On July 10, 2024, Canada Growth Fund Inc. ("CGF") formed a strategic partnership with Strathcona Resources Ltd. to develop carbon capture and sequestration (CCS) infrastructure on Strathcona's steam-assisted gravity drainage (SAGD) oil sands facilities in Saskatchewan and Alberta. Both parties committed up to $1 billion each, aiming to capture and store up to two million tonnes of CO2 annually. Strathcona, Canada's fifth-largest oil producer, will build, own, and operate the CCS projects, retaining carbon pricing risk, while CGF will share in project cost and capture efficiency risks. CGF's initial commitment is $500 million, with the option to increase to $1 billion.

Strathcona received CO2 injection rights from Saskatchewan in 2024, and the first commercial CCS project is expected to reach a final investment decision (FID) by mid-2025 in Saskatchewan. The partnership aims to enhance the competitiveness of Canada's carbon-intensive oil industry by demonstrating decarbonization outcomes.

Legal advisors for the transaction included Stikeman Elliott LLP and Sproule International Limited for CGF, and Blake, Cassels & Graydon LLP for Strathcona. The collaboration marks a pioneering approach to CCS risk-sharing in Canada, potentially serving as a model for future projects in the oil and gas sector.

On July 11, Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, welcomed the announcement in a press release by the Department of Finance Canada.