Innovation and technology in the oil sands vital to Canada’s climate plan
More than 200 engineers, scientists and experts are working to achieve a net-zero goal, with working groups studying and advancing more than 70 technologies. supplied
Decades of research and development leadership is allowing Canada’s oil sands industry to hit the ground running on a steady path to net zero by 2050.
Reducing emissions has been central to the efforts of the six largest oil sands companies that make up the Pathways Alliance, says Kendall Dilling, the organization’s president. “This has been part of our industry’s vision for many years, but we’re not just talking about future plans – we’re gearing up to put steel in the ground to drive a significant impact as soon as possible.”
With the premise that outcomes can be enhanced by pooling resources and expertise, the group is taking collaboration to the next level to deliver a project with substantial results: a carbon capture and storage (CCS) facility with a price tag of about $16.5-billion. “This much investment and risk would be difficult to carry for a single entity,” says Mr. Dilling. “But with all six of us working together and the attention from the best minds in our organizations – plus partnering with governments – this is much more achievable.”
The project was chosen for its potential of driving progress “faster than anything else we can do,” he says. “Between now and 2030, we’re looking to deliver an emissions reduction of 22 million tonnes or about 30 per cent of our current total emissions.”
Mobilizing technology-enabled transformation
Mr. Dilling explains that oil sands companies have done a lot of work and spent billions of dollars to reduce per-barrel emissions by 22 per cent in the last decade alone, but the industry’s Achilles heel was the need to reduce absolute – or overall – greenhouse gas emissions. A step change was needed and the CCS facility represents a foundational component of an ambitious three-phase plan that aligns with the next three decades: the 2020s, ‘30s and ‘40s.
“You can’t say you’re on a path to net zero by 2050 and try to do it all in the last five years. That’s why we start now – and focus on technologies that are ready to be deployed,” he says. “And in Alberta, we are fortunate to have access to amazing carbon-storage geology that could enable us to get all the way to net zero.”
“You can’t say you’re on a path to net zero by 2050 and try to do it all in the last five years. That’s why we start now – and focus on technologies that are ready to be deployed. ”
In addition to CCS, the Pathways Alliance – a collaboration between Canadian Natural, Cenovus Energy, ConocoPhillips Canada, Imperial, MEG Energy and Suncor Energy – is advancing other emissions reduction projects that can deliver impact with a further planned $7.6-billion investment before the end of the decade. “The technologies with the potential to move the needle between now and 2030 are CCS, use of solvents instead of steam, the replacement of coal-fired boilers with co-generation units, and the use of clean-burning hydrogen fuels in operations,” he says. “Going into the next decade, we could envision the safe deployment of small modular reactors, direct air capture for underground storage, conversion to liquid fuels and other technologies.”
Further cleantech advances can potentially accelerate the pace of change in the future, says Mr. Dilling. “For now, we focus on mobilizing capital and resources, and getting the right regulatory and fiscal framework in place.”
Partnering for impact
By continuing to reduce the environmental footprint of Canadian oil, industry leaders aim to produce “the world’s preferred barrel of responsibly produced oil.” Pathways Alliance is hoping to advance this goal through integrating the work of Canada’s Oil Sands Innovation Alliance (COSIA), formed in 2012.
“For well over a decade, we’ve been working very collaboratively in the oil sands industry,” says Mr. Dilling, who adds that companies have collaborated on more than 1,000 environmental innovations valued at over $1.8-billion.
“The goal is to share technologies and what we’re learning, and to be more transparent on environmental matters,” he says. “It’s COSIA on steroids: we’re going to bring the best from each company to the table, develop infrastructure together, and share costs and risks.”
The vision is to drive down carbon emissions through reducing barriers to technology implementation. Apart from the dozens of emissions reduction technologies being implemented and evaluated by Pathways Alliance scientists and experts, Mr. Dilling recognizes the need for the industry to continually reduce all aspects of its environmental footprint. “Companies continue to focus on reducing the size and reclaiming tailing ponds, improving water management practices and land reclamation, and further addressing wildlife and biodiversity issues,” he says. “We see sharing best practices as our contribution to improving all environmental performance metrics in our industry.”
In addition to teaming up with like-minded industry leaders, there is a big push to collaborate with neighbouring communities, he adds. “With our CCS project, for example, we are working primarily with Indigenous communities in the northeast corner of Alberta. We’ve been very proactive in engaging them early on, since it’s important they understand the project and have their concerns addressed at the design and implementation stage.”
Advancing Canada’s cleantech leadershiP
Beyond the direct impact on participating oil sands companies and the communities where they operate, the Pathways Alliance envisions raising Canada’s profile as a leader in cleantech.
“Decarbonizing global energy systems is an undertaking on the scale of another industrial revolution – and it will require multi-trillion-dollar investments,” he explains. “Getting such an ambitious CCS project up and running will draw international attention, including from people who look for support and expertise for their own net-zero transition. That’s going to be a big opportunity for Canada if we get it right.”
While industry plays an important role in leading the way, government support is also crucial. Similar projects under way in the Netherlands and Norway can count on public support of up to three-quarters of the cost of the CCS investment, says Mr. Dilling. “And the U.S. government came up with a broad legislative package that creates huge incentives for these kinds of transitions and cleantech development.
“Canada also has this opportunity,” he adds. “If our government is committed to playing a leadership role, we have to walk the talk – and level the playing field with investments and support.”
The Pathways Alliance works with federal and provincial governments to ensure Canada’s co-funding programs and regulatory environment for CCS are globally competitive – and that emissions reduction targets for the oil and gas industry are realistic and achievable, says Mr. Dilling. “There already is recognition that our efforts and investments will create lots of jobs and spinoff economic benefits that will be a boon for Alberta and other parts of the country.”
In addition, these steps can help to ensure “the oil sands remain a responsible supplier of low-carbon oil to the world for as long as it is needed.”
Energy futures
Energy demand is going up due to global population growth and rising standards of living, and this means the energy transformation requires substantial efforts not only in the development of low-emitting energy sources but also in reducing the environmental footprint of all energy systems, says Mr. Dilling. “When some people speak of energy transition, they are thinking of transitioning away from oil and gas. However, the focus has to be on transitioning away from GHG emissions while continuing to provide the energy the world needs.”
Canada already has a considerable advantage when it comes to clean energy, “including lots of hydro and nuclear power as well as substantial developments of renewable energy projects,” he says. “We have an abundance of natural gas, which is an important fuel that will continue to be needed all over the world.”
Yet to enhance global energy security, Mr. Dilling proposes that “while there is a strong focus on continued development of renewables and other non-GHG emitting sources of energy, we must also focus on decarbonizing oil and gas at the same time. That’s where we’re putting our nose to the grindstone to make a significant difference.”
Creating infrastructure that will reduce emissions as drastically as 30 per cent by 2030 and net zero by 2050 will achieve just that, he adds. “This will bring our emissions down faster than in any other sector in the country. It proves that we’re committed to doing everything in our power to move towards a low-carbon future.”
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