Pembina Pipeline Corporation and TC Energy Corporation have shared their plan to jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of CO2 annually. By leveraging existing pipelines and a newly developed sequestration hub, the Alberta Carbon Grid represents the infrastructure platform needed for Alberta-based industries to effectively manage their emissions and contribute positively to Alberta's lower-carbon economy and create sustainable long-term value for Pembina and TC Energy stakeholders. The open-access system is being designed with the ability to scale up to more than 60,000 tonnes per day of capacity, or 20,000,000 tonnes per annum, representing approximately 10 percent of Alberta's industrial emissions. Designed to be an open-access system, the ACG will serve as the backbone of Alberta's emerging carbon capture utilization and storage industry, connecting the Fort McMurray region, the Alberta Industrial Heartland, and the Drayton Valley region to key sequestration locations and delivery points across the province, and serving multiple industries. Pembina and TC Energy are uniquely positioned to take a leadership role in the transportation of CO2 given their collective skills and extensive network of pipeline infrastructure. As a hub-based infrastructure solution accessible to Alberta's largest industrial emitters across industries, ACG will pave the way for Canada to successfully meet its emissions reduction objectives and provides a tangible example of Pembina and TC Energy's commitment to energy diversification, industry collaboration and a lower carbon future. Through redeployment, retrofits using proven technology, recapitalization, and optimization of surplus capacity across our collective pipeline systems, including, subject to closing of the transaction, through Pembina's proposed acquisition of Inter Pipeline Ltd,ACG is designed to connect the province's largest sources of industrial emissions to a sequestration location north-east of Redwater in Alberta. The principal segments includeNorth Leg: Pembina and TC Energy plan to retrofit existing pipeline systems, combined with new build expansion to connect the Oil Sands to a sequestration hub. Initial hydraulics indicate a design capacity of up to 40,000 tonnes of CO2 per day, allowing a significant portion of emissions from the Fort McMurray area to be transported to a sequestration locationCentral Leg: Pembina and TC Energy plan to retrofit existing pipeline systems, combined with new gathering laterals, to provide interconnectivity in the Alberta Industrial Heartland and gather and deliver CO2 from and to industrial sources with initial hydraulics indicating a design capacity of 10,000 to 20,000 tonnes per daySouthwest Leg: Pembina and TC Energy plan to retrofit existing pipeline systems, combined with new build expansion, to form the southwest leg of the system. This portion would capture CO2 from power generation facilities in the region with possible capacity of 10,000 to 20,000 tonnes per dayFuture Legs: With customer support, Pembina and TC Energy have identified multiple opportunities to extend ACG into other regions, for example Joffre, Christina Lake, Cold Lake or Swan Hills, enabling future expansions and greater connectivitySequestration: A reservoir near Fort Saskatchewan has been selected, where large volumes of CO2 will be sequestered in the Basal Cambrian Sands. Permit applications have been prepared and the companies have worked with the Government of Alberta to obtain support for the Project and set a path to obtain sequestration rights. Initial studies indicate this reservoir will be capable of sequestering more than 2,000,000,000 tonnes of CO2, which represents many decades of sequestration capacity. The companies envision delivering to both the proposed sequestration location as well as 3rd party sequestration locations, establishing the development of a strategically located carbon storage hub in the Fort Saskatchewan region Pembina and TC Energy are open to other infrastructure owners with suitable existing infrastructure to join the partnership with a view to enhancing the capability and reach of the Project.