08:41 AM EDT, 06/26/2024 (MT Newswires) -- ATCO (ACO-X.TO) on Wednesday said it and joint-venture partner Shell Canada will proceed with construction of a carbon-storage facility in an industrial center near Edmonton, Alberta.

The Atlas Carbon Storage Hub will store carbon-dioxide captured by petrochemical plants and other industries in a region known as the Alberta Industrial Heartland. No price tag for the facility was disclosed.

The positive final investment decision for the project foresees carbon storage beginning by 2028, anchored by Shell's Polaris project that will capture carbon produced by its Strathcona refinery and chemical plant.

ATCO's ATCO Enpower unit and Shell Canada each hold a 50% interest in the project, which can be expanded in future phases.

"This facility is expected to provide a resource for emitters in the Alberta Industrial Heartland to reduce both their carbon emissions and carbon tax liability," ATCO said in a release.

ATCO's Class X shares closed down $0.17 to $38.80 Tuesday on the Toronto Stock Exchange.