ANGLO-DUTCH oil giant Shell said yesterday it will go ahead with its $1.35bn (£840m) carbon capture and storage (CCS) project for an oil sand operation in Canada.
The flagship Quest project is designed to reduce carbon dioxide emissions at its 255,000 barrel a day Scotford oil sands project in Canada.
It is to be built on behalf of Shell’s joint venture partners at the field, with 60 per cent funded by Shell and 20 per cent by Chevron and Marathon Oil.
Shell chief executive Peter Voser said yesterday: “We will need all sources of energy to meet world demand in the coming decades.
“By 2050 at least 65 per cent of our energy will still come from fossil fuels. So CCS will be important to manage climate impacts,” he added.
The Quest project will capture more than 1m tonnes of carbon dioxide each year from the site near Edmonton, and transfer it 1.2 miles underground. It will take about 30 months and up to 700 workers to construct the project.
Oil sands emit millions of tonnes of carbon dioxide each year.
Shell is also working with other countries – including projects in Norway and Australia – to develop CCS.