By Jeff Allison, VP Operations, Delta Cleantech
The landscape for emissions reduction in Canada has evolved significantly. Government policies— both incentives and penalties—continue to push for decarbonization. Yet despite this momentum, a consistent message from industry is emerging: the path to emissions reduction remains fragmented, uncertain, and costly.
Many clients tell us that while there are plenty of suppliers offering components—carbon capture systems, transport, utilization, sequestration, and credit support—what’s lacking is a fully integrated solution. They want a partner who can offer visibility into the full cost per tonne of CO2, from capture to final disposition, to make informed investment decisions.
The Shifting Drivers
Three key forces are shaping how Canadian companies are approaching emissions reduction today:
1. Carbon Taxation and Incentives
The carbon price rose to $95/tonne on April 1, 2025, with a stated goal of reaching $170/tonne by 2030. However, uncertainty around future policy continues to affect project economics, even with tax incentives covering up to 50% of capital costs.
2. ESG Commitments
ESG is becoming an investment prerequisite. Many capital providers require credible ESG strategies before engagement. Companies are responding, but they want verifiable, real emissions reductions— not just statements.
3. Technology Readiness
While proven technologies like Delta’s exist, the broader market is still filled with pilots and unproven solutions. For clients, navigating this space adds risk and delays decisions.
Why Isn’t the Market Booming?
Carbon capture remains a cost centre. Even with incentives, commercial-scale projects carry high capital and operating costs. Clients are also wary of long-term CO2 storage responsibilities.
Combined with unpredictable carbon pricing and changing political priorities, the uncertainty makes companies hesitant to commit. Long-term investments require a more stable foundation.
What We’re Hearing—and Doing
Clients want help making emissions reduction a viable business decision. They’re not just buying a technology—they want full-cycle visibility: from capture through utilization or storage, and ultimately, financial returns via credits or products.
Delta’s work at the Alberta Carbon Conversion Technology Centre illustrates this need. We provided the process design and engineering support for the facility used by COSIA NRG Carbon XPRIZE competitors. This gave us a front-row view into practical CO2 utilization—from concrete to advanced materials—and reinforced the need for integrated, real-world solutions.
Building on that foundation, we’ve sharpened our focus on integration. In addition to our capture technology, Delta now offers fully integrated project execution through a strategic partnership with our sister company, Scovan. With Scovan’s turnkey EPFC capabilities—Engineering, Procurement, Fabrication, and Construction—we support clients from design to deployment. This alignment positions us to deliver carbon capture and utilization solutions that are commercially viable, technically sound, and ready to go.
A Call for Collaboration
Moving forward requires more than better technology—it demands collaboration across the value chain. At Delta, we’re committed to delivering solutions that reflect what industry is telling us: a need for certainty, integration, and value you can act on.
Let’s keep the conversation going. Connect with Delta: www.deltacleantech.com
Originally published in IGNITE V10.
