Canada and Alberta Governments Invest in Major Carbon Capture and Storage Project

EDMONTON, ALBERTA, Oct 08 (MARKET WIRE) --
The Governments of Canada and Alberta are investing more than $850
million in clean energy technologies that will dramatically reduce
greenhouse gas emissions and generate high-quality jobs for Canadians.
The Honourable Lisa Raitt, Minister of Natural Resources, and the
Honourable Mel Knight, Alberta Energy Minister, announced the funding
today which will support the development of a large-scale carbon capture
and storage (CCS) project in Alberta.

"The most viable emission-reducing technology for fossil fuels is carbon
capture and storage," said Minister Raitt. "The Government of Canada is
backing up our support for carbon capture and storage with substantial
investments. These projects will reduce greenhouse gas emissions while
creating high-quality jobs for Canadians now and benefiting our
environment for future generations."

"A key goal of Alberta's provincial energy strategy is to achieve clean
energy production through leadership of technology development," said
Alberta Energy Minister Mel Knight. "Commercial scale projects such as
this will not only reduce greenhouse gas emissions in Canada but advance
technology that can be used around the world."

A total of $865 million will be invested by the Governments of Canada and
Alberta in the Shell Quest project, a joint venture among Shell Canada
(60 percent), Chevron Canada Limited (20 percent) and Marathon Oil Sands
L.P. (20 percent). This project will integrate CCS technology at Shell
Canada's Scotford oil sands upgrader, near Edmonton. The application of
carbon capture and storage technology could capture up to 1.1 megatonnes
of greenhouse gas emissions annually, a reduction of about 40 percent.

"The Government of Alberta and Government of Canada should be commended
for their leadership and vision on advancing deployment of CCS," said
Graham Boje, VP, HSSE & Sustainable Development, Shell Canada.

"Finding ways to reduce greenhouse gas emissions is one of the most
important challenges facing society, and developing substantial CCS
capability with governments and key stakeholders is one of our greatest
priorities."

According to the Canada-Alberta ecoENERGY CCS Task Force report, CCS
technology could allow Canada to cut its greenhouse gas emissions by as
much as 600 million tonnes a year by 2050 - an amount equal to almost
three-quarters of Canada's current annual emissions.

The Government of Canada's investment comes from the Clean Energy Fund, a
$1-billion program over five years, as part of Canada's Economic Action
Plan, to advance Canada's leadership on clean energy technologies and
reduce greenhouse gas emissions from energy production.

FOR BROADCAST USE:

The Governments of Canada and Alberta are investing more than $850
million in clean energy technologies to reduce greenhouse gas emissions
and produce high-quality jobs for Canadians. The funding will support a
large-scale carbon capture and storage project at Shell Canada's Scotford
facility, near Edmonton.

The following media backgrounder is available at www.nrcan.gc.ca/media.

Quest Carbon Capture and Storage Project

NRCan's news releases and backgrounders are available at
www.nrcan.gc.ca/media.

Contacts:
Natural Resources Canada, Ottawa
Office of the Minister
Jocelyne Turner
Press Secretary
613-996-2007

Natural Resources Canada, Ottawa
Media Relations
613-992-4447

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