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Shell launches Quest carbon capture and storage project


News provided by

Royal Dutch Shell plc

Nov 06, 2015, 11:30 ET

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CALGARY, Alberta, Nov. 6, 2015 /CNW/ -- Shell today celebrated the official opening of the Quest carbon capture and storage (CCS) project in Alberta, Canada, and the start of commercial operations there. Quest is designed to capture and safely store more than one million tonnes of carbon dioxide (CO2) each year – equal to the emissions from about 250,000 cars. Quest was made possible through strong collaboration between the public and private sectors aimed at advancing CCS globally.

Experience the interactive Multimedia News Release here: http://www.multivu.com/players/English/7680751-shell-quest-carbon-capture-storage/

As part of its funding arrangements, Shell is publically sharing information on Quest's design and processes to further global adoption of CCS. Quest draws on techniques used by the energy industry for decades and integrates the components of CCS for the large-scale capture, transport and storage of CO2. CCS is one of the only technologies that can significantly reduce carbon emissions from industrial sectors of the economy.

Speaking at the official opening, Shell's Chief Executive Officer Ben van Beurden said: "Quest represents a significant milestone in the successful design, construction and use of carbon capture and storage (CCS) technology on a commercial scale. Quest is a blueprint for future CCS projects globally. Together with government and joint-venture partners, we are sharing the know-how to help make CCS technologies more accessible and cost-effective for the energy industry and other key industrial sectors of the economy." 

Quest will capture one-third of the emissions from Shell's Scotford Upgrader, which turns oil sands bitumen into synthetic crude that can be refined into fuel and other products. The CO2 is then transported through a 65-kilometre pipeline and injected more than two kms underground below multiple layers of impermeable rock formations. Quest is now operating at commercial scale after successful testing earlier this year, during which it captured and stored more than 200,000 tonnes of CO2.

Quest was built on behalf of 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$865 million in funding.

Collaboration is continuing through Quest between Shell and various parties in an effort to bring down costs of future CCS projects globally. This includes cooperation with the United States Department of Energy, and the British government on research at the Quest site.

"The secondment from the UK's Energy Technologies Institute to the Quest CCS project is an example of British and Canadian cooperation in cutting-edge low-carbon technologies," said Howard Drake, British High Commissioner to Canada. "This research-focused partnership will help to develop CCS expertise on both sides of the Atlantic in an effort to advance the innovative solutions demonstrated at Quest."

Support from the local community was essential to building Quest. Shell initiated public consultation in 2008, two years before submitting a regulatory application.

Notes to editors:

  • CCS technology can be applied to reduce CO2 emissions across a wide range of industrial sectors, including power generation, cement, chemicals and refining, iron and steel and upgraders.
  • The governments of Alberta and Canada contributed C$745 million and C$120 million respectively to Quest, building on Canada's leadership in CCS deployment.
  • Nearly 2,000 people were involved in the Quest project. Specifically, construction employed an average of 400 skilled workers over roughly 30 months.
  • Quest has a robust measurement, monitoring and verification program agreed upon with the government and verified by a third party (Det Norske Veritas (DNV)).
  • Public consultation was developed in collaboration with the Pembina Institute, a Canadian think tank focused on energy issues. A community advisory panel of local leaders and residents will regularly review results from Quest's monitoring program.
  • The United Kingdom's Energy Technologies Institute, the University of Birmingham, the British government and Shell will support an eight-month secondment of a doctoral university student at Quest, to deliver on the UK Canada Joint Statement on CCS issued in 2014.
  • Shell and the United States Department of Energy will field-test advanced monitoring technologies alongside the state-of-the-art, comprehensive monitoring program already in place for Quest.
  • Shell is involved in a slate of CCS projects worldwide. The proposed Peterhead CCS project in the United Kingdom, currently in the design stage, is part of the UK Government's CCS Commercialisation Programme (subject to investor approval and the securing of relevant permits).
  • Shell is a partner in the Chevron-led Gorgon project in Australia and has a share in the Technology Centre Mongstad (TCM) in Norway.
  • CCS technology developed by Shell subsidiary Cansolv is in use at the commercial-scale Boundary Dam CCS project in Saskatchewan, Canada, which opened in 2014.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate 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. Companies over which Shell has joint control are generally referred to as "joint ventures" and companies over which Shell has significant influence but neither control nor joint control are referred to as "associates". In this release, joint ventures and associates may also be referred to as "equity-accounted investments". 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. 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, 2014 (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, November 6, 2015. 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.

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 Royal Dutch Shell plc

For further information: Shell Media Relations, Canada: [email protected], USA: +1 713 241 4544, [email protected], International: +44 207 934 5550, Shell Investor Relations, North America: +1 832 337 2034, Europe: + 31 70 377 4540

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