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Mitigating emissions, powering progress: a closer look at carbon capture and its positive impact on the environment and economy
Ontario’s successful journey to a net-zero future relies on a diversified approach to energy investment that combines increased electrification with low- and zero-carbon gases and natural gas, paired with proven technologies such as carbon capture and storage (CCS). This approach will help reduce emissions in hard-to-abate industrial sectors. This “pipes and wires” strategy is backed by a growing body of research, including a recent Energy Future Report by the Canada Energy Regulator (CER).
A new report released last month by the Canadian Centre for Economic Analysis (CANCEA) further underlined the importance of investing meaningfully in CCS – a proven, reliable process that captures carbon dioxide from industrial facilities and stores it safely and permanently in underground rock formations located at depths equivalent to the height of two CN Towers.
“Specifically, innovations in CCS enable the sequestration of carbon dioxide emissions from industrial activities for long-term subterranean storage,” states the report, which also highlighted hydrogen as a critical component in a successful decarbonization strategy. “Additionally, the expansion and deployment of CCS systems will act as a key mitigating factor for emissions emanating from current high-emission setups such as hard-to-abate industries that include the steel, cement, and refining sectors.”
A suite of incentives from the Government of Canada is available for funding research on CCS development, a significant approach to reducing emissions in energy and industrial sectors such as steel, cement, and fertilizer production. In cases where electrification or low-carbon fuels are not technically or economically feasible for achieving low-carbon solutions, CCS presents a viable option.
The benefits of CCS go beyond reducing greenhouse gas emissions, says Jeff Cadotte, manager of storage and transportation, low-carbon development, Enbridge Gas, which serves close to four million natural gas customers in Ontario and, as part of a long-term strategy to achieve net-zero emissions by 2050, continues to diversify its energy portfolio to include renewable sources such as wind, solar, hydrogen and geothermal power in addition to conventional and renewable natural gas.
Enbridge has also invested in CCS, with a project under development at its Wabamum Hub near Edmonton.
“Investing in this proven and immediately available technology is not only critical to meeting net-zero goals, it will also translate into significant economic benefits for Canadians,” says Cadotte. “In Ontario, it will give rise to a new industry, preserve and create high-value jobs and drive even more innovation in this province.”
Cadotte points to the CANCEA report, which projected that a $95-billion investment in CCS and low-carbon hydrogen in Ontario would support more than $218.8-billion in economic activity and 1.2 million job years from 2024 to 2050.
“The investment in hydrogen and CCS generates a significant economic impact across Ontario, contributing $114.5-billion into direct economic activity, complemented with $69.7-billion in indirect and $34.5-billion in induced economic activities,” said the report. “This underscores the pivotal nature of investments in hydrogen and CCS as a key opportunity for significant economic growth in the province.”
But for these investments – and their benefits – to materialize, Ontario needs to create an environment that encourages commercial-scale investments in CCS. The province took a significant step forward earlier this year when it lifted the prohibition on underground injection and sequestration of carbon dioxide. Ontario has also outlined its approach for regulating CCS and expects to have a framework in place by 2025.
Cadotte says a clear and efficient regulatory framework that provides certainty to businesses while ensuring safety for the public and the environment is critical to opening the door for investments in CCS.
“By doing that, the Alberta government was able to set up a system where companies can submit proposals for CCS projects, and the province awarded pore space evaluation projects to the safest, most environmentally and technically competent developers,” says Cadotte.
There are many details to work out and little time to waste. In its report, CANCEA analyzed the opportunity costs from delayed investments in CCS and arrived at enormous figures: $53-billion in lost gross domestic product (GDP) and more than 272,500 job years at risk if investments are delayed by three years.
These losses go up to $84-billion in GDP reduction and more than 435,000 job years at risk if the investments are delayed by five years. There’s also the lost opportunity to capture thousands of tonnes of greenhouse gas over multiple years.
“We need to get this right, and the time for action is now,” says Cadotte. “Ontario must continue to take a leading role in promoting a clean energy future by supporting and enabling diverse energy sources and emissions reduction opportunities. This will help to advance carbon capture and storage and ensure the province is well-positioned for success.”
Advertising feature produced by Enbridge. The Globe’s editorial department was not involved.