A coalition of leading Canadian oil sands producers recently announced a collaboration to achieve net-zero greenhouse gas emissions from their operations by 2050 as the cash-rich companies face challenges in meeting the country's energy transition target.
This collaborative endeavor follows the introduction of substantial assistance packages for emission-reduction projects and infrastructure by the governments of Canada and Alberta. To assist Canada and fulfill its climate targets, the alliance will collaborate with the federal and Alberta governments.
The founding signatories of this joint strategy are Suncor Energy Inc. SU — currently sporting a Zacks Rank of #1 (Strong Buy) — alongside other Canadian oil sands producers, namely Canadian Natural Resources CNQ, Cenovus Energy CVE, Imperial Oil Ltd. IMO and MEG Energy. You can see the complete list of today’s Zacks #1 Rank stocks here.
About 90% of Canada's oil sands output is controlled by the firms involved in the Pathways initiative, which will draw significant investments from both their businesses and the country’s ruling regime to support new and emerging technological research and development.
The alliance is excited to collaborate with local indigenous communities in northern Alberta to achieve this significant emission-reduction goal so that the concerned people may benefit from future Canadian resource development.
The oil sands industry is a substantial source of greenhouse gas emissions and this unified effort will help establish an executable strategy to reduce toxic emissions while simultaneously safeguarding the oil sands' anticipated $3-trillion contribution to Canada's GDP over the next 30 years.
The plan will create employment, speed up the clean tech industry development, assist a variety of other industries and help Canadians retain their well-being. The Pathways alliance members will pitch in with their necessary financial investments to guarantee that the businesses effectively convert to a net-zero future and as a result, offer a long-term value to their shareholders.
As there is no single approach to achieve net-zero emissions, the initiative comprises a variety of parallel methods to realize the same. The firms plan to connect oil sands plants in the Fort McMurfray and Cold Lake areas to a carbon sequestration center.
They will also use current and new GHG reduction technologies, such as Carbon Capture, Utilization and Storage (CCUS) technology, clean hydrogen, process improvements, energy efficiency, fuel switching and electrification at the oil sands facilities along the corridor. Further, they will make use of emission-reduction technologies, such as direct air capture and tiny modular nuclear reactors.
Alberta's Minister of Energy, Sonya Savage, commented, “The Oil Sands Pathways to Net Zero initiative is an industry driven, made-in-Alberta solution which will strengthen our position as global ESG leaders. Every credible energy forecast indicates that oil will be a major contributor to the energy mix in the decades ahead and even beyond 2050.
Alberta is uniquely positioned and ready to meet that demand. This initiative will also pave the way for continued technological advancements, ultimately leading to the production of net zero barrels of oil.”
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