CALGARY, Alberta, October 21, 2021 – The Carbon Neutral Oil Sands Initiative , an alliance of Canada’s five largest oil sands operators, has announced additional details on its plan to reduce net oil production to zero. greenhouse gases (GHG) from oil sands operations.
“Because we are a major source of GHG emissions in Canada, we know we must also be part of the solution,” said Carbon Neutral Oil Sands Initiative Director Al Reid. That’s why we’re working together to adopt innovative approaches to achieve our shared vision of carbon neutrality.”
Alliance members, who operate facilities representing 90% of oil sands production in Canada, are working with the federal and Alberta governments to achieve carbon neutrality in the oil sands by 2050 to help Canada achieve its climate goals, including its commitments under the Paris Agreement and its goal of carbon neutrality by 2050.
The Initiative has already begun work to eliminate 68 megatonnes (Mt) of emissions per year from oil sands operations in three stages*:
Stage 1 (2021 – 2030) – 22 Mt
Stage 2 (2031 – 2040) – 25 Mt
Stage 3 (2041 – 2050) – 21 Mt
*Emission reductions at each stage are estimated based on current assumptions and may be subject to adjustment.
As there is no single solution to achieving carbon neutrality, the Initiative will implement several projects and technologies in parallel, including established and proven technologies such as technologies for carbon capture, utilization and storage as well as other existing and emerging GHG reduction technologies. It also includes switching to low-carbon fuels such as using clean hydrogen and electricity to power oil sands facilities, implementing advanced production processes and improving energy efficiency of oil sands facilities.
The Initiative is also working to accelerate the development of potential emerging emission reduction technologies such as direct carbon dioxide (CO₂) capture from the air, more efficient next-generation oil sands technologies and small modular nuclear reactors. The Initiative will help maintain jobs in the oil sands sector, one of Canada’s largest employers, while creating thousands of new permanent construction jobs in the oil and gas and clean technology industries .
During Stage 1 (2021 – 2030), the Initiative will focus on establishing a carbon capture network in the oil sands region in northeastern Alberta. It will have plans to install equipment at several oil sands facilities to capture CO₂ to prevent emissions from entering the atmosphere. At the heart of our network is a proposed pipeline to collect CO₂ captured at more than 20 oil sands facilities and deliver it to a proposed center in the Cold Lake region of Alberta for storage. Other interested industries may also have access to the pipeline for CO₂ capture and storage .
“Carbon capture is a little-known process for many Canadians, but it’s a technology that’s been used around the world for decades and has been proven to be effective and safe,” says Al. a leader in this field and this technology is already used in Alberta and Saskatchewan to capture and safely store CO₂ released by industrial facilities.»
The carbon capture network proposed by the Initiative resembles other major carbon capture projects already underway in other progressive oil-producing countries where industry and government are working together to reduce CO₂ emissions from Of the industry. For example:
- In Norway, oil companies Equinor, Shell and Total have worked with the government to develop the Northern Lights project to capture 0.8 megatonnes per year of CO₂ from cement and waste-to-energy plants near of Oslo and transport the captured CO₂ to a sequestration center for safe underground storage. To realize this project, the Norwegian government is funding two-thirds of the capital costs and the first 10 years of the operating costs.
- In the Netherlands, the Dutch government is providing up to $3 billion for the Porthos project , developed by the Port of Rotterdam and state-owned natural gas companies, EBN and Gasunie, to capture CO₂ emissions produced by refineries and hydrogen plants near Rotterdam and transport the captured CO₂ to a secure storage site.
To advance the Initiative’s vision and help Canada meet its climate goals, alliance members are developing detailed plans for Stage 1 of the project, including conducting feasibility studies for the pipeline. and the CO₂ storage facility as well as preliminary engineering work for carbon capture at several oil sands facilities.
To learn more about the Carbon Neutral Oil Sands Initiative and to be informed of progress, visit www.oilsandspathways.ca/en/ and sign up to receive updates.
