Page 16 - NorthAmOil Annual Review 2021

NorthAmOil JULY NorthAmOil

Shell proposes second

CCS project for Alberta

Royal Dutch Shell has proposed to build a large-scale

carbon capture project to capture emissions from its

Scotford refinery and chemical plant

ALBERTA ROYAL Dutch Shell’s Canadian unit has of CO2. Shell anticipates that it would reduce
unveiled a plan to build a large-scale carbon its Scope 1 and 2 emissions – those stemming
WHAT: capture and storage (CCS) project at its Scotford directly from its operations and indirectly from
Shell has unveiled plans complex near Edmonton, Alberta. The project electricity, heat or steam used in its operations
to build a carbon capture would be used to capture carbon dioxide (CO2) respectively – by up to 40% from the refinery
and storage project in emissions from the company’s Scotford refinery and up to 30% from the chemical plant.
Alberta, which would and chemical plant. The second phase of the Polaris CCS project
be its second in the If the facility, known as Polaris CCS, is built, involves the creation of a CO2 storage hub in
province. it would be Shell’s second CCS facility at Scot- Alberta that will serve both Shell and third-
ford after the Quest project, which has captured party industry sources. Creation of the hub is
WHY: more than 6mn tonnes of CO2 in its six years of contingent on acquiring pore space leases from
CCS is seen as a key operation. The proposal is the latest of several the Alberta government, but if this is achieved
component of the CCS plans unveiled in oil-rich Alberta, which the project could have a capacity of more than
decarbonisation push is under mounting pressure to decarbonise. It 10mn tpy of CO2.
in the oil-producing would also mark a further move into CCS for Once Polaris is fully built, Shell would also
province. Shell, which is also involved in the develop- aim to have the project contribute to the crea-
ment of the Northern Lights CCS project in tion of a hydrogen hub in the Edmonton region
WHAT NEXT: Norway and the Porthos CCS scheme in the – Canada’s first. In the initial phase of Polaris,
Shell is joining a number Netherlands. CO2 captured from the Scotford refinery’s
of companies that are hydrogen plants would produce blue hydro-
proposing new CCS Polaris plan gen – created from fossil fuels, but with a CCS
facilities for Alberta. The Polaris project would have a storage capacity component to offset its emissions – for use in
of about 300mn tonnes of CO2 over the life of the refining process. Subsequently, Shell envi-
the project. Shell is targeting a final investment sions Polaris having the potential for large-scale
decision (FID) in 2023, after which it would aim blue hydrogen production in future phases. The
to bring the first phase of the project into service company said it was also exploring the develop-
around the middle of the decade. ment of additional volumes of blue and green
The initial phase of Polaris would capture hydrogen – produced from renewable sources
and store roughly 750,000 tonnes per year (tpy) – at Scotford.

Canada is pursuing net
zero GHG emissions
in the long term, and
the country’s leading
oil sands producers
recently formed an
alliance to work
towards their own net
zero goal.

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