Carbon Capture, Utilization, and Storage (CCUS)

What are CCUS and CCS

Carbon capture, utilization, and storage (CCUS) refers to a range of technologies and processes that capture carbon dioxide (CO₂) from industrial sources or directly from the atmosphere, and then utilized by injecting it into underground porous formations as part of CO₂-enhanced oil recovery (CO₂-EOR) or used to produce manufactured goods. CO₂-EOR improves the production of residual oil and results in some CO₂ becoming permanently stored (i.e., sequestered) within the formation. The CO₂ can also be utilized through commercial processes, which permanently traps the CO₂ into a higher-value product.

Carbon capture and storage (CCS) is similar to CCUS but excludes the utilization of CO₂ and instead it is injected into subsurface formations (e.g., saline aquifers or depleted oil and gas reservoirs) for permanent storage.

Both CCUS and CCS technologies seek to reduce the amount of CO₂ released into the atmosphere. Throughout the remainder of this chapter, CCUS will refer to both technologies unless specified otherwise.

The CCUS process (see diagram below) begins with capturing CO₂, which can occur at the industrial emission source (power generation, hydrogen manufacturing, oil sands mine, etc.) or directly from the atmosphere using direct-air capture (DAC) technology. The captured CO₂ is compressed and transported by pipeline or truck to its destination. The CO₂ is either stored permanently underground (e.g., in saline formations) or used and stored by CO₂-EOR. The Alberta Energy Regulator (AER) has been regulating CO₂-EOR projects since the 1980s.

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Captured CO₂ may also be used as feedstock for a higher-valued product. Some non-oil industry applications include using CO₂ in food and beverage production, metal fabrication, cooling, fire suppression, and plant growth stimulation in greenhouses. Some experimental and pilot applications are under development (i.e., cement, carbon nanotubes, CO₂-to-liquid fuels).

Regulatory Framework for CCUS

Alberta is among the leading jurisdictions in CCUS policy and deployment of a regulatory framework. CCUS projects are covered by Alberta’s existing oil and gas legislation: Oil and Gas Conservation Act, Mines and Minerals Act, Surface Rights Act, Public Lands Act, Environmental Protection and Enhancement Act, and Water Act. Surface rights for CCUS projects are managed the same as oil and gas developments in the province. Pore space rights for CO₂ are covered by the Mines and Mineral Act. Roles and responsibilities for Alberta’s CCUS regulatory framework are divided between Alberta Energy and Minerals, Alberta Environment and Protected Areas, and the AER.

Alberta Energy and Minerals roles include

• development of policy and regulatory frameworks,
• issuance of tenure rights for evaluation and sequestration of CO₂, and
• management of the Post-Closure Stewardship Fund.

Alberta Environment and Protected Areas responsibilities include

• implementation of the Emissions Reduction and Energy Development Plan,
• management of the TIER regulatory system that promotes CCUS through the generation of carbon credits, and
• regulating CO₂ capture facilities not connected to, or associated with, energy resource activity (e.g., chemical manufacturing plant).

As it pertains to CO₂, the AER regulates

• the energy-related facilities¹ that capture CO₂,
• the pipelines that transport the CO₂ within Alberta,
• the subsurface injection activities, which include permanent sequestration and CO₂-EOR projects, and
• oversight of measurement, monitoring, and verification plans and closure plans.

Several AER directives provide technical requirements for CCUS projects including:

• Directive 056: Energy Development Applications and Schedules, which includes requirements for applying to construct or operate wells that inject CO₂, pipelines that transport CO₂, and facilities that capture CO₂.
• Directive 065: Resources Applications for Oil and Gas Reservoirs, which details the approval process for subsurface injection, including measurement, monitoring, and verification plans for CO₂ sequestration, which are essential for containment assurance.

CO₂ Sequestration in 2023

In 2023, there were 1.0 million tonnes of CO₂ permanently sequestered by CCS (Figure S10.1). Since 2015, CCS injection facilities have permanently sequestered a cumulative total of 8.8 million tonnes of CO₂.

There were 1.6 million tonnes of CO₂ permanently sequestered by CO₂-EOR in 2023 (Figure S10.1), an increase from the previous year due to higher production rates from associated carbon-emitting facilities. Since 2020, CO₂-EOR facilities have permanently sequestered a cumulative total of 4.8 million tonnes of CO₂.

Currently, the data for sequestration by CCS includes the Shell Quest CCS project, and sequestration by CO₂-EOR includes Enhance Energy’s Clive Field CO₂-EOR project. Sequestration values do not include CO₂ permanently sequestered through acid gas disposal and other CO₂-EOR projects.