CANADA

CANADA -- Oil sands operators are in discussions with federal and provincial governments to secure the financial incentives needed to move forward on the main piece of an ambitious plan to eliminate net carbon emissions from most of the country's heavy oil production (OD Jun.9'21). Suncor CEO Mark Little told investors this week that members of the alliance -- which comprises five of the top oil sands firms accounting for more than 90% of overall production -- have begun a 90-day "consultation period" with Ottawa “to sort out the details around the investment tax credits” associated with the scheme. The key component of the project is a 400 mile carbon trunkline that will carry captured carbon dioxide along a route linking oil sands facilities and terminating at a sequestration site near Cold Lake, Alberta. The carbon capture, utilization and storage (CCUS) part of the plan makes up about 50% of the industry solution to get to net-zero emissions, according to Little. But financing for the project remains the biggest question mark. The alliance has not provided any formal estimates on how much the project will cost. However, MEG Energy CEO Derek Evans recently provided an “early estimate” cost of C$1.4 billion-C$1.6 billion (US$1.1 billion-US$1.3 billion) just to build the pipeline.