There is considerable interest in having a backbone pipeline for carbon-dioxide (CO ₂ ) built in Alberta-interest both on the part of major CO ₂ emitters in the Athabasca oilsands region and of oil producers, who could increase their production by injecting CO ₂ into certain reservoirs if a ready, low-cost supply of CO ₂ were available. Although no final plan has been put forward, the proposed pipeline would presumably run from Fort McMurray south and southwest to oil reservoirs amenable to CO ₂ enhanced oil recovery (EOR) techniques in the central part of the province.

This report examines the business case for constructing a backbone CO ₂ pipeline in Alberta. It also addresses the likely growth in demand for CO ₂ for EOR injection and current and future CO ₂ supply sources in the province and their associated costs. The analysis suggests that construction of the CO ₂ backbone for the sole purpose of delivering liquid CO ₂ to oil reservoir sites for injection does not make sense from a business perspective because the supply of highly pure, low-cost, CO ₂ from bitumen upgraders in the Edmonton/Fort McMurray area is likely to exceed CO ₂ demand.