The benefits of government support Valiaho says the new major project an- nouncements show that government support can help drive new develop- ment. Alberta is finalizing its carbon cap - ture incentive program, which cov- ers up to 12 percent of eligible capi - tal costs, while the federal government has implemented its CCS investment tax credit, which covers up to 60 per - cent of capture costs and 37.5 percent of the cost for transportation, storage or usage equipment. Both governments have supported CCS projects in the past: Shell’s $1.3 billion Quest project received $745 million from the Alberta government and $120 million from Ottawa, while the $1.2 billion Alberta Carbon Trunk Line received $495 million from Alber - ta and $63.2 million from the federal government. Government support continues to be important for what Valiaho calls “the
next wave” of CCS development.
“This isn’t a technology you buy off a shelf and over time the costs reduce themselves. This is something that has to have iterative applications, and it’s always integrated into your unique cir- cumstance,” she says. “The great thing about CCS is it en- ables industry to continue while reduc- ing its emissions. And what ends up happening is you are against emissions as opposed to against any one indus- try, and that’s really good for jobs and sustaining the economy.”
“The projects are still quite expensive, and it’s not just the capital costs, but it’s also the operating costs,” she says. It can also be daunting for companies to proceed with a large investment in CCS because capturing and storing CO2 is an entirely different operation than their core business of, say, pro- cessing oil or producing cement, Val- iaho says.
“The great thing about CCS is it enables industry to continue while reducing its emissions.”
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