Due to financial uncertainty and technological risks, Capital Power has decided to abandon its carbon capture project at the Genesee power plant near Edmonton. With an estimated cost of $2.4 billion, the project aimed to capture three million tonnes of carbon dioxide annually, surpassing the capacity of other Canadian carbon capture facilities. However, uncertainties surrounding the future value of carbon credits and the political fate of carbon pricing have rendered the project’s economics unviable, according to Capital Power CEO Avik Dey. Furthermore, the adoption of this technology in a gas plant, a first for Capital Power, introduces additional risk and expense. Scott MacDougall, an analyst from the Pembina Institute, a clean energy think tank, supports this assessment, emphasizing that other carbon capture proposals are unlikely to be affected. MacDougall highlights the maturity and lower risks associated with the technology’s applications in other industries.
Capital Power Abandons Carbon Capture Project Due to Economic Uncertainty and Technological Risks
