Oil industry plans to invest $24 billion to reduce emissions

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L&rsquo ;oil industry plans to invest 24 billion to reduce emissions

Alberta's oil sands are one of the largest sources of organic aerosol air pollution in North America.

Canada's largest oil sands companies plan to spend $24 .1 billion to reduce their greenhouse gas emissions and achieve carbon neutrality by the year 2050.

The Alliance Nouvelles Voies group, which brings together six oil sands oil companies, wants to invest $16.5 billion by 2030 on a huge carbon capture and storage project, in addition to spending $7.6 billion on other emission reduction projects.

This announcement does not mean, however, that the announced projects will go ahead, as no formal financial commitment has been made by the group.

The cornerstone of these planned investments is a major carbon capture project planned south of Cold Lake.

It will be the centerpiece of the first phase of the Alliance's ambitious New Pathways plan to reduce emissions from oil sands operations by 22 million tonnes per year by 2030 and to achieve carbon neutrality by 2050, says the New Paths Alliance in a press release.

This project will be 10 times larger than any existing carbon capture and storage project in the world today and it will be done as quickly as possible, says the alliance president, Kendall Dilling.

The project must successfully capture CO2 emissions from more than 20 oil sands facilities for safe storage underground and is expected to reduce emissions by 10 million tons per year.

The six corporate partners say they have completed pre-engineering work and consultations with Indigenous communities along the route of the proposed 400-kilometre pipeline, which will transport the CO2 captured.

The group also indicates that it has carried out nine studies in the oil sands on the feasibility of this technique.

Friday's announcement comes as the #x27;Canada's oil and gas industry is being criticized by environmental groups for raking in record profits this year from soaring oil prices without investing more in decarbonization projects.

< p class="e-p">Last month, environmental think tank The Pembina Institute estimated that Canada's oil and gas sector generated $152 billion in profits in 2022 due to the war in Ukraine and soaring commodity prices.

The institute's report criticized the industry for not moving faster to meet its climate commitments given its windfall profits.

< p class="e-p">The Pembina Institute says there aren't enough details in this latest industry update.

Its research analyst oil and gas, Jan Gorski says they are needed to know whether the industry is meeting its commitments.

“It There are a few more details, but it still lacks the plan explaining where these projects will be done, which facilities will be transformed or when it will be done. »

— Jan Gorski, Oil and Gas Analyst, Pembina Institute

22 megatonnes of reductions is a lofty goal, but it becomes more concrete once you start seeing individual projects and how much those individual projects will actually reduce emissions.

Federal Environment Minister Steven Guilbeault also said he wants to see more details from industry on what it plans to do with its profits to meet its reduction targets. emissions.

If they're not making those investments while they're making record profits, then when would it be time for them to make those investments? Steven Guilbeault asked in a September interview.

If it's not now, then I don't know when it will be.

Earlier this year, the federal government announced a tax credit for carbon capture and storage projects.

Oil industry says more government support needed to make the construction and operation of these expensive facilities profitable.

A CCS project of this magnitude is a colossal undertaking that requires significant up-front work, and requires a strong partnership between industry and government to make it happen, says Alliance President Kendall Dilling. new paths.

Industry also calls the government's overall targets for the oil and gas sector unrealistic.

L The New Paths Alliance aims to reduce its greenhouse gas emissions by 22 million tonnes by 2030, which equates to about a 30% reduction from current emissions levels, as Ottawa targets a 42% reduction from 2019 levels.

This would drop industry emissions to 110 million tonnes by 2030, a level not seen in more than three decades.

Industry emissions were 191 million tonnes in 2019.

The New Paths Alliance is made up of Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial Oil, MEG Energy and Suncor Energy.

With information from La Presse canadienne

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