The company secured the funds through the agreements signed with the state governments of Alberta and Canada.
The Quest project will capture and store underground one million tons of carbon dioxide per year emitted from Shell’s Scotford Upgrader near Edmonton, Alberta, which processes heavy oil from the Athabasca oil sands.
Shell is expected to take a financial investment decision in 2012, subject to the regulatory process and economic feasibility.
Carbon dioxide injection into the Quest project is scheduled during 2015.
The project is being developed on behalf of Athabasca Oil Sands Project (AOSP), which includes the Muskeg River Mine, Jackpine Mine and Scotford Upgrader.
Shell recently began the100,000-barrel-per-day expansion of its AOSP, bringing total capacity to 255,000 barrels per day.
AOSP, a joint venture project in which Shell Canada holds a 60% interest and Chevron Canada and Marathon Oil Canada holding 20%interest each.
Shell executive vice president of heavy oil John Abbott said that Quest project would be the first oil-sands project to be based on CCS technology.
