Alberta Carbon Grid (ACG)
The Alberta Carbon GridTM (ACG) is a carbon transportation system reaching the province’s largest sources of industrial emissions.
Designed to be an open-access system, the ACG will serve as the backbone of Alberta’s emerging carbon capture utilization and storage (CCUS) industry, connecting the Fort McMurray region, the Alberta Industrial Heartland, and the Drayton Valley region to key sequestration locations and delivery points across the province, and serving multiple industries. When fully constructed, the system will be capable of transporting more than 20 million tonnes of carbon dioxide (CO2) annually.
In addition to using new assets, by leveraging existing infrastructure and a newly developed sequestration hub, the ACG represents the infrastructure platform needed for Alberta-based industries to effectively manage their emissions and contribute positively to Alberta’s lower-carbon economy, creating sustainable long-term value for Oil Pipestream and Pembina stakeholders. Learn more at albertacarbongrid.ca.
ACG announcement
The Alberta Government has confirmed that the Alberta Carbon Grid (ACG), and our proposal to build and operate a carbon storage hub and gathering lines in Alberta’s industrial heartland, has been invited to move forward into the next stage of the province’s carbon capture utilization and storage (CCUS) process.
We are excited about the opportunity to work alongside the Government of Alberta, collaborate with our industry peers, and connect with Indigenous communities and key stakeholders to advance this important work. The project is part of a multi-year effort to help meet federal emissions targets and benefit the Alberta economy.
The ACG is part of Pembina’s and Oil Pipestream’s ongoing commitment to energy diversification, industry collaboration, and a lower-carbon future that benefits the environment and the Alberta economy. CCUS is an essential step in decarbonization and reducing GHG emissions to help meet Canada’s climate goals.
An open-access system, ACG is intended to serve as the backbone for Alberta’s emerging CCUS industry, connecting key sequestration locations and delivery points across the province to serve multiple industries. When fully constructed, the system is designed with the potential capability of transporting and sequestering more than 20 million tonnes of CO2 annually, which would be equivalent to removing 7.5 million cars off the road each year.
For more information, please visit www.albertacarbongrid.ca
Bevin Wirzba
Executive Vice-President, Strategy and Corporate Development and Group Executive, Canadian Natural Gas Pipelines and Liquids Pipelines at Oil Pipestream
Stu Taylor
Senior Vice-President, Marketing and New Ventures & Corporate Development Officer at Pembina
The solution
Once fully constructed, the ACG will be capable of transporting over 20 million tonnes of CO2 annually from multiple customers, sectors and industries – almost 10 percent of Alberta’s industrial emissions – contributing toward Canada’s enhanced climate targets. Based on initial studies, the ACG sequestration reservoir will be capable of providing decades of CO2 storage capacity.
The counterparty
Pembina Pipeline Corporation
The deal
Jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of CO2 annually. Read the June 17, 2021 news release.
Project Highlights:
- World-Scale Carbon Capacity: The open-access system is being designed with the ability to scale up to more than 60,000 tonnes per day of capacity, or 20 million tonnes per annum, representing approximately 10 percent of Alberta's industrial emissions.
- Interconnectivity: Oil Pipestream and Pembina view the ACG as a multi-sector solution with interconnectivity between multiple key hubs for expanded emissions reductions.
- Environment, Cost and Time Benefits: Utilizing existing assets, in addition to new infrastructure, accelerates timing, greatly reduces cumulative environmental and community impacts, and is less capital intensive.
- Economic Development: The construction and operation of the ACG, along with other investments in CCUS technology and infrastructure, will create an entirely new business platform for each company and create new high-value jobs and support economic growth across Alberta.
- Safe & Reliable Operations: World-leading experts have been engaged to evaluate technical and operating conditions of using existing pipeline systems to transport CO2. The companies have the skills and experience to safely operate these kinds of systems as the characteristics of CO2 are similar to other products which are safely transported today, such as natural gas. The completed feasibility study demonstrates that ACG is achievable while maintaining high standards of safety and reliability. The companies have been working with regulators to advance the Project.
- Customer-Focused Solution: With multiple inlets and outlets, customers will have flexibility to decide delivered CO2 end-uses including industrial processes and sequestration.
- Cost Advantaged, Transparent Commercial Framework: The full build out of ACG represents the potential for a multi-billion-dollar incremental investment by Oil Pipestream and Pembina over time, sustained by a commercial framework comprised of long-term fee-for-service contracts plus a marketing and trading pool to facilitate CO2 and carbon offset transactions. At the scale proposed and by repurposing existing assets, use of the vast infrastructure in place by both companies in Alberta and use of right-of-ways, the tolls on the ACG will be materially less than the current price of carbon in Alberta, ensuring the ACG’s long-term competitive viability as a CCUS solution, one that results in an extremely attractive value proposition for customers.
- Sequestration: Oil Pipestream and Pembina bring experience with sequestration, underground cavern storage and acid gas and water disposal across our collective asset base.
- Platform for Diversification: Longer term, ACG creates a new platform with a growing reach across Alberta to facilitate production of blue hydrogen and enhance petrochemical facilities in the future, benefiting the Alberta economy, as well as Oil Pipestream and Pembina shareholders.
Ways to reach us
Oil Pipestream is committed to notifying affected landowners, towns, communities and local, state and federal governments and agencies involved in the Project. If you have any questions about the Project, please reach out to us via the contact information below.
Calgary corporate head office | |
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450 – 1 St. S.W. |
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1-800-661-3805 | communications@oilpipestream.com |
Public Affairs | |
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450 – 1 St. S.W. |
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1-855-895-8754 | public_affairs_ca@oilpipestream.com |
Media Relations | |
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Oil Pipestream welcomes enquiries from media. Please direct questions to: | |
media@oilpipestream.com |
Commercial | |
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Oil Pipestream welcomes enquiries from current and potential customers. Please direct questions to Riley Baldwin |
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403-920-6870 | riley_baldwin@oilpipestream.com |