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First Nations investment group to partner with Enbridge on carbon capture and storage project

Chief of Alexander First Nation, George Arcand Jr., talks about the group's decision to form its first partnership
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A recently formed First Nations investment group has announced its first deal — an agreement to partner with Enbridge to invest in carbon storage at Wabamun.

The First Nation Capital Investment Partnership (FNCIP) wants to be at the forefront of creating change and making the environment better, said Chief of Alexander First Nation, George Arcand Jr., about forming a partnership Feb. 3 on the proposed Open Access Wabamun Carbon Hub.

If approved, the hub is slated to be one of the largest integrated carbon transportation and storage projects in the world and could potentially represent “an opportunity to avoid nearly four million tonnes of atmospheric CO2 emissions,” according to a press release on the partnership.

The hub would support recently announced carbon capture projects from Capital Power Corporation, and Lehigh Hanson Materials Limited. The Lac Ste. Anne Métis Community will also have an opportunity to pursue ownership in future carbon transportation and storage projects associated with the hub.

Arcand said the FNCIP, which consists of four Treaty 6 Nations including Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation, and Paul First Nation, had discussions on several business opportunities before they decided on Enbridge and the hub project.

“We felt Enbridge was far enough along down the tracks that they would be a good partner and that they were working on the technology we thought was going to be the best for that kind of activity,” said Arcand.

In an email, David Coll, senior communication advisor with Enbridge, said the company chose to work with FNCIP and the Lac Ste. Anne Métis Community because they are most proximate to the proposed hub, and they represent Enbridge’s commitment to Indigenous economic reconciliation and inclusion in the energy transition underway today. 

“Enbridge has signed letters of intent to work with each of these groups to advance the proposed Wabamun carbon hub,” said Coll.

Coll said Enbridge anticipates it will be investing hundreds of millions of dollars in carbon transportation and storage infrastructure for the hub and those dollars will unlock more “significant investments in capture projects that will be in the billions of dollars.”

He said the cost of capture represents about 80 per cent of the total cost of an integrated CO2 capture, transportation, and storage project. 

Enbridge has applied to develop the open access hub through the province's request for full project proposals process.

Coll said the hub would be constructed to meet timelines of planned carbon capture projects of Lehigh Cement and Capital Power, in the 2025-2026 time frame. 

Arcand said there are still some discussions and consultations that need to happen in their communities before the project kicks into high gear. They have questions about some environmental aspects of the project, including what happens to the carbon in 25 years.

Arcand said they have a way to go in terms of understanding the technology behind carbon capture, but Enbridge has agreed to work with them to answer questions with their community members and shareholders about long-term effects and impacts of the process over short and long periods of time.

“This technology, I mean, this is fairly new,” said Arcand.

A Fort Saskatchewan carbon capture and storage facility recently came under fire for not storing as much carbon as it was emitting in a report by Global Witness, an NGO based in the U.K.

The Quest facility was found by Global Witness to have emitted 7.5 million tonnes of gases and to have only captured five million tonnes of carbon across a five-year period.

“The lesson from Quest should be loud and clear for governments all over the world. Do not invest in a technology that is not only failing to deliver any effective action in tackling the climate crisis, but is in fact contributing to it,” said a Global Witness press release on Jan. 20.

In an email, a Shell Canada spokesperson said they "disagree with the report’s conclusions and any analysis that suggests Quest is not reducing CO2 emissions is simply wrong. Quest has been operating since 2015 and has safely captured and stored over six million tonnes of CO2. The knowledge gained by operating Quest will enable the next wave of CCS (carbon capture and storage) projects to capture more CO2 at higher efficiencies and at a lower cost."

When asked about CCS criticisms by Global Witness, Coll said carbon capture, transportation, and storage is key to meeting the country’s CO2 emissions reduction targets, which include reaching net-zero emissions by 2050.

“There’s widespread support for this view, including a recent International Energy Agency analysis that says, globally, ‘reaching net-zero [greenhouse-gas emissions] will be virtually impossible without [CCS],’” said Coll.

As the world shifts to a low-carbon economy, the transition must be accomplished in a way that addresses climate change, and this transition will not happen overnight, Coll continued.

“For the transition to be successful with minimal disruption to our economy and way of life, all forms of energy will be needed for years to come,” he said.

When it comes to criticisms about CCS, Arcand said he thinks we are still in the early stage of understanding how these things work.

“People are going to always question how things are being planned out and done. I believe that as time goes on, we'll find better technology. But I think we've got to start somewhere.

“To me this is a good starting place,” said Arcand.

Coll said the FNCIP could own up to 50 per cent of the hub when it is completed but final investment amounts will not be determined until they reach the definitive agreement stage.

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