FNCIP Partners with Wolf Midstream, Whitecap Resources and Heart Lake First Nation on Fort Saskatchewan Carbon Hub

CALGARY, AB, Feb. 23, 2022 /CNW/ - Wolf Midstream (Wolf), Whitecap Resources (Whitecap), the First Nation Capital Investment Partnership (FNCIP) and Heart Lake First Nation (Indigenous Owners) have jointly proposed a saline aquifer sequestration hub in the Fort Saskatchewan area to transform the future of carbon reduction through the development of world-scale CO2 infrastructure.

The sequestration hub will serve large facilities in Alberta's Industrial Heartland that are seeking an independent and timely sequestration solution. Wolf has executed agreements with several parties who have offered support of the Wolf sequestration proposal including Air Products which is constructing a major net-zero hydrogen energy complex in the region. These projects are projected to provide initial CO2 delivery to the hub of between two to three million tonnes per annum (MTPA) with ultimate hub volumes that could exceed six MTPA. The combined carbon capture, utilization, and storage (CCUS) expertise and experience of the project proponents will enable the timely and safe delivery of sequestration services in this critical industrial center. The partners will initiate development work immediately to ensure an in-service date prior to the end of 2024.

"Air Products strongly supports the carbon sequestration hub proposed by this innovative partnership. Wolf, Whitecap, the FNCIP and the Indigenous Owners have the experience, capability, and community trust to safely deliver a critical piece of energy infrastructure near Edmonton that will enable substantial decarbonization beginning in 2024," said Seifi Ghasemi, Air Products' Chairman, President and CEO. "The presence of the ACTL was one of the factors that led us to select Edmonton for our net-zero hydrogen energy complex."

Wolf is an Alberta-based world leader in CCUS and the largest independent CO2 infrastructure operator in North America through its ownership and operation of the Alberta Carbon Trunk Line (ACTL). Whitecap is a Canadian energy company based in Alberta with decades of CO2 injection and subsurface project experience. The FNCIP was recently formed by Four Treaty 6 Nations – Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation – to pursue ownership in major infrastructure projects with commercial partners who share Indigenous values. The Indigenous Owners, as Treaty rights holders, strengthen important stakeholder relationships and provide traditional knowledge and historical perspective for the project.

"We are incredibly optimistic about the partnership we've formed. This hub will support key net-zero projects currently in development and further propel Alberta towards a lower carbon economy." said Jeff Pearson, President, Carbon, Wolf Midstream. "In addition, the hub will be connected to the ACTL, maximizing one of the province's vital decarbonization investments." The ACTL became operational in 2020 and celebrated two million tonnes of third-party CO2 transported to permanent storage at the end of 2021, demonstrating Wolf's capabilities and the impact a large CCUS system can have in reducing emissions.

"This project has a unique combination of experience and technical expertise, bringing Wolf as the operator of the largest existing CO2 trunk line in Canada together with Whitecap as the operator of the largest anthropogenic carbon sequestration project in the world", said Grant Fagerheim, President and CEO of Whitecap Resources. "It is this collective experience along with the inclusion and assistance of our First Nations partners, that provides confidence to the industrial parties supporting this project of an efficient and safe solution to decarbonize their businesses within a very constructive, forward-thinking partnership."

"Working with Wolf and Whitecap is an exciting step forward in partnering with industry leaders who share our values", said Chief of Alexis Sioux First Nation, Chief Tony Alexis. "Wolf's experience in carbon capture and transportation, Whitecap's expertise in carbon injection and operations and our traditional knowledge and historical perspective makes this a compelling partnership. We are stronger when we work together and bring our unique knowledge and perspectives to these projects. Continuing to grow our economic opportunities helps create sustainable economic sovereignty for our People and vibrant, healthy communities."

About Wolf Midstream

Wolf Midstream is a Calgary-based private company backed by Canada Pension Plan Investment Board (CPP Investments). Wolf was formed in 2016 with an investment from CPP Investments to focus on the acquisition and development of midstream infrastructure and opportunities in Western Canada. Wolf is transforming the future of carbon reduction through the development of world-scale CO2 infrastructure in both Canada and the United States. Wolf is the owner and operator of two CO2 compression facilities and the 240-kilometre Alberta Carbon Trunk Line (ACTL) pipeline that safely transports CO2 from capture sites to secure underground storage. Wolf's ACTL is a multi-party, open access CO2 pipeline designed to connect independent emitters with different end-use opportunities.

About Whitecap

Whitecap Resources Inc. is a Calgary-based public energy company focused on the acquisition, development and production of oil and natural gas assets in Western Canada. Whitecap is the operator of the Alberta Joffre and Saskatchewan Weyburn CO2 EOR projects and manages over 200 CO2 injection wells, and associated pipelines and infrastructure. These projects safely sequester a total of two million tonnes of CO2 per year, almost half of annual sequestered volumes in Canada. The Weyburn CO2 EOR project is the largest anthropogenic carbon sequestration project in the world with over 36MT stored to date. Our business plan is to deliver profitable growth to our shareholders over the long term under varying business conditions, while committing to environmental, social and governance leadership.

About First Nation Capital Investment Partnership

The First Nation Capital Investment Partnership (FNCIP) includes Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation, and Paul First Nation was built on shared values. The First Nation Capital Investment Partnership pursues ownership in major infrastructure assets and projects to create intergenerational wealth and a vibrant, healthy future for the participating First Nations. Axxcelus Capital Advisory Partners acts as the exclusive financial advisor for FNCIP. Axxcelus is a capital advisory firm that facilitates ownership in major assets for Indigenous communities. Axxcelus sources, evaluates, structures and finances major asset opportunities on behalf of Indigenous community clients.

SOURCE Wolf Midstream

For further information: Media Inquiries: Wolf Midstream, Jenifer Snell & Steph Robertson - media@wolfmidstream.com, 587-747-4005; Whitecap Resources Inc., Tyler Maguire - InvestorRelations@wcap.ca, 403-270-4741; Indigenous Owners and Axxcelus, Jill McKenzie - jill@pipikwanpehtakwan.com, 902-830-0814