What can you do with $200 million?

ED LOHRENZ

LET’S see if I’ve got this right. In the article Carbon capture project gains support (June 30). Julia-Simone Rutgers writes that the direct carbon capture facility proposed by Deep Sky for construction in southwestern Manitoba will cost $200 million to build.

The company claims the facility will scrub 30,000 tonnes of carbon dioxide from the atmosphere each year and inject it 1,000 metres into the ground. To do this, it will need to draw up to 15,000 megawatts of power from the Manitoba Hydro grid for the first stage of the project. The project will be financed by selling carbon credits.

To put this into perspective, the Canadian industrial carbon price is set at $130 per tonne. At that price, Deep Sky will have to sell more than 1.5 million tonnes of carbon just to cover the upfront cost of building the plant. That’s over 51 years’ worth of carbon credits. And that doesn’t even cover the everyday operating costs, such as the electricity needed to run the plant.

Some studies suggest it requires about 2,0002,500 kilowatt hours to electricity to capture one tonne of CO2 and inject it into the ground. To capture 30,000 tonnes, that’s about 60 million kWh. Even if Manitoba Hydro sells it to the facility for only $0.035/kWh, that’s an additional $70 per tonne.

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