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Canadian oil producer Strathcona Resources (OTCPK:STHRF) said late Wednesday it is partnering with Canada Growth Fund to build as much as C$2B in carbon capture and sequestration infrastructure in Saskatchewan and Alberta provinces.
Strathcona (OTCPK:STHRF) and CGF will each spend up to C$1B (~US$734M) to fund the project, including an initial commitment of C$500M from CGF with the option to upsize its commitment to C$1B, while Strathcona will construct, operate and own the CCS infrastructure, with initial capital costs funded 50-50 by CGF and the company.
Strathcona (OTCPK:STHRF) said it expects to recoup its share of capital costs through federal CCS investment tax credits and other grants.
The company said the project will capture as much as 2M metric tons/year of carbon emissions; it currently produces 90K bbl/day of heavy oil and bitumen from its steam-assisted gravity drainage oil sands facilities, with 3M tons/year of associated CO2 emissions.