Questerre Energy Corporation (OSE: QGAS) has received approval from Quebec’s Ministry of Economy, Innovation and Energy (MEIE) to proceed with a five-year pilot project evaluating the province’s potential for long-term carbon dioxide storage.

The approval was published in the Official Gazette of Quebec on August 19, 2026, allowing Questerre to advance a subsurface carbon storage program that will assess geological formations for their suitability to permanently store CO₂.

The pilot is designed to leverage Questerre’s existing geotechnical expertise and proprietary seismic data. Planned activities include the drilling of injection and observation wells, as well as the potential use of one of the company’s existing wells.

The authorization is initially valid for five years and may be extended for an additional two years, providing Questerre with time to undertake geological evaluation, drilling and monitoring activities needed to establish the technical potential of the proposed storage system.

The project is located less than 10 kilometres from the Becancour industrial park and is also close to other major industrial emitters in Quebec. This proximity could be strategically important because carbon storage projects can potentially provide a local pathway for emissions-intensive industries to manage and permanently store captured CO₂.

Michael Binnion, President and CEO of Questerre, described the approval as the first step toward demonstrating Quebec’s carbon storage potential and said the company sees an opportunity to combine carbon storage with local energy resources as part of a broader approach to emissions reduction and energy security.

The approval comes as Quebec places greater emphasis on long-term carbon storage as part of its strategy for reducing emissions from hard-to-abate sectors. Questerre said Quebec’s recently released Integrated Energy Resource Management Plan identifies long-term carbon storage as a strategic requirement for meeting the province’s emissions objectives.

The company’s next step will be to work with provincial and federal governments on potential funding for the pilot. Questerre also said it is engaging with the Quebec government regarding its pre-existing rights to explore for carbon storage that it held before the province enacted Bill 21 in 2022.

The regulatory situation also involves twelve suspended wells owned by Questerre in Quebec. The company has received notice from MEIE concerning requirements under Bill 21 to decommission the wells within 36 months of July 30, 2026.

Questerre intends to discuss the decommissioning requirements with the Quebec government in the context of the newly approved pilot. The company noted that Bill 17, which established a framework allowing pilot projects involving underground reservoirs and certain fluids, provides a potential mechanism for existing wells to be incorporated into carbon storage pilot projects.

The company also noted that Quebec’s Bill 21 provides for government funding of up to 75% of qualified expenditures, potentially creating an avenue for public support of eligible carbon storage development costs.

For Questerre, the approval represents a shift from evaluating carbon storage as a prospective resource toward testing its practical application through a defined pilot program.

The company’s proposed approach combines geological characterization, injection and observation infrastructure and existing well assets to determine whether subsurface formations in the region can provide suitable long-term CO₂ storage capacity.

If the pilot demonstrates suitable geology and storage performance, the project could provide a foundation for larger-scale carbon management infrastructure serving industrial emitters in and around the Becancour region.

The approval therefore positions Questerre to begin the next phase of its Quebec carbon storage strategy, subject to regulatory coordination, project financing and the technical results of the pilot program.