LAKELAND - Canadian Natural Resources, Cenovus Energy, Imperial, MEG Energy, and Suncor Energy are teaming up with the goal of achieving net zero greenhouse gas (GHG) emissions by 2050.
Cenovus Energy President and CEO Alex Pourbaix said in a press release, “This collaborative effort amongst oil sands peers shows our serious commitment to global climate leadership... We are doing more than just talking about the need to play a role - we are taking bold action to address our emissions challenge and earn our spot as the supplier of choice to meet the world’s growing demand for energy.”
The five oil producers, who operate roughly 90 per cent of Canada's oil sands production, announced the Oil Sands Pathways to Net Zero initiative on June 9. The goal is to work with federal and provincial governments to achieve net zero GHG emissions from oil sands corporations by 2050.
“The Oil Sands Pathways to Net Zero initiative is an industry-driven, made-in-Alberta solution which will strengthen our position as global ESG leaders,” said Sonya Savage, Alberta’s Minister of Energy. “Every credible energy forecast indicates that oil will be a major contributor to the energy mix in the decades ahead and even beyond 2050. Alberta is uniquely positioned and ready to meet that demand. This initiative will also pave the way for continued technological advancements, ultimately leading to the production of net zero barrels of oil.”
In a press release, the companies outline some of the "parallel pathways to address GHG emissions."
These include a corridor linking oil sands facilities in the Fort McMurray and Cold Lake regions to a carbon sequestration hub near Cold Lake via a carbon dioxide trunkline, which would also be available to other industries in the area.
The industry leaders will also deploy existing and emerging technologies aimed at reducing GHG emissions at their current oil sands operations along the corridor. This includes CCUS technology, which involves the capture of carbon dioxide from fuel combustion or industrial processes, clean hydrogen, process improvements, energy efficiency, fuel switching, and electrification.
Evaluating, piloting, and accelerating the application of potential emissions-reducing technologies are among the other options. This includes direct air capture, next-generation recovery technologies, and small modular nuclear reactors.
Tim McKay, president of Canadian Natural said Canada has an opportunity to lead on climate change.
“Canadian ingenuity has enabled oil sands development and with continued innovation, positions Canada to be the ESG-leading barrel to meet global energy demand. We are committed to working together with industry partners and governments to help meet Canada’s climate objectives while providing sustainable long-term economic and social benefits for Canadians from the oil sands.”
However, in addition to oil sands companies working together to reduce their GHG emissions, "it is essential for governments to develop enabling policies, fiscal programs, and regulations to provide certainty for this type of long-term, large-scale investment."
This could include access to carbon sequestration rights, emissions reduction credits, and investment tax credits.
Imperial Oil Chairman and CEO, Brad Corson, said Canada's long-term success in achieving its climate goals "lies in a collective commitment to innovation, global competitiveness, supportive public policy and open and ongoing dialogue on constructive solutions. Imperial is collaborating with others in industry and governments to develop and commercialize the breakthrough technologies that will reduce emissions and support society’s net zero ambitions.”
President and CEO for MEG Energy, Derek Evans, said they're also pleased to be a part of the initiative.
“Collaboration among companies, innovators and governments is critical to achieving ambitious goals. That’s how we built a budding oil sands resource into one of the world’s most reliable and ESG-leading oil basins in the world,” said Mark Little, Suncor President and CEO. “Canada - as one of the few jurisdictions with industrial-scale commercial CCUS projects in operation -- coupled with Alberta’s abundant natural gas resources, geology and relevant technological expertise - is well positioned to lead in this area.”
