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Guilbeault writes to Suncor about the oil project

Federal Environment Minister Steven Guilbeault has warned Canada’s largest oil producer that its planned field expansion may not meet climate targets.

In a letter published Wednesday to Mark Little, head of Suncor Energy Inc., Guilbeault said that greenhouse gases would be released from the expansion of the company’s proposed Base Mine in northern Alberta. may conflict with government carbon reduction goals.

“Emissions at this level may not be in line with the pace and scale of emissions reductions needed to achieve our goals,” the letter read.

“I believe the project, as currently proposed, would likely result in unacceptable environmental impacts within federal jurisdiction.”

Guilbeault also said the government is looking at how to evaluate fossil fuel projects against each other.

“The government will develop guidance on how oil production projects are considered … must demonstrate that their emissions will be ‘best in class’,” his letter read.

That statement came as the federal Liberal Party approved the Bay du Nord oil and gas project off the coast of Newfoundland, which emits carbon dioxide at about one-eighth of Suncor’s proposed rate.

Suncor has been in front of the Canadian Impact Assessment Authority since July 2020 for the proposed extension. The project near Fort McMurray will continue to provide Suncor upgraders with 25 years’ worth of bitumen after the current mine is exhausted.

Earlier this week, the company asked the agency for an additional nine months to provide the information needed for the review. Suncor made the request, according to documents on the agency’s website, to better align the project with Suncor’s goals of being carbon neutral by 2050 as well as the government’s emissions reduction plan.

“Some things have changed since we sent the detailed project description,” Suncor spokesman Sneh Seetal said in an email.

“We wanted the opportunity to … review government initiatives and meet the requirements set forth by (the review body). We wanted the best project possible.”

Martin Olszynski, a University of Calgary law professor with a longstanding expertise in energy regulation, said the letter from Guilbeault signals the government is serious about reducing emissions without necessarily reducing oil production. He pointed out that the government is expected to soon reveal the cap on total emissions from the oil and gas sector.

“Then the question becomes, Where are you going to get the best boom for your money,” he said.

Olszynski says it will be difficult for oil projects to match the low carbon intensity of offshore production, even if the carbon is stored underground or the energy to run them is carbon-free.

“Even with (carbon capture and storage) and small modular reactors, with all that money and risk, you still don’t get near the extremely low GHG levels you get from offshore. business seems pretty clear.”

Olszynski added that the government has yet to define what “best in class” means – whether oil and oil projects will be compared against each other or all oil projects will be included.

Seetal said the mine expansion project could be modified to meet both the new government policy environment and the company’s growing climate ambitions.

“We are spending more time refining the project to align with our strategy, including making our emissions reduction ambitions unreal… and meeting the requirements. additions set forth by the (impact assessment) agency over the past year.”


This Canadian Press report was first published on April 7, 2022.

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