Make Kitco Your Homepage

Canada's oil sands producers form alliance to achieve net-zero emissions by 2050

Kitco News

Canadian oil sands producers said on Wednesday they would form an alliance to achieve net-zero greenhouse gas emissions from their operations by 2050, as the cash-rich firms come under pressure to meet the country's goal on energy transition.

Oil sands producers, which extract some of the world's most carbon-intense crude, face investor pressure to reduce their environmental impact.

Prime Minister Justin Trudeau plans to raise Canada's carbon price steeply over time to position the country for carbon-neutral status by 2050. [https://reut.rs/3pArwFG]

The alliance, which includes Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO), MEG Energy (MEG.TO) and Suncor Energy (SU.TO), will work with federal and Alberta governments to help Canada meet its climate goals, the companies said.

The country's oil sands producers are generating billions more in free cash flow in a faster-than-expected pandemic rebound, but have taken a cautious approach to spending it that is disappointing environment-minded investors.

The companies said they would look to link oil sands facilities in the Fort McMurray and Cold Lake regions to a carbon sequestration hub, use carbon capture and storage technology, as well as clean hydrogen, fuel switching and other methods to reduce emissions.

The companies will also tap into emerging emissions-reducing technologies including direct air capture and small modular nuclear reactors, among others.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.