NorthAmOil: Alberta unveils CCUS initiative as COP28 opens in Dubai

Canada's main oil-producing province, Alberta, has unveiled a new initiative aimed at reducing emissions tied to climate change.  

Alberta's government plans to offer a 12% grant for eligible capital expenses associated with constructing carbon capture utilisation and storage (CCUS) projects. The Alberta Carbon Capture Incentive Programme is also known as ACCIP.

This move is intended to encourage investments in this costly technology, complementing the federal government's CCUS tax credit introduced last year. Government funding for the Investment Tax Credit (ITC) is valued at CAD3.1bn ($2.3bn) over the first five years. Total investment is expected to be CAD35bn over the next decade.

The federal CCUS ITC will be available for investments from 2022 to 2040, with rates decreasing after 2030 to encourage early investment.

The timing of the unveiling of the Alberta initiative was on the eve of the COP28 climate talks opening in Dubai. Major debates are expected at the conference on phasing out or phasing down fossil fuel production, especially when it is unabated – that is, when the CO2 is not stored.