Disclaimer: Statements of future events or conditions set forth in this press release, including projections, objectives, expectations, estimates, and business plans constitute forward-looking statements. Forward-looking statements can be identified by the use of expressions such as achieve, aspiration, propose, plan, objective, projection, vision, will be and/or similar references to results in the future, including but not limited to the following: viability , timing and impact of the Initiative’s carbon capture network and project plans; the development of several pathways and technologies to achieve a carbon neutral future for oil sands mining, including direct CO₂ capture from the air, more efficient production technologies and small modular nuclear reactors; the support of the Initiative by the governments of Alberta and Canada; achieving carbon neutrality in the oil sands sector by 2050 and maintaining the industry’s economic contribution; maintaining and creating jobs; and the deployment of technologies aimed at reducing CO₂ emissions, including the Initiative’s carbon capture network, energy efficiency, fuel switching, electrification, infrastructure corridors and other new emission reduction technologies. All references to carbon neutrality 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 such statements were made. Actual future results may differ materially and will depend on various assumptions, including those regarding the following: the continued long-term participation of individual members in the Initiative alliance; the continued role of fossil fuels as part of a diverse energy mix; demand growth and energy source, supply and mix; production rates, growth and composition thereof; the amount and timing of emission reductions; the adoption and impact of new facilities or technologies, including on the reduction of GHG emissions; plans, timelines, project costs, capabilities and technical assessments, and the ability to effectively execute those plans and operate the assets; support from the Governments of Alberta and Canada for the Initiative; applicable laws and government policies, including those relating to climate change and restrictions related to COVID-19; general market conditions; and capital and environmental expenditures, could differ materially depending on a number of factors. These factors include local, regional or global changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and the resulting price, incremental and margin impacts; political or regulatory events, including changes in law or government measures and policies related to COVID-19; timely receipt of regulatory and third party approvals, including for new technologies; the lack of required support from the governments of Alberta and Canada; environmental risks inherent in oil and gas production and development activities; environmental regulations, including climate change and GHG regulations and changes to such regulations; the availability and allocation of capital; the availability and performance of third party service providers; unanticipated operational or technical difficulties; project schedules and management and timely completion of projects; reservoir testing and performance; unplanned technological developments; the results of research programs and new technologies, and the ability to bring new technologies to commercial scale at a competitive price; operational risks and hazards; general economic conditions, including the occurrence and duration of economic recessions; and other factors referred to by the companies in their respective most recent annual reports and MD&As, if any. general economic conditions, including the occurrence and duration of economic recessions; and other factors referred to by the companies in their respective most recent annual reports and MD&As, if any. general economic conditions, including the occurrence and duration of economic recessions; and other factors referred to by the companies in their respective most recent annual reports and MD&As, if any.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are similar to those affecting other oil and gas companies and some of which are company specific. Actual results may differ materially from those expressed or implied by forward-looking statements and readers are cautioned not to place undue reliance thereon. The companies undertake no obligation to update the forward-looking information contained in this press release, except as required by applicable law.
The Carbon Neutral Tar Sands Initiative
The Carbon Neutral Oil Sands Initiative is made up of Canadian Natural, Cenovus Energy, Imperial, MEG Energy and Suncor Energy. The companies operate facilities representing 90 percent of oil sands production in Canada.
As proudly Canadian companies, the members of the alliance share the aspirations of Canadians who want to find realistic and viable solutions to the challenge of climate change. The Initiative will develop a workable approach to reducing these emissions, while preserving the oil sands’ contribution to Canada’s Gross Domestic Product (GDP), estimated at more than $3 trillion over the next 30 years. The initiative will create jobs, accelerate the development of the clean technology sector, benefit multiple other sectors and help maintain the quality of life of Canadians. The members of the alliance will contribute by making the economic investments necessary for our companies to succeed in the transition to a carbon neutral world and therefore, for shareholders to benefit from long-term added value.
The Carbon Neutral Tar Sands Initiative
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