A Royal Dutch Shell Plc-operated carbon capture and storage project in Canada has hit a milestone of sequestering 4 million tons of carbon dioxide about six months ahead of schedule and at a lower cost than estimated, helped by better-than-expected reliability.
While Shell’s carbon storage project has been a success, Halladay sees more of a future for projects that use the sequestered carbon for industrial purposes such as fertilizer, pharmaceuticals and enhanced oil recovery. Halladay said large projects like Quest tend to need large amounts of capital and more regulatory incentives to get built. The Quest facility cost about C$1.35 billion ($1 billion) to build and received C$865 million from the Canadian and Alberta governments.
However, Halladay sees a future for carbon capture and storage as part of the “all hands on deck” strategy that will be needed to reduce emissions and combat climate change. She also noted that there are still some large projects in the works, including one linked to the Chevron Corp.-led Gorgon liquefied natural gas plant in Australia, in which Shell is a partner.
The original story appeared here: https://www.bloomberg.com/news/articles/2019-05-23/shell-carbon-capture-plant-hits-4-million-ton-milestone-early