Quest CCS project

Quest CCS project
Name	Quest CCS
Location	Alberta
Country	Canada
Status	active
Owner	Shell plc
Operator	Shell Canada Limited
Partners	Enhance Energy, Occidental Petroleum, Air Products and Chemicals, Inc.
Technology	carbon capture and storage, carbon dioxide capture, geologic sequestration
Start	2015
Capacity	~1 Mt CO2/yr

Quest CCS project

The Quest CCS project is a carbon capture and storage initiative led by Shell plc in Alberta, Canada, designed to capture and store industrial carbon dioxide emissions from oil sands operations near Fort McMurray, Edmonton, and Calgary. The initiative connects engineering firms, energy companies, regulatory bodies, research institutions, and Indigenous organizations including Government of Alberta, Government of Canada, First Nations, and environmental NGOs to develop a regional carbon capture value chain. It serves as a model in debates involving Intergovernmental Panel on Climate Change, International Energy Agency, United Nations Framework Convention on Climate Change, World Bank, and International Monetary Fund discussions on deployment pathways.

Overview

Quest captures CO2 from the upgrader facilities operated by Shell Canada Limited in the Athabasca oil sands and injects it into deep geological formations for permanent storage near Cenovus Energy and Suncor Energy infrastructure corridors. The project integrates technologies supplied by Mitsubishi Heavy Industries, Air Liquide, Siemens, and Honeywell alongside site services from Baker Hughes, Halliburton, and Schlumberger. Funding and credit frameworks have involved Canada Infrastructure Bank, Alberta Carbon Trunk Line, and private capital from Royal Dutch Shell affiliates. Academic partners such as University of Alberta, University of Calgary, and Imperial College London participate in monitoring, verification, and public reporting.

Background and Rationale

Quest emerged amid policy developments following the Kyoto Protocol and during negotiations under the Paris Agreement when national commitments under Nationally Determined Contributions emphasized emission reduction options including carbon capture and storage. The project responded to mandates and incentives from Alberta Carbon Competitiveness Incentive Regulation, tax frameworks like the Canadian federal carbon pricing, and investment signals from multilateral lenders such as the Asian Development Bank and bilateral partners like United States Department of Energy. Industry drivers included operational integration with oil sands upgraders, economic considerations tied to bitumen upgrading, and risk management strategies promoted by International Finance Corporation and corporate actors including TotalEnergies and BP plc.

Technology and Methods

Quest employs post-combustion and pre-combustion capture techniques adapted to upgrader gas streams, utilizing absorption solvents, compressors, dehydration units, and high-pressure injection facilities common to enhanced oil recovery projects led by Occidental Petroleum and ConocoPhillips. Captured CO2 undergoes purification with equipment from Air Products and Chemicals, Inc. and Mitsubishi Heavy Industries before transportation via pipelines similar to the Alberta Carbon Trunk Line to deep saline and depleted reservoir targets characterized using seismic imaging by CGG and Schlumberger. Storage integrity monitoring uses techniques developed in collaboration with Natural Resources Canada, Environment and Climate Change Canada, National Energy Board of Canada, and research centers like CanmetENERGY and Alberta Innovates for leak detection and subsurface modeling.

Pilot Projects and Implementations

Operational milestones include initial capture in 2015 and progressive scaling lessons drawn from pilot initiatives such as Weyburn-Midale CO2 Project and international demonstrations like Sleipner CO2 Storage and Snøhvit. Implementations required siting approvals from Alberta Energy Regulator and engagement with Regional Aquatics Monitoring Program and Indigenous corporations such as Fort McKay First Nation and Mikisew Cree First Nation. Performance data have been compared with EU projects funded under Horizon 2020 and US programs under the DOE Carbon Storage Program, informing transferability to projects like Boundary Dam Power Station and commercial pipelines championed by TC Energy.

Environmental and Economic Impact

Environmental assessments coordinated with Environmental Protection Agency (United States) methodologies and Canadian Environmental Assessment Agency frameworks evaluated life-cycle emissions, showing reductions in reported point-source CO2 while raising scrutiny from NGOs including Greenpeace, David Suzuki Foundation, and Pembina Institute. Economic analyses reference capital intensity discussions in International Energy Agency reports and comparative cost studies by McKinsey & Company and BloombergNEF, addressing impacts on local employment, royalty flows to Province of Alberta, and fiscal arrangements involving Canada Pension Plan Investment Board. Debates consider interactions with market instruments like California Cap-and-Trade Program, European Union Emissions Trading System, and Canada's federal carbon pricing backstop.

Governance, Regulation, and Stakeholder Engagement

Governance frameworks involve compliance with Alberta Environmental Protection and Enhancement Act, reporting to National Inventory Report (Canada), and oversight by agencies such as Alberta Energy Regulator and Health Canada for public safety. Stakeholder engagement processes included consultations with Assembly of First Nations, municipal governments like City of Fort McMurray, industry associations such as Canadian Association of Petroleum Producers, and academic bodies including Royal Society of Canada. International scrutiny connects Quest to standards promoted by ISO, Global CCS Institute, and transparency initiatives like Extractive Industries Transparency Initiative.

Category:Carbon capture and storage projects