Calgary, Alberta – Shell has secured $865 million in funding from the federal and Alberta governments for a project to store CO2 from its tar sands operations.

The Quest Carbon Capture and Storage (CCS) project is intended to capture more than one million tonnes of CO2 per year from Shell’s Scotford Upgrader near Edmonton, which processes heavy oil from the Athabasca oil sands, and permanently store it deep underground. Quest would be the first application of CCS technology for an oil sands upgrading operation, the company said.

“CCS is recognized as one of the most promising technologies to reduce greenhouse gas emissions from fossil fuels,” said John Abbott, Shell’s executive vice-president of heavy oil. “To realize that potential, government support in this important demonstration phase is essential. We would like to thank both levels of government for their commitment to progress CCS technology by investing in Quest.”

The funding agreement was announced as part of an event marking the earlier start-up of Shell’s expansion of the Athabasca Oil Sands Project, which has increased by 100,000 barrels per day to 255,000 per day. The project includes the Muskeg River Mine, Jackpine Mine and Scotford Upgrader.

CO2 injection is planned for 2015 and will make the Quest Project one of a handful of CCS projects worldwide that are injecting CO2 at a commercial scale.

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