A proposed oilsands project has been shelved due to the company’s concerns about Alberta’s climate plan. Koch Oil Sands Operating has reportedly sent a letter to the Alberta Energy Regulator asking it to cancel its Muskwa steam-driven project. The $800 million development was approved in June, but construction had not yet started.
In the letter, vice-president of business development Byron Lutes wrote that the company doesn’t believe they’ll be able to get a proper return on investment. He adds that the carbon tax and emissions cap mean further uncertainty. Alberta’s new carbon levy will come into effect on January 1st.