Friday 11 March 2022

Shell and Keyera team up to advance low carbon energy projects

Shell Canada and Keyera Corporation have signed a memorandum of understanding to collaborate on low carbon energy projects in Alberta's Industrial Heartland.

They will explore opportunities to build an open access gathering and distribution network to transport captured carbon from Keyera and other operations in the region to Shell's proposed Polaris carbon capture and storage (CCS) hub.

The initial phase of Shell's project, which is expected to start operations around the middle of the decade, would capture and store around 750,000 tonnes of CO2 a year.

Alberta's Industrial Heartland is Canada's largest hydrocarbon processing region and one of the country's most attractive locations for chemical, petrochemical and oil and gas investment.

Susannah Pierce, Shell Canada President and Country Chair said: “As Canada's energy system continues to evolve and change companies both big and small will need to find ways to reduce emissions.

“The agreement with Keyera will drive increased collaboration to develop low carbon energy projects and technologies that are needed by society in our journey to net zero.”

Keyera would also leverage an existing pipeline capable of transporting hydrogen to a manufacturing and distribution network in the region.

Dean Setoguchi, Keyera's President and CEO added: “Our strategic collaboration with Shell is founded on a shared vision to advance continued decarbonisation of the energy industry, Alberta's economic resiliency and Canada's objective to achieve a net zero future. This opportunity supports the collective decarbonisation ambitions of Keyera and our many industrial neighbours.

“We believe that together, Keyera and Shell can successfully build on our respective expertise and existing assets in the Heartland to enable the development of a low carbon project in Alberta.”