Facts:

Main developer: Shell

The Shell-led Quest project in Alberta, Canada, aims to capture and store up to 1.2 million tonnes of CO2 per year from the Scotford Upgrader. The facility at Fort Saskatchewan produces synthetic crude oil from bitumen derived from the Athabasca Oil Sands extraction project.

Quest is a fully-integrated CCS project that will capture, transport, inject and store CO2.  It was proposed by Shell on behalf of the Athabasca Oil Sands project − a joint venture between Shell Canada, Chevron Canada and Marathon Oil.

Shell has said a final investment decision could be made in 2012, though this will depend on the completion of the full regulatory process and whether the project's economic feasibility can be established.

The project reached a milestone in March 2012 with the release of a federal environment assessment, which concluded that the company had planned appropriate measures for mitigating any adverse environmental effects. A public comment period was launched until mid April.

Shell previously filed for approvals from Alberta's Energy Resources Conservation Board on 2 August 2011, the first application the province has received for a commercial-scale CCS project.  An environmental impact assessment had already been carried out as part of another application in November 2010, led by the state’s environmental body, Alberta Environment. Key stakeholders already consulted include local communities, landowners, government departments and agencies, and NGOs.

Technology and infrastructure

Using amine solvents, the planned facility will capture up to 35% of CO2 emissions from the upgrader’s steam methane units, which produce hydrogen for upgrading bitumen. The gas will then be dehydrated and compressed before transport via an 84-kilometre long, 12-inch diameter pipeline. The final route of the pipeline will be determined by safety and technical issues, environmental impact and landowner consent.

Financing

In June 2011, Shell signed official agreements for part-funding of C$745 million from the Alberta government’s $2-billion CCS fund and C$120 million from the federal government’s CCS fund - funding awards that were made in October 2009. The total cost of the project is estimated at $1.35 billion. Shell also negotiated a two-for-one carbon credit deal with the province, which will help the company balance the higher cost of CCS against the $15 per tonne carbon price.

Timing

The Quest venture is aiming for commissioning and injection to begin in 2015. In May 2011, Shell filed for its carbon sequestration lease. It has indicated that a final investment decision may be possible in 2012, subject to financial, permitting and community approval issues "being satisfactorily progressed".

In March 2012, the Canadian Environmental Assessment Agency began seeking public comment for a report on the project. The consultation period was due to end on 13 April.

Shell announced an expansion of its oil sands operations at Athabasca in September 2010. Find out more here.

Contact info

media-desk@shell.com or quest-info@shell.com or call 1-800 250 4355

More information and press releases

Public consultation begins, March 2012

Shell files for approvals, 3 August 2011

Shell signs funding agreements, 24 June 2011

Shell press release 30 November 2010 on regulatory application

Quest project documents

Alberta Innovates website

Alberta Environment

Quest Completes Letter of Intent, Oct 2009

Presentation Quest project (PDF)

Storage:

In late 2008 and early 2009, Shell drilled two test wells near the Scotford Upgrader as part of a CCS appraisal programme – co-funded by the Alberta Energy Research Institute (now part of Alberta Innovates) – to help determine locations for storage sites.
The preferred site is about 84 kilometres north-east of Fort Saskatchewan in deep geological formations, known as the Basal Cambrian Sands. Impermeable shale and salt-sealing rocks above the storage formation would securely and permanently trap the injected CO2 two kilometres below ground.

Captured CO2 from the Scotford Upgrader may also be used commercially in enhanced oil recovery projects.

 

 

Companies involved

Homepage:

http://www.shell.ca/home/content/can-en/

News about Quest project