Enhance Energy Inc. (Enhance) and Wolf Carbon Solutions Inc., an affiliate of Wolf Midstream (Wolf), have entered into a project development and coordination agreement related to the construction and operation of Alberta Carbon Trunk Line (ACTL), a carbon capture utilisation and storage project.
The ACTL is a 240-kilometre pipeline that will collect carbon dioxide (CO2) from industrial emitters in and around Alberta’s Industrial Heartland and transport it to aging reservoirs throughout central and southern Alberta for secure storage and enhanced oil recovery (EOR) projects.
Subject to closing under this agreement, Wolf will construct, own, and operate the CO2 capture and pipeline transportation assets. Enhance will continue to be the owner and operator of the CO2 utilisation and sequestration portion of the ACTL project through its EOR operations. Upon closing of this agreement, anticipated to be within 60 days, the parties will enter into a long-term service agreement and construction activities related to the ACTL project will commence. Initial CO2 flow rates are expected to start at 800 tonnes per day in the fourth quarter of 2019 and increase to 4,400 tonnes per day by the end of 2019.
CO2 will be supplied to the ACTL project by the Sturgeon Refinery (operated by the Northwest Redwater Partnership) and the Redwater Fertilizer facility (owned and operated by Nutrien, the world’s largest crop nutrient company) and delivered to Enhance’s EOR project in Clive, Alberta. Initially, Wolf will provide midstream services only to Enhance, with other suppliers and users of CO2 having future access to Wolf’s capture, compression, and transportation services.
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