Susan Cole with Enhance Energy says construction should begin later this year on the pipeline, which will run from refineries in Redwater to Clive.
Cole says carbon dioxide will be used to extract more light oil from reservoirs.
She says the project will cost $600 million initially, but $1.2 billion over 10 years.
Cole says it's hoped the pipeline will be complete in early 2015.
Enhance Energy will split the cost with the Alberta and federal governments.
Cole says the project will bring many benefits to the area as well as diverting carbon dioxide from the atmosphere.
"We believe that it will create a lot of jobs and it's not just in the oil and gas sector —- it's hotels, it's shops, the communities themselves will benefit from increased taxes," Cole said.
"So we're really looking at revitalizing that area."