Going forward, the challenge the energy industry faces is one of continuing to find the balance between lowering our impact on the environment, while ensuring our industry meets global energy demand.
What will help us be successful? Conventional approaches will not be enough. At Petro-Canada, we believe that harmonized regulations, effective dialogue between government and industry, as well as investment in new technology will be the keys to a viable, long-term solution to address climate change. A focused technology strategy is pivotal to the sustained and permanent reduction of greenhouse gas emissions. In Canada, a harmonized Technology Fund, where industry can magnify its resources and capacity, could effectively facilitate the development of real technological solutions.
Internally, we are working with each of our business units to establish performance metrics, which will both raise organizational awareness and propel action forward. Externally, we work to stay at the forefront of the climate change issue, so we can participate in leading edge solutions.
“To achieve permanent, long-term reductions in GHG emissions, we need a focused technology strategy that encourages the development of effective solutions both in Canada and internationally.”
— Ron Brenneman, president and chief executive officer, Petro-Canada
Carbon Offsets
Petro-Canada’s climate change strategy continued to evolve in 2008 through the purchase of offsets to reduce our carbon footprint.
Implemented by the Government of Alberta, the Alberta Offset Program is a way for the government and energy producers to help the environment by investing in projects that offset carbon emissions. The program also provides energy producers with alternative ways to comply with carbon regulations set forth by the government.
In 2008, Petro-Canada procured more than 100,000 tonnes of high quality verified emissions reductions to help mitigate our carbon footprint in Alberta. Most of the verified emissions reductions were generated by wind power facilities in Alberta. Wind power offsets help to support the development of renewable electric generation in the province and provide Petro-Canada with an additional method to meet current and future Alberta compliance targets.
The Company’s first carbon offset purchase was an emissions reduction project developed by Verdant Energy that converts biomass to energy. This project reduces methane emissions by burning biomass (construction wood waste) that would otherwise have been transferred to a landfill. By diverting this waste to a generating facility where the biomass is burned, methane emissions are replaced by carbon dioxide, an emission 21 times less potent than methane. In addition to the direct reduction in emissions that result from feeding the generated electricity into the Alberta grid, indirect emissions from the burning of coal are avoided.
Carbon Capture and Storage (CCS)
As energy demand grows, so too does the demand for a solution to climate change. If both these requirements are to be met, investment in new technology such as carbon capture and storage (CCS) is critical. Petro-Canada has been involved with this developing technology with Kathy Sendall, senior vice-president, North American Natural Gas, participating on the Alberta Carbon Capture and Storage Development Council.
CCS is essentially the capture and storage (or sequestration) of carbon dioxide from the burning of fossil fuels. Carbon dioxide can be either stored in various geologic formations underground or reused for industrial processes. Although CCS has the potential for dramatically reducing greenhouse gas emissions, it is currently extremely energy intensive and very expensive. In addition, clarification is also needed around developing climate change regulations in many areas, including investment, readiness, legal ownership of storage and future liability.
Petro-Canada participated in the Alberta Saline Aquifer Project (ASAP), an industry initiative being led by Enbridge Inc. to identify deep saline aquifers within the Western Canada Sedimentary Basin that could be used in a carbon sequestration pilot project. As a true collaborative effort, 37 companies participated in the first phase of the project. Petro-Canada is evaluating participation in Phase II of this project, which consists of construction and operation of a demonstration pilot (2009-2012).