Ontario Opens Door to Commercial Carbon Storage Projects
Ontario begins accepting applications for commercial carbon storage projects in Ontario, supporting emissions reduction and job creation.
TORONTO — The Ontario government is now accepting applications for commercial-scale geologic carbon storage projects, marking a significant step in the province’s effort to reduce industrial emissions while attracting investment and supporting job creation.
The Ministry of Natural Resources confirmed Monday that the application process officially opened on February 2, following years of research, public consultation and regulatory development. The province estimates the emerging sector could create more than 4,000 jobs, help energy-intensive industries cut greenhouse gas emissions by five to seven million tonnes annually, and reduce costs by nearly $1 billion.
According to the government, geologic carbon storage involves capturing carbon dioxide that would otherwise be released into the atmosphere and injecting it deep underground into stable rock formations for permanent storage. Ontario officials say the technology is already used in other jurisdictions and can be deployed safely with the right regulatory oversight.
Regulatory framework now in place
The launch of the application process follows the passage of Ontario’s Geologic Carbon Storage Act, 2025, which establishes the rules and environmental safeguards governing how carbon storage projects are developed, monitored and managed in the province.
Natural Resources Minister Mike Harris said the framework is designed to balance environmental protection with economic competitiveness.
“Carbon storage is a tried and trusted technology in Canada and around the world and Ontario is ready to take a safe and responsible approach to unlocking this new opportunity for workers and businesses,” Harris said in a statement.
The ministry says the framework provides clarity for industry operators while maintaining what it describes as Ontario’s “world-class environmental protections.” Officials also emphasized that the process is intended to reduce regulatory uncertainty for businesses considering large-scale investments.
Focus on Southwestern Ontario
Most of Ontario’s geologic carbon storage potential is expected to be located in Southwestern Ontario, a region that also hosts many of the province’s largest industrial emitters. The government says this geographic alignment could make it easier for industries to integrate carbon capture and storage into existing operations.
Since 2022, Ontario has released three discussion papers, posted seven public consultations on the Environmental Registry of Ontario, and held 11 stakeholder engagement sessions to shape the framework.
Parliamentary Assistant Dawn Gallagher Murphy described the new system as a foundation for long-term economic and environmental planning.
“The passing of Ontario’s Geologic Carbon Storage Act is a major milestone in building a cleaner, stronger economy,” she said, adding that the framework is intended to attract investment while ensuring projects are implemented safely.
Next steps for proponents
Project proponents interested in applying for approval are encouraged to contact the Ministry of Natural Resources through its dedicated carbon storage inquiry channel. The province says it will continue to work with municipalities, Indigenous communities, landowners, industry stakeholders and the public as projects move forward.
Globally, carbon capture and storage continues to expand. According to the Global Carbon Capture and Storage Institute, nearly 400 projects were in development worldwide in 2023, with close to 300 million tonnes of carbon dioxide injected underground.
Ontario officials say the new framework positions the province to participate in that growing sector while supporting emissions reductions and industrial competitiveness at home.
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