Shell's Move Toward Net Zero Emissions - To Build Carbon Capture And Storage Project In Canada

Shell plc‘s SHEL Canadian unit disclosed the Final Investment Decision (FID) for the Polaris carbon capture project at the Shell Energy and Chemicals Park in Scotford, Alberta, Canada.

The Polaris project aims to capture around 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.

Polaris, fully owned by Shell, aims to cut Scope 1 CO2 emissions by up to 40% at Shell's Scotford refinery and by up to 22% at the chemicals complex through carbon capture and storage.

In addition, Shell announced an FID to move forward with the Atlas Carbon Storage Hub in collaboration with ATCO EnPower.

Notably, Shell and ATCO EnPower are 50/50 partners in the Atlas Carbon Storage Hub. The first phase will store CO2 from the Polaris project.

The initial phase of the Atlas project will offer permanent underground storage for the CO2 captured by the Polaris project. Shell expects both projects to start operations by the end of 2028.

Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions Director said, “Carbon capture and storage is a key technology to achieve the Paris Agreement climate goals. The Polaris and Atlas projects are important steps in reducing emissions from our own operations.”

In 2023, Shell stated that it targets to become a net-zero emissions energy business by 2050 and has planned investment of $10 billion-$15 billion in 2023-2025 to aid the development of low-carbon energy solutions.

Shell stock has gained more than 18% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF HJEN and VanEck Natural Resources ETF HAP.

Also Read: Shell Secures Major LNG Deal With Temasek’s Pavilion Energy: Details

Price Action: SHEL shares are down 1.23% at $70.67 at the last check on Wednesday.

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