The first step and an essential part of the project was to prove the technical and economic feasibility of CCS through a front end engineering and design (FEED) study before making any major capital commit-ments. Following the conclusion of the FEED study, the industry partners deter-mined that although the technology works and capital costs are in-line with expecta-tions, the revenue from carbon sales and the price of emissions reductions are insuf-ficient to allow the project to proceed at this time. “The markets for CO 2 sales and the price of emission reductions are not suffi-cient at this time to allow the project to go ahead,” said Dawn Farrell, TransAlta presi-dent and CEO. “While we are disappointed that Project Pioneer will not go ahead, we now know the technology works and we still believe there is a future for CCS,” she said.

Pioneer would have been able to trap as much as 1 million tons of CO 2 a year from the Keephills No. 3 coal-fired power plant west of Edmonton, and then sell the gas to energy companies to use in enhanced oil recovery applications. Construction was due to start this year.