Alberta CO2 Sequestration Tenure Framework

Policy Overview

Alberta’s Sequestration Tenure Framework is a global pioneer in the standardized management of pore space rights. Asserting the Crown’s ownership over all sub-surface sequestration assets, the framework utilizes a competitive Request for Full Proposals (RFFP) process to award storage rights. In July 2024, the government reached a landmark milestone by signing the first formal Carbon Sequestration Lease Agreement with Shell Canada and ATCO EnPower for the Atlas Carbon Storage Hub, granting exclusive rights to inject and store CO2 permanently in specific deep geological formations.

Regulated by the Alberta Energy Regulator (AER), the framework mandates strict adherence to MMV (Monitoring, Measurement, and Verification) protocols under AER Directive 065. An updated draft protocol released in late 2024 further refines the quantification of sequestration credits and clarifies shared liability. By linking clear property rights with strategic hub development, Alberta has created a world-class model for preventing resource fragmentation and ensuring the safe, commercial deployment of CCS at scale.