Canada Growth Fund Announces up to $2 billion Carbon Capture and Sequestration Partnership with Strathcona Resources

About this update from Strathcona Resources Ltd.

Canada Growth Fund Announces up to $2 billion Carbon Capture and Sequestration Partnership with Strathcona Resources /* Style Definitions */ span.prnews_span { font-size:8pt; font-family:"Arial"; color:black; } a.prnews_a { color:blue; } li.prnews_li { font-size:8pt; font-family:"Arial"; color:black; } p.prnews_p { font-size:0.62em; font-family:"Arial"; color:black; margin:0in; } Canada NewsWire CALGARY, AB , July 10, 2024 /CNW/ - Canada Growth Fund Inc. ("CGF") is pleased to announce a strategic partnership (the "SAGD CCS Partnership") with Strathcona Resources Ltd. ("Strathcona") (TSX: SCR), to build carbon capture and sequestration ("CCS") infrastructure on Strathcona's steam-assisted gravity drainage ("SAGD") oil sands facilities across Saskatchewan and Alberta . Through the SAGD CCS Partnership, Strathcona will seek to capture and permanently store up to two million tonnes of carbon dioxide ("CO 2 ") annually, with CGF and Strathcona each contributing up to $1.0 billion in project funding. Strathcona is the fifth largest oil producer in Canada , with production-related emissions (Scope 1 and 2) of approximately 3 million tonnes of CO 2 per annum from seven major oil sands facilities. Under the terms of the SAGD CCS Partnership, CGF and Strathcona will each fund 50% of the capital costs to build CCS infrastructure on Strathcona's oil sands facilities. CGF will initially commit $500 million in project funding, with the option to upsize its commitment to $1.0 billion . Strathcona will build, own and operate all CCS projects and receive all investment tax credits. CGF will earn a targeted return over time with the annual cash flows generated by each CCS project based on actual captured volumes, actual operating costs, and a fixed carbon price guaranteed by Strathcona . Each CCS project's fixed price per tonne will be set at the time of final investment decision ("FID"). The SAGD CCS Partnership represents a first-of-its-kind approach to CCS risk-sharing, with the emitter retaining carbon pricing risk and CGF sharing in the risk for the project's cost and capture efficiency. The SAGD CCS Partnership is expected to enhance the long-term competitiveness of one of Canada's most carbon-intensive industries by advancing large-scale commercial CCS projects over time and demonstrating decarbonization outcomes in a fiscally prudent manner. "This partnership is a ...

View stock analysis, news, and events for Strathcona Resources Ltd.