Spectra Energy looking at carbon capture in Canada

Houston-based Spectra Energy (NYSE: SE) announced plans to to pursue a large-scale integrated carbon capture and storage project near its existing Fort Nelson natural gas plant in northeast British Columbia.

The natural gas company said the British Columbia provincial government has provided a $3.4 million grant to help fund an initial feasibility phase.

Spectra said the initial phase of the project is intended to determine whether deep underground saline reservoirs and associated infrastructure in the area are appropriate for carbon capture and storage.

"Addressing the challenge of climate change requires a commitment of both government and the private sector to innovation and deploying new technologies," said Doug Bloom, president of Spectra Energy Transmission West.

Spectra said it plans to drill two test wells to determine whether the surrounding geology at the Fort Nelson facility is suitable for the permanent storage of carbon dioxide and hydrogen sulphide.

The company said those compounds are present in the raw natural gas produced in the area and removed during processing at its Fort Nelson gas plant.

"While there is a significant amount of research and development required, our initial work has identified two potentially suitable saline reservoirs — over two kilometers underground — which may be suitable for large-scale CCS," said Gary Weilinger, VP of strategic development and external affairs at Spectra Energy Transmission West.

"If proven viable, we believe the project has the potential to capture and store in the range of one million tonnes of CO2 emissions annually — the equivalent of taking 250,000 cars off the road each year."

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