Thank you very much, Mr. Chair, for giving me the opportunity to speak today.
My name is Jeff Pearson. I'm the president of the carbon division at Wolf Midstream. I have a background in oil and gas engineering, commerce and finance.
By way of background, Wolf Midstream is a private Calgary-based company that was founded in 2015. We focus on energy infrastructure development, and we have spent around $5 billion dollars on energy assets. We are backed by a large Canadian pension fund.
Wolf Midstream has three divisions, including a pipeline division that owns a large oil pipeline system that moves oil from production sites in northeast Alberta to the Edmonton market. We also have a natural gas liquids division, which has recently constructed large-scale infrastructure to remove natural gas liquids, such as ethane and propane, from natural gas before it is burned in the oil sands. These liquids are then transported to Edmonton and separated, through infrastructure we have built, to be turned into plastics. Following the removal of the high-carbon natural gas liquids and the burning of largely pure methane, CO2 emissions are reduced by upwards of 250,000 tonnes per year.
Our third division is the carbon division, which I run. In this group, we have constructed, and we own and operate, CO2 infrastructure called the Alberta Carbon Trunk Line, or ACTL. Wolf spent close to $500 million constructing this infrastructure in 2019 and 2020, and the system became operational in early 2020.
The ACTL is one of the largest-capacity CO2 pipelines in the world, and the largest one focused on man-made, or anthropogenic, CO2. The pipeline has a capacity of close to 15 million tonnes per annum, which is greater than the emissions reductions proposed through the CCUS from the oil sands.
We currently have two sources of CO2—the Nutrien Redwater fertilizer facility and the North West Sturgeon refinery—and CO2 from both sites is a by-product of hydrogen production. These sources total approximately one and a half million tonnes per year. In March, we celebrated our five-millionth tonne of CO2 transported, which would have been emitted into the atmosphere but instead has been permanently stored deep underground.
The ACTL pipeline is currently running at 10% capacity and is underutilized. Over the last five years, Wolf has been focused on capturing more sources of CO2 and utilizing the spare capacity to transport the CO2 to permanent storage. We have been working closely with Air Products, which is constructing the new net-zero hydrogen facility outside of Edmonton. We have also been working with Dow Chemical, which is constructing the Path2Zero petrochemical project through an expansion of their existing site in Fort Saskatchewan. Using ACTL, Wolf will provide both of these companies CO2 transport to permanent geological storage.
Wolf is also developing a deep saline aquifer storage project, also known as sequestration, near the ACTL pipeline, to be able to permanently store CO2 from these and other projects. Partners in this project include five first nations groups and Whitecap Resources, which has significant subsurface technical expertise as a result of their ownership and operation of the Weyburn CO2 project in Saskatchewan. We are targeting completion and start-up of this project for 2025, commensurate with the start of the Air Products facility.
To service these projects, last year Wolf constructed a 38-kilometre fit-for-purpose extension of our CO2 pipeline to the Air Products facility near Edmonton. We commenced construction in August last year, and it was largely completed, other than some final cleanup work, in December 2023. Through this project, Wolf spent close to $100 million on that pipeline. Much of that spend is eligible for the investment tax credits, or ITCs, under the carbon capture, utilization and storage, or CCUS, ITC.
I believe that today Wolf is one of the largest spenders of capital that is ITC-eligible. The ITC is a meaningful and necessary component of our commerce with emitters, with the capital support provided through the ITC going back into our commercial structure to lower the toll for our customers and, hence, the cost of decarbonization. As a result of our spending of funds that are ITC-eligible, we are happily anticipating that the ITC legislation will move to formalization as soon as possible. This will demonstrate real progress in our national goals to support decarbonization and provide additional certainty to emitters that are contemplating CCUS investments.
Thank you. I look forward to questions.