Canada’s Carbon Capture Gamble Gains Steam

Mantel Capture’s 60,000-ton CCS project links emissions cuts with recovered heat for a smarter industrial model

27 Feb 2026

Mantel Capture has begun front-end engineering and design work on a carbon capture system designed to remove 60,000 metric tonnes of carbon dioxide a year at a steam-assisted gravity drainage site in western Canada’s oil sands.

The project, now in its FEED phase, marks a step towards commercial deployment of carbon capture and storage (CCS) technology in heavy industry. If built as planned, the facility is expected to generate about 150,000 metric tonnes of high-pressure steam annually to support site operations, alongside cutting emissions.

That dual function lies at the centre of the project’s commercial case. Carbon capture has often been criticised for its high energy use and cost, factors that have limited adoption in sectors such as oil and gas, cement and steel. Mantel Capture says its molten borate-based system operates at high temperatures and can be integrated into existing industrial heat processes, converting waste heat into usable steam.

By embedding energy recovery within the capture process, the company aims to reduce the additional energy burden that has weighed on earlier CCS projects and improve overall economics.

Analysts say this approach reflects a broader shift in the sector. As governments tighten climate targets, carbon capture projects are increasingly judged not only on environmental performance but also on efficiency and cost competitiveness. Systems that deliver operational benefits as well as emissions reductions may gain wider acceptance among industrial operators.

The Canadian project has received backing from Alberta Innovates, a provincial agency that supports technology development. The funding aligns with Canada’s strategy to expand carbon capture infrastructure through incentives and targeted support, as it seeks to strengthen its position in the global CCS market.

Activity is also increasing elsewhere in the country. Companies including Svante are expanding carbon capture manufacturing capacity in British Columbia, signalling a move from pilot projects to larger-scale facilities.

Much will depend on execution. Large-scale systems must demonstrate reliability, integration with existing assets and stable costs over time. Progress through the FEED stage and any subsequent final investment decision will be closely watched by investors and policymakers.