Federal fund eyes huge carbon project with Canada's top oil producers
Canada Growth Fund wants to back a multi-billion carbon capture project from major oil-sands producers. The deal could reshape how big oil companies handle their environmental impact in Canada
Canadas federal money-pot CGF (which controls $15-billion in public funds) is looking to support a big-time carbon-capture project thats been proposed by the nations oil-sand giants. The deal isnt done yet — both sides need to work-out some key details
The project comes from Pathways Alliance which includes these major players:
- Canadian Natural Resources
- Cenovus
- ConocoPhillips Canada
- Imperial
- MEG Energy
- Suncor Energy
These companies make up about 95% of oil-sands output in the country; theyre planning to spend C$16-billion (around $11.5-billion US dollars) on tech that puts carbon dioxide underground instead of letting it go into the air
The CGF works as a risk-taker: it helps private companies invest in clean-tech projects by taking some of the money risks (which makes other investors more likely to join in). Just this year they helped another company called Strathcona Resources build similar carbon-catching stuff in Saskatchewan and Alberta
Environmental groups havent been super-happy with how slow things are moving — plus they dont like that these companies want more government money. But the talks are moving forward even though the final agreement might take a while: both sides still need to figure out some important stuff about how itll all work
The CGF has a clear job here: they want to make Canada greener by getting private money into projects that cut down on pollution. Their website says they look for good investments in clean tech business and supply chains that help the environment
