Unprecedented alliance of major oil sands producers in Canada to achieve carbon neutrality

Canadian Natural Resources, Cenovus Energy, Imperial, MEG Energy and Suncor Energy officially announced the Carbon Neutral Oil Sands Initiative today. These companies produce approximately 90% of the oil produced in Canada’s tar sands. The goal of this unprecedented alliance in collaboration with the federal and Alberta governments is to reduce the net greenhouse gas (GHG) production of companies from oil sands operations to zero by 2050 and help Canada meet its climate goals, in line with its Paris Agreement commitment to achieve carbon neutrality by 2050.

This collaboration comes after the governments of Canada and Alberta announced major support programs for emissions reduction projects and infrastructure. Collaboration between industry and government will be essential to realize the vision of the Carbon Neutral Oil Sands Initiative and achieve Canada’s climate goals.
The vision of the project revolves around the construction of a main carbon capture, use and storage (CUSC) pipeline connected to a carbon sequestration center. Multi-sectoral projects could thus be connected to this pipe and allow an increased reduction in emissions. The proposed CUSC system is inspired by the multibillion dollar Longship / Northern Lights project in Norway as well as other CUSC projects that are underway in the Netherlands, UK and USA and all of which are based on a close collaboration between industry and government.
The project is particularly ambitious and will require significant investments from industry and public authorities in order to stimulate research and development of innovative and promising technologies.
The companies involved look forward to working with the governments of Canada and Alberta and engaging with Indigenous communities in northern Alberta to make this ambitious and major emissions reduction project a reality, so that these communities can continue to benefit from the development of Canadian resources.
As proud Canadian companies, members of the alliance share Canadians’ aspiration to find realistic and achievable solutions to meet the challenge of climate change. The oil sands industry is a significant source of GHG emissions and the initiative will help develop a workable approach to reduce these emissions, while preserving the oil sands contribution to Canada’s estimated gross domestic product (GDP). to over $ 3 trillion over the next 30 years. The initiative will create jobs, accelerate the development of the clean technology sector, bring benefits to many other sectors and help maintain the quality of life of Canadians. Members of the

To fight against GHG emissions and achieve the goal of net zero emissions, the initiative provides for the implementation of several projects in parallel, including the following:

Deployment of a central infrastructure in Alberta connecting the oil sands facilities in the Fort McMurray and Cold Lake areas to a carbon sequestration center near Cold Lake, via a CO 2 pipeline . Other companies in the region interested in carbon capture and sequestration could connect to this main line. It is also possible to connect the infrastructure corridor to the Edmonton area.
The use of existing and emerging GHG reduction technologies in oil sands operations along this corridor, including CUSC technology, clean hydrogen, process improvement, energy efficiency, fuel switching and electrification.
Evaluating, testing and accelerating the deployment of potential emerging emission reduction technologies, direct air capture, next generation recovery technologies and small modular nuclear reactors.
In addition to collaborating and investing jointly with industry, it is essential that governments develop supportive policies and put in place fiscal and regulatory programs that will create the climate of certainty conducive to this type of long-term and sustainable investment. large scale. This includes reliable access to carbon sequestration rights, emission reduction credits and investment tax credits on an ongoing basis. We look forward to continuing to work with the federal and Alberta governments to establish with them the regulatory, policy and fiscal framework necessary to ensure the economic viability of this initiative.

Canada is uniquely positioned to become a world leader in responsible oil development. The country has the third largest oil reserve in the world and its standards and regulations governing energy projects are among the most rigorous in the world. The country enjoys a solid reputation for technological development and industry collaboration with Indigenous communities and municipalities. The members of the initiative believe that the most effective way to fight climate change is through the development of new technologies. They say they are convinced that Canadians will succeed in meeting this unprecedented challenge through their ingenuity, their initiative and their sense of collaboration.

While we know that alternative energy sources will be central in the decades to come, it is internationally recognized that humanity will need fossil fuels until 2050 and beyond. These will be part of the energy mix and will continue to be included in the composition of carbon fibers, asphalt, petrochemicals and other important products. We believe it is essential to act now so that Canada can take its place as a leading supplier of responsibly mined oil and meet global energy demand in the coming years. come.

Quotes:

Government of Alberta

“The Carbon Neutral Oil Sands Initiative is an industry-led, made-in-Alberta solution that will strengthen our position as a world leader in ESG principles,” said Sonya Savage, Minister of Energy for Canada. Alberta. All credible energy forecasts indicate that oil will be a major part of the energy mix in the decades to come and even beyond 2050. Alberta is uniquely positioned and ready to meet this demand. This initiative will also pave the way for continued technological advancements, which will ultimately lead to the production of carbon-neutral barrels of oil ”.

Canadian Natural Resources Limited

“By dramatically reducing its emissions and embracing a balanced and sustainable approach to economic development, Canada has the opportunity to play a leadership role in the fight against climate change,” said Tim McKay, President of Canadian Natural Resources. Canadian ingenuity made it possible to develop the oil sands. By continuing to innovate in compliance with ESG criteria, Canada is affirming its role as a leader in oil development to meet global energy demand. We are committed to working with industry partners and governments to help achieve Canada’s climate goals, while allowing people to enjoy the economic and social benefits of the oil sands for a long time to come. “

Cenovus Energy

“This collaborative, business-to-business effort demonstrates our deep commitment to tackling climate change globally,” said Alex Pourbaix, President and CEO of Cenovus