An analyst suggests that the decision to suspend Canada’s largest carbon capture and storage project is likely due to financial uncertainty and technological risks. Capital Power announced that it would no longer pursue carbon capture at its Genesee power plant near Edmonton. The $2.4-billion project was expected to capture about three million tonnes of carbon dioxide per year, more than other Canadian facilities.

Capital Power CEO Avik Dey stated that the economics of the project did not add up. Scott MacDougall of the clean energy think tank, the Pembina Institute, believes the uncertainty over the future value of carbon credits and the political direction of carbon pricing may have contributed to this decision. He also mentioned the risk and cost associated with being the first to use carbon capture technology in a gas plant.

MacDougall does not anticipate other carbon capture proposals being put on hold. He noted that the technology is well understood and has less risk in other industries, making it more viable for future projects.