Canada proposes to back oil-sands giants' carbon-capture project, The Globe and Mail reports
By Reuters
October 27, 2024 9:08 PM EDT

Oct 27 (Reuters) - Canada's federal financing agency Canada Growth Fund (CGF) has proposed funding support for a multibillion-dollar carbon-capture investment by Pathways Alliance, representing Canada's biggest oil sands producers, The Globe and Mail reported.

The CGF's proposal is expected to kick off further negotiations, but a final deal is likely months away, as both sides remain apart on key terms, according to the report on Sunday, citing sources familiar with the matter.

Carbon capture is a process through which carbon dioxide generated from industrial activity is stored underground. The report didn't mention any financial details about the investment.

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Pathways Alliance has been proposing a C$16 billion ($11.51 billion) investment in a carbon capture and storage (CCS) project to cut carbon emissions from the oil sands. The plan, however, has faced criticism from environmentalists for slow progress and seeking more government financial support.

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