Starting in 2022, companies will be able to claim a tax credit of up to 60 per cent for direct air capture projects and 50 per cent for all other eligible carbon capture projects.
“It’s potentially a lot of money, and especially very quickly,” Fellows said of the tax credit.
Canadian oil and gas companies have reported record profits in recent months due to soaring commodity prices.
Some of the companies that have proposed carbon capture and storage projects include Enbridge Inc., Atco Ltd., and Capital Power.
Proponents say Canada can’t meet its climate goals without vastly expanding the use of carbon capture and storage technology.
In late March, the government of Alberta selected six proposals from companies interested in developing what would be Canada’s first carbon storage and sequestration hubs, in the Edmonton region.