The incentive from Alberta comes on top of a federal government CCUS tax credit announced last year.
Canada, the world’s fourth-largest oil producer, is aiming to cut emissions 40-45% below 2005 levels by 2030 but will struggle to hit that target without significant reductions from Alberta, the country’s oil and gas heartland and highest-polluting province.
Alberta Energy Minister Brian Jean said CCUS is the “only viable option” to cut emissions of hard-to-abate industries, including oil and gas and petrochemicals.
“Not only will this technology help preserve our position as a major bitumen producer, but our whole economy will depend on CCUS for large volumes of reduced emissions reductions,” Jean told a news conference.
Alberta Premier Danielle Smith said the incentive program was expected to help attract C$35 billion ($25.80 billion) in capital investment in the province.
(Reporting by Nia Williams Editing by Chris Reese and Aurora Ellis)