The Canadian government is giving C$140 million in federal funding to eight companies committed to developing carbon capture and storage projects in Western Canada.

Under the country’s ecoENERGY Technology initiative 39 Canadian companies answered a call for proposals in April 2008 with a variety of projects supporting industry-led research, development and demonstration of CCS and sequestration technologies.

Only eight were selected to receive between C$3 million and C$30 million.

“The major challenge we face today comes from identifying and implementing cleaner ways to produce and consume that energy,” said Canada’s Minister of Natural Resources, Lisa Raitt, during a press conference in Calgary, Alberta.

“Canada’s tremendous reserves of energy will remain an important source of economic growth for a long time to come.”

Some of the proposed projects chosen by the federal government for the funding include Enhance Energy’s carbon dioxide pipeline, Husky Energy’s research and development activity to develop new methods of enhanced oil recovey, and Spectra Energy’s Fort Nelson, British Columbia exploratory project.