(RDSA) Royal Dutch Shell plc Gets Carbon Capture Aid

Royal Dutch Shell plc (RDSA) has entered into an agreement with the governments of Alberta and Canada for the funding of its Quest Carbon Capture and Storage (CCS) project in Canada.

The Alberta government will fund C$745 million for the project, while the Canadian government will contribute C$120 million, netting C$865 million ($873 million).

The financing will be done over a period of 15 years, including development, construction and 10 years of operations. However, the funding is subject to conditions of Shell’s achieving certain performance objectives.

The Quest venture, located at the Scotford site northeast of Edmonton, Alberta, will capture more than 1 million tons of carbon dioxide annually from Shell’s Scotford upgrading process and store it in underground reservoirs upon completion in 2015.

The project –– with an estimated total cost of $1.3 billion –– will be the first oil-sands operation to utilize CCS technology for plant upgrade. Both state and national jurisdictions are encouraging the application of CSS as it helps to minimize the effects of greenhouse gas emissions.

Apart from its environmental benefits, the CCS technology is also expected to support Alberta’s oil sands and other industries in generating high value jobs. It is also expected to enhance the country’s energy resource base.

In an attempt to add more greenery, Shell is designing and executing a number of other advanced technologies to alleviate the harmful effects rising from oil sand operations.

The Quest project is a part of the larger Athabasca Oil Sands Project –– a joint venture between Shell Canada (60%), Chevron Corporation (CVX) (20%) and MarathonOil Corporation (MRO) (20%).

The Hague, Netherlands-based Shell is a global energy company engaged in oil and gas exploration, production, refining and marketing with operations and assets across the globe.

We are maintaining our long-term Neutral rating on the stock, reflecting the company’s near-term position to benefit from higher oil prices, improving refining margins and the recovering economy. These positive effects are partially offset by unpredictable macro conditions, high level of capital spending and international business risks.

CHEVRON CORP (CVX): Free Stock Analysis Report

MARATHON OIL CP (MRO): Free Stock Analysis Report

ROYAL DTCH SH-A (RDSA): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | | | Basic Materials | Major Integrated Oil & Gas

RSS feeds: Chevron Corporation | CVX | Marathon Oil Corporation | MRO | RDSA | Royal Dutch Shell Plc | Basic Materials | Major Integrated Oil & Gas |

Other Posts by | RSS Feed for this author