Deputy Prime Minister visits the Polaris Carbon Capture project to highlight the federal CCUS investment tax credit

From: Department of Finance Canada

News release

August 21, 2024 – Scotford, Alberta – Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, visited Shell Canada’s Polaris Carbon Capture project in Scotford, Alberta, which is now moving forward due to the federal government’s Carbon Capture, Utilization, and Storage (CCUS) investment tax credit.

On June 26, 2024, Shell announced its final investment decisions to proceed with two new projects: Polaris Carbon Capture and Atlas Carbon Storage Hub. The Polaris project, located at the company’s Scotford refinery and chemicals project, is one of the most efficient and modern facilities of its kind in North America. Polaris will create up to 2,000 good jobs and will capture approximately 650,000 tonnes of CO2 annually. In turn, the Atlas project, which was announced in partnership with ATCO EnPower, will permanently store underground the carbon captured from Polaris.  

Both of these clean energy projects were made possible by the federal government’s Carbon Capture, Utilization, and Storage investment tax credit, which offers tax credits worth up to 60 per cent of eligible expenditures for certain project types. Polaris and Atlas are expected to begin operations in late 2028, securing good jobs at the Scotford Complex and thousands more across Alberta for generations to come.

The Carbon Capture, Utilization, and Storage investment tax credit is a key part of the federal government’s plan to grow the economy and create good jobs for Canadians, all while reducing emissions. To ensure Canadian workers benefit, labour requirements tied to the Carbon Capture, Utilization, and Storage investment tax credit require businesses to pay prevailing union wages and create apprenticeship opportunities in order to receive the maximum tax credit rate.

Quotes

“The Polaris Carbon Capture and Atlas Carbon Storage Hub projects are clear examples of how our economic plan is growing the economy. Our $93 billion suite of major investment tax credits, including for Carbon Capture, Utilization, and Storage, is creating more good-paying jobs across Canada, including here in Alberta, and is helping Canada meet its net-zero by 2050 target.”

The Honourable Chrystia Freeland,
Deputy Prime Minister and Minister of Finance

Quick facts

  • The Carbon Capture, Utilization, and Storage investment tax credit, which received Royal Assent on June 20, 2024, is a refundable tax credit of up to 60 per cent of eligible expenditures for carbon capture, transport, and storage or use, available from January 1, 2022, to December 31, 2040.

    • From 2022 through 2030, the maximum Carbon Capture, Utilization, and Storage investment tax credit rates are:
      • 60 per cent on capture equipment used in direct air capture projects;
      • 50 per cent on other capture equipment; and,
      • 37.5 per cent on transportation, storage, and use equipment.
    • From 2031 to 2040, the investment tax credit rates will be halved and fully phased out after 2040.
    • The tax credit is available for projects to the extent that 10 per cent or more of the captured CO2 is used in:
      • The storage of captured carbon in dedicated geological storage; or,
      • The use of captured carbon in producing concrete in Canada or the United States using a qualified concrete storage process.

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Contacts

Media may contact:

Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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