A forward-thinking project from the Alberta Research Council Inc. and ARC Energy Trust of Calgary is getting closer to putting a lid on the gas stacks rising from the industries in Alberta’s Industrial Heartland region, just outside of Fort Saskatchewan.
The two organizations have teamed up to create the Heartland Area Redwater Project (HARP), an advanced initiative aimed at capturing and storing those greenhouse gas emissions in what early indicators show to be an ideal underground formation nearby.
Carbon dioxide capture and storage (CCS) is a concept that the Alberta Research Council has been working with for more than 15 years. CCS provides a long-term, safe and large-scale option for reducing greenhouse gas emissions in Canada and around the world.
Led by ARC Energy Trust and the Alberta Research Council Inc., the Heartland Area Redwater Project will evaluate the potential for the Redwater Leduc Reef complex to store as much as 1,000 Megatonnes of CO2. This could accommodate more than 20 years worth of CO2 emissions from the large emitting facilities existing and planned for the Industrial Heartland Area.
“We’ve looked at the geology across the province, and we feel this area has ideal attributes for a CO2 capture and storage project,” says Dr. William Gunter, the Alberta Research Council’s principal scientist for CCS.
“Reducing emissions related to Alberta’s oil sands production is a top priority,” says Gunter. “This reef is directly underneath Alberta’s Industrial Heartland, which translates into less transportation infrastructure and the least-cost method of carbon storage for industries in that area.”
“Carbon capture and storage is a key component of Alberta’s climate change strategy and as a government, we’re pleased to be the major funder of this project,” said Advanced Education and Technology Minister Doug Horner. “This project is an important step in ensuring that we can explore new energy development practices while reducing emissions.”
“This project brings together government, industry and research scientists to work collaboratively on proving that the Redwater Reef complex can provide a long-term solution for greenhouse gas emissions from Alberta’s Industrial Heartland,” says John Dielwart, President and CEO for ARC Resources Ltd.. “Knowledge gained from this project will be beneficial to our CO2 enhanced oil recovery pilot at Redwater and vice-versa.”
“We are very supportive of this initiative and we view this as being strategically important to attracting and maintaining investment in the area,” says Neil Shelly, Executive Director of the Alberta Industrial Heartland Association. “Managing greenhouse gas emissions related to industrial growth is pivotal, so this project looks promising and beneficial for both our community and our industry.”
The Heartland Area Redwater Project has three phases: phase one will evaluate in detail the size and suitability of the site for CO2 capture and storage, phase two will involve the drilling of a well to collect more detailed data, while phase three is planned to demonstrate actual CO2 injection and storage.
The $1.8 million first phase is being funded by ARC Energy Trust, the Alberta Energy Research Institute (AERI) and Natural Resources Canada (NRCan). Phase one is scheduled to be completed in spring 2009.
ARC Energy Trust is one of Canada's largest conventional oil and gas royalty trusts with an enterprise value of approximately $6.4 billion. The Trust expects full year 2008 oil and gas production to average approximately 63,000 barrels of oil equivalent per day from six core areas in western Canada. ARC Energy Trust units trade on the TSX under the symbol AET.UN and ARC Resources exchangeable shares trade under the symbol ARX.
The Alberta Research Council develops and helps partners deploy leading edge technology in the province, across the country and around the world. The returns on the Alberta Research Council’s projects contribute to building a prosperous province, securing a sustainable future and maintaining a high quality of life for Albertans.