Shell Makes FID on 2 Carbon Storage Projects in Alberta

Shell plc subsidiary Shell Canada Products has made a final investment decision (FID) for Polaris, a carbon capture project at the Shell Energy and Chemicals Park, Scotford in Alberta, Canada.

Polaris is designed to capture approximately 650,000 metric tons of carbon dioxide (CO2) annually from the Shell-owned Scotford refinery and chemicals complex, the company said in a news release. Polaris, which is 100 percent owned by Shell, will have the potential to reduce Scope 1 CO2 emissions at the refinery by capturing and storing up to 40 percent and by up to 22 percent at the chemicals complex.

Additionally, Shell also announced an FID to proceed with the Atlas Carbon Storage Hub in partnership with ATCO EnPower. . The first phase of Atlas will provide permanent underground storage for CO2 captured by the Polaris project.

CO2 emissions captured by Polaris will be sent to the Atlas Hub via an approximately 13.7-mile (22-kilometer) pipeline to two storage wells. The CO2 will be stored approximately two kilometers underground in the Basal Cambrian Sands, the same formation used to successfully store CO2 from the Quest CCS facility.

Both projects are expected to begin operations toward the end of 2028.

Shell is a 50/50 partner with ATCO EnPower for the Atlas Hub, also in Alberta. A future phase of the Atlas Carbon Storage Hub, which could potentially store carbon for the partners and third parties, is subject to a future investment decision, Shell noted.

Polaris will leverage lessons learned from the Shell-operated Quest CCS facility, located at the Shell Energy and Chemicals Park, Scotford near Edmonton, Alberta, adjacent to Shell’s refinery and chemicals plant. Since 2015, Quest has captured and stored about one million metric tons per year of CO2 from the Scotford upgrader, according to the release.

“Carbon capture and storage is a key technology to achieve the Paris Agreement climate goals,” Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions Director, said. “The Polaris and Atlas projects are important steps in reducing emissions from our own operations”.

Shell said it plans to invest $10 billion to $15 billion across 2023-2025 to support the development of low-carbon energy solutions including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage.

Earlier in the month, its subsidiary Shell Eastern Trading Pte. Ltd., reached an agreement with Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek, to acquire 100 percent of the shares in Pavilion Energy Pte. Ltd.

Singapore-based Pavilion Energy includes a global liquefied natural gas (LNG) trading business with a contracted supply volume comprising about 6.5 million metric tons per annum (mtpa).

Pavilion Energy’s portfolio comprises about 6.5 mtpa of its long-term sale and supply LNG contracts. It also includes long-term regasification capacity of approximately 2 mtpa at the Isle Grain LNG terminal in the United Kingdom, and regasification access in Singapore and Spain.

Shell outlined its plans to grow its LNG business by 20 to 30 percent by 2030 year over year, and purchased LNG volumes by 15 to 25 percent, relative to 2022.

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