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article imageShell gets over $800M for carbon capture sequester project

By Stephanie Dearing     Oct 10, 2009 in Environment
The Canadian government, along with the government of Alberta, gave Royal Dutch Shell over $800 million for a carbon capture and sequester project. Shell had asked for the money last year.
The total amount of money is $865 million. The funds will support the development of Canada's first large-scale carbon capture project. The project will capture C02 gases at the Scotford upgrader, which was recently occupied by Greenpeace activists. The carbon will be converted into liquid and pumped into the earth where it will stay indefinitely.
Shell has acknowledged that environmentalists have been correct in their assessments that getting crude oil from oil sands creates more greenhouse gas emissions than any other source of crude. Shell says the operations generate anywhere from 5% to 15% more carbon emissions. The carbon capture and sequester project is intended to reduce the amount of greenhouse gas emissions into the atmosphere. Shell reported in 2007 that it released over 7,000 tonnes of greenhouse gases, but this does not include C02. Shell stated that it anticipated the project would remove 1.2 million tonnes of C02 per year. Alberta's total carbon emissions are approximately 230 million tonnes, while Canada overall generated a reported 747 megatonnes in 2007.
The project is anticipated to cost Shell $1.35 billion, and will take an unspecified period of time to complete, although Shell estimated in its undated proposal that the project might be completed within 3 -5 years after obtaining government funding. When complete, the project is estimated to have the capacity to remove enough carbon from emissions equivalent to 200,000 cars.
This is the first project that the Clean Energy Fund has approved. The Clean Energy Fund was endowed with $1 billion by the government of Canada earlier this year to encourage the protection and conseration of the environment. Canada was one of the top ten countries in 2007, when it comes to the emission of greenhouse gases.
The BBC reported a new [unnamed] study on C02 emissions just published in Science shows a definite link between the amount of greenhouse gases and sea levels, and the paper suggests that current greenhouse gas emission limits that are being discussed are actually too high. Richard Black wrote "New historical record of carbon dioxide levels suggests current political targets on climate may be "playing with fire."
Dutch Royal Shell reported that its unaudited earnings for the last quarter of 2008 were $4.8 billion and full year earnings for 2008 were over $31 billion.
More about Canadian oilsands project, Royal dutch shell, Scotford upgrader, Greenpeace canada, Climate change
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