Agrium Inc. has reached an agreement to supply Calgary-based enhanced oil recovery firm Enhance Energy Inc. with carbon dioxide, a move the agricultural giant expects will help it reduce greenhouse gas emissions.

Financial terms and figures to be supplied were not disclosed, but it is noted that Enhance Energy will use the gas to improve amounts of oil recovered from its projects, including a joint venture with Fairborne Energy Ltd. at Clive, Alta.

The deal allows Enhance Energy to produce more oil as well as ‘safely sequestering CO2 that would otherwise have been emitted to the atmosphere,’ President Susan Cole said in a release.

Enhance expects its pipeline project to come on stream in 2011, while Agrium supplies carbon dioxide from its Borger, Texas, nitrogen facility.