TransAlta Corp. (NYSE: TAC) said it has abandoned plans to build the $1.4 billion Project Pioneer carbon capture and storage facility at an Alberta coal-fired power plant.
According to The Financial Post, TransAlta said the company had no buyers for the carbon dioxide (CO2) and no way to credit from the plan. TransAlta was partners on the project along with Enbridge Inc. and Capital Power Corp.
The first step of the project was to perform a front end engineering and design (FEED) study to prove the technical and economic feasibility of CCS before making any major capital commitments, TransAlta said in a release. Following the conclusion of the study, the companies determined that the revenue from carbon sales and the price of emissions reduction technology were "insufficient" to move on with the project.
"While we are disappointed that Project Pioneer will not go ahead, we now know the technology works and we still believe there is a future for CCS," said Dawn Farrell, president and CEO of TransAlta.
The project was backed by $779 million of funds from the governments of Alberta and Canada. Project Pioneer was designed to capture and store a million tonnes of CO2 emissions a year from the 450 MW Keephills 3 supercritical coal-fired power plant. Keephills 3 was to be built adjacent to the existing Keephills power plant located near Edmonton.
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