Ottawa – Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the announcement of the Canada Growth Fund’s sixth investment. The Canada Growth Fund and Strathcona Resources—Canada’s fifth-largest oil producer—have agreed to invest up to $2 billion combined to build carbon capture and sequestration infrastructure on Strathcona’s steam-assisted, gravity drainage oil sands facilities in Saskatchewan and Alberta.
Upon completion, the partnership will capture and permanently store up to two million tonnes of carbon dioxide annually, unlocking Canada’s pathway to lead the world with low-carbon resource exports.Supported by an initial $500 million investment from the Canada Growth Fund—which could be upsized up to $1 billion—Strathcona will begin its final detailed engineering work for the first carbon capture and sequester project, with a final investment decision expected next year. This partnership was made possible by and will benefit from the federal government’s Carbon Capture, Utilization, and Storage investment tax credit, which investors are already able to claim.
The Canada Growth Fund will earn a targeted return over time with the annual cash flows generated by each carbon capture and sequestration project based on actual captured volumes, actual operating costs, and a fixed carbon price guaranteed by Strathcona.
At the heart of the federal government’s economic plan is creating good-paying jobs today and for generations to come. Through the Canada Growth Fund’s innovative investments in clean technology, and beyond, the government is empowering industry to decarbonize its operations and turn their ideas into success stories, helping to unlock a brighter, more prosperous future, with more good-paying jobs for Canadians.
“This $2 billion partnership between our Canada Growth Fund and Strathcona Resources is proof that our economic plan is working—it is growing the economy, creating good-paying jobs, and keeping Canada on track to reach net-zero by 2050. This partnership, made possible by our Carbon Capture, Utilization, and Storage investment tax credit, will build one of the world’s lowest-emission oil facilities, ensuring Canada’s resource sector remains competitive for generations to come.” – Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“The decarbonization of our resource sector is an enormous economic opportunity for Canada that businesses like Strathcona Resources recognize and are rapidly moving to seize on. As the world moves towards a low-carbon future, the Investment Tax Credits are helping to keep Canada’s resource sector and Canadian workers competitive. Since the tax credits were officially established just three weeks ago, we have seen companies act quickly to take advantage of them. These investments show the innovation of Canadian companies which will create jobs now and into the future.” – Jonathan Wilkinson, Minister of Energy and Natural Resources