Oil Sands Alliance and Governments Sign MOU for Carbon Capture Project

The Oil Sands Alliance, representing Canadian oil sands companies, has entered into a trilateral memorandum of understanding (MOU) with the federal government and the government of Alberta. The agreement is intended to support Canada's energy sector growth ambitions and specifically advance the proposed Pathways Carbon Capture and Storage (CCS) project.

The MOU outlines necessary regulatory reforms and fiscal measures anticipated to accelerate oil sands production growth and facilitate access to new markets. Both governments commit to ensuring their policy and fiscal frameworks effectively support production increases and streamline regulatory processes.

The Pathways CCS project is designed to transport and store approximately 6 million tonnes of captured carbon dioxide annually from multiple oil sands facilities. The captured CO2 will be moved to a hub near Cold Lake for permanent underground storage, with the project expected to be operational by the mid-2030s. The initiative aims to reduce emissions from oil sands operations.

Kendall Dilling, President of the Oil Sands Alliance, stated the agreement provides a framework for production growth and the advancement of the Pathways project. He emphasized the MOU supports a shared vision to expand Canadian oil production for the benefit of Canadians, and that the Alliance will continue collaborating with governments to ensure Canada remains a competitive destination for energy investment.