considered “blue methanol.”

He says the first 1.7-million-tonne-per-year phase of the two-phase project first announced in 2018 is expected to be in service in 2025 after a three-year construction period, assuming capital funding can be arranged.

Tonner says the Nauticol project would create methanol from abundant nearby sources of natural gas for sale as a marine fuel and in industrial processes mainly in Asian markets.

He said carbon capture “futureproofs” the project.

“We think it’s critically important. Absent doing things like this, you just, quite frankly, won’t attract capital,” he said in an interview.

“You’ve got enormous global capital providers who are sending very clear messages that they will only support projects that have exceptionally strong environmental attributes.”

 

© 2021 The Canadian Press

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