Published by Todd Bush on November 28, 2023
CALGARY, AB, Nov. 27, 2023 /PRNewswire/ - Pathways Alliance is making strides on multiple simultaneous projects that are contributing to its goal of a 22 million tonne annual reduction of CO2 emissions (scopes 1 and 2) from oil sands operations by 2030, on the journey to net zero emissions from operations by 2050.
The largest near-term focus is on its proposed carbon capture and storage (CCS) project. Significant engineering, subsurface evaluation and environmental field work has been completed in preparation for imminent regulatory applications.
When complete, the CCS project proposed by Canada's six largest oil sands companies would be one of the world's largest CCS networks and play an essential role in helping Alberta and Canada progress their net zero ambitions.
"We're taking all the steps needed to ensure this project is ready to go once we have the critical regulatory policies and co-investment commitments from governments that are necessary for our sector to remain cost competitive with other oil-producing regions around the world while we reduce emissions," said Pathways Alliance President Kendall Dilling.
>>Read about Pathways Alliance Carbon Storage Hub: Detailed Evaluation Begins
The proposed CCS network includes a transportation line with capacity to carry carbon dioxide (CO2) captured from multiple oil sands facilities to a hub in the Cold Lake region of Alberta for safe and permanent underground storage. This CCS network could reduce net CO2 emissions from oil sands operations by approximately 10 to 12 million tonnes annually by 2030 and as much as 40 million tonnes per year by 2050.
The first phase of the proposed Pathways Alliance plan calls for more than a $24 billion investment before 2030. Of the $24 billion, approximately $16.5 billion, will support the proposed CCS network. The remaining $7.6 billion investment is earmarked for other major emissions reduction projects and technologies.
Next steps build on more than $1.8 billion already spent by Pathways Alliance members on phase one projects. This includes:
Emissions reduction investments continue to be made with the bulk spend for construction of the total CCS project later this decade subject to completion of Indigenous consultation, regulatory review and decisions, and final investment decisions.
"The emissions reduction efforts of Pathways Alliance members, working together with governments, will help ensure the oil sands sector can continue to provide hundreds of thousands of jobs across Canada, tens of billions of dollars in annual revenues for governments and the energy security needed for Canada and globally for decades to come," said Dilling.
Background details on progress to date
Foundational CCS project
Multiple feasibility studies on phase-one capture facilities, with engineering and design work progressing.
Major regulatory applications for the CO2 transportation network and storage hub are being prepared and are expected to be filed in late 2023 or early 2024.
Front end engineering and design work on the proposed 400+-kilometre CO2 transportation line is now more than half complete.
Work is ongoing to obtain a carbon sequestration agreement from the Government of Alberta to support regulatory submissions for the carbon storage hub.
More than 2,000 hours of environmental field work has been conducted since 2021.
Formal consultation and engagement work with Indigenous groups along the proposed CO2 transportation corridor and storage network began in the fall 2023 and was preceded by months of discussions about the project with communities.
Pathways Alliance continues to meet with other local community members and landowners to share information about CCS and the proposed project.
Advancement of other emissions reduction technologies
Carbon Capture and Storage (CCS). Pathways Alliance members are currently advancing several other CCS technology development projects that have the potential to be used by other industries and exported globally, including:
Steam reduction technologies to reduce the need for steam, which is a major driver of emissions from in-situ oil sands production.
Natural gas decarbonization and hydrogen use in oil sands facilities. A fuel switching pilot is being conducted to convert natural gas into hydrogen and solid carbon (that can be stored or used). This can significantly reduce CO2 emissions from the hydrogen production process and from natural gas combustion.
Small modular reactors
Canada's six largest oil sands companies are working together – and with governments – on an ambitious plan to help meet the national 2050 net zero goal and deliver the world's preferred barrel of responsibly produced oil.
The Pathways Alliance members have set goals to reduce emissions from oil sands operations (scopes 1 and 2) by 22 million tonnes per year by 2030 and achieve its goal of net zero from oil sands operations by 2050.
To do this, a multi-stage effort is planned to deploy various emissions reduction technologies, including one of the world's largest proposed carbon capture and storage projects that would be constructed in the Cold Lake region of northeastern Alberta.
The Pathways Alliance is a model for all sectors within Canada and globally of how peer companies can set aside their competitiveness to work together towards a common goal.
The Pathways Alliance is made up of Canadian Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial, MEG Energy and Suncor Energy.
SOURCE Pathways Alliance
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