Agrium inks carbon dioxide supply deal

Fertilizer firm Agrium will supply carbon dioxide from its facilities for another Calgary company’s oil recovery operations.

Enhance Energy will use Agrium’s carbon dioxide (CO2) in “several” enhanced oil recovery (EOR) projects, such as its joint venture with Fairborne Energy at Clive, Alta., about 50 km northeast of Red Deer.

Agrium is no stranger to CO2 supply, having for “many years” provided CO2 for EOR from its nitrogen fertilizer facility at Borger, Tex., northeast of Amarillo, the company said in a press release Tuesday.

The new supply agreement “enables us to produce more oil while at the same time safely sequestering CO2 that would otherwise have been emitted to the atmosphere,” said Susan Cole, president of Enhance Energy, in Agrium’s release.

“By implementing the first major EOR projects in Alberta, we believe Enhance will lead the way for other projects that will become more viable because of our CO2 pipeline system.”

Agrium operates six nitrogen fertilizer production plants in Alberta, at Carseland, Fort Saskatchewan, Granum, Joffre, Redwater and Standard.

Once Enhance’s pipeline project comes on stream, expected in 2011, Agrium will start supplying CO2 to the project — and will thus “significantly” reduce its own CO2 emissions, Agrium said.

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