ATCO EnPower to Proceed with Atlas Carbon Storage Hub: "A significant step forward in Alberta's energy transition"

CALGARY, AB, June 26, 2024 /CNW/ - Canadian Utilities Limited (TSX: CU)

ATCO EnPower is thrilled to announce, that together with our partner Shell Canada Limited, the Final Investment Decision (FID) has been made to proceed with the first phase of the Atlas Carbon Storage Hub. Investment in this multi-phase, open-access carbon storage hub is a major milestone in ATCO's commitment to reduce greenhouse gas emissions. The facility will be located east of Edmonton and able to store industrial emissions from the Alberta Industrial Heartland region.

"Today's announcement marks a significant step forward in Alberta's energy transition. Carbon capture and storage is a critical component of our successful energy future," said Bob Myles, Chief Operating Officer, ATCO EnPower. "ATCO EnPower is actively working across all aspects of the energy transition value chain, and collaborative efforts with government, our partners and local communities have been instrumental in advancing this initiative."

ATCO EnPower and Shell are 50/50 partners in the Atlas Carbon Storage Hub, which is located in the heart of Alberta's energy and petrochemical sector and represents a significant investment in environmental stewardship and technological innovation. The first phase of the Atlas project is planned to be operational by 2028, anchored by CO2 volumes from Shell's Polaris carbon capture project.

Future development of Atlas, which is subject to a future investment decision, will be aimed at meeting both ATCO EnPower and Shell's carbon storage needs, with remaining capacity available for third-party emitters through open access.

The Atlas Carbon Storage Hub is integral to ATCO's decarbonization and ESG targets. This facility is expected to provide a resource for emitters in the Alberta Industrial Heartland to reduce both their carbon emissions and carbon tax liability.

The Atlas Hub will leverage the lessons learned from Quest CCS, which was built and is operated by Shell. Quest has safely stored over nine million tonnes of CO2 since it began operations in 2015.

With operations in Canada and Mexico, ATCO EnPower is leading the energy transition with inspired energy solutions, including renewable energy, carbon capture and storage, hydrogen and derivatives, and energy storage.

Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 9,000 employees and assets of $23 billion. Canadian Utilities, an ATCO company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions. ATCO Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments. ATCO EnPower creates energy solutions in the areas of renewables, energy storage, industrial water and alternative fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCOenergy and Rümi provide retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. More information can be found at www.canadianutilities.com.

ATCO Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President
Finance, Treasury & Sustainability
[e-mail]
403 808 2636

ATCO Media Inquiries:
Kurt Kadatz
Director, Corporate Communications
[e-mail]
587 228 4571

Forward-Looking Information Advisory

Certain statements contained in this news release constitute forward-looking information. In particular, forward-looking information in this news release includes references to: the timing of commercial operation of the Atlas project; the storage of industrial emissions, including from Shell's Polaris carbon capture project; expected future development of the Atlas project for ATCO EnPower and Shell's carbon storage needs, with capacity to be available for third party emitters through open access; future carbon offsets; commitments toward reducing greenhouse gas emissions, decarbonization, and ESG targets; future reduction of carbon emissions and carbon tax liability.

While it is believed that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are being made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects beliefs and assumptions with respect to, among other things: the development and performance of technology and technological innovations; collaboration with industry participants, business partners, regulatory bodies and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.

Actual results could differ materially from those anticipated in the forward-looking information as a result of, among other things: risks inherent in the performance of assets; applicable laws, regulations and government policies, including uncertainty with respect to the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada); regulatory decisions; prevailing market and economic conditions; credit risk; the availability and cost of labour, materials, services, and infrastructure; the development and execution of projects; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of alternative fuels, carbon capture, and storage, electrification of equipment powered by lower emission sources and the utilization and availability of carbon offsets; the termination or breach of contracts by contract counterparties; the occurrence of unexpected events such as fires, severe weather conditions, explosions, blowouts, equipment failures, transportation incidents, and other accidents or similar events; and other risk factors, many of which are beyond control. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty.

Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks faced by the Company see "Business Risks and Risk Management" in Canadian Utilities Limited's Management's Discussion and Analysis for the year-ended December 31, 2023 (2023 MD&A).

Forward-looking information contained in this news release represents expectations as of the date hereof, which may change after such date. There is no intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable legislation. 

SOURCE ATCO Ltd.

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