Federal Environment Minister Steven Guilbeault is warning Canada’s largest oil sands producer that its planned mine expansion may not meet climate targets.
In a letter to Suncor Energy chief Mark Little, Mr. Guilbeault says the amount of greenhouse gases that would be released by the proposed expansion of his Base mine “may not align” with the targets of government carbon reduction.
The letter is a response to Suncor’s request for more time to submit its environmental impact statement, which it has been granted.
“I am of the opinion that the project, in its present form, would likely cause unacceptable environmental effects within an area of federal jurisdiction,” the letter states.
Guilbeault also said the government is looking at how fossil fuel projects are assessed against each other.
“The government will develop guidance for proponents of oil production projects subject to review under the Impact Assessment Act on how to demonstrate that their projects will have exemplary emissions performance” , indicates its letter.
The statement comes as the federal Liberals have just approved the Bay du Nord oil project off Newfoundland, which is expected to emit carbon dioxide at about one-eighth the rate of Suncor’s proposal.
Suncor has been before the Impact Assessment Agency of Canada since July 2020 for its expansion proposal. The project near Fort McMurray would continue to supply Suncor’s upgraders with bitumen for 25 years after the current mine is depleted.
Earlier this week, the company asked the agency for an additional nine months to file information required for review. Suncor requested the delay, according to documents on the agency’s website, to better align the project with the company’s goals of being carbon neutral by 2050 as well as the plan to reduce emissions. of the government.
“Some things have changed since we submitted the detailed project description,” Suncor spokeswoman Sneh Seetal said in an email.
“We want to have the possibility […] review government initiatives and respond to requirements established by [l’agence d’évaluation]. We want the best project possible.”
Guilbeault’s letter signals the government is serious about cutting emissions without necessarily cutting oil production, said Martin Olszynski, a University of Calgary law professor with long expertise in energy regulation. . He points out that the government should soon reveal a cap on total emissions from the oil and gas sector.
“The question then becomes, where are you going to get your money’s worth,” he pointed out.
It will be difficult for oil sands projects to match the low carbon intensity of offshore production, Olszynski said, even if the carbon is stored underground or the energy to run them is carbon-free.
“Even with [le captage et le stockage du carbone] and small modular reactors, with all that money and risk, you still don’t come close to the incredibly low GHGs that you get from offshore. The business case seems pretty obvious.”
Ms Seetal said the proposed mine expansion can be modified to meet both the government’s new political environment and the company’s heightened ambition to tackle climate change.
“We are taking more time to improve the project in line with our strategy which includes achieving our ambition to reduce emissions to net zero […] and to meet additional requirements set by the agency [d’évaluation d’impact] over the past year.”