Mining Association of Canada | 2023 Report

The Mining Association of Canada | The Canadian Mining Story: Economic Impacts and Drivers for the Global Energy Transition 2023 62 In addition to reducing the cost of capture technology, there are opportunities to build expertise and reduce costs related to the transportation, storage and utilization of CO2. The establishment of local networks that interconnect major emissions sources with nearby geological storage sites, such as the recently completed Alberta Carbon Trunk Line, could greatly reduce both transportation and storage costs and spark further innovation. While breakthrough CCUS projects such as SaskPower’s Boundary Dam coal-fired power station and Shell Canada’s Quest oil sands upgrader created an early advantage for Canada, other countries are moving quickly to cement their place as key suppliers of CCUS technologies. The US, Germany, Norway and the United Kingdom are positioning CCUS as a key component of their strategies to reduce emissions and create economic opportunity both domestically and abroad. These strategies include robust fiscal frameworks designed to de-risk investments across the value chain and create predictable revenue streams for companies seeking to secure additional private sector investment for CCUS projects. The introduction of a competitive income tax credit (ITC) would allow Canada to build on its early-mover advantage and stimulate greater investment in CCUS by offsetting the significant upfront costs. An ITC that is comparable to those available elsewhere could help Canada become a location of choice for CCUS projects in North America. It could also help to ensure that emissions-intensive, trade-exposed industries are not placed at a competitive disadvantage.