In a significant move towards reducing industrial carbon emissions, Shell Canada Products has taken a decisive step in advancing carbon capture and storage technology in Alberta, Canada. On June 26, 2024, the company announced Final Investment Decisions for two groundbreaking projects: Polaris and Atlas Carbon Storage Hub. These initiatives represent a major leap forward in Shell's commitment to achieving the Paris Agreement climate goals and reducing emissions from its operations.
The Polaris project, to be implemented at the Shell Energy and Chemicals Park in Scotford, Alberta, is designed to capture approximately 650,000 metric tons of CO₂ annually from the Shell-owned Scotford refinery and chemicals complex. This ambitious undertaking aims to significantly reduce the facility's carbon footprint, with the potential to cut Scope 1 CO₂ emissions by up to 40% at the refinery and 22% at the chemicals complex. The project builds upon the success of the Quest carbon capture and storage facility at Scotford, which has safely captured and stored more than nine million metric tons of CO₂ since its inception in 2015.
Complementing the Polaris project, Shell has also announced an FID for the Atlas Carbon Storage Hub, a joint venture with ATCO EnPower. The first phase of Atlas will provide permanent underground storage for the CO₂ captured by the Polaris project. This integrated approach ensures a complete carbon capture and storage solution, from emission source to permanent sequestration. The CO₂ captured by Polaris will be transported via a 22-kilometer pipeline to two storage wells, where it will be stored approximately two kilometers underground in the Basal Cambrian Sands formation.
Huibert Vigeveno, Shell's Downstream, Renewable and Energy Solutions Director, emphasized the importance of these projects, stating, "Carbon capture and storage is a key technology to achieve the Paris Agreement climate goals. The Polaris and Atlas projects are important steps in reducing emissions from our own operations." This statement underscores Shell's commitment to not only developing low-carbon technologies but also implementing them in their own facilities to lead by example.
The decision to proceed with these projects aligns with Shell's broader strategy to invest in low-carbon energy solutions. As announced at their Capital Markets Day in June 2023, Shell plans to invest $10-$15 billion between 2023 and 2025 to support the development of various low-carbon technologies, including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage. This substantial investment demonstrates Shell's recognition of the urgent need to transition towards more sustainable energy solutions.
The Polaris and Atlas projects are expected to begin operations toward the end of 2028, marking a significant milestone in Canada's efforts to reduce industrial emissions. These initiatives not only contribute to Shell's environmental goals but also position Alberta as a leader in carbon capture and storage technology. The success of these projects could pave the way for further expansion of CCS infrastructure in the region, potentially allowing for carbon storage from third parties in future phases of the Atlas Carbon Storage Hub.
Shell's approach to these projects leverages valuable lessons learned from the Quest CCS facility, which has been operational since 2015. This experience provides a solid foundation for the implementation of Polaris and Atlas, increasing the likelihood of their success and efficiency. By building on proven technologies and expanding their scale, Shell is demonstrating a pragmatic yet ambitious approach to tackling industrial emissions.
As these projects move forward, they will likely attract significant attention from both the energy industry and environmental groups. The success of Polaris and Atlas could serve as a model for other industrial facilities looking to reduce their carbon footprint, potentially accelerating the adoption of CCS technology across various sectors. Moreover, these initiatives highlight the crucial role that established energy companies can play in driving the transition to a low-carbon future, combining their extensive resources and technical expertise with innovative solutions to address the urgent challenge of climate change.
