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In focus Incentives key to carbon capture and storage

Carbon capture and storage, or CCS, is a combination of technologies that capture and store carbon dioxide, preventing its release into the atmosphere. Shell believes that CCS is vital to achieve net-zero emissions. However, the technology for CCS is not yet commercially viable. Shell advocates government support for CCS.

Shell operates the Quest Carbon Capture Storage (Shell interest 10%) facility in Canada. In June 2021, the Canadian government launched public consultations on a proposed investment tax credit (ITC) for businesses that incur costs relating to the purchase and installation of equipment used in eligible carbon capture, utilisation, storage (CCUS) projects. This is part of the government’s plan to achieve net-zero emissions by 2050. 

Following the consultations, the government announced that companies investing in CCUS would be able to claim up to 60% of eligible capital expenses for the year in which the costs were incurred. The ITC would be refundable and available to businesses that incur eligible expenses from January 1, 2022 until the end of 2040. Shell would consider the use of the ITC for possible future CCUS investments.

A pipeline used in the capture and storage of CO2. (photo)
Shell advocates government support for CCS.