On Wednesday, five major Canadian oil producers accounting for 90 percent of the nation’s tar sands output in the province of Alberta, made a landmark public declaration of intent to achieve net zero greenhouse gas emissions by 2050. The five firms–Canadian Natural Resources, Cenovus Energy, Imperial, MEG Energy and Suncor Energy, have come together under the Oil Sands Pathways to Net Zero initiative, in collaboration with the federal and Alberta provincial governments, to help Canada meet its commitments under the Paris Agreement and the nation’s separate pledge of net zero emissions by 2050.
In a statement announcing the landmark pledge, the company noted that Canada–home to the world’s third-largest oil reserves, a robust track record of industry R&D and cooperation with indigenous communities and local governments, as well as a comprehensive regulatory framework–is uniquely suited to provide global leadership in responsible oil production. The Canadian oil sands industry is a significant source of GHG emissions, and the major companies involved are invested in reducing those emissions, while also preserving the more than $3 trillion in estimated oil sands contribution to Canadian GDP over the next 30 years.
CCUS infrastructure
Key to the project is the construction of a major Carbon Capture, Utilization and Storage (CCUS) trunkline in Alberta, linking oil sands facilities to a carbon sequestration “hub” and enabling other “tie-in” projects to rack up greater emissions reductions. The proposed Canadian trunkline has been modeled after public-private projects in other countries, including the Netherlands, U.K. and U.S., and more specifically, Norway’s Longship/Northern Lights project, a project due for Phase One completion in 2024 that will capture CO2 from industrial (cement and waste-to-energy) and shipping sites in the Oslo Fjord region and ship it to a permanent offshore storage site in the North Sea.
“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, President and Chief Executive Officer of Suncor, which is Canada’s largest integrated oil producer. “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.”
Besides the major investment in CCUS infrastructure, members of the alliance will use existing and emerging GHG reduction technologies at oil sands operations along the Alberta corridor, including clean hydrogen, energy efficiency, fuel switching and electrification.
“Canada has an opportunity to lead on climate change by delivering meaningful emissions reductions as well as balancing sustainable economic development,” said Canadian Natural President Tim McKay. “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.”
The initiative also garnered plaudits from political leaders in Alberta, where 80 percent of Canadian energy output is generated.
“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 Albertan Minister of Energy Sonya Savage. “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.”
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