Carbon Capture, Utilization, and Storage

Carbon capture, utilization, and storage (CCUS) refers to a range of technologies and processes that capture carbon dioxide (CO₂) from sources such as industrial facilities, transport the CO₂ through pipelines, then inject it into deep subsurface geological formations (e.g., saline aquifers or depleted oil and gas reservoirs) for permanent storage. CCUS technologies are recognized by the Government of Alberta as effective tools for reducing emissions and mitigating the effects of climate change.

The AER regulates two types of CCUS processes: 

1. Carbon Capture and Storage (CCS) 
   CCS projects are also referred to as CO₂ sequestration schemes. A CO₂ sequestration scheme is the permanent storing and trapping of CO₂ in an approved subsurface formation. This is also called dedicated storage. A carbon sequestration tenure or agreement from the Government of Alberta is required if a company wants to apply for a CCS project. An example of a CO₂ sequestration project that has received AER approval is the Quest CCS project operated by Shell.
    
2. Carbon Capture, Utilization, and Storage (CCUS)
   CCUS projects are also referred to as CO₂ enhanced oil recovery (EOR) and storage schemes. Using CO₂ in EOR schemes improves the production of residual oil and also has the effect of permanently sequestering some CO₂. We have been regulating CO₂ EOR schemes for more than 25 years. CO₂ EOR and storage schemes are expected to store large volumes of CO₂ to help reduce greenhouse gas emissions. An example of this is Alberta Carbon Trunk Line operated by Enhance Energy Inc.

Captured CO₂ can also be used as an input or feedstock to create products such as cement. The AER does not oversee this part of the process.

Image

Our subsurface requirements for CO₂ schemes are set out in Directive 065: Resources Applications for Oil and Gas Reservoirs, Units 2 and 4, as illustrated below.

Image

Carbon Capture Facility

The overall CCUS process begins with the installation of CO₂ capture technology, which can occur at an industrial emission source (e.g., upgraders, in situ central processing plant) or capturing CO₂ directly from the atmosphere using direct-air capture technology.

The AER is responsible for CO₂ capture technologies associated with AER-regulated facilities (e.g., oil sands upgrader). 

Alberta Environment and Protected Areas (AEPA) is responsible for CO₂ capture technologies associated with AEPA-regulated facility (e.g., chemical manufacturing plant, cement manufacturing plant).

Operators planning to install and integrate CO₂ capture technology with an approved AER-regulated facility need to file an application to amend their existing approvals. Such applications follow the AER’s sector-specific Application Processes for oil sands (mining and in situ), coal mining, and oil and gas activities.

How are CO₂ schemes regulated under provincial legislation?

The Mines and Minerals Act states that the Crown owns the pore space for CO₂ sequestration schemes, may enter into tenure agreements with respect to its use, and establishes the framework for liability transfer. 

For information on carbon sequestration tenure, please visit the Government of Alberta’s Carbon capture, utilization and storage – Carbon Sequestration Tenure webpage.

The Oil and Gas Conservation Act (OGCA) permits the AER to approve CO₂ schemes if CO₂ injection will not interfere with 

• the recovery or conservation of oil and gas, or 
• an existing use of the underground formation for storing oil and gas.

The Water Act enables the AER to issue Water Act approval if required for surface water or groundwater.

The Environmental Protection and Enhancement Act (EPEA) regulations governing oil and gas, coal, and oil sands activities also can apply to CCS projects, including for conservation, reclamation, and closure of wells and pipelines, and remediation of contaminated sites.

Surface rights for CO₂ sequestration and CO₂ EOR and storage projects are managed the same as for other oil and gas developments in the province, through the Public Lands Act, Surface Rights Act, and the OGCA.  

Alberta Energy and Minerals issues the tenure rights for storing CO₂. Further information on tenure management can be found on the government’s Carbon Sequestration Tenure Management webpage. Alberta Environment and Protected Areas enables the generation of carbon credits through the Alberta Emission Offset System and the generation of emissions performance credits under the Technology Innovation and Emissions Reduction Regulation. 

The AER regulates all energy-related aspects of carbon capture and oversees measurement, monitoring, and verification plans, and closure plans. The Carbon Capture Regulation and Responsibilities brochure provides information on carbon capture regulation and responsibilities.

Our Requirements

We regulate the energy-related facilities that capture CO₂, the pipelines that transport the CO₂, and the subsurface injection activities. 

Image

We have several directives, listed below, that set out the requirements for CO₂ schemes across their life cycle. These requirements range from how wells are to be used to inject CO₂ into subsurface formations to where CO₂ can be safely stored subsurface. 

Operators are also required to submit for approval monitoring, measurement, and verification (MMV) plans and closure plans prior to operation, and updated periodically. Additionally, they are required to submit annual reports on their activities.

Compliance and Enforcement

We regularly conduct inspections and audits to make sure that companies are following our requirements. If we find that a company is noncompliant, we will take the appropriate compliance and enforcement actions.