The CCS Project That Passed Every Test Except the Investment Test

AI Summary

Heidelberg Materials' proposed carbon capture and storage project in Edmonton passed technical testing and had government support, a pipeline and a geological storage route. Despite those advantages, the project did not meet the investment test, underscoring the financing challenge for industrial carbon capture.

Heidelberg Materials’ proposed carbon capture project in Edmonton appeared to contain almost every ingredient policymakers say a successful CCS development needs. It targeted cement, a hard-to-abate industry where most emissions come from the chemistry of producing clinker rather than simply burning fuel. A pilot confirmed that capture was technically feasible. The Canadian government offered substantial support. A pipeline and geological storage route had been identified. Alberta already operated an industrial carbon-pricing system. The…