Alberta Carbon Grid (Proposed)

Alberta Carbon Grid (Proposed)

Pembina & TC Energy to create world-scale carbon transportation and sequestration solution
The Alberta Carbon Grid (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.

By leveraging existing pipelines 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 and create sustainable long-term value for Pembina and TC Energy stakeholders.

 

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 20,000,000 tonnes per annum, representing approximately 10 percent of Alberta's industrial emissions.
  • Interconnectivity: Pembina and TC Energy 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 dramatically accelerates timing, greatly reduces cumulative environmental and community impacts, and is significantly less capital intensive than building a new pipeline.
  • 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 very similar to other products which are safely transported today, such as specification ethane. 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, Fee Based Commercial Framework: The full build out of ACG represents the potential for a multi-billion-dollar incremental investment by Pembina and TC Energy 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 pipelines, 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: Pembina and TC Energy 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 Pembina and TC Energy shareholders.