Agreement reached on multibillion-dollar Pathways carbon capture and storage project in Canada

Illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on CBC News or enjoy below:

🗞️ Driving the news: Canada’s federal government, Alberta and five major oilsands companies have reached an agreement to advance the Pathways carbon capture and storage (CCS) project, a multibillion-dollar initiative designed to capture and store emissions from Alberta’s oilsands sector
• The deal links progress on CCS infrastructure with support for expanded oilsands production and a proposed West Coast pipeline

🔭 The context: The Pathways project would build a network of pipelines transporting captured CO₂ from oilsands facilities in northern Alberta to underground storage near Cold Lake
• The consortium behind the project includes Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy and ConocoPhillips
• The project was initially estimated at $16.5 billion, but current estimates have risen to $20–30 billion

🌍 Why it matters for the planet: The agreement highlights the growing role of carbon capture as a tool for decarbonising hard-to-abate industries, but also raises debate over whether CCS can meaningfully reduce emissions while enabling continued fossil fuel expansion
• The project aims to capture around 6 million tonnes of CO₂ annually by the mid-2030s, while Alberta’s oilsands emitted 92 million tonnes of CO₂ in 2024

⏭️ What’s next: Construction is expected to proceed in phases, with operations targeted for 2032 and full completion by 2035
• Ottawa plans to extend carbon capture investment tax credits, while Alberta will introduce additional incentives for CCS and oilsands production growth
• Future agreements between governments and industry partners are expected by November

💬 One quote: “Imagine the smallest of fig leaves, but the leaf is actually made of plastic.” – Keith Stewart, Senior Energy Strategist, Greenpeace Canada

📈 One stat: The Pathways project could store 6 million tonnes of CO₂ per year by the mid-2030s, compared with 92 million tonnes of annual emissions from Canadian oilsands production in 2024

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