Malcolm Wilson, Director of the Office of Engineering and Environment at the University of Regina, checks some gauges on the CO2 test at the International Test Centre at the university in early June. Saskatchewan is at the forefront of efforts to capture carbon dioxide gas and keep it out of the atmosphere. (Troy Fleece/Canadian Press)

Deep under the ground in southeastern Saskatchewan, carbon dioxide is injected into microscopic pores of reservoir rock, helping trapped oil to flow to the surface.

Energy giant EnCana is using captured CO2 to breathe new life into an aging oilfield near Weyburn. About 28,000 barrels of oil are pumped out per day —18,000 barrels more than would be produced without using carbon dioxide.

"Without technology like using CO2, we're not able to effectively produce any more oil out of this reservoir," says EnCana's Twila Walkeden. "We've been here for about 55 years and with the use of CO2, that could extend the life of this field for another 20 to 25 years."

But the Weyburn-Midale project is doing more than pushing out oil. It's also storing CO2 underground — more than 13 million tonnes so far.

It's the world's first and largest demonstration of carbon dioxide geological storage and, along with the International Test Centre for CO2 Capture at the University of Regina, has put Saskatchewan at the forefront of efforts to capture the gas and keep it out of the atmosphere.

"Everyone is chasing the same thing down here, I think," says Saskatchewan Energy Minister Bill Boyd. "They're looking for a way to clean up the carbon footprint in Canada, the United States, all over the world — and they're looking for various ways of doing that."

It's a technology Saskatchewan needs.

Growth vs. greenhouse gas reductions

The province has the second-highest greenhouse gas emissions per capita of any jurisdiction in the world — 72 tonnes per person annually — according to the Saskatchewan Environmental Society.

And the oil and gas industry is growing at the same time the government is looking to meet greenhouse gas reduction targets.

Saskatchewan also has a problem with dirty power.

SaskPower, the provincial utility, relies on fossil fuel generation to supply most of its electricity.

In May, the government abandoned its promised greenhouse gas reductions target. It introduced legislation that adopts the federal target of a 20 per cent cut in emissions by 2020.

Boyd doesn't deny that something must be done.

Carbon capture, if things align, could be "a win-win-win," he says.

"A win for the environment, a win in terms of the economics of it and certainly a win in terms of the enhanced oil recovery, which in turn again fuels the economics of it."

He acknowledges that there will be a hefty price tag, but is confident the technology will be commercialized around the world.

Saskatchewan's provincial government is committed to developing that technology. In May, it signed a memorandum of understanding to work with Montana on a proposed $270-million carbon capture project. It would see carbon dioxide from a coal-fired power plant in southern Saskatchewan piped to Montana and stored underground.

Saskatchewan Premier Brad Wall has already said his province will provide up to $50 million for the project and he wants the Canadian government to pitch in $100 million.

Economics of CO2 capture

A test centre at the University of Regina is exploring ways to make the technology more economical.

Malcolm Wilson helped found the International Test Centre for CO2 Capture. He is a co-recipient of the 2007 Nobel Prize for Peace for his work on the International Panel on Climate Change with other scientists and former U.S. vice-president Al Gore.

"Are there any economics associated with it? With enhanced oil recovery, yes you may be able to get some or all of the money back on the cost of capturing the CO2," said Wilson.

"For disposal of the CO2 the answer is no. That is a cost that somebody has to bear, presumably the consumer of the goods that come from electricity."

Wilson says there's no easy solution to address climate change, but says carbon capture could be one answer.

Like many other environmental groups, the Saskatchewan Environmental Society says the province's priorities should be energy efficiency and conservation, along with development of renewable energy sources.

But Peter Prebble, the group's director of energy and water policy and a former NDP cabinet minister, says carbon capture is a good third option to pursue to reduce greenhouse gas emissions.

"If [carbon capture and storage] can be commercialized successfully, it'll be one of a couple of dozen vehicles that we'll need to use in order to meet the [environmental] targets."

Prebble is concerned that the province is investing too much in carbon capture and storage — a figure he pegs at about $728 million.

The federal government should be paying the bulk of the cost of research and projects, he argues, because it's an experimental technology.

"It's a very costly endeavour with a very high risk of cost overruns."

But Wilson believes it could be money well spent.

"In reality, if we take a look into the future, the cost of doing nothing is going to be greater than the cost of taking action today."