‘They’re Stoked’ Industry welcomes city carbon deal

By Collin Gallant on March 1, 2025.

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Local plan owners are encouraged that one of the world’s largest energy infrastructure companies is taking over a proposed carbon sequestration hub, while the head of the city’s energy committee says it’s the right move for Medicine Hat.

Imperial Oil will takeover “Project Clear Horizon” it was announced this week, while a final agreement to transfer engineering and technical work, as well as reimburse the city for some costs, is being finalized.

Coun. Darren Hirsch also told the News that the city itself made the right decision to steer the project from conception, submit it years ago to a provincial government drive for such projects and eventually begin exploratory work.

That might not have happened in the region, otherwise, he said.

“I’m pleased that the city took the proactive step to get approvals for pore space evaluation rights to support our local industries that are affect (by low-carbon transition), including the city’s,” Hirsch told the News.

“We recognize and support Imperial, which has the technical and financial capability to drive this proposed project to the finish line.”

Clear Horizon would store as much as 2 million tonnes of carbon dioxide each year, potentially from the city’s power plant and other heavy emitters such as chemical and fertilizer production.

Last Summer, Methanex announced that it would work with Alberta firm Entropy to design and potentially install machinery to capture CO2 from the local methanol plant. That would be partly redirected it to boost internal production, but also deliver it for long-term storage to Clear Horizon located in caverns deep beneath 15 townships west of the city.

That agreement

A joint statement attributed to local plant manager Brad Apking and Entropy vice-president Erik Petursson says the firms are encouraged.

“Imperial’s recent acquisition of Project Clear Horizon is a positive step in the development of carbon capture in our region. Initiatives like this are crucial for advancing the low-carbon transition and supporting companies in meeting their decarbonization goals,” the statement reads.

“Entropy and Methanex look forward to seeing how Project Clear Horizon evolves under Imperial’s leadership.”

CF Industries also expressed initial interest years ago in the potential regional hub for emissions at its large ammonia plant in the Hat, and this month promoted its continued decarbonization efforts to investors when its year-end financials were released.

The Illinois-based company already has an agreement to hook up its Donaldsonville, Louisiana production plant to a sequestration hub being developed by Imperial parent company, Exxon-Mobil, in the U.S. Gulf Coast area.

Hubs in Alberta would be regulated by the province and operate on an open-access basis, with operators receiving and storing carbon from companies for a charge, theoretically covered by those companies avoiding more expensive carbon levies.

Under that sort of arrangement, Medicine Hat’s power plant would still be able to access the hub if economically feasible.

The city had dedicated an initial budget of $11 million – from cancelled natural gas drilling budgets – toward the initial engineering and seismic evaluations. Officials say that on a “small portion” of the funds were used.

Local cost estimates to commission the hub are not being released, according to city officials, would certainly be in the hundreds of millions.

The much larger “Pathways Alliance” hub in the oil sands would connect 20 industrial facilities and mine sites there, including Imperial’s, at a cost estimated at $16 billion.

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