Financial, technology risks likely delayed Alberta carbon capture project: analyst

Capital Power’s Genesee plant is seen near Edmonton in an Oct. 19, 2022, handout photo. An analyst says a corporate decision to mothball Canada's largest carbon capture and storage project is likely the result of financial uncertainty and technological risks.THE CANADIAN PRESS/HO-Capital Power, Jimmy Jeong, *MANDATORY CREDIT*

EDMONTON — An analyst says a corporate decision to mothball Canada’s largest carbon capture and storage project is likely the result of financial uncertainty and technological risks.

Capital Power announced Wednesday it would no longer pursue carbon capture at its Genesee power plant near Edmonton.

The $2.4-billion project would have captured about three million tonnes of carbon dioxide a year, much more than other Canadian carbon capture facilities.

Capital Power CEO Avik Dey says the economics of the project don’t add up.

Scott MacDougall of clean energy think tank the Pembina Institute says that’s probably because of uncertainty over the future value of carbon credits and the political fate of carbon pricing.

He says Capital Power would have been the first to use the technology in a gas plant, which also carries risk and adds cost.

He says he doesn’t expect other carbon capture proposals to be put on hold.

The technology is different and better understood in other industries, he says, meaning the risks are lower.

This report by The Canadian Press was first published May 2, 2024.

The Canadian Press