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Jul 13, 2026 5:02 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press

Alberta, Ottawa and major oil producers sign MOU to advance Pathways carbon capture project

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The project is designed to capture carbon dioxide from industrial operations and transport it for permanent underground storage.(Photo: The Canadian Press)

The Alberta government, the federal government and five major oil producers have signed a memorandum of understanding (MOU) to advance the multi-billion-dollar Pathways Carbon Capture and Storage (CCS) project, according to the governments involved. The agreement outlines a framework for collaboration on one of Canada's largest proposed carbon capture initiatives.

According to the Alberta government, the MOU establishes shared objectives aimed at supporting Canada's economy while reducing greenhouse gas emissions. The project is designed to capture carbon dioxide from industrial operations and transport it for permanent underground storage.

Government officials say the first phase of the Pathways CCS project is expected to have a shared carbon transportation and storage network in operation by Jan. 1, 2032. The project has a stated goal of reducing carbon emissions by up to 16 million tonnes annually once operational.

The Alberta government also said it will finalize its carbon capture incentive program to support investment in the project. Officials say the initiative is intended to strengthen Canada's energy sector while advancing emissions reduction goals.

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