Thousands of jobs, $15 billion in additional royalties from oil produced from depleted reservoirs and world-class expertise in carbon dioxide capture and storage (CCS) technologies were touted as the prize for the province, which Tuesday agreed to pay$495 million over 15 years toward the Alberta Carbon Trunk Line.

The 240-kilometre line would eventually carry up to 40,000 tonnes a day of liquefied carbon dioxide, making it the world's largest-capacity project.

"Our goal is to become a leader in this technology, which will be useful in other jurisdictions around the world where emissions are higher than Alberta's," Premier Ed Stelmach said after signing a letter of intent with project sponsors Enhance Energy and North West Upgrading.

Premier Ed Stelmach addresses the media as susan cole, president of enhance energy, looks on. the alberta government has signed a letter of intent with enhance energy and north West upgrading to build a carbon pipeline.

He said the jobs will come from retrofitting of the Redwater Agrium fertilizer plant to capture a stream of pure CO2, "and from the North West Upgrading plant when it is built," as well as added work in oilfields all along the pipeline route.

Stelmach expects the province to be a world leader in carbon dioxide management, and show the world that Alberta has a green solution.

"The knowledge garnered here will be shared, which will further reduce the future cost of CCS projects and facilitate its broader use around the world."

The carbon trunk line will move CO2 from the Fort Saskatchewan area to depleted oilfields in central and southern Alberta.

In its initial phase, the line will carry up to 15,000 tonnes of CO2 a day, gas that moves as a liquid when under pressure. Agrium and North West would together produce 5,000 tonnes a day, but other firms are expected to tap into the line as new facilities--from bitumen upgraders to refineries and petrochemical complexes--are retrofitted or built to separate their carbon dioxide gas for sale to the pipeline.

With an extra pumping station, the line will carry up to 40,000 tonnes a day.

Susan Cole, Enhance's president, said it will cost about$600 million to build the line--which is now under regulatory review and unopposed by all 400 landowners along the route--with another $200 million for operating costs.

The federal government said Tuesday it is contributing about $30 million to the project through the Clean Energy Fund. That's in addition to $33 million contributed earlier from its ecoENERGY Technology Initiative.

Energy Minister Mel Knight said the provincial contribution "was not out of scope with the rest of things that we are doing. If you look at the federal involvement, we have on this one a bit higher content from the point of view of provincial money, but it is reasonable."

The carbon trunk line is the last of the three projects approved for long-term funding under the province's $2-billion CCS fund.

Earlier this fall, Shell received a total of $865 million for its Quest project, which would sequester CO2 from the Scotford upgrader. In that case, Alberta contributed $745 million and Ottawa chipped in $120 million.

Last month, TransAlta Utilities received $779 million to retrofit is still-under construction Keephills 3 coal-fired turbine near Wabamun Lake with a CO2 separation system. That plant is a joint venture with Capital Power. Alberta contributed $431 million and Ottawa added $343 million in funding.