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What is the Alberta Carbon Trunk Line?
The Alberta Carbon Trunk Line (ACTL) is Albertas first large-scale, commercial carbon capture and storage (CCS) project and will store more CO2 than any other CCS project in the world. The project represents a significant investment in a CO2 management solution for Albertas industrial development. Captured CO2 will be stored in depleted oil and gas fields for enhanced oil recovery (EOR), kick-starting a new industry of converting a waste product of the oil sands and other industries into a valuable by-product.
What does the project involve?
The ACTL project will consist of constructing a pipeline distribution system that will encompass drying and compression facilities at the north end in the Industrial Heartland; delivery facilities at the south end of the system, which will distribute the CO2 to conventional oil and gas fields in the area; and a high vapor pressure pipeline between the source and the delivery points.
The initial leg of the ACTL will be 240 kilometers in length and the pipe will be 40.6 centimeters (16 inches) in diameter. This represents the backbone of Albertas CCS network. Over time, lateral legs extending south, west and east will allow for multiple entry points that will gather CO2 from the entire central Alberta catchment area.
Where will the CO2 come from?
The initial supply of high purity CO2 will come from North West Upgrading Inc.s bitumen refinery and from Agrium Inc., a fertilizer company, both located just outside of Redwater.
How much CO2 will be stored?
The system is initially licensed to gather, compress and store 15,000 tonnes of carbon per day and at full capacity will gather, compress and store 40,000 tonnes of carbon per day. The impact at full capacity will be equivalent to removing 2.6 million cars off the road annually.
What are the benefits of using CO2 for Enhanced Oil Recovery (EOR)?
What sets the ACTL apart from other CCS projects is that the collected CO2 will not simply be stored indefinitely; but rather will be used as a feedstock to clean energy production. The CO2 will be injected into depleted oil reservoirs for EOR. This process will result in over 1 billion barrels of carbon-efficient fossil fuel and an additional environmentally responsible supply of energy. This will translate into more than $15 billion in royalties for the Province.
Where is the EOR project located?
The first EOR project to be implemented will occur at Clive. Under an agreement with Fairborne Energy, a Calgary-based crude oil and natural gas exploration, development and production company, the captured CO2 will be used for enhanced oil recovery resulting in increased recovery of up to 15% of the original oil.
Where did the project receive funding from?
In order to provide a clear approach for achieving the Provinces longer-term emission reduction targets, as outlined in the Climate Change Strategy, the Government of Alberta developed a $2-billion CCS fund. In November 2009, Enhance Energy and North West Upgrading signed a Letter of Intent to receive $495 million from this fund for the planning, development and construction of the ACTL. Enhance Energy and North West Upgrading have also signed a Contribution Agreement with the Government of Canada for $63 million. This funding comes from Canadas ecoEnergy Technology Initiative and the Clean Energy Fund.
As the focus on the reduction of carbon emissions grows, CCS is the key to the continued development of the Albertas vast energy resources. The funding is the key to balancing a robust economy driven by the worlds energy demands with the need to reduce the footprint of fossil energy production.
Is CCS the only answer to reducing emissions in Alberta?
CCS is not the only answer to reducing Albertas emissions, but it is a strong component. It has the greatest potential to dramatically reduce emissions in the near term. This will allow Alberta and Canada to meet new emission regulations without debilitating the economy.
What are the specific socio-economic benefits of the ACTL?
The ACTL will manage the industrial carbon problem while propelling the economic growth of Alberta. By using captured CO2 for enhanced oil recovery, it is believed that the project will produce up to $15 billion worth of royalties to the Province. All Albertans will benefit from the royalties and taxes the ACTL project will generate in the form of education, essential services, health care, infrastructure, social programs, and transportation.
Construction of the pipeline will create 2,000 direct jobs and in the range of 8,000 indirect employment opportunities in central Alberta. These jobs will be heavily concentrated in rural Alberta and offer an economic lifeline for these communities.
Is the Alberta Carbon Trunk Line and EOR project safe?
Yes. Enhanced Oil Recovery - the process of extracting oil from depleted reserves using captured CO2 - has been used throughout North America for over 30 years. The first CO2 flood took place in 1972 in Scurry County, Texas. Today, there are an estimated 100 registered CO2 floods worldwide producing approximately 250,000 barrels per day (2006) of oil.
The CO2 is stored approximately 1 kilometer below the earths surface, where reservoirs previously held oil and gas for millions of years.
Storing CO2 in empty reservoirs has been proven to be safe. The Weyburn-Midale CO2 Project in Saskatchewan has safely injected over 16 million tonnes of CO2 to date. The US EOR industry has injected over 600 million tonnes of CO2.
What is the timing of the ACTL?
Enhance Energy is seeking regulatory approval from the Energy Resources Conservation Board (ERCB) and the Alberta Environment (AE). The ACTL has been in the works for more than four years. Detailed engineering of pipeline and facilities are underway. Construction of the pipeline is set to begin in late 2011 with the completion of the project expected in late 2012.
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