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submitted 2 months ago by girlfreddy@lemmy.ca to c/canada@lemmy.ca

Shell sold millions of carbon credits for reductions in greenhouse gas emissions that never happened, allowing the company to turn a profit on its fledgling carbon capture and storage project, according to a new report by Greenpeace Canada.

Under an agreement with the Alberta government, Shell was awarded two tonnes' worth of emissions reduction credits for each tonne of carbon it actually captured and stored underground at its Quest plant, near Edmonton.

This took place between 2015 and 2021 through a subsidy program for carbon, capture, utilisation and storage projects (CCUS), which are championed by the oil and gas sector as a way to cut its greenhouse gas emissions.

At the time, Quest was the only operational CCUS facility in Alberta. The subsidy program ended in 2022.

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[-] autotldr@lemmings.world 2 points 2 months ago

This is the best summary I could come up with:


Such sales would not have been illegal, but amounted to a "hidden subsidy" within the program which undercut the effectiveness of industrial carbon pricing, says Keith Stewart, senior energy strategist at Greenpeace and the author of the report.

In response to the report, Shell Canada spokesperson Stephen Doolan said carbon capture technology is critical to achieving international climate targets.

Pierre-Olivier Pineau, a professor and researcher in energy policy at HEC Montreal, said the Greenpeace report illustrates "a key underlying problem" for carbon capture and storage, that "the economic environment isn't yet there to make them sound business."

Without a sufficiently high price, Pineau says CCUS projects will be cancelled because "they are not as profitable as dumping CO2 straight in the atmosphere" — unless, as in the case of Shell, they are heavily subsidized, he said.

The Pathways Alliance, a consortium of Canada's largest oilsands companies, is still trying to move ahead with a $16.5-billion carbon capture pipeline project, but is seeking about two-thirds of that amount to be covered by subsidies.

A spokesperson for Natural Resources Minister Jonathan Wilkinson said "the oil and gas sector needs to move forward on achieving reductions in absolute emissions."


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this post was submitted on 08 May 2024
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