One of these projects, the Quest project, was noted the first commercial CCS project, worth more than $2 billion.
Since in 2003, Shell`s Scotford Upgrader in Alberta, Canada, has turned crude bitumen from the Athabasca oil sands into synthetic crude oil. The Quest project, led by Shell together with partners Chevron and Marathon, aim to reduce CO2 emissions by 35 per cent from the upgrader and its expansion which is planned to come online next year (Fort Saskatchewan local paper January 2009). It aims to capture and store over 1 million tonnes of CO2 each year in rock formations, called basal Cambrian sands, about two kilometres underground near the Scotford site.
As a comparison test projects capturing CO2 from coal and gas power plants and refineries aim to reduce the emissions by 80-90 % (e.g. Longannet in Scotland and Mongstad in Norway).
The Scotford Upgrader capacity will be expanded by 100,000 bbl/d (16,000 m3/d) by March 2010, an increase of 60% in capacity. In May 2007, the US$9 billion to US$11.3 billion expansion contract was awarded to KBR (Wikipedia February 2010).
Shell CCS project near Fort at least 2 years away
Although Shell will continue testing its carbon capture and storage plan this year, the company's decision to go ahead with its Quest project northeast of Fort Saskatchewan is at least two years away, a company official said January 2010 according to a Shwerwood Park - a local newspaper.
CCS technology to be included in future tar sands projects
Not only oil majors like i.e. Shell and Statoil are fronting CCS when presenting their tar sand projects. CNRL, the Canadian Natural Resources Limited, are hiding their future tar sands expansions behind CCS technologies. In the second phase of its Horizons tar sands mine near Fort McMurray, Altathis in Canada, 15 per cent of the GHG emissions from a planned hydrogen plant will be captured and the gas injected into ponds of wastewater. This project is a direct production enhancing initiative modifying the properties of the production water and making it easier to recycle the water. This project utilizes CO2 capture technology, but should not be associated with CCS.
CCS as an inappropriate solution for tar sands extraction
In November 2009 a study by the cooperative Financial Services and the World Wildlife Fund-UK rejected the argument previously set forward by some oil companies and the Canadian government that CO2 capture and storage (CCS) is an appropriate solution for the high levels of greenhouse gases (GHG) emitted during the extraction of oil from tar sands.
The extraction of oil from tar sand produces vast levels of GHG because the process is technically challenging and energy intensive.
The huge amount of energy required to strip heavy oil from the sand and upgrade it to usable petroleum products, mostly comes from burning natural gas. In this way tar sand uses the least CO2 emitting fossil fuel (natural gas) whilst contributes significantly to global warming.
In order to reduce GHG by 85% in time for 2050 as recommended by the Intergovernmental Panel on Climate Change (IPCC), the extraction of oil from tar sand is not a viable option, with or without CCS. Environmentally sound CCS projects needs to have a satisfactory Life Cycle Analysis taking into account the total CCS value chain (e.g. Koree, A. et al. 2009).
