Carbon dioxide removal (CDR) technology within the mining sector

Canada’s mining sector plays a critical role in the national economy, contributing approximately $149 billion to the national gross domestic product (GDP) according to published estimates from Natural Resources Canada (NRCan) in 2022.

Canadian mines have emerged as global leaders in minimizing greenhouse gas (GHG) emissions. Canada’s proactive investments in research, development, and the adoption of innovative green technologies have bolstered the industry’s carbon competitiveness, positioning it as a model for sustainable mining practices on the international stage. However, mining operations are still quite carbon-intensive, particularly in excavation, processing, and transportation phases, which together contribute to the sector’s impact to national GHG emissions.

Initiatives like the CanmetMining program within the Green Mining Initiative, led by NRCan, aim to improve the sector’s environmental performance. NRCan collaborates closely with provincial and territorial governments, as well as the Canada Mining Innovation Council (CMIC), to explore and promote technologies that enhance the sustainability of mining operations. These partnerships ensure that Canadian mines remain at the forefront of global efforts to mitigate climate change while maintaining overall economic competitiveness.

Additionally, the Mining Innovation Commercialization Accelerator (MICA), developed through the Centre for Excellence in Mining Innovation (CEMI), plays a crucial role in driving these types of advancements in green mining technology. MICA’s focus on accelerating the commercialization of clean technologies aligns with Canada’s broader efforts to decarbonize the minerals sector. By working with partners from across the mining ecosystem (government agencies, industry stakeholders, and academic institutions), MICA fosters the rapid deployment of sustainable solutions that can be scaled to meet the unique challenges of Canadian mining.

As the mining sector continues to innovate, a critical focus area is the development and implementation of carbon dioxide removal (CDR) technologies. These technologies are rapidly gaining importance as essential tools in addressing climate change and mitigating emissions within the mining sector. These technologies can vary in range from nature-based solutions such as reforestation to advanced technological approaches like direct air capture (DAC). Unlike traditional emissions reduction strategies, which primarily aim to lower ongoing emissions, CDR technologies actively remove carbon dioxide from the atmosphere, providing a critical mechanism for offsetting emissions that are usually difficult to eliminate.

The CDR approach of converting organic waste, such as forestry or agricultural residues, into durable carbon storage materials like biochar presents a highly relevant solution for the Canadian mining sector. This technology aligns well with the industry’s increasing focus on sustainability and emissions reduction and the adoption of green mining solutions. Many mining operations in Canada are in regions rich in biomass, providing a readily available resource for carbon dioxide removal and sequestration through pyrolysis-based processes.

For the mining sector, this method offers many benefits: It not only captures and locks away the carbon, helping mining companies meet their net-zero targets, but also provides soil-enhancing materials that can be used for land reclamation efforts, which is a crucial component of environmental stewardship in mining. By incorporating these types of CDR technologies, Canadian mines can reduce their carbon footprint while addressing challenges in parallel that are associated with land degradation, water pollution, biodiversity loss, and tailings management. Additionally, utilizing CDR technologies continues to address potential regulatory compliance issues, maximize operational efficiency, and takes advantage of federal government incentives.

Moreover, this solution is scalable and can be integrated into remote mining operations, where infrastructure for traditional emissions reduction technologies may be limited. By utilizing local biomass and turning it into long-term carbon storage, mining companies in Canada can enhance their sustainability efforts while supporting broader national goals for carbon neutrality. If paired with the emerging carbon credit market, these technologies could be at the forefront of market adoption when combined with nature-based approaches and localized environmental stewardship. The potential to generate industry accepted carbon credits through CDR will become a major economic driver, with the overall price of carbon credits rising.

With the federal government’s net-zero challenge encouraging industrial sectors to explore the adoption of net-negative CDR technologies, such as DAC, biomass to biochar production, and bioenergy with carbon capture and storage (BECCS), regulatory measures like these may strengthen the progressive adoption by the mining sector. Canada’s carbon pricing mechanisms, such as the Greenhouse Gas Pollution Pricing Act, incentivize industries to adopt CDR solutions by imposing financial penalties for excessive emissions. Mining companies are increasingly aware that failing to integrate CDR technologies could lead to significant cost increases and reputational risk over time.

Many major Canadian mining companies have begun to announce ambitious decarbonization goals and initiatives to mitigate this reputational risk. Although originally driven by federal incentives and stringent regulatory requirements, investor and consumer demand for more sustainable mining operations in Canada will become the long-term leading industry trend. For example, Teck has made a commitment to achieving carbon neutrality by 2050, pursuing investments into renewable energy, operational electrification of mining operations, and carbon capture and storage projects. Another example includes Rio Tinto’s focus on reducing their carbon footprint of its aluminum smelting processes by investing in CDR technologies in their Quebec based operations.

Utilizing CDR technologies like DAC and biochar production that mutually led to land rehabilitation and carbon sequestration opportunities will align with industry-wide momentum to reach short-term and long-term sustainability objectives set forth by the leading sector players. Vale, for example, has explored the use of biochar for carbon sequestration and improvements to soil quality at challenging mining sites.

Challenges

The adoption of CDR technologies in the Canadian mining sector faces several key challenges. High initial investment costs present a significant hurdle, particularly for small and mid-sized companies. Technologies such as DAC require substantial capital, making it difficult for some operators to justify the upfront expenditures required, although costs are expected to decline as these technologies are scaled. Technical and operational barriers also complicate the integration of CDR solutions, particularly in remote mining locations where infrastructure is limited. The complexity of maintaining these systems requires specialized expertise, potentially straining the aging of the technical workforce in general.

One of the biggest barriers to consider is a lack of awareness and understanding of CDR technologies amongst Canadian mining sector leaders. Strengthening collaborative partnerships between mining companies and CDR technology providers through incentivized pilots and demonstration sites and showcasing this work through mining sector associations and networks will be crucial to overcoming these knowledge gaps and facilitating broader adoption in Canada.

The increasing demand for CDR technologies within the mining sector underscores a pivotal shift toward more sustainable and decarbonized operations. While the sector has made significant strides in reducing emissions through electrification and clean energy adoption, the implementation of CDR solutions, ranging from direct air capture to biochar production, offers a promising path to achieving net-zero and even net-negative emissions.

High initial investment costs, technical complexities, and gaps in market knowledge present barriers that must be addressed through innovation, collaboration, and strategic partnerships between major players, vendors, and various levels of the Canadian government.

The adoption of CDR technologies represents not just a compliance strategy but a competitive advantage for Canadian mining companies. As carbon pricing mechanisms and regulatory pressures intensify, early movers will benefit from reduced operational risks, enhanced reputational value, and access to emerging carbon markets. With the mining sector playing such a vital role in Canada’s economy, embracing CDR is not only a matter of environmental stewardship but also essential for securing the industry’s long-term viability in a low-carbon future. Through the proactive integration of these transformative innovative solutions, Canadian mines are poised to lead the global transition toward sustainable resource extraction over time. 

Eric Meliton is a principal consultant at Echion Group. He has over 20 years of strategic and operational expertise in industrial manufacturing, regulatory compliance, water and wastewater treatment technologies, and governmental engagement. Eric’s portfolio includes strategic research and publications on corporate social responsibility, sustainability, infrastructure investment, regulatory impacts, and emerging treatment technologies.