Shell’s plans to build the world’s first oil sands carbon-capture storage facility in Alberta, Canada will make only a modest reduction in that project’s overall carbon emissions but could set an important precedent in establishing the credibility of CCS worldwide, analysts said.

The oil giant said Wednesday that the US$1.36 billion project will create underground storage starting in late 2015 for more than 1 million tones a year of C02 produced in the processing of bitumen from Alberta’s oil sands, one of the world’s largest reserves of crude oil. Keep reading →