Canada has kicked off construction for what will become the country's largest carbon capture and storage (CCS) facility on September 9, marking a major milestone toward national net-zero targets.

Natural Resources Canada states the hub is slated to commence operations in January 2027. It will initially sequester up to 1.5 million tonnes of CO2 annually, equivalent to removing more than 500,000 passenger vehicles from roads each year, with room for future capacity expansion.

Tied into Alberta's existing CO2 pipeline network, the hub will first deliver carbon capture services for industrial operators within the province's Industrial Heartland, covering oil and gas, petrochemical, cement and power generation sectors.

The project builds on Enhance Energy's existing CCS site at Clive. The company reports the current facility has sequestered over 9 million tonnes of CO2 since 2020 and generated more than $600 million in economic activity.

Federal Minister of Energy and Natural Resources Tim Hodgson said the project demonstrates how "the federal and provincial governments and industry are working together as one Team Canada to build big things in this country again and to make sure every Canadian benefits from a stronger, cleaner, more competitive economy."

Enhance Energy Vice President Candice Paton noted the project proves "CCS is a right-now technology" capable of delivering both economic growth and emissions reduction.