Under the terms of the Agreement, CO2 Solutions will install and operate a pilot unit capturing approximately 15 tonnes of CO2 per day at Husky's Pikes Peak South, Saskatchewan heavy oil site on a once-through steam generator.
Operation of the pilot unit is expected to commence in early 2015 with completion of testing expected in the third quarter of 2015. Subject to a positive review by Husky of the results of the pilot test, the Agreement provides for Husky to consider the use of CO2 Solutions' technology for commercial carbon capture projects.
The project will be funded in part by the Government of Canada's ecoENERGY Innovation Initiative (ecoEII) program, as previously announced on January 24, 2013.
"The pilot demonstration of our technology is a significant milestone towards the commercial deployment of our technology for CO2 capture and beneficial utilization applications such as enhanced oil recovery," said Evan Price, President and CEO of CO2 Solutions. "Husky is a recognized leader in the energy industry and will provide valuable expertise to this project."
"Through the ecoENERGY Innovation Initiative, our Government is investing in projects that drive energy innovation, create jobs and generate new economic opportunities that protect the environment," said the Honourable Greg Rickford, Minister of Natural Resources and Minister for the Federal Economic Development for Northern Ontario. "Today's announcement demonstrates that these investments are successfully bringing innovative clean technologies from concept to reality."
The pilot test is expected to confirm the positive techno-economics of CO2 Solutions' carbon capture process and will provide an operational basis to compare the process against other new and conventional technologies in terms of performance and cost. A successful project will pave the way for the CO2 Solutions technology to be applied broadly for cost-effective carbon emissions mitigation in heavy oil and oil sands operations in Western Canada and other industrial applications.