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Cenovus increases carbon dioxide consumption via new purchase agreement

A new agreement has been signed that will see Cenovus Energy purchase the carbon dioxide created by a new carbon capture and storage facility under construction by SaskPower.

Cenovus will purchase the full volume of CO2, approximately 1 million tonnes per year, captured at the Saskatchewan-based facility and use it for enhanced oil recovery at a nearby project it operates on behalf of its partners.

‘This agreement is a major step toward increasing commercialisation of carbon capture and storage,’ says SaskPower president Robert Watson. ‘This is confirmation that we are on the right track and that carbon capture and storage is a viable option for the continued use of coal for power generation.’

Cenovus expects to be ready to accept the CO2 when SaskPower’s integrated carbon capture and storage facility goes into commercial operation in April 2014.

‘Ensuring we have a consistent and adequate supply of CO2 is critical to maintaining and expanding our enhanced oil recovery project near Weyburn,’ says John Brannan, Cenovus executive VP. ‘This agreement provides us with a second reliable supply source of CO2 for our Saskatchewan operations.’