Project Overview
Approved for funding through ERA’s Carbon Capture Kickstart Call in 2022, Capital Power evaluated retrofitting their 3 MtCO2e/year natural gas combined cycle (NGCC) Genessee Units 1 and 2 (recently converted from coal power) with a full-scale, post-combustion, amine-based carbon dioxide CO2 capture system. By its completion in 2023, the project successfully reached a cost estimate reflective of engineering Class 2, i.e. approximately +/-20% accuracy, validating the cost and performance expectations of installing carbon capture at their Genesee site.
In May of 2024, as Capital Power advanced with detailed engineering of the CCS system, they determined that while amine-based CCS is “technically viable”, the project was not economically feasible at the time of the decision. They have since halted moving forward with CCS technology for the foreseeable future, pivoting instead to explore small modular reactors in partnership with Ontario Power Generation. Capital Power has been actively involved in sharing lessons learned from their CCS FEED study and has indicated they would be willing to explore CCS again in the future should the economics change and the technology improve.
About Genesee Generating Station
The Genesee Generating Station is a three-unit, 1.8 gigawatt (GW) power facility near Warburg, Alberta, and is one of Alberta’s largest power facilities, supplying around 10% of Alberta’s grid. Genesee Units 1&2, the subject of the CCS study, have a combined capacity of approximately 1.3 GW. Originally designed to burn coal, Genesee Units 1&2 were fully converted to natural gas combined cycle (NGCC) generation by the end of 2024, resulting in a 3.4 MtCO2e annual emission reduction
(40%), also finalizing Alberta’s transition away from coal power. The next step in Genesee’s decarbonization was planned to be the installation of post-combustion carbon capture equipment to capture 95 per cent of the remaining CO₂ emissions from natural gas combustion.
CCS FEED Study Scope
The ERA funded project entailed the front-end engineering and design (FEED) study to assess the viability of carbon capture by completing preliminary engineering and cost estimates in preparation for a final investment decision. During the pre-FEED phase prior to this project, Capital Power selected Mitsubishi Heavy Industries’ (MHI) Kansai Mitsubishi Carbon Dioxide Removal (KM CDR) process technology, which uses MHI’s proprietary KS-21 amine-based solvent, to capture approximately three million tonnes of CO₂ per year from the flue gas of the NGCC.
The FEED work was conducted by a consortium of Mitsubishi Heavy Industries and Kiewit Construction Services ULC, focused on process design for the carbon capture, balance of plant design, and construction planning. With additional steam integration work by Mitsubishi Power Americas, the study entailed development of a comprehensive Engineering, Procurement, Construction, and Commissioning (EPCC) cost estimate and execution plan.
The CCS project was designed to capture CO₂ across all operating modes of the facility, with significant effort dedicated to validating steam integration. Through the FEED study, MHI and Kiewit developed key engineering documentation, including process flow diagrams, piping and instrumentation diagrams, plot plans, equipment lists, and specifications. This work supported the creation of a 3D project model and a firm-price EPCC quote.
Carbon Capture for Retrofit Installation on an NGCC Facility Found Technically Viable, Not Economically Feasible
The results of FEED demonstrated the technical viability of amine-based post-combustion carbon capture achieving a 95 per cent CO₂ capture rate based on flue gas from the Genesee NGCC plant. This capture rate was commercially guaranteed through specialized testing and validation by technology licensors and constructors. The study also established a lump-sum turnkey price and schedule guarantee. While full operating expenses could not be guaranteed, steam and power consumption—key cost drivers—were defined, and refined forecasts of operations and maintenance costs provided greater certainty on cost per tonne.
The study did not include the development, installation, or commissioning of technology or equipment. However, completion of the FEED study advanced the commercialization potential of MHI’s carbon capture technology.
If implemented, it was found CCS leverage existing steam generation and electrical infrastructure to minimize capital costs and optimize facility integration. Over its 25-year lifespan, it would be expected to capture approximately three million tonnes of CO₂ annually, positioning Genesee as a source of low-carbon, baseload, dispatchable power for Alberta’s electricity grid.
In May 2024, after the conclusion of the FEED study, Capital Power announced that they were halting further work on CCS due to lack of economic feasibility. This decision was influenced by several factors, including the state of commercially available CCS technology, the availability of federal incentives at the time, and uncertainty around the business model economics.
Of note, the flue gas to be captured from natural gas plants has a relatively low concentration of CO2 — around 3-4% — compared to 10-20% for some other applications such as cement, biomass, and coal. The low CO2 concentration impacts the economics of CCS as applied to natural gas plants. In terms of technology, amine-based carbon capture technology is currently the leading commercial alternative thanks to operating projects like Boundary Dam in Saskatchewan. While commercially available, the technology faces challenges such as high energy consumption, further impacting costs.
What’s next?
Since halting work on CCS, Capital Power has partnered with Ontario Power Generation to explore the feasibility of small modular reactors (SMRs) as a decarbonization solution. Capital Power has indicated that the CCS project could be revisited if CCS technology and economics improve.
If the CCS project should re-start in the future, next steps are to determine certainty regarding the commercial structure, funding, and bankability of the project; certainty regarding the sequestration capability of nearby sequestration zones and offtake agreement; and finalization of remaining FEED study components and revisions to scope and capital cost, including additional work to reprice the scope.
With support from Capital Power and others, ERA and the International CCS Knowledge Center have compiled lessons learned from all the projects funded through its Carbon Capture Kickstart funding call in this public Lessons Learned Report, which was presented at the IEAGHG GHGT-17 Conference co-hosted by ERA and the IEA in Calgary in October 2024 and shared with the IEA’s CCS Cost Network in March 2025.