CALGARY, Sept. 14, 2016 /CNW/ - In its first year operating, the Quest carbon capture and storage (CCS) project has captured and safely stored one million tonnes of CO2 ahead of schedule. Quest is the first CCS project applied to oil sands operations, and was made possible through strong collaboration between Shell, joint venture owners Chevron Canada Limited and Marathon Oil Canada Corporation, and the governments of Alberta and Canada.
"The success we are seeing in Quest demonstrates that Canadians are at the forefront of carbon capture and storage technology, showing the world that we can develop real solutions to address climate change," said Zoe Yujnovich, Executive Vice President, Oil Sands for Shell. "Not only is Quest capturing and storing CO2 emissions from our oil sands operations, but its technology can be applied to other industries around the world to significantly reduce their CO2 emissions."
Quest has been working better than planned, both in preventing CO2 from entering the atmosphere and in safely storing that CO2 deep underground, since its start-up celebration last November. Both its capture technology and storage capability have helped Quest exceed its target of capturing one million tonnes of CO2 per year, and through careful study and monitoring, the subsurface geology is proving ideal for long-term, safe storage of CO2.
From the outset, any intellectual property or data generated by Quest has been publicly available, in collaboration with the governments of Alberta and Canada, to help bring down future costs of CCS and encourage wider use of the technology around the world. This means that others can take the detailed engineering plans, valued at C$100 million, to help build future CCS facilities.
"Supportive government policy was essential in getting Quest up and running and will continue to play a vital role in developing large-scale CCS projects globally," added Yujnovich. "Together with government, we are sharing lessons learned through Quest to help bring down future costs of CCS globally. If Quest was built again today, we estimate that it would cost 20-30 per cent less to construct and operate thanks to a variety of factors including capital efficiency improvements and a lower cost environment."
One of the lessons learned has pointed to how significant cost savings could be achieved through joint transportation and storage facilities. For example, another capture facility could be tied into the existing Quest pipeline for CO2 storage. Operating costs for Quest are also 30 per cent less than anticipated, mainly due to lower fixed costs and energy efficiency savings.
"Our province has a long track record of oil and gas innovation and expertise," said Alberta Energy Minister, Marg McCuaig-Boyd. "For more than 100 years, Albertans have been turning heads around the world by inventing better, safer and more responsible ways to develop our natural resources. Congratulations to all the hard working people at Quest who have made this project successful, and to the thousands of Albertans working to make the future of our energy industry even stronger."
"The Government of Canada congratulates Shell and all partners involved in this project. This milestone further demonstrates that Canada continues to be a leader in the area of carbon capture and storage," said the Honourable Jim Carr, Minister of Natural Resources Canada. "By pooling our efforts and sharing a vision for the future we can achieve impressive results that lead to an expanding clean energy sector, a sustainable environment and a strong economy."
Quest was built by the Athabasca Oil Sands Project joint-venture owners Shell Canada Energy (60 per cent), Chevron Canada Limited (20 per cent) and Marathon Oil Canada Corporation (20 per cent), and was made possible through strong support from the governments of Alberta and Canada who provided C$745 million and C$120 million, respectively, in funding.
Notes to editors
- Globally, there are 15 large-scale CCS projects in operation with a further seven under construction (total CO2 capture capacity for the 22 projects is around 40 million tonnes per annum). Four large-scale CCS projects are in Canada. Source: Global CCS Institute
- CCS technology can be applied to a wide range of industries, including steel, cement and power generation, to significantly reduce CO2 emissions.
- Quest was designed to capture and store about one third of the emissions from Shell's Scotford Upgrader (near Fort Saskatchewan, Alberta), which turns oil sands bitumen into synthetic crude that can be refined into fuel and other products. One million tonnes of CO2 captured and stored each year at Quest is equivalent to the annual emissions from about 250,000 cars.
- In its first year of operations, the reliability of the capture facility at Quest was about 99 per cent, with less 1 per cent unplanned downtime.
- Government funding for Quest is tied to performance-based milestones associated with construction and operation of the project.
- Shell and the United States Department of Energy are field-testing advanced monitoring technologies alongside the state-of-the-art, comprehensive monitoring program already in place for Quest.
- To commemorate the launch of the Quest CCS project, Shell launched the Quest Climate Grant program in 2015 to provide one-time grants to Canadian-led projects that have measurable impact on the environment.
Related Links: www.shell.ca/Quest
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations" respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'', ''should'', ''target'', ''will'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell's 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, September 14, 2016. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.
With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.
We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
SOURCE Shell Canada Limited
Video with caption: "Video: How Quest CCS works". Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20160914_C2363_VIDEO_EN_772416.mp4&posterurl=http%3A%2F%2Fphotos.newswire.ca%2Fimages%2F20160914_C2363_PHOTO_EN_772416.jpg&order=1&jdd=20160914&cnum=C2363
Video with caption: "Video: B-roll footage of the Quest project". Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20160914_C2363_VIDEO_EN_772422.mp4&posterurl=http%3A%2F%2Fphotos.newswire.ca%2Fimages%2F20160914_C2363_PHOTO_EN_772422.jpg&order=2&jdd=20160914&cnum=C2363
Image with caption: "The Quest project near Fort Saskatchewan, Alberta (CNW Group/Shell Canada Limited)". Image available at: http://photos.newswire.ca/images/download/20160914_C2363_PHOTO_EN_772400.jpg
Image with caption: "The Quest project near Fort Saskatchewan, Alberta (CNW Group/Shell Canada Limited)". Image available at: http://photos.newswire.ca/images/download/20160914_C2363_PHOTO_EN_772402.jpg
Image with caption: "The Quest project near Fort Saskatchewan, Alberta (CNW Group/Shell Canada Limited)". Image available at: https://photos.newswire.ca/images/download/20160914_C2363_PHOTO_EN_772404.jpg
For further information: Enquiries: Shell Media Relations, Canada: email@example.com; Shell Investor Relations, North America: +1 832 337 2034