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Collaborating with communities, businesses essential to Pathways Alliance goals, president tells northern Alberta reps 

December 7, 2022

Pathways Alliance president Kendall Dilling stressed the importance of collaboration to meet net zero goals as he spoke with more than 75 community, industry, Indigenous and business representatives in northeastern Alberta in late November.  

Dilling provided a progress update on the Alliance’s proposed carbon capture and storage (CCS) project and answered several questions about other aspects of its multi-phased plan during a lively question and answer session following the presentation. 

He told participants during a virtual webinar he was confident Alberta could play a major role to help Canada meet its climate commitments if governments, industry and communities work together on an ambitious and realistic plan. 

“I believe addressing greenhouse gas emissions is a shared value to us all,” said Dilling, adding that he believes the global energy transformation is on a comparable scale with the industrial revolution.  

“This climate challenge is bigger than any single one of us and it requires everyone to come together,” he said.  

Dilling explained that the foundational CCS project, which would be one of the world’s largest, was key to industry meeting its goal to reduce greenhouse gas emissions by 22 million tonnes per year by 2030. The estimated $16.5 billion project alone could help achieve about half of that goal (between 10 to 12 million tonnes).  

“There is no other project in Canada that can reduce carbon emissions to that magnitude in that timeframe,” he said.  

“CCS technology is tested, proven technology that can be deployed immediately and it is the one that will have the biggest impact on greenhouse gas emissions,” Dilling said.  

The Pathways Alliance is also developing many other technologies at various stages of readiness that will help meet both its 2030 ambitions as well us the ultimate goal to achieve net zero emissions from production by 2050. It strengthened its efforts to improve environmental performance on air land and water by integrating the work of Canada’s Oil Sands Innovation Alliance (COSIA). 

Dilling said there would be significant benefits to Alberta and Canada if the industry is successful in decarbonizing its energy production, noting significant financial benefits generated for communities in the way of royalties and taxes could continue for decades if Canada can become the world’s preferred supplier of responsibly produced oil.  

“We are incredibly excited about this project and our members are totally committed to it,” he said.  

“You are our most important stakeholders and we want to answer your questions and address any concerns. The environmental and economic benefits of this project are huge and will be shared with local communities.” 

Achieving a capital project of this size requires significant co-investment with federal and provincial governments, and an effective and nimble regulatory process, he said. 

Dilling stressed the urgency of coming to co-funding and regulatory agreements with governments quickly to meet 2030 goals. 

He noted that while early engagement is ongoing with communities and Indigenous leaders, discussions will ramp up as the industry gets closer to filing its regulatory application for the project. 

Dilling closed with a call to action for participants. “The climate challenge is bigger than any of us and bigger than our sector and our province. We can’t afford to let this opportunity pass us by. This is a pivotal time for Alberta and Canada and our CCS project offers many opportunities and benefits. Let’s find a path through this together,” he said. 

The event is an example of Pathways Alliance’s commitment to be open and transparent about its plan to reach net zero and to proactively engage with a diverse array of partners to advance its multi-phase plan to achieve net zero emissions by 2050. 

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Cautionary Statement: Statements of future events or conditions in this press release, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as achieve, aspiration, believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, forecast, vision, strategy, outlook, schedule, future, continue, likely, may, should, will and/or similar references to outcomes in future periods. Forward-looking statements in this press release include, but are not limited to, references to the viability, timing and impact of the Oil Sands Pathways to Net Zero initiative collaboration and the development of pathways in support of a net-zero future; support for the pathways from the Government of Alberta and the Government of Canada; the ability to enable net zero emissions from oil production and preserve economic contribution from the industry; the continued role of fossil fuels as part of a diversified energy mix; and the deployment of technologies to reduce GHG emissions, such as CCUS, process improvements, energy efficiency, fuel switching, electrification, infrastructure corridors and new emissions-reducing technologies. All net-zero references in this announcement apply to emissions from oil sands operations (defined as scope 1 and scope 2 emissions).

Forward-looking statements are based on current expectations, estimates, projections and assumptions at the time the statements are made. Actual future results, including expectations and assumptions concerning: demand growth and energy source, supply and mix; amount and timing of emissions reductions; the adoption and impact of new facilities or technologies, including on reductions to GHG emissions; project plans, timing, costs, technical evaluations and capacities, and the ability to effectively execute on these plans and operate assets; that any required support for the pathways from the Government of Alberta and the Government of Canada will be provided; applicable laws and government policies, including climate change and restrictions in response to COVID-19; production rates, growth and mix; general market conditions; and capital and environmental expenditures, could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and the resulting price, differential and margin impacts; political or regulatory events, including changes in law or government policy and actions in response to COVID-19; the receipt, in a timely manner, of regulatory and third-party approvals including for new technologies; lack of required support from the Government of Alberta and the Government of Canada; environmental risks inherent in oil and gas exploration and production activities; environmental regulation, including climate change and GHG regulation and changes to such regulation; availability and allocation of capital; availability and performance of third-party service providers; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; reservoir analysis and performance; unexpected technological developments; the results of research programs and new technologies, and ability to bring new technologies to commercial scale on a cost-competitive basis; operational hazards and risks; general economic conditions, including the occurrence and duration of economic recessions; and other factors referenced by the companies’ in their most recent respective annual reports and management’s discussion and analysis, as applicable.

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