Department of Finance Canada announced a $2 billion Canada Growth Fund and Strathcona Resources carbon-capture partnership.
The Canada Growth Fund and Strathcona Resources-Canada's fifth-largest oil producer-have agreed to invest up to $2 billion combined to build carbon capture and sequestration infrastructure on Strathcona's steam-assisted, gravity drainage oil sands facilities in Saskatchewan and Alberta.
The 2023 Fall Economic Statement announced that the Canada Growth Fund will be the principal federal entity to issue carbon contracts for difference (CCFDs), including allocating, on a priority basis, up to $7 billion of its current $15 billion in capital to issue all forms of contracts for difference and offtake agreements.
The Canada Growth Fund is a $15 billion arm's length public investment vehicle launched by the federal government to attract private capital and invest in Canadian projects and businesses, which is led by Canada's world-leading public sector pension professionals.
This partnership was made possible by and will benefit from the federal government's Carbon Capture, Utilization, and Storage investment tax credit, which investors are already able to claim.
For project sponsors, public financing and investment tax credits can affect whether major industrial, clean-energy, or resource projects are economic enough to proceed.