EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) and Enbridge Inc. (TSX: ENB) (NYSE: ENB) are pleased to announce a memorandum of understanding to collaborate on carbon capture and storage (CCS) solutions in the Wabamun area west of Edmonton, Alberta, near Capital Power’s Genesee Generating Station.
Enbridge and Capital Power have agreed to jointly evaluate and advance a CCS project, with Enbridge as the transportation and storage service provider and Capital Power as the CO2 provider, subject to the Government of Alberta’s competitive carbon hub selection process and a future final investment decision. Enbridge, with the support of Capital Power, is applying to develop an open access carbon hub in the Wabamun area through the Government of Alberta’s Request for Full Project Proposals process, which is expected to start as early as December 2021.
“Capital Power is helping build a carbon-neutral future in Alberta by advancing the Genesee CCS Project at our Genesee Generating Station,” said Chris Kopecky, Capital Power Senior Vice President and Chief Legal, Development and Commercial Officer. “It’s exciting to partner with Enbridge – a sustainability leader – on this project and support their efforts in pursuit of the Open Access Wabamun Carbon Hub. Collaborative development throughout the CCS value chain is key to ensuring that CCS can be deployed in a safe, responsible, and cost-effective manner.”
“We’re excited to be partnering with Capital Power in support of their commitment to a low-carbon energy future,” said Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines. “Collaboration like this is critical as we look to advance cost-effective, customer-focused carbon capture, transportation and storage solutions in Alberta and across North America, with a commitment to protecting land, water and the environment and engaging meaningfully with local Indigenous communities.”
The proposed project would serve Capital Power’s Genesee Generating Station near Warburg, Alberta which currently provides over 1,200 megawatts of baseload electricity generation to Albertans. Capital Power is currently repowering the Genesee 1 and 2 units, to create North America’s most efficient natural gas combined cycle power generation units, positioning them to deliver reliable and affordable electricity for generations to come. The Genesee CCS Project is expected to capture up to 3 million tonnes of CO2 annually from the repowered units, which would be transported and stored through Enbridge’s open access carbon hub that could also serve several other local industrial companies. Subject to the award of carbon sequestration rights and regulatory approvals, the proposed project could be in service as early as 2026.
In October, with Capital Power’s support, Enbridge responded to the Government of Alberta’s call for Expressions of Interest to construct and operate carbon storage hubs. Within its proposal, Enbridge outlined its plans to develop an open access carbon storage hub with cost-effective, customer-focused CCS solutions in the Wabamun area while minimizing any infrastructure footprint to protect land, water and the environment.
Capital Power Forward-Looking Information
Certain information in this news release is forward-looking information for Capital Power within the meaning of Canadian securities laws as it relates to anticipated financial or operating performance or events. When used in this context, words such as “expect” or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause Capital Power’s actual results and experience to be materially different than the anticipated results. Forward-looking information or statements included in this news release are provided to inform Capital Power’s shareholders and potential investors about management’s assessment of future plans and operations. This information may not be appropriate for other purposes. Material forward-looking information in this press release includes expectations around the Genesee CCS project including (i) timing of commencement of the Government of Alberta’s Request for Full Project Proposals process, (ii) in-service timing, and (iii) the volume of CO2 to be captured annually from the repowered Genesee 1 and 2 units.
These statements are based on certain assumptions and analyses made by Capital Power in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate, including assumptions around: (i) performance; and (ii) the status of and impact of policy, legislation and regulations. Whether the actual outcomes will conform to Capital Power’s expectations is subject to a number of known and unknown risks and uncertainties which could cause the actual outcomes to differ materially from Capital Power’s expectations. Such material risks and uncertainties are: (i) regulatory and political environments including changes to environmental legislation; and (ii) changes in general economic and competitive conditions. See Risk Factors in Capital Power’s 2020 Integrated Annual Report, for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the news release date. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Capital Power’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Enbridge Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. (“Enbridge” or the “Company”) and its subsidiaries and affiliates, including management’s assessment of Enbridge and its subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ”anticipate”, ”expect”, ”project”, ”estimate”, ”forecast”, ”plan”, ”intend”, ”target”, ”believe”, “likely” and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to the Genesee CCS Project and Enbridge’s proposed Open Access Wabamun Carbon Hub, including the benefits thereof and prospective in service date.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company’s services. Similarly, energy transition, including the drivers and pace thereof, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company’s services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated in-service dates, include the following: the impact of litigation and government, regulatory and stakeholder actions and approvals on construction and in-service schedules; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; technology-related matters; and the impact of weather.
Enbridge’s forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company’s other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge’s future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company’s behalf, are expressly qualified in their entirety by these cautionary statements.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own, and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns over 6,400 MW of power generation capacity at 26 facilities across North America. Projects in advanced development include 425 MW of owned renewable generation capacity in North Carolina and Alberta and 560 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which owns approximately 1,766 megawatts (net) in renewable power generation capacity in North America and Europe. The Company’s common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.