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Carbon capture and storage projects depend on injecting captured CO₂ deep underground. Before a project can proceed, it needs rights to the underground space, known as pore space, and Alberta settled who owns it by legislation rather than leaving it to the courts.
Who owns pore space
Alberta amended its legislation in 2010 to provide that pore space in the province belongs to the Crown. That gave developers a single counterparty for storage rights, rather than needing agreements with each surface or mineral owner.
The change also meant landowners cannot claim ownership of the pore space beneath their land, though other rights, such as surface access, still have to be dealt with.
Permits and agreements
Developers obtain permits and agreements from the province to evaluate and then to store CO₂, along with approvals from regulators for injection, monitoring and closure. Each stage carries conditions about measurement, verification and liability.
Long-term liability for a storage site once injection ends is a central design issue for these projects and for their financing.
Commercial issues
Projects raise questions about who captures the CO₂, who transports and stores it, and how costs and credits are shared. Carbon pricing rules and available incentives affect project economics and should be checked at the time of a deal.
Questions for a storage project
- Which permits or agreements cover evaluation and which cover storage?
- Who is responsible for monitoring and for liability after injection ends?
- How do surface access and land agreements fit around the Crown’s pore space?
- Which incentives and carbon pricing assumptions does the model rely on, and are they current?