Shell Announces New Carbon Capture and Storage Projects in Canada

Shell Canada Products, a subsidiary of Shell plc, made a significant announcement on June 26, 2024, marking a pivotal step forward in environmental stewardship. They have given the green light to the Polaris project, set within the Shell Energy and Chemicals Park at Scotford in Alberta, Canada. This initiative aims to capture around 650,000 tonnes of CO2 annually from the Scotford refinery and chemicals complex, demonstrating Shell's commitment to sustainable practices.

In tandem with the Polaris project, Shell has also announced the Final Investment Decision (FID) for the Atlas Carbon Storage Hub in collaboration with ATCO EnPower. This hub will serve as a crucial component, providing secure underground storage for the CO2 captured by Polaris. The combined efforts of Polaris and Atlas underscore Shell's dedication to leveraging carbon capture and storage (CCS) technologies in line with global climate objectives, as articulated in the Paris Agreement.

Huibert Vigeveno, Shell’s Director of Downstream, Renewable Energy, and Energy Solutions, underscored the critical significance of these projects in reducing emissions from Shell’s operational activities. "Carbon capture and storage is a key technology to achieve the Paris Agreement climate goals," Vigeveno affirmed, highlighting how Polaris and Atlas represent tangible steps toward reducing carbon footprints within the company's operational framework.

The decision to proceed with Polaris and Atlas follows the successful model established by the Quest CCS facility at Scotford, which has effectively captured and stored over nine million tonnes of CO2 since its inception in 2015. By expanding upon this track record, Polaris and Atlas aim to commence operations by late 2028, ushering in a new era of enhanced environmental responsibility and sustainable energy practices.

Shell's Polaris project, wholly owned by Shell, aims to significantly reduce Scope 1 CO2 emissions at their Scotford refinery by capturing and storing up to 40%, and by up to 22% at the chemicals complex. Concurrently, Shell has partnered with ATCO EnPower in a 50/50 joint venture for the Atlas Carbon Storage Hub. The initial phase of Atlas will establish permanent underground storage for CO2 captured by Polaris, with potential future expansions contingent upon further investment decisions. CO2 captured by Polaris will be transported via a 22-kilometre pipeline to two storage wells at the Atlas Hub, where it will be securely stored approximately two kilometres underground in the Basal Cambrian Sands—similar to the successful storage used by the Quest CCS facility, operated by Shell and located adjacent to the Scotford refinery and chemicals plant (100% Shell-owned). Since its establishment in 2015, Quest has consistently captured and stored about one million tonnes of CO2 annually from the Scotford upgrader. Shell's commitment to advancing carbon capture and storage technologies aligns with their broader strategy, as outlined during their Capital Markets Day in June 2023, where they announced plans to invest $10-$15 billion from 2023 to 2025 in developing low-carbon energy solutions such as e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.