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Province approves $70 million in oilsands tech projects

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Nine oilsands projects aimed at reducing emissions have been awarded $70 million in provincial funding, with Environment and Parks Minister Shannon Phillips hoping the investment will also promote economic growth.

The successful projects involve everything from steam generation technology to water use reduction.

“Alberta is investing. It’s taking the price on pollution and using those funds to invest into technology, into partnerships with the largest employers in Fort McMurray and some of the largest employers in this country to reduce their greenhouse gas emissions, reduce their water use and most importantly reduce their costs,” Phillips said during a Tuesday phone interview.

The projects are funded through the Oil Sands Innovation Challenge and provided by the Emissions Reduction Alberta. Phillips says none of the technologies funded are experimental.

A statement says the projects were selected based on how well they could reduce emissions, cost savings and the ability for the technology to advance.

“Not only is the industry making significant strides in improving our environmental performance, we are achieving this progress through strong collaborative effort and a range of partnerships across industry, governments, academia, and technology providers,” said Joy Romero, vice president of technology and innovation with Canadian Natural Resources Ltd, in a statement.

The announcement comes one day after a report from the Canadian Energy Research Institute argued oilsands emissions would exceed Alberta’s cap of 100 million tonnes annually by 2030.

Phillips disputed the findings, arguing the report assumes every oilsands project currently being pitched will be built without any modifications. She also argued the report does not take into account technological or scientific innovations in areas such as reclamation, extraction or refining.

“What they’ve modeled doesn’t take into account the investments and innovation,” she said. “There’s a space in that modelling that is not filled in.”

The new funding also comes after Royal Dutch Shell announced it was selling its eight per cent stake in CNRL for $4.3 billion.

Phillips said companies like Shell are in the process of restructuring after a long period of low oil prices, but said investments like the one she announced will attract investment in the oilsands.

Most concerns about pipelines, she said, are about marine safety and tanker traffic rather than emissions.

“All of the players recommend Alberta needs to reduce its greenhouse gas emissions in order to reduce the carbon in the barrel in order for our energy economy to be resilient,” she said. “Everybody banged pots around greenhouse gas emissions and they don’t anymore. Why? We have a climate plan that leads the continent. I’ll put it up even against California. I’ll put it up against anybody.”

Projects approved for funding

Suncor Energy: High temperature membranes for SAGD water treatment

CNRL: In-pit extraction process

Enlighten Innovations: CLEANSEAS demonstration project

Heavy Oil Solutions, in partnership with Cenovus Energy: Partial upgrader with integrated water treatment

MEG Energy: eMVAPEX pilot, phase 3

Cenovus: Flash steam generation field prototype, multi-pad pilot of a solvent-aided process

Imperial Oil: Enhanced bitumen recovery technology pilot

ConocoPhillips Canada: Non-condensable gas co-injection for thief zone mitigation

vmcdermott@postmedia.com 

